WHY US

Partner with us for Press release distribution and get best in class service, guaranteed postings on tier 1 media and maximum reach

NYSE:WIT(BSE:507685)(NSE:WIPRO)(NYSE:WIT)

Wipro Limited Announces Results for the Quarter Ended September 30, 2021 Under IFRS

  • Wednesday, October 13, 2021 7:00PM IST (1:30PM GMT)
 
New York, United States & Bangalore, Karnataka, India:  
  • IT Services delivers strong revenue growth for the quarter at 8.1% QoQ and 28.8% YoY
  • Net Income & EPS showed a robust increase of 18.9% YoY and 23.8% YoY respectively
     
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended September 30, 2021.
 
Highlights of the Results

Results for the Quarter ended September 30, 2021:
  • Gross Revenue was Rs 196.7 billion ($2.7 billion1), an increase of 7.8% QoQ and 30.1% YoY
  • IT Services Segment Revenue was at $2,580.0 million, an increase of 6.9% QoQ and 29.5% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 8.1% QoQ and 28.8% YoY
  • IT Services Operating Margin3 for the quarter was at 17.8%, flat on adjusted4 basis QoQ and reported decrease of 104 bps QoQ
  • Net Income for the quarter was Rs 29.3 billion ($395.2 million1), an increase of 18.9% YoY
  • Earnings Per Share for the quarter was at Rs 5.36 ($0.071), an increase of 23.8% YoY
 
Performance for the quarter ended September 30, 2021
 
Thierry Delaporte, CEO and Managing Director said, “The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year. I thank our customers, partners, and colleagues as we surpassed the $10Bn milestone of annualized revenue run rate.”
 
Jatin Dalal, Chief Financial Officer said, “We sustained our operating margins in Q2 in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent. We completed a salary increase covering 80% of our colleagues, making it the second hike in this calendar year. We delivered a robust growth in EPS of 23.8% YoY.”
 
Outlook for the quarter ending December 31, 2021
We expect Revenue from our IT Services business to be in the range of $2,631 million to $2,683 million*. This translates to a sequential growth of 2.0% to 4.0%.
 
*Outlook is based on the following exchange rates: GBP/USD at 1.36, Euro/USD at 1.17, AUD/USD at 0.72, USD/INR at 74.13 and CAD/USD at 0.78
 
IT Services

Wipro continued its momentum in winning large deals with our customers as described below:
 
  • Wipro has won a strategic, multi-year cloud migration and application modernization engagement with a leading North American financial institution to transform and migrate its enterprise applications across all lines of business. The engagement will lower total cost of ownership (TCO) and provide the bank with significant tools and intellectual property to modernize its processes and become more nimble.
  • Wipro has won a multi-year engagement with ABB Information Systems to provide digital workplace services for their 100,000+ employees spread over 100+ countries. Wipro will support and contribute to the transformation of ABB’s end-user infrastructure to enhance the consumer experience, leveraging industry-leading practices.
  • Wipro has won an engagement with a global healthcare company to consolidate and deliver member engagement services for various public assistance programs. The scope includes outreach, advocacy, retention services, as well as procuring and revival of patient’s health care records securely. Additionally, Wipro will guide dual eligible members on benefits and beneficiary protections. 
  • Wipro has won a strategic, multi-year engagement with a leading North American financial institution to modernize and transform the Quality Engineering and Testing portfolio within their Retail and Commercial Banking segment to the new ways of working. The engagement will focus on Digital Transformation for enhanced customer experience and cost optimization.
  • Wipro has won an engagement with a US-based financial services organization to extend its capabilities into Infrastructure Operations and Engineering. The multi-year deal expands the partnership while driving greater productivity, increased delivery speed, and higher business value, ensuring a stable and modern IT Infrastructure.   
 
Digital Services Highlights

We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
 
  • Wipro has won an engagement with a multinational electrical engineering and software company to transform their sales and marketing services across subsidiaries and affiliated companies spread over 55 countries. Wipro FullStride Cloud Services will develop and implement a cloud platform to empower the client with a single global view of their customer database.
  • Wipro has won a strategic engagement with a leading multinational financial services company in LATAM to accelerate their digital transformation journey. Wipro will deliver API and micro services based on Banking Industry Architecture Network model and modernize the bank’s direct and assisted customer channels. 
  • A US-based software solutions company has selected Wipro to transfer their on-premise platforms to a SaaS-based business model. Wipro FullStride Cloud Services will modernize the client’s offerings using cloud native capabilities.
  • A global technology company has hired Designit to support the operation and management of 100+ social and blog channels as part of their B2B marketing program. 
 
Analyst Recognition
 
  • Wipro was recognized as a Leader in Everest Group’s Application and Digital Services in Banking PEAK Matrix® Assessment 2021: Global Focus
  • Wipro was recognized as a Leader in Everest Group’s Network Transformation and Managed Services PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader in Everest Group’s Data and Analytics (D&A) Services PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader in Everest Group’s Capital Markets Operations – Services PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader and Star Performer in Everest Group’s Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2021
  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Network Consulting Services 2021 Vendor Assessment (Doc #US48076121, Aug 2021)
  • Wipro was positioned as a Leader in IDC MarketScape: Asia/Pacific (Excluding Japan) Managed Cloud Services 2021 Vendor Assessment (Doc #AP47014921, Aug 2021)
  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Life Science R&D ITO Services 2021 Vendor Assessment (Doc #US47455021, Aug 2021)
  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Life Science R&D BPO Services 2021 Vendor Assessment (Doc #US48076121, Aug 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 2021 ISG Provider Lens™ – SAP HANA Ecosystem Services 2021 – UK, US
  • Wipro was positioned as a Leader in 2021 ISG Provider Lens™ – Utilities Industry - Services and Solutions 2021 - North America
  • Wipro was featured in the Top Players in HFS Top 10: Banking and Financial Services 2021
  • Wipro was recognized as a Gartner Peer Insights Customers’ Choice for Data and Analytics Service Providers
     
Disclaimer: Gartner Peer Insights ‘Voice of the Customer’: Data and Analytics Service Providers, Peer Contributors, 19 August 2021. Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.

IT Products
  • IT Products Segment Revenue for the quarter was Rs 1.9 billion ($25.5 million1)
  • IT Products Segment Results for the quarter was a profit of Rs 0.1 billion ($1.3 million1)
 
India business from State Run Enterprises (ISRE)
  • India SRE Segment Revenue for the quarter was Rs 1.9 billion ($25.2 million1)
  • India SRE Segment Results for the quarter was a profit of Rs 0.4 billion ($5.3 million1)
 
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.
 
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 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 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 September 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=WIP20211013
 
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 220,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.
  
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.
 
  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 = Rs 74.16, as published by the Federal Reserve Board of Governors on September 30, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2021 was US$1= Rs 75.11
  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
  4. IT Services Operating Margin change has been adjusted for one time gains in ‘other operating income’ in Q1’22 for Rs 2,150 million
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, 2021   As at September 30, 2021
              Convenience translation into US dollar in millions
Refer footnote  1
ASSETS              
Goodwill     139,127    228,763    3,085 
Intangible assets     13,085    42,808    577 
Property, plant and equipment     85,192    88,813    1,198 
Right-of-Use assets     16,420    18,305    247 
Financial assets              
Derivative assets      16    28    ^
Investments      10,576    13,208    178 
Trade receivables      4,358    4,378    59 
Other financial assets     6,088    8,057    109 
Investments accounted for using the equity method     1,464    698   
Deferred tax assets     1,664    2,576    35 
Non-current tax assets     14,323    10,740    145 
Other non-current assets     15,935    11,668    157 
Total non-current assets     308,248    430,042    5,799 
Inventories     1,064    778    10 
Financial assets              
Derivative assets     4,064    4,308    58 
Investments     175,707    175,223    2,363 
Cash and cash equivalents     169,793    142,026    1,915 
Trade receivables     94,298    108,507    1,463 
Unbilled receivables     27,124    38,375    517 
Other financial assets     7,245    10,495    142 
Contract assets     16,507    20,467    276 
Current tax assets     2,461    4,717    64 
Other current assets     24,923    27,199    367 
Total current assets     523,186    532,095    7,175 
               
TOTAL ASSETS     831,434    962,137    12,974 
               
EQUITY              
Share capital     10,958    10,962    148 
Share premium     714    1,164    16 
Retained earnings     466,692    526,654    7,102 
Share-based payment reserve     3,071    3,807    51 
SEZ Re-investment reserve     41,154    43,237    583 
Other components of equity     30,506    35,840    483 
Equity attributable to the equity holders of the Company     553,095    621,664    8,383 
Non-controlling interests     1,498    1,088    15 
TOTAL EQUITY     554,593    622,752    8,398 
               
LIABILITIES              
Financial liabilities              
Loans and borrowings     7,458    55,319    746 
Lease liabilities      13,513    15,283    206 
Other financial liabilities     2,291    2,326    31 
Deferred tax liabilities     4,633    14,902    201 
Non-current tax liabilities     11,069    11,415    154 
Other non-current liabilities     7,835    8,871    120 
Provisions          ^
Total non-current liabilities     46,801    108,117    1,458 
Financial liabilities              
Loans, borrowings and bank overdrafts     75,874    58,910    794 
Derivative liabilities     1,070    432   
Trade payables and accrued expenses     78,870    90,782    1,225 
Lease liabilities     7,669    8,697    117 
Other financial liabilities     1,470    4,106    55 
Contract liabilities     22,535    21,577    291 
Current tax liabilities     17,324    19,385    261 
Other current liabilities     24,552    26,512    357 
Provisions     676    867    12 
Total current liabilities     230,040    231,268    3,118 
TOTAL LIABILITIES     276,841    339,385    4,576 
               
TOTAL EQUITY AND LIABILITIES     831,434    962,137    12,974 
^ 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 September 30,   Six months ended September 30,
      2020   2021   2021   2020   2021   2021
              Convenience translation into US dollar in millions
Refer footnote 1
          Convenience translation into US dollar in millions
Refer footnote 1
Revenues     151,145    196,674    2,652    300,276    379,198    5,113 
Cost of revenues     (105,387)   (137,562)   (1,855)   (209,087)   (265,129)   (3,575)
Gross profit     45,758    59,112    797    91,189    114,069    1,538 
                           
Selling and marketing expenses     (9,606)   (13,852)   (188)   (19,395)   (26,869)   (362)
General and administrative expenses     (8,177)   (11,288)   (152)   (18,183)   (21,818)   (294)
Foreign exchange gains/(losses), net     338    933    13    1,543    2,093    28 
Other operating income/(loss), net     (178)   15    ^   (81)   2,165    29 
Results from operating activities     28,135    34,920    470    55,073    69,640    939 
                           
Finance expenses     (1,267)   (1,459)   (20)   (2,566)   (2,205)   (30)
Finance and other income     5,209    4,114    55    10,490    8,733    118 
Share of net profit/ (loss) of associates accounted for using the equity method     (6)   (10)   ^   25    (3)   ^
Profit before tax     32,071    37,565    505    63,022    76,165    1,027 
Income tax expense     (7,228)   (8,259)   (111)   (14,066)   (14,484)   (195)
Profit for the period     24,843    29,306    394    48,956    61,681    832 
                           
Profit attributable to:                          
Equity holders of the Company     24,656    29,307    394    48,558    61,628    831 
Non-controlling interests      187    (1)   ^   398    53   
Profit for the period     24,843    29,306    394    48,956    61,681    832 
                           
Earnings per equity share:                          
Attributable to equity holders of the Company                          
Basic     4.33    5.36    0.07    8.53    11.28    0.15 
Diluted     4.32    5.35    0.07    8.51    11.25    0.15 
                           
Weighted average number of equity shares                          
used in computing earnings per equity share                          
Basic     5,694,035,551    5,464,831,135    5,464,831,135    5,693,689,502    5,464,021,919    5,464,021,919 
Diluted     5,706,874,339    5,480,490,360    5,480,490,360    5,705,850,555    5,478,297,758    5,478,297,758 
^ Value is less than 1                          

Additional Information:
Particulars Three months ended  Six months ended Year ended
September
30, 2021
June
30, 2021
September
30, 2020
September
30, 2021
September
30, 2020
March
31, 2021
Audited Audited Audited Audited Audited Audited
Revenue            
IT Services            
Americas 1 53,205  49,683  43,954  102,888  86,566  178,091 
Americas 2 59,260  55,105  44,450  114,365  88,644  179,821 
Europe 58,619  54,461  38,510  113,080  77,454  165,441 
APMEA 22,715  21,232  20,762  43,947  40,920  82,462 
Total of IT Services 193,799  180,481  147,676  374,280  293,584  605,815 
IT Products 1,894  1,311  1,699  3,205  4,005  7,685 
ISRE 1,867  1,937  2,111  3,804  4,222  8,912 
Reconciling Items 47  (45) (3) 13 
Total Revenue 197,607  183,684  151,483  381,291  301,819  622,425 
             
Other operating income/(loss), net            
IT Services 15  2,150  (178) 2,165  (81) (81)
Total Other operating income/(loss), net 15  2,150  (178) 2,165  (81) (81)
             
Segment Result            
IT Services            
Americas 1 10,521  9,379  8,598  19,900  15,102  33,040 
Americas 2 11,819  11,350  10,477  23,169  20,899  41,589 
Europe 9,186  8,325  6,139  17,511  13,686  31,673 
APMEA 3,028  3,066  3,078  6,094  5,624  11,476 
   Unallocated (156) 56  203  (100) 951  5,153 
Other operating income/(loss), net 15  2,150  (178) 2,165  (81) (81)
Total of IT Services 34,413  34,326  28,317  68,739  56,181  122,850 
IT Products 94  (53) (301) 41  (178) 45 
ISRE 393  475  109  868  1,061 
Reconciling Items 20  (28) 10  (8) (933) (903)
Total 34,920  34,720  28,135  69,640  55,073  123,053 
Finance expenses (1,459) (746) (1,267) (2,205) (2,566) (5,088)
Finance and Other Income 4,114  4,619  5,209  8,733  10,490  20,912 
Share of net profit/ (loss) of associates accounted for using the equity method (10) (6) (3) 25   
130
Profit before tax 37,565  38,600  32,071  76,165  63,022  139,007 

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 September 30, 2021
IT Services Revenue as per IFRS                                                            $         2,580.0
Effect of Foreign currency exchange movement                                    $              31.0
Non-GAAP Constant Currency IT Services Revenue based on             $         2,611.0
previous quarter exchange rates                     
 
Three Months ended September 30, 2021
IT Services Revenue as per IFRS                                                           $          2,580.0
Effect of Foreign currency exchange movement                                   $             (13.6)
Non-GAAP Constant Currency IT Services Revenue based on            $          2,566.4
exchange rates of comparable period in the previous year  


Click here for Media Contact Details

Aparna Iyer (Investor Relations), Wipro Limited, [email protected], +91 (80) 61427139

Abhishek Kumar Jain (Investor Relations), Wipro Limited, [email protected], +91 (80) 61426143

Vipin Nair (Media & Press), Wipro Limited, [email protected], +91 (80) 61426450

Submit your press release

Copyright © 2021 Business Wire India. All Rights Reserved.