Wipro Announces Results for the Quarter ended June 30, 2023, Delivers Net Income growth of 12% YoY
Total Bookings of
Large deal Bookings growth of
Operating Cash Flows at 130% of Net Income
Highlights of the Results
Results for the Quarter ended June 30, 2023:
-
Gross Revenue reached
Rs 228.3 billion ($2.8 billion 6.0% YoY -
IT Services Segment Revenue increased to
$2,778.5 million 0.8% YoY and an increase of6.1% YoY in INR terms -
Non-GAAP2 constant currency IT Services segment revenue decreased
2.8% QoQ, increased1.1% YoY -
Total Bookings3 was at
$3.7 billion $1.2 billion 9% YoY -
IT Services Operating Margin5 for the quarter was at
16.0% , up 112 bps YoY -
Net Income for the quarter was at
Rs 28.7 billion ($349.8 million 12.0% YoY -
Earnings Per Share for the quarter was at
Rs 5.23 ($0.06 11.5% YoY -
Operating Cash Flows at
130% of Net Income for the quarter was atRs 37.5 billion ($457.1 million -
Voluntary attrition6 has continued to moderate QoQ, coming in at an 8-quarter low of
14% in Q1’24
Outlook for the Quarter ending September 30, 2023
We expect Revenue from our IT Services business segment to be in the range of
* Outlook for the Quarter ending September 30, 2023, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.10, AUD/USD at 0.67, USD/INR at 82.34 and CAD/USD at 0.76
Performance for the Quarter ended June 30, 2023
“Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins,” said Thierry Delaporte, CEO and Managing Director. “Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the
Jatin Dalal, Chief Financial Officer, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating Margin for the first quarter was
Analyst Recognition
- Wipro was positioned as a Leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2023 Vendor Assessment (Doc # US49647023 May 2023)
- Wipro was positioned as a Leader in Avasant's Applied AI Services RadarView™ 2022 – 2023
- Wipro was positioned a Leader in Everest Group's Application Automation Services PEAK Matrix® Assessment 2023
- Wipro was rated a Leader in Everest Group's Enterprise Blockchain Services PEAK Matrix® Assessment 2023
- Wipro was featured as a Leader in Avasant's Cybersecurity Services RadarView™ 2023
-
Wipro was rated as a Leader in ISG Provider Lens™ – Network-Software Defined Solutions and Services 2023 - US,
UK ,Germany (multiple quadrants) - Wipro was named as a Leader in ISG Provider Lens™ – ServiceNow Ecosystem Partners 2023 - US (multiple quadrants)
-
Wipro was recognized as a Leader in ISG Provider Lens™ – Salesforce Ecosystem Partners 2023 - US,
UK ,Germany (multiple quadrants) - Wipro was recognized a Leader in Everest Group's Intelligent Process Automation (IPA) PEAK Matrix® Assessment 2023
- Wipro was rated as a Leader in Avasant's Multisourcing Service Integration RadarView™ 2022 – 2023
IT Products
-
IT Products segment revenue for the quarter was
Rs 0.69 billion ($8.5 million -
IT Products segment results for the quarter was a loss of
Rs 0.16 billion ($2.0 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.
Highlights of Strategic Deal Wins
In the first quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
- A Fortune 100 global healthcare payer has extended its partnership with Wipro for a multi-year deal, consolidating and transforming their contact center operations. The Wipro team will collaborate with the client to develop solutions to reduce and deflect call volumes, improve productivity, as well as develop AI to simplify processes and improve their Net Promoter Score (NPS).
- Wipro has been awarded a contract by a leading global cycle manufacturer to run an end-to-end transformation program covering business operations in sales, manufacturing, and finance & supply chain across 15 countries. Through this program Wipro will consolidate multiple Enterprise Resource Planning (ERP) systems into a single harmonised Dynamics 365 Finance and Operations (F&O) platform. This will improve inventory and supply chain visibility, leading to better order fulfilment including contract negotiation and value realisation for the procurement function; minimize downtime through better production planning for manufacturing and create better cashflow visibility for finance; while setting up a data foundation to become an AI-driven insights-led organisation.
- A major US airport selected Wipro to help them reduce their carbon footprint, aligned to Airports Carbon Accreditation (ACA) requirements. Wipro will assist by delivering a greenhouse gas inventory analysis, carbon reduction roadmap, sustainability transparency reporting, and the design for their annual report. Wipro will leverage its unique Wipro Impact Framework to align the client to ACA accreditation requirements, while also enabling them to ready for future.
- An energy services and delivery company has selected Wipro to standardize their software development process. The project will enable the client to more efficiently develop software using automation, agile principles, continuous integration, as well as a redesigned team structure. This transformation project will allow for a better flow of business value for the client, reduce technical debt, enable cloud adoption and create an enhanced experience for their customers.
- A global transportation, e-commerce, and business services company has selected Wipro to help address challenges around business transformation, cost optimization and capacity management. The Wipro team will have the ownership and accountability of Specialized Managed Services focused on continuous improvement and outcome-based services. The Wipro team will ensure the retention of institutional knowledge of more than 50 portfolio applications delivering predictable outcomes, driving strategic initiatives, and complementing client’s optimization charter to drive better efficiencies and enhanced user experiences.
- One of the largest home improvement retailers has selected Wipro to help them operate and transform their retail and core finance functions. Wipro and the client will co-create a solution to improve operational efficiencies, optimize costs, and ensure zero disruption during peak periods. The project will also help them gain and retain key talent by supporting flexible work from home model.
-
A leading
India -based private sector bank has selected Wipro to transform their traditional Managed Services support model to a Modern Workplace model to enhance their overall user experience and create a hyper-personalized and frictionless workplace. Wipro will deliver rapid transformation through a machine-first approach with cognition, hyper-automation, and analytics. Automation will drive the resolution of up to25% of the tickets raised. Through an employee-centric design for streamlined banking services, Wipro will enable standardized operations globally, eliminate redundancies and improve service quality with a focus on compliance. Wipro will also provide an efficient, scalable, secure, and centralized estate to improve asset and vendor management.
- A global tech giant chose Wipro to help them reduce their products’ total cost of ownership. Over the course of this multi-year deal, Wipro will set up a dedicated facility to reduce their operational cost burden. The project will involve Quality Assurance automation to improve productivity, reduce costs, and generate additional revenue.
-
A general insurance company has selected Wipro to fulfil a multi-year transformation program to migrate their claims legacy landscape to the cloud. One the key aspect of this project is the migration of the client’s inbound and outbound communication as well as documentation to a cloud-based platform. To achieve this, the Wipro team built a bespoke version of our DocHawk tool to seamlessly integrate it into the client’s infrastructure. The client has seen an immediate cost saving of over
30% with the option to expand this efficiency across all other critical programs.
- A global pharmaceutical and medical device company selected Wipro to enable them to track, manage and report complaints. In this highly regulated industry, they needed a partner who had extensive experience in the medical sector, could provide multilingual support, and ensure they remained compliant with relevant regulatory bodies. Wipro devised a unique solution including a multi-lingual contact center, with the ability to support calls, emails, and surface mails. As well as a robust Quality Assurance process, in compliance with FDA guidelines, supported by an automated auditing process to ensure accuracy of data submission to government regulatory bodies, helping the client meet regulatory submission requirements.
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 |
|
2. |
Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period |
|
3. |
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 |
|
4. |
Large deal bookings consist of deals greater than or equal to |
|
5. |
IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials. |
|
6. |
Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP |
|
7. |
Effective April 1, 2023, we merged our ISRE segment with our IT Services segment. The QoQ and YoY growth rates for the quarter ended June 30, 2023 were computed by rebaselining ISRE numbers in Q4’23 and Q1’23 |
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, as the case may be, 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 June 30, 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 07:30 p.m. Indian Standard Time (10:00 a.m.
https://links.ccwebcast.com/?EventId=WIP130723
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 around 250,000 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, 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 June 30, 2023 |
||||
Convenience translation into US dollar in millions Refer footnote |
||||||
ASSETS |
||||||
Goodwill |
307,970 |
306,970 |
3,741 |
|||
Intangible assets |
43,045 |
41,155 |
502 |
|||
Property, plant and equipment |
88,659 |
86,464 |
1,054 |
|||
Right-of-Use assets |
18,702 |
18,448 |
225 |
|||
Financial assets |
||||||
Derivative assets |
29 |
193 |
2 |
|||
Investments |
20,720 |
20,782 |
253 |
|||
Trade receivables |
863 |
861 |
10 |
|||
Other financial assets |
6,330 |
6,368 |
78 |
|||
Investments accounted for using the equity method |
780 |
782 |
10 |
|||
Deferred tax assets |
2,100 |
1,942 |
24 |
|||
Non-current tax assets |
11,922 |
12,295 |
150 |
|||
Other non-current assets |
13,606 |
13,247 |
161 |
|||
Total non-current assets |
514,726 |
509,507 |
6,210 |
|||
Inventories |
1,188 |
1,375 |
17 |
|||
Financial assets |
||||||
Derivative assets |
1,844 |
3,297 |
40 |
|||
Investments |
309,232 |
351,156 |
4,279 |
|||
Cash and cash equivalents |
91,880 |
83,616 |
1,019 |
|||
Trade receivables |
126,350 |
114,457 |
1,395 |
|||
Unbilled receivables |
60,515 |
64,467 |
786 |
|||
Other financial assets |
9,096 |
12,478 |
152 |
|||
Contract assets |
23,001 |
25,168 |
307 |
|||
Current tax assets |
5,091 |
4,750 |
58 |
|||
Other current assets |
32,899 |
30,344 |
370 |
|||
Total current assets |
661,096 |
691,108 |
8,423 |
|||
TOTAL ASSETS |
1,175,822 |
1,200,615 |
14,633 |
|||
EQUITY |
||||||
Share capital |
10,976 |
10,978 |
134 |
|||
Share premium |
3,689 |
4,155 |
51 |
|||
Retained earnings |
660,964 |
545,698 |
6,650 |
|||
Share-based payment reserve |
5,632 |
6,268 |
76 |
|||
Special Economic Zone re-investment reserve |
46,803 |
45,891 |
559 |
|||
Other components of equity |
53,100 |
56,039 |
683 |
|||
Equity attributable to the equity holders of the Company |
781,164 |
669,029 |
8,153 |
|||
Non-controlling interests |
589 |
624 |
8 |
|||
TOTAL EQUITY |
781,753 |
669,653 |
8,161 |
|||
LIABILITIES |
||||||
Financial liabilities |
||||||
Loans and borrowings |
61,272 |
61,197 |
746 |
|||
Lease liabilities |
15,953 |
16,079 |
196 |
|||
Derivative liabilities |
179 |
45 |
1 |
|||
Other financial liabilities |
2,649 |
1,547 |
19 |
|||
Deferred tax liabilities |
15,153 |
15,772 |
192 |
|||
Non-current tax liabilities |
21,777 |
23,504 |
286 |
|||
Other non-current liabilities |
9,333 |
10,151 |
124 |
|||
Provisions |
^ |
- |
- |
|||
Total non-current liabilities |
126,316 |
128,295 |
1,564 |
|||
Financial liabilities |
||||||
Loans, borrowings and bank overdrafts |
88,821 |
88,712 |
1,081 |
|||
Lease liabilities |
8,620 |
8,706 |
106 |
|||
Derivative liabilities |
2,825 |
1,448 |
18 |
|||
Trade payables and accrued expenses |
89,054 |
80,735 |
984 |
|||
Other financial liabilities |
4,141 |
123,413 |
1,504 |
|||
Contract liabilities |
22,682 |
19,595 |
239 |
|||
Current tax liabilities |
18,846 |
20,898 |
255 |
|||
Other current liabilities |
30,215 |
56,760 |
692 |
|||
Provisions |
2,549 |
2,400 |
29 |
|||
Total current liabilities |
267,753 |
402,667 |
4,908 |
|||
TOTAL LIABILITIES |
394,069 |
530,962 |
6,472 |
|||
TOTAL EQUITY AND LIABILITIES |
1,175,822 |
1,200,615 |
14,633 |
|||
^ 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 June 30, |
|||||||||
2022 |
2023 |
2023 |
|||||||
Convenience translation into US dollar in millions
|
|||||||||
Revenues |
215,286 |
|
228,310 |
|
2,782 |
|
|||
Cost of revenues |
(155,600 |
) |
(161,261 |
) |
(1,965 |
) |
|||
Gross profit |
59,686 |
|
67,049 |
|
817 |
|
|||
Selling and marketing expenses |
(15,359 |
) |
(16,584 |
) |
(202 |
) |
|||
General and administrative expenses |
(13,471 |
) |
(15,887 |
) |
(194 |
) |
|||
Foreign exchange gains/(losses), net |
1,034 |
|
(62 |
) |
(1 |
) |
|||
Results from operating activities |
31,890 |
|
34,516 |
|
420 |
|
|||
Finance expenses |
(2,045 |
) |
(3,086 |
) |
(38 |
) |
|||
Finance and other income |
3,690 |
|
6,542 |
|
80 |
|
|||
Share of net profit/ (loss) of associates accounted for using the equity method |
(15 |
) |
3 |
|
^ |
|
|||
Profit before tax |
33,520 |
|
37,975 |
|
462 |
|
|||
Income tax expense |
(7,931 |
) |
(9,115 |
) |
(111 |
) |
|||
Profit for the period |
25,589 |
|
28,860 |
|
351 |
|
|||
Profit attributable to: |
|||||||||
Equity holders of the Company |
25,636 |
|
28,701 |
|
349 |
|
|||
Non-controlling interests |
(47 |
) |
159 |
|
2 |
|
|||
Profit for the period |
25,589 |
|
28,860 |
|
351 |
|
|||
Earnings per equity share: |
|||||||||
Attributable to equity holders of the Company |
|||||||||
Basic |
4.69 |
|
5.23 |
|
0.06 |
|
|||
Diluted |
4.67 |
|
5.12 |
|
0.06 |
|
|||
Weighted average number of equity shares |
|||||||||
used in computing earnings per equity share |
|||||||||
Basic |
5,471,449,783 |
|
5,482,733,329 |
|
5,482,733,329 |
|
|||
Diluted |
5,485,057,994 |
|
5,600,307,315 |
|
5,600,307,315 |
|
|||
^ Value is less than 1 |
|||||||||
Additional Information:
Particulars |
Three months ended |
Year ended |
||||||
June 30,
|
March 31,
|
June 30,
|
March
|
|||||
Audited |
Audited |
Audited |
Audited |
|||||
Segment revenue |
||||||||
IT Services |
||||||||
|
65,607 |
|
66,430 |
|
61,702 |
|
261,270 |
|
|
68,303 |
|
70,563 |
|
66,613 |
|
278,374 |
|
|
67,134 |
|
67,562 |
|
60,276 |
|
256,845 |
|
APMEA |
26,510 |
|
27,207 |
|
25,783 |
|
106,812 |
|
Total of IT Services |
227,554 |
|
231,762 |
|
214,374 |
|
903,301 |
|
IT Products |
694 |
|
1,131 |
|
1,946 |
|
6,047 |
|
Total segment revenue |
228,248 |
|
232,893 |
|
216,320 |
|
909,348 |
|
Segment result |
||||||||
IT Services |
||||||||
|
13,537 |
|
13,445 |
|
11,570 |
|
51,555 |
|
|
14,169 |
|
15,940 |
|
13,224 |
|
59,689 |
|
|
9,968 |
|
11,024 |
|
7,986 |
|
37,667 |
|
APMEA |
2,800 |
|
3,030 |
|
2,069 |
|
10,681 |
|
Unallocated |
(3,957 |
) |
(5,773 |
) |
(2,844 |
) |
(18,368 |
) |
Total of IT Services |
36,517 |
|
37,666 |
|
32,005 |
|
141,224 |
|
IT Products |
(161 |
) |
(59 |
) |
(55 |
) |
(176 |
) |
Reconciling Items |
(1,840 |
) |
(30 |
) |
(60 |
) |
(1,442 |
) |
Total segment result |
34,516 |
|
37,577 |
|
31,890 |
|
139,606 |
|
Finance expenses |
(3,086 |
) |
(2,860 |
) |
(2,045 |
) |
(10,077 |
) |
Finance and Other Income |
6,542 |
|
5,463 |
|
3,690 |
|
18,185 |
|
Share of net profit/ (loss) of associates accounted for using the equity method |
3 |
|
4 |
|
(15 |
) |
(57 |
) |
Profit before tax |
37,975 |
|
40,184 |
|
33,520 |
|
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 June 30, 2023 |
||||
IT Services Revenue as per IFRS |
$ |
2,778.5 |
|
|
Effect of Foreign currency exchange movement |
$ |
(19.5 |
) |
|
Non-GAAP Constant Currency IT Services Revenue based on |
$ |
2,759.0 |
|
|
previous quarter exchange rates |
|
|||
|
|
|||
|
|
|||
Three Months ended June 30, 2023 |
||||
IT Services Revenue as per IFRS |
$ |
2,778.5 |
|
|
Effect of Foreign currency exchange movement |
$ |
8.1 |
|
|
Non-GAAP Constant Currency IT Services Revenue based on |
$ |
2,786.6 |
|
|
exchange rates of comparable period in previous year |
|
|||
Reconciliation of Free Cash Flow for three months ended June 30, 2023
|
Amount in INR Mn |
|
|
Three months ended June 30, 2023 |
|
Net Income for the period [A] |
28,860 |
|
Computation of Free Cash Flow |
|
|
Net cash generated from operating activities [B] |
37,513 |
|
Add/ (deduct) cash inflow/ (outflow)on: |
|
|
Purchase of property, plant and equipment |
(2,209 |
) |
Proceeds from sale of property, plant and equipment |
1,030 |
|
Free Cash Flow [C] |
36,334 |
|
Operating Cash Flow as percentage of Net Income [B/A] |
130.0 |
% |
Free Cash Flow as percentage of Net Income [C/A] |
125.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230713724537/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
