Wipro Announces Results for the Quarter-Ended December 31, 2023
- IT services operating margin at 16%
- EPS increases 2.0% QoQ
- $3.8 billion order booking with 14 large deal wins
- Moderate voluntary attrition of 12.3% in Q3’24
- Net income for the quarter increased by 1.8% QoQ
- Gross revenue reached Rs 222.1 billion ($2.7 billion1), a decrease of 1.4% QoQ
- IT services segment revenue was at $2,656.1 million, a decrease of 2.1% QoQ
- Non-GAAP2 constant currency IT Services segment revenue decreased 1.7% QoQ
- Total bookings was at $3.8 billion, up by 0.2% QoQ
- IT services segment EBIT for the quarter was Rs 35.4 billion ($425.8 million1), a decrease of 1.8% QoQ
Insights
The reported decrease in Wipro's gross revenue and IT services segment revenue by 1.4% and 2.1% QoQ respectively, indicates a contraction in the company's top-line growth. This contraction could be symptomatic of broader market challenges or increased competition within the IT services industry. The marginal increase in total bookings and large deal bookings suggests stability in the company's order pipeline, which is crucial for future revenue streams. However, the operating margin's slight decline by 11 basis points QoQ, despite the year-to-date improvement, may raise concerns about cost management and pricing pressures. The increase in EPS by 2.0% QoQ is a positive signal for investors, reflecting a modest improvement in profitability.
From a financial perspective, the high operating cash flow at 177.3% of net income is indicative of strong cash conversion efficiency, which is a key indicator of the company's operational effectiveness. The declared interim dividend suggests a commitment to shareholder returns, even amidst revenue headwinds. The forward-looking guidance projecting a potential decrease in revenue of up to -1.5% could be a cautionary signal, suggesting that investors may need to recalibrate expectations for the next quarter.
The IT services market is highly competitive and subject to rapid technological changes. Wipro's strategy, as outlined by the CEO, to embed AI across its solutions and client offerings, aligns with the industry's push towards digital transformation and automation. The focus on AI and the 'ai360 strategy' could position Wipro favorably as businesses increasingly seek to enhance efficiency and productivity through technology. The company's deal wins across various sectors, including healthcare, banking and automotive, demonstrate its ability to diversify its client base and adapt to different industry needs.
The trend towards cloud adoption and digital transformation, as seen in Wipro's strategic deal wins, is consistent with the broader industry movement. The emphasis on hyper-automation and managed services could potentially open up new revenue streams and drive long-term growth. The recognition by various analyst firms underscores Wipro's industry standing and could enhance its brand value, potentially attracting new clients and retaining existing ones.
Wipro's reported moderation in voluntary attrition to a 10-quarter low is significant in the context of the IT industry, which has been facing high attrition rates in recent years. Lower attrition rates can lead to reduced hiring and training costs and improved project continuity, which can have a positive impact on the company's margins and client satisfaction levels. Additionally, the company's investment in consolidating IT services for clients, like the automotive manufacturer's financial services organization, reflects a trend towards integrated service models in the IT industry, which can lead to long-term client partnerships and increased deal sizes.
Wipro's engagement with a US-based technology services company to enhance its navigation assistance offering and with a Swiss multinational corporation as a global network systems integrator, exemplifies the IT industry's ongoing shift towards specialized, high-value services that leverage emerging technologies such as AI and cloud-native solutions. These engagements could enhance Wipro's capabilities and reputation as a provider of cutting-edge IT services, potentially leading to more such deals in the future.
IT services segment revenue near top-end of guidance
Delivers IT services operating margin at
Highlights of the Results
Results for the Quarter ended December 31, 2023:
-
Gross revenue reached
Rs 222.1 billion ($2.7 billion 1.4% QoQ. -
IT services segment revenue was at
$2,656.1 million 2.1% QoQ. -
Non-GAAP2 constant currency IT Services segment revenue decreased
1.7% QoQ. -
Total bookings3 was at
$3.8 billion 0.2% QoQ and large deal bookings4 was at$0.9 billion -
IT services segment EBIT for the quarter was
Rs 35.4 billion ($425.8 million 1.8% QoQ. -
IT services operating margin5 for the quarter was at
16.0% , down by 11 bps QoQ. -
Net income for the quarter was at
Rs 26.9 billion ($323.9 million 1.8% QoQ. -
Earnings per share for the quarter was at
Rs 5.16 ($0.06 2.0% QoQ. -
Operating cash flows at
177.3% of Net Income for the quarter was atRs 47.9 billion ($575.7 million -
Voluntary attrition6 has continued to moderate QoQ, coming in at 10-quarter low of
12.3% in Q3’24. -
Interim dividend declared of
Rs 1 ($0.01 2
Outlook for the Quarter ending March 31, 2024
We expect revenue from our IT Services business segment to be in the range of
* Outlook for the Quarter ending March 31, 2024, is based on the following exchange rates: GBP/USD at 1.24, Euro/USD at 1.08, AUD/USD at 0.65, USD/INR at 83.54 and CAD/USD at 0.72
Performance for the Quarter ended December 31, 2023
“Our investments in people, processes, and business operations are continuing to pay off,” said Thierry Delaporte, CEO and Managing Director. “In a seasonally soft quarter, deal booking momentum remained strong. Our large deals recorded a 20 percent year-to-date growth. Further, we are starting to see early signs of a return to growth in Consulting, as demonstrated by the double-digit growth in order bookings in our Capco business.
“Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves.”
Aparna C. Iyer, Chief Financial Officer, said, “I am pleased with our rigor of execution across all financial metrics - revenue, margin, EPS, and cash flow. We are building a more resilient, agile, and efficient organization which has helped us sustain our margins at
IT Products
-
IT Products segment revenue for the quarter was
Rs 0.8 billion ($9.7 million -
IT Products segment results for the quarter was a gain of
Rs 0.11 billion ($1.37 million
Please refer to the table at the end for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.
-
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 Rs 83.19 , as published by the Federal Reserve Board of Governors on December 31, 2023. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2023, wasUS =$1 Rs 83.40 . - Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.
- Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2.
-
Large deal bookings consist of deals greater than or equal to
$30 million - IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.
- Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP.
- Effective April 1, 2023, we merged our ISRE segment with our IT Services segment. The YoY growth rates for the quarter ended December 31, 2023, were computed by rebase lining Q3’23 numbers.
Highlights of Strategic Deal Wins
In the third quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
- Wipro was selected by a US-based member-governed health insurance non-profit to deploy an integrated Business Platform as a Service to deliver end-to-end plan administration services. Leveraging its proprietary Individual & Family Health Insurance Exchange platform, Wipro will help streamline the enrollment, billing and claims process for the client. The platform will also use AI to reconcile premiums with subsidies offered by the government to minimize costs for members. The client will benefit from increased satisfaction amongst providers, clinics and pharmacies and improved compliance with evolving regulations.
- A global technology leader has chosen Wipro to develop capabilities for their AI-driven orchestration platform. Wipro will collaborate closely with the client to integrate various systems involved in the process lifecycle, simplifying navigation, and streamlining workflows for end-users. This will improve overall productivity and accuracy, enabling tasks to be completed more efficiently. Additionally, this partnership will allow the client to expand the market reach of their solution.
- An American Retail Bank has chosen Wipro as the end-to-end product development partner for the client’s Payments & Digital Platform groups. Capco, Designit, and Wipro teams will provide fully-staffed, cross-functional working groups to deliver on key initiatives across the bank – including cloud migration, marketing analytics, and relationship management modernization. The combined teams will bring architecture, design, and tech delivery capacity, alongside banking domain expertise, and will be underpinned by an offshore delivery model. The resulting effort will deliver immediate efficiencies and power the maturity of the client’s Digital platforms.
- A Middle Eastern financial regulatory body has selected Wipro as a technology partner to strengthen its IT applications and infrastructure. Wipro will create a unique solution to support the client’s business applications, infrastructure technology, service desk, and IT operating model. Wipro will also provide a host of value-added components, including dedicated consulting services from Capco which is aimed at business and IT strategic transformation including data, supervisory tech, and AI. The resulting increased efficiency and productivity will help the client attract both domestic and foreign investments to the region.
- One of the world’s largest wind turbine manufacturers has selected Wipro to transform its Enterprise Resource Planning landscape to harmonize the Finance, Manufacturing, Sales, Supply Chain and Customer service processes. Wipro will deliver a tailored solution that unifies the client’s regional platforms, while matching the individual needs of the business units. This will empower each unit with data-driven decision-making while improving the speed-to-market, as well as supporting the rapid addition of new product lines. Leveraging its Controlled Global Template and Industrialized Rollout Framework, Wipro will ensure shorter and smoother global rollouts with increased business user satisfaction for the client.
- A leading automotive manufacturer’s financial services organization selected Wipro to consolidate their IT services, with the goal of harmonizing their IT processes across the entire enterprise, creating new synergies across functions, and a consolidation of current supplier landscape. The project involves the transformation towards a managed service operation model and providing services for the client’s core infrastructure, central platform services, and end-user computing services. The solutions delivered by the Wipro team will help the client realize its business transformation goals and support their evolution to a mobility services provider.
- An international banking institution has selected Wipro to transform its business applications portfolio. The Wipro team will create a bespoke, automation-based solution to assess, transform, and manage the client’s applications estate. The project will lead to increased operational efficiency, cost reduction, and increased cloud adoption.
- Wipro was selected by one of the world’s largest airlines to deliver omni-channel customer services support across its e-commerce and loyalty program. Through this engagement, Wipro will streamline the customer service process for agents, provide automated visualization for performance management, and track quality through enhanced reporting and analysis. The agents will be trained through gamified learning modules, which will quickly lead to improved processes, reduced wait times and better end-customer experience.
- A US-based technology services company has selected Wipro to augment its navigation assistance offering. For the client’s end users, the Wipro team will improve navigation and create new map features, enhancing the search functionality of 2D and 3D mapping, as well as improving transit, indoor and business listings. For the client’s B2B customers, Wipro will assist in building customized features targeting Autonomous Driving & Simulation (ADAS) technology for the transportation, hospitality, and automotive sectors. The client can expect to see enhanced data and product quality, as well as monetization of their offering.
- An integrated healthcare network has selected Wipro to deliver end-to-end managed services to transform their IT environment and digital infrastructure. As part of this project, the Wipro team will leverage hyper-automation to help the client improve customer service and overall efficiency, increase speed and scalability, as well as achieve cost optimization.
- A US-based education assistance agency has selected Wipro to deliver digitally enabled customer care services. The Wipro team will build a custom solution to transform the client’s end-user journey. The solution will also ensure better contract compliance, more profitable service delivery, improved customer satisfaction, and enhance the client’s overall industry ranking.
- A North American banking group has selected Wipro to test and improve their overall technology efficiency. The Wipro team will improve the testing automation efficiency of their legacy technology stack. This will enable the business to onboard new applications within its infrastructure while improving year-on-year automation efficiency across the client’s portfolio.
- A Swiss multinational corporation has selected Wipro to be its Global Network systems integrator to refresh & transform their 600+ sites to be cloud native. The Wipro team will build a completely customized solution that will allow for flexibility and speed of execution in a time-bound manner using Wipro accelerators. This integration project will align with the client’s overall cloud strategy, increase their speed to market, and will produce cost savings of up to 20 percent.
Analyst Recognition
- Wipro was positioned as a Leader in Avasant's Data Management and Advanced Analytics Services RadarView™ 2023
-
Wipro was rated as a Leader in ISG Provider Lens™ – Future of Work Services and Solutions 2023 -
Germany (multiple quadrants) - Wipro was recognized as a Leader in IDC MarketScape: Worldwide Managed Public Cloud Services 2023 Vendor Assessment (Doc # US49116023 Nov 2023)
- Wipro was featured as a Horizon 3 - Leader in HFS Horizons: Generative Enterprise™ Services, 2023
- Wipro was ranked as a Leader in Avasant's Digital Talent Capability RadarView™ 2023 – 2024
- Wipro was positioned a Leader in Everest Group's Cloud Security Services PEAK Matrix® Assessment 2023
- Wipro was designated a Leader in Everest Group's Cloud Services in Insurance PEAK Matrix® Assessment 2023
- Wipro was named a Leader in IDC MarketScape: Worldwide Supply Chain All Other Ecosystems Services 2023 Vendor Assessment (Doc # US51314123 Nov 2023)
- Wipro was recognized as a Leader in ISG Provider Lens™ – Oil and Gas Industry Services and Solutions 2023 (all quadrants)
-
Wipro was positioned as a Leader in ISG Provider Lens™ – AWS Ecosystem Partners 2023 -
Germany (all quadrants) - Wipro was positioned as a Horizon 3 - Leader in HFS Horizons: Retail and CPG Service Providers, 2023
- Wipro was positioned as a Leader in the 2023 Gartner® Magic Quadrant™ for Managed Network Services
Source & Disclaimer: *Gartner, “Magic Quadrant for Managed Network Services”, Ted Corbett, et al, 18 November 2023.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the
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's 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.
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release, and the opinions expressed in the Gartner Content are subject to change without notice.
About Key Metrics and Non-GAAP Financial Measures
This press release contains key metrics and 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 from the most directly comparable financial measure calculated and presented in accordance with IFRS.
The table at the end 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
Our key metrics and non-GAAP financial measures are 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. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our non-GAAP measures, 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 December 31, 2023, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com/investors/
Quarterly Conference Call
We will hold an earnings conference call today at 07:00 p.m. Indian Standard Time (9:30 a.m.
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 technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With nearly 240,000 employees and business partners across 65 countries, we deliver on the promise of helping our clients, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com
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, the benefits its customers’ experience 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
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.
WIPRO LIMITED AND SUBSIDIARIES |
||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
||||||
(Rs in millions, except share and per share data, unless otherwise stated) |
||||||
|
As at March 31, 2023 |
As at December 31, 2023 |
||||
Convenience translation into
|
||||||
ASSETS |
||||||
Goodwill |
307,970 |
311,251 |
3,741 |
|||
Intangible assets |
43,045 |
34,341 |
413 |
|||
Property, plant and equipment |
88,659 |
81,406 |
979 |
|||
Right-of-Use assets |
18,702 |
17,473 |
210 |
|||
Financial assets |
||||||
Derivative assets |
29 |
21 |
^ |
|||
Investments |
20,720 |
22,666 |
272 |
|||
Trade receivables |
863 |
4,328 |
52 |
|||
Other financial assets |
6,330 |
5,653 |
68 |
|||
Investments accounted for using the equity method |
780 |
759 |
9 |
|||
Deferred tax assets |
2,100 |
1,785 |
21 |
|||
Non-current tax assets |
11,922 |
9,582 |
115 |
|||
Other non-current assets |
13,606 |
10,544 |
127 |
|||
Total non-current assets |
514,726 |
499,809 |
6,007 |
|||
Inventories |
1,188 |
1,066 |
13 |
|||
Financial assets |
||||||
Derivative assets |
1,844 |
1,350 |
16 |
|||
Investments |
309,232 |
292,170 |
3,512 |
|||
Cash and cash equivalents |
91,880 |
91,113 |
1,095 |
|||
Trade receivables |
126,350 |
120,871 |
1,454 |
|||
Unbilled receivables |
60,515 |
57,225 |
688 |
|||
Other financial assets |
9,096 |
8,120 |
98 |
|||
Contract assets |
23,001 |
19,559 |
235 |
|||
Current tax assets |
5,091 |
5,465 |
66 |
|||
Other current assets |
32,899 |
28,369 |
341 |
|||
Total current assets |
661,096 |
625,308 |
7,518 |
|||
TOTAL ASSETS |
1,175,822 |
1,125,117 |
13,525 |
|||
EQUITY |
||||||
Share capital |
10,976 |
10,448 |
126 |
|||
Share premium |
3,689 |
2,837 |
34 |
|||
Retained earnings |
660,964 |
606,952 |
7,296 |
|||
Share-based payment reserve |
5,632 |
5,804 |
70 |
|||
Special Economic Zone re-investment reserve |
46,803 |
42,726 |
514 |
|||
Other components of equity |
53,100 |
61,496 |
739 |
|||
Equity attributable to the equity holders of the Company |
781,164 |
730,263 |
8,779 |
|||
Non-controlling interests |
589 |
698 |
8 |
|||
TOTAL EQUITY |
781,753 |
730,961 |
8,787 |
|||
LIABILITIES |
||||||
Financial liabilities |
||||||
Loans and borrowings |
61,272 |
62,126 |
747 |
|||
Lease liabilities |
15,953 |
15,092 |
181 |
|||
Derivative liabilities |
179 |
48 |
1 |
|||
Other financial liabilities |
2,649 |
1,504 |
18 |
|||
Deferred tax liabilities |
15,153 |
14,307 |
172 |
|||
Non-current tax liabilities |
21,777 |
31,641 |
380 |
|||
Other non-current liabilities |
9,333 |
12,050 |
145 |
|||
Provisions |
^ |
- |
- |
|||
Total non-current liabilities |
126,316 |
136,768 |
1,644 |
|||
Financial liabilities |
||||||
Loans, borrowings and bank overdrafts |
88,821 |
93,621 |
1,125 |
|||
Lease liabilities |
8,620 |
8,297 |
100 |
|||
Derivative liabilities |
2,825 |
1,348 |
16 |
|||
Trade payables and accrued expenses |
89,054 |
81,571 |
981 |
|||
Other financial liabilities |
4,141 |
2,082 |
25 |
|||
Contract liabilities |
22,682 |
18,905 |
227 |
|||
Current tax liabilities |
18,846 |
20,138 |
242 |
|||
Other current liabilities |
30,215 |
29,009 |
349 |
|||
Provisions |
2,549 |
2,417 |
29 |
|||
Total current liabilities |
267,753 |
257,388 |
3,094 |
|||
TOTAL LIABILITIES |
394,069 |
394,156 |
4,738 |
|||
TOTAL EQUITY AND LIABILITIES |
1,175,822 |
1,125,117 |
13,525 |
|||
^ Value is less than 1 |
||||||
WIPRO LIMITED AND SUBSIDIARIES |
||||||||||||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME |
||||||||||||||||||
(Rs in millions, except share and per share data, unless otherwise stated) |
||||||||||||||||||
Three months ended December 31, |
Nine months ended December 31, |
|||||||||||||||||
2022 |
2023 |
2023 |
2022 |
2023 |
2023 |
|||||||||||||
Convenience
(Refer footnote) |
Convenience
(Refer footnote) |
|||||||||||||||||
Revenues |
232,290 |
|
222,051 |
|
2,669 |
|
672,973 |
|
675,520 |
|
8,120 |
|
||||||
Cost of revenues |
(163,273 |
) |
(153,826 |
) |
(1,849 |
) |
(482,708 |
) |
(474,278 |
) |
(5,701 |
) |
||||||
Gross profit |
69,017 |
|
68,225 |
|
820 |
|
190,265 |
|
201,242 |
|
2,419 |
|
||||||
Selling and marketing expenses |
(17,752 |
) |
(19,178 |
) |
(231 |
) |
(48,251 |
) |
(54,529 |
) |
(655 |
) |
||||||
General and administrative expenses |
(15,020 |
) |
(16,444 |
) |
(198 |
) |
(43,467 |
) |
(46,455 |
) |
(558 |
) |
||||||
Foreign exchange gains/(losses), net |
1,391 |
|
262 |
|
3 |
|
3,482 |
|
468 |
|
6 |
|
||||||
Results from operating activities |
37,636 |
|
32,865 |
|
394 |
|
102,029 |
|
100,726 |
|
1,212 |
|
||||||
Finance expenses |
(2,902 |
) |
(3,125 |
) |
(38 |
) |
(7,217 |
) |
(9,244 |
) |
(111 |
) |
||||||
Finance and other income |
4,992 |
|
5,785 |
|
70 |
|
12,722 |
|
17,137 |
|
205 |
|
||||||
Share of net profit/ (loss) of associates accounted for using the equity method |
26 |
|
(4 |
) |
^ |
(61 |
) |
(31 |
) |
^ |
||||||||
Profit before tax |
39,752 |
|
35,521 |
|
426 |
|
107,473 |
|
108,588 |
|
1,306 |
|
||||||
Income tax expense |
(9,102 |
) |
(8,515 |
) |
(102 |
) |
(24,743 |
) |
(26,049 |
) |
(313 |
) |
||||||
Profit for the period |
30,650 |
|
27,006 |
|
324 |
|
82,730 |
|
82,539 |
|
993 |
|
||||||
Profit attributable to: |
||||||||||||||||||
Equity holders of the Company |
30,529 |
|
26,942 |
|
323 |
|
82,755 |
|
82,106 |
|
988 |
|
||||||
Non-controlling interests |
121 |
|
64 |
|
1 |
|
(25 |
) |
433 |
|
5 |
|
||||||
Profit for the period |
30,650 |
|
27,006 |
|
324 |
|
82,730 |
|
82,539 |
|
993 |
|
||||||
Earnings per equity share: |
||||||||||||||||||
Attributable to equity holders of the Company |
||||||||||||||||||
Basic |
5.57 |
|
5.16 |
|
0.06 |
|
15.12 |
|
15.46 |
|
0.19 |
|
||||||
Diluted |
5.56 |
|
5.15 |
|
0.06 |
|
15.08 |
|
15.42 |
|
0.19 |
|
||||||
Weighted average number of equity shares |
||||||||||||||||||
used in computing earnings per equity share |
||||||||||||||||||
Basic |
5,480,138,169 |
|
5,218,470,886 |
|
5,218,470,886 |
|
5,475,982,068 |
|
5,310,985,603 |
|
5,310,985,603 |
|
||||||
Diluted |
5,486,025,875 |
|
5,230,916,313 |
|
5,230,916,313 |
|
5,487,483,177 |
|
5,326,825,104 |
|
5,326,825,104 |
|
||||||
^ Value is less than 1 |
||||||||||||||||||
Additional Information:
Particulars |
Three months ended |
Nine months ended |
Year ended |
|||||||||
December
|
September
|
December
|
December
|
December
|
March
|
|||||||
Audited |
Audited |
Audited |
Audited |
Audited |
Audited |
|||||||
Segment revenue |
||||||||||||
IT Services |
||||||||||||
|
68,581 |
|
66,813 |
|
67,788 |
|
201,001 |
|
194,840 |
|
261,270 |
|
|
66,541 |
|
66,914 |
|
71,168 |
|
201,758 |
|
207,811 |
|
278,374 |
|
|
61,473 |
|
63,976 |
|
66,323 |
|
192,583 |
|
189,283 |
|
256,845 |
|
APMEA |
24,913 |
|
26,255 |
|
26,681 |
|
77,678 |
|
79,605 |
|
106,812 |
|
Total of IT Services |
221,508 |
|
223,958 |
|
231,960 |
|
673,020 |
|
671,539 |
|
903,301 |
|
IT Products |
805 |
|
1,469 |
|
1,721 |
|
2,968 |
|
4,916 |
|
6,047 |
|
Total segment revenue |
222,313 |
|
225,427 |
|
233,681 |
|
675,988 |
|
676,455 |
|
909,348 |
|
Segment result |
||||||||||||
IT Services |
||||||||||||
|
16,459 |
|
15,287 |
|
13,586 |
|
45,283 |
|
38,110 |
|
51,555 |
|
|
15,180 |
|
14,023 |
|
15,567 |
|
43,372 |
|
43,750 |
|
59,689 |
|
|
7,906 |
|
7,547 |
|
10,203 |
|
25,421 |
|
26,643 |
|
37,667 |
|
APMEA |
3,433 |
|
2,985 |
|
2,912 |
|
9,218 |
|
7,651 |
|
10,681 |
|
Unallocated |
(7,552 |
) |
(3,784 |
) |
(4,662 |
) |
(15,293 |
) |
(12,596 |
) |
(18,368 |
) |
Total of IT Services |
35,426 |
|
36,058 |
|
37,606 |
|
108,001 |
|
103,558 |
|
141,224 |
|
IT Products |
114 |
|
(467 |
) |
41 |
|
(514 |
) |
(117 |
) |
(176 |
) |
Reconciling Items |
(2,675 |
) |
(2,246 |
) |
(11 |
) |
(6,761 |
) |
(1,412 |
) |
(1,442 |
) |
Total segment result |
32,865 |
|
33,345 |
|
37,636 |
|
100,726 |
|
102,029 |
|
139,606 |
|
Finance expenses |
(3,125 |
) |
(3,033 |
) |
(2,902 |
) |
(9,244 |
) |
(7,217 |
) |
(10,077 |
) |
Finance and other income |
5,785 |
|
4,810 |
|
4,992 |
|
17,137 |
|
12,722 |
|
18,185 |
|
Share of net profit/ (loss) of associates accounted for using the equity method |
(4 |
) |
(30 |
) |
26 |
|
(31 |
) |
(61 |
) |
(57 |
) |
Profit before tax |
35,521 |
|
35,092 |
|
39,752 |
|
108,588 |
|
107,473 |
|
147,657 |
|
Effective April 1, 2023, we merged our India State Run Enterprise segment (“ISRE”) with our IT Services segment. Currently, the Company is organized into the following operating segments: IT Services and IT Products.
IT Services: As announced on November 12, 2020, effective January 1, 2021, we re-organized our IT Services segment into four Strategic Market Units (“SMUs”) -
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.
Reconciliation of selected GAAP measures to Non-GAAP measures
| Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn) | ||||
Three Months ended December 31, 2023 |
||||
IT Services Revenue as per IFRS |
$ |
2,656.1 |
|
|
Effect of Foreign currency exchange movement |
$ |
12.5 |
||
|
|
|||
Non-GAAP Constant Currency IT Services Revenue
|
$ |
2,668.6 |
|
|
Three Months ended December 31, 2023 |
||||
IT Services Revenue as per IFRS |
$ |
2,656.1 |
|
|
Effect of Foreign currency exchange movement |
$ |
(29.9 |
) |
|
|
||||
Non-GAAP Constant Currency IT Services Revenue
|
$ |
2,626.2 |
|
|
Reconciliation of Free Cash Flow for three months and nine months ended December 31, 2023
|
Amount in INR Mn |
|||
|
Three months ended
|
Nine months ended December 31, 2023 |
||
Net Income for the period [A] |
27,006 |
|
82,539 |
|
Computation of Free Cash Flow |
|
|
||
Net cash generated from operating activities [B] |
47,891 |
|
124,037 |
|
Add/ (deduct) cash inflow/ (outflow)on: |
|
|
||
Purchase of property, plant and equipment |
(2,078 |
) |
(6,262 |
) |
Proceeds from sale of property, plant and equipment |
(320 |
) |
3,903 |
|
Free Cash Flow [C] |
45,493 |
|
121,678 |
|
Operating Cash Flow as percentage of Net Income [B/A] |
177.3 |
% |
150.3 |
% |
Free Cash Flow as percentage of Net Income [C/A] |
168.5 |
% |
147.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240112531539/en/
Contact for Investor Relations
Dipak Kumar Bohra
Phone: +91-80-6142 7201
dipak.bohra@wipro.com
Abhishek Jain
Phone: +91-80-6142 6143
abhishek.jain2@wipro.com
Contact for Media & Press
Phone: +91-80-6142 6450
media-relations@wipro.com
Source: Wipro Limited
FAQ
What was Wipro Limited's IT services segment revenue for the quarter-ended December 31, 2023?
What was the operating margin for Wipro Limited's IT services segment?
How much was the order booking for Wipro Limited in the quarter-ended December 31, 2023?
What was the net income increase for Wipro Limited in the quarter-ended December 31, 2023?
What was the total bookings increase for Wipro Limited in the quarter-ended December 31, 2023?
What was the decrease in non-GAAP constant currency IT Services segment revenue for Wipro Limited in the quarter-ended December 31, 2023?
