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Wipro (WIT)

Filed: 19 Jul 21, 4:00pm

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

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Results for the Quarter ended June 30, 2021 under IFRS

IT Services delivers strong revenue growth for the quarter at 12.2% QoQ

Net Income & EPS showed a robust increase of 35.2% YoY

and 41.0% YoY respectively

Bangalore, India and East Brunswick, New Jersey, USA – July 15, 2021—Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended June 30, 2021.

Highlights of the Results

Results for the Quarter ended June 30, 2021:

 

  

Gross Revenue was 182.5 billion ($2.5 billion1), an increase of 12.4% QoQ and 22.4% YoY

 

  

IT Services Segment Revenue was at $2,414.5 million, an increase of 12.2% QoQ and 25.7% YoY

 

  

Non-GAAP2 constant currency IT Services Segment Revenue increased by 12.0% QoQ and 21.3% YoY

 

  

IT Services Operating Margin3 for the quarter was at 18.8%, a decrease of 29 bps YoY

 

  

Net Income for the quarter was 32.3 billion ($434.8 million1), an increase of 35.2% YoY

 

  

Earnings Per Share for the quarter was at 5.92 ($0.081), an increase of 41.0% YoY

 

  

Operating Cash Flow was at 33.5 billion ($451.1 million1), which is 103.7% of Net Income

 

  

Our IT Services workforce crossed the milestone of 200K, closing headcount at 209,890

 

  

In June 2021, we issued our first ever dollar denominated bond offering of $750 million with a 5-year tenor

Performance for the quarter ended June 30, 2021

Thierry Delaporte, CEO and Managing Director said, “Despite the severe onslaught of the pandemic, we delivered our best-ever quarter, with secular growth across all SMUs, Sectors and GBLs. Our sequential revenue growth of 12.2% was well ahead of the top-end of our guidance range, both organically and with Capco. Though in the early days yet, I am pleased with the way we have collaborated with Capco to build our joint go-to-market offerings and strategy. We remain focused on deepening our customer relationships, investing in talent & capabilities for the future, and winning market share.”

Jatin Dalal, Chief Financial Officer said, “We delivered a robust growth in EPS of 41% YoY even as we continued to invest for growth. At 103.7% of our net income, our operating cash flows for the quarter remained healthy. I am also pleased to share that we have successfully issued our debut bond offering in the international markets for $750 million.”

Outlook for the quarter ending September 30, 2021

We expect Revenue from our IT Services business to be in the range of $2,535 million to $2,583 million*. This translates to a sequential growth of 5.0% to 7.0%.

Wipro signed an agreement to acquire Ampion on April 1, 2021, and we previously announced that it will be closed during Q1’22. However certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2’22.

*Outlook is based on the following exchange rates: GBP/USD at 1.40, Euro/USD at 1.21, AUD/USD at 0.77, USD/INR at 73.79 and CAD/USD at 0.81

 

 1.

For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 =  74.33, as published by the Federal Reserve Board of Governors on June 30, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2021 was US$1=  74.75

 

 2.

Constant currency revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period

 

 3.

IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials


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IT Services

Wipro continued its momentum in winning large deals with our customers as described below:

 

  

Wipro has won a multi-year engagement with a leading US-based communication services provider to deliver end-to-end quality engineering (QE) services for their applications, accelerating software release velocity and improving QE maturity. Additionally, the customer has selected Wipro to support database operations in a managed services model. Wipro will drive migration to new age databases and enhance operational efficiencies through automation

 

  

A US based oil field services company has awarded Wipro a strategic IT outsourcing contract to provide applications, infrastructure, & cybersecurity services. Wipro will also assist the customer in digital transformation projects including modernizing the IT operations, reducing IT operating cost, and improving IT services experience for end users to enable scalable services in a changing energy industry

 

  

A European multinational pharmaceutical company has awarded Wipro a multi-million-dollar engagement to personalize end user services leveraging digital interventions to ensure superior consumer experience for their employees globally

 

  

Wipro has won a large digital workplace contract from a US-based health insurance company to transform and manage their end user services globally to improve customer experience centered around a digital-first theme

 

  

A leading multinational electric and gas utility provider has awarded Wipro a global strategic IT infrastructure contract. The engagement will enhance the customer’s digital transformation journey, leveraging integrated managed services and consolidating multiple data centers to next-generation hosting services, through Wipro’s Boundaryless Enterprise solutions

Digital Services Highlights

We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:

 

  

A leading US-based distributor of plumbing supplies has selected Wipro to support its cloud transformation journey by embedding quality engineering in the development lifecycle encompassing CRM implementation, data migration, and legacy applications. Additionally, Wipro will provide managed services for Cloud ERP covering multiple business functions, resulting in improved business agility and enhancing customer experience across more than 1,400 store locations

 

  

A global shipping and logistics company has engaged Wipro for the digital transformation and modernization of its integrated shipping portfolio. The engagement will make it easier for the end customers to integrate their services, while providing improved reliability and speed, thus enabling the client to compete in the global e-commerce market

 

  

Wipro has won a strategic engagement with a leading US-based financial services company to accelerate their digital transformation journey by implementing an outcome-based high velocity software engineering model enabled by multi-skilled agile teams deployed globally

 

  

A globally integrated energy company has selected Wipro’s crowdsourcing platform Topcoder to design their next-generation customer-centric experience for promotion and loyalty management. Topcoder’s on-demand community will help accelerate product development, applying experience design to enable scale and expansion of the digital product globally

 

  

A leading US-based medical devices original equipment manufacturer (OEM) has selected Wipro to build and launch a global patient engagement platform encompassing their cardiac rhythm management portfolio of devices

 

 

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Analyst Recognition

 

  

Wipro was positioned as a Leader in IDC MarketScape: Worldwide Supply Chain SAP Ecosystems Services 2021 Vendor Assessment (Doc #US47537120, Mar 2021)

 

  

Wipro was positioned as a Leader in IDC MarketScape: Worldwide Smart Manufacturing Service Providers 2021 Vendor Assessment (Doc #EUR147689021, Jun 2021)

 

  

Wipro was positioned as a Leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2021 Vendor Assessment ( Doc #US46741921, May 2021)

 

  

Wipro was recognized as a Leader in Everest Group’s IT Managed Security Services PEAK Matrix® Assessment 2021

 

  

Wipro was recognized as a Leader and Star Performer in Everest Group’s Life Sciences Operations Services PEAK Matrix® Assessment 2021

 

  

Wipro was positioned as a Leader in Everest Group’s Application and Digital Services in Banking PEAK Matrix® Assessment 2021

 

  

Wipro was rated as a Leader in ISG Provider Lens ServiceNow Ecosystem Partners 2021: Implementation & Integration Services and Managed Services Providers – US

 

  

Wipro was rated as a Leader in ISG Provider Lens Microsoft Ecosystem 2021: Managed Services for Azure, SAP on Azure, Dynamics 365 and Office 365 Modern Workplace – US

 

  

Wipro ranks among the Top Service Providers in Customer Satisfaction Category in Whitelane & PA Consulting UK IT Outsourcing Study 2021

Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

IT Products

 

  

IT Products Segment Revenue for the quarter was 1.3 billion ($17.6 million1)

 

  

IT Products Segment Results for the quarter was a loss of 0.1 billion ($0.7 million1)

India business from State Run Enterprises (ISRE)

 

  

India SRE Segment Revenue for the quarter was 1.9 billion ($26.1 million1)

 

  

India SRE Segment Results for the quarter was a profit of 0.5 billion ($6.4 million1)

Please refer to the table on page 9 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

 

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About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that are adjusted to exclude or include amounts that are excluded or included, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.

The table on page 9 provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial measure that is calculated by translating IT Services Revenue from the current reporting period into U.S. dollars based on the currency conversion rate in effect for the prior reporting period. We refer to growth rates in constant currency so that business results may be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.

This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS and may be different from non-GAAP measures used by other companies. In addition to this non-GAAP measure, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.

Results for the quarter ended June 30, 2021, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com

Quarterly Conference Call

We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (09:45 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a web-cast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP20210715

An audio recording of the management discussions and the question-and-answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com

About Wipro Limited

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 200,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

 

Contact for Investor Relations  Contact for Media & Press
Aparna Iyer  Abhishek Kumar Jain  Vipin Nair
Phone: +91-80-6142 7139  Phone: +91-9845791363  Phone: +91-80-6142 6450
iyer.aparna@wipro.com  abhishekkumar.jain@wipro.com  vipin.nair1@wipro.com

 

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Forward-Looking Statements

The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, complete proposed corporate actions, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our business and industry.

Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

# # #

(Tables to follow)

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

( in millions, except share and per share data, unless otherwise stated)

 

   As at March 31, 2021   As at June 30, 2021 
           Convenience translation into
US dollar in millions

Refer footnote in page 1
 

ASSETS

      

Goodwill

   139,127   223,485   3,007

Intangible assets

   13,085   43,029   579

Property, plant and equipment

 �� 85,192   86,720   1,167

Right-of-Use assets

   16,420   19,804   266

Financial assets

      

Derivative assets

   16   17   ^ 

Investments

   10,576   11,024   148

Trade receivables

   4,358   4,392   59

Other financial assets

   6,088   8,248   111

Investments accounted for using the equity method

   1,464   709   10

Deferred tax assets

   1,664   2,743   37

Non-current tax assets

   14,323   11,099   149

Other non-current assets

   15,935   11,795   159
  

 

 

   

 

 

   

 

 

 

Total non-current assets

   308,248   423,065   5,692
  

 

 

   

 

 

   

 

 

 

Inventories

   1,064   945   13

Financial assets

      

Derivative assets

   4,064   2,458   33

Investments

   175,707   167,034   2,247

Cash and cash equivalents

   169,793   140,617   1,892

Trade receivables

   94,298   104,377   1,404

Unbilled receivables

   27,124   33,663   453

Other financial assets

   7,245   8,670   117

Contract assets

   16,507   20,052   270

Current tax assets

   2,461   4,587   62

Other current assets

   24,923   25,966   349
  

 

 

   

 

 

   

 

 

 

Total current assets

   523,186   508,369   6,840
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

   831,434   931,434   12,532
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Share capital

   10,958   10,958   147

Share premium

   714   740   10

Retained earnings

   466,692   498,003   6,700

Share-based payment reserve

   3,071   3,884   52

SEZ Re-investment reserve

   41,154   42,297   569

Other components of equity

   30,506   33,785   455
  

 

 

   

 

 

   

 

 

 

Equity attributable to the equity holders of the Company

   553,095   589,667   7,933

Non-controlling interests

   1,498   1,095   15
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY

   554,593   590,762   7,948
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Financial liabilities

      

Loans and borrowings

   7,458   55,392   745

Lease liabilities

   13,513   15,862   213

Other financial liabilities

   2,291   3,349   45

Deferred tax liabilities

   4,633   14,367   193

Non-current tax liabilities

   11,069   11,083   149

Other non-current liabilities

   7,835   10,082   136

Provisions

   2   1   ^ 
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

   46,801   110,136   1,481
  

 

 

   

 

 

   

 

 

 

Financial liabilities

      

Loans, borrowings and bank overdrafts

   75,874   60,105   809

Derivative liabilities

   1,070   1,218   16

Trade payables and accrued expenses

   78,870   88,941   1,197

Lease liabilities

   7,669   8,811   119

Other financial liabilities

   1,470   4,091   55

Contract liabilities

   22,535   21,153   286

Current tax liabilities

   17,324   18,088   243

Other current liabilities

   24,552   27,450   369

Provisions

   676   679   9
  

 

 

   

 

 

   

 

 

 

Total current liabilities

   230,040   230,536   3,103
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

   276,841   340,672   4,584
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

   831,434   931,434   12,532
  

 

 

   

 

 

   

 

 

 

 

^

Value is less than 1

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

( in millions, except share and per share data, unless otherwise stated)

 

   Three months ended June 30, 
   2020  2021  2021 
         Convenience translation
into US dollar in millions

Refer footnote 1 in page 1
 

Revenues

   149,131  182,524  2,456

Cost of revenues

   (103,700  (127,567  (1,716
  

 

 

  

 

 

  

 

 

 

Gross profit

   45,431  54,957  740

Selling and marketing expenses

   (9,789  (13,017  (175

General and administrative expenses

   (10,006  (10,530  (142

Foreign exchange gains/(losses), net

   1,205  1,160  16

Other operating income/(loss), net

   97  2,150  29
  

 

 

  

 

 

  

 

 

 

Results from operating activities

   26,938  34,720  468

Finance expenses

   (1,299  (746  (10

Finance and other income

   5,281  4,619  62

Share of net profit of associates accounted for using the equity method

   31  7  ^ 
  

 

 

  

 

 

  

 

 

 

Profit before tax

   30,951  38,600  520

Income tax expense

   (6,838  (6,225  (84
  

 

 

  

 

 

  

 

 

 

Profit for the period

   24,113  32,375  436
  

 

 

  

 

 

  

 

 

 

Profit attributable to:

    

Equity holders of the Company

   23,902  32,321  435

Non-controlling interests

   211  54  1
  

 

 

  

 

 

  

 

 

 

Profit for the period

   24,113  32,375  436
  

 

 

  

 

 

  

 

 

 

Earnings per equity share:

    

Attributable to equity holders of the Company

    

Basic

   4.20  5.92  0.08

Diluted

   4.19  5.90  0.08

Weighted average number of equity shares used in computing earnings per equity share

    

Basic

   5,693,348,171  5,462,996,981  5,462,996,981

Diluted

   5,703,168,248  5,476,992,662  5,476,992,662

 

^

Value is less than 1

 

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Additional Information:

 

Particulars

  Three months ended   Year ended 
  June 30,
2021
   March 31,
2021
   June 30,
2020
   March 31,
2021
 
  Audited   Audited   Audited   Audited 

Revenue

        

IT Services

        

Americas 1

   49,683   46,510   42,612   178,091

Americas 2

   55,105   46,475   44,194   179,821

Europe

   54,461   45,107   38,944   165,441

APMEA

   21,232   20,825   20,158   82,462
  

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

   180,481   158,917   145,908   605,815

IT Products

   1,311   2,117   2,306   7,685

ISRE

   1,937   2,302   2,111   8,912

Reconciling Items

   (45   4   11   13
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

   183,684   163,340   150,336   622,425
  

 

 

   

 

 

   

 

 

   

 

 

 

Other operating income/(loss), net

        

IT Services

   2,150   —      97   (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Other operating income/(loss), net

   2,150   —      97   (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

        

IT Services

        

Americas 1

   9,379   9,863   6,504   33,040

Americas 2

   11,350   10,500   10,422   41,589

Europe

   8,325   8,704   7,547   31,673

APMEA

   3,066   3,074   2,546   11,476

Unallocated

   56   1,257   748   5,153

Other operating income/(loss), net

   2,150   —      97   (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

   34,326   33,398   27,864   122,850
  

 

 

   

 

 

   

 

 

   

 

 

 

IT Products

   (53   145   123   45

ISRE

   475   587   (106   1,061

Reconciling Items

   (28   37   (943   (903
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   34,720   34,167   26,938   123,053

Finance expenses

   (746   (1,122   (1,299   (5,088

Finance and Other Income

   4,619   4,447   5,281   20,912

Share of net profit of associates accounted for using the equity method

   7   4   31   130
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

   38,600   37,496   30,951   139,007
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

IT Services: As announced on November 12, 2020, effective January 1, 2021, the Company re-organized IT Services segment.to four Strategic Market Units (“SMUs”)—Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).

Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.

Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM”). Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada. Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.

IT Products: The Company is a value-added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.

India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by the Government of India and/ or any State Governments.

Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn)

 

Three Months ended June 30, 2021

  

IT Services Revenue as per IFRS

  $2,414.5 

Effect of Foreign currency exchange movement

  $(4.5
  

 

 

 

Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates

  $2,410.0 

 

Three Months ended June 30, 2021

  

IT Services Revenue as per IFRS

  $2,414.5 

Effect of Foreign currency exchange movement

  $(83.8
  

 

 

 

Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year

  $2,330.6 

 

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