- IT Services Revenue for the quarter grew by 3.7% QoQ
- Board approves buy back of Rs 95 billion
Highlights of the Results
Results for the Quarter ended September 30, 2020:
Thierry Delaporte, CEO and Managing Director said, “We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors & markets led by vertical solution offerings.”
Jatin Dalal, Chief Financial Officer said, “It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2% to 19.2% in the IT Services segment. Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7% of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”
Outlook for the quarter ending December 31, 2020
We expect Revenue from our IT Services business to be in the range of $2,022 million to $2,062 million*. This translates to a sequential growth of 1.5% to 3.5%.
* Outlook is based on the following exchange rates: GBP/USD at 1.31, Euro/USD at 1.18, AUD/USD at 0.72, USD/INR at 73.84 and CAD/USD at 0.75
Capital Allocation
The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 237.5 million equity shares of Rs 2 each (representing 4.16% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. The buyback price is Rs 400 ($5.41) per equity share payable in cash for an aggregate amount not exceeding Rs 95 billion ($1.3 billion1).
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
Digital & Cloud Application Services Highlights
We continue to see increasing traction in digital oriented deals as illustrated below:
Partner and Analyst Recognition
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.
State of Intelligent Enterprises Report
A Wipro study finds 95% of business leaders consider AI critical, yet only 17% leverage it across their organization. The ‘State of Intelligent Enterprises’ report examines the current landscape and shows the challenges and the driving factors for businesses to become truly intelligent enterprises.
IT Products
India business from State Run Enterprises (ISRE)
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, 2020, 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=WIPRO1310.
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 180,000 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.
Additional Information:
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).
IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals.
The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.
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, 2020
IT Services Revenue as per IFRS $ 1992.4
Effect of Foreign currency exchange movement $ (32.9)
Non-GAAP Constant Currency IT Services Revenue based on $ 1959.5
previous quarter exchange rates
Three Months ended September 30, 2020
IT Services Revenue as per IFRS $ 1992.4
Effect of Foreign currency exchange movement $ (12.9)
Non-GAAP Constant Currency IT Services Revenue based on $ 1979.5
exchange rates of comparable period in previous year
Results for the Quarter ended September 30, 2020:
- Gross Revenue was Rs 151.1 billion ($2.1 billion1), an increase of 1.4% QoQ and a decrease of 0.1% YoY
- IT Services Segment Revenue was at $1,992.4 million, an increase of 3.7% QoQ
- Non-GAAP2 constant currency IT Services Segment Revenue increased by 2.0% QoQ
- IT Services Operating Margin3 for the quarter was at 19.2%, an expansion of 0.2% QoQ and 1.1%YoY
- Net Income for the quarter was Rs 24.7 billion ($335.3 million1), a decrease of 3.4% YoY
- Earnings Per Share for the quarter was at Rs 4.33 ($0.061), an increase of 0.7% YoY
- Operating Cash Flow was at Rs 44.1 billion ($600.1 million1), which is 179.0% of Net Income
Performance for the quarter ended September 30, 2020
Thierry Delaporte, CEO and Managing Director said, “We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors & markets led by vertical solution offerings.”
Jatin Dalal, Chief Financial Officer said, “It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2% to 19.2% in the IT Services segment. Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7% of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”
Outlook for the quarter ending December 31, 2020
We expect Revenue from our IT Services business to be in the range of $2,022 million to $2,062 million*. This translates to a sequential growth of 1.5% to 3.5%.
* Outlook is based on the following exchange rates: GBP/USD at 1.31, Euro/USD at 1.18, AUD/USD at 0.72, USD/INR at 73.84 and CAD/USD at 0.75
Capital Allocation
The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 237.5 million equity shares of Rs 2 each (representing 4.16% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. The buyback price is Rs 400 ($5.41) per equity share payable in cash for an aggregate amount not exceeding Rs 95 billion ($1.3 billion1).
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
- A US-based multinational food manufacturing company has selected Wipro as the sole strategic partner for application support and maintenance globally. As part of the engagement, Wipro will simplify and transform the client’s application portfolio and help them develop new digital capabilities by leveraging cutting-edge technology solutions. In addition, Wipro will also drive end-to-end enterprise resource planning by rolling out SAP ECC for their acquired entity in Latin America to enable greater integration with the parent company.
- Wipro has won a multi-year, multi-million-dollar contract from a large US-based healthcare payer to provide enrollment and billing services for individual health plans under the Affordable Care Act, leveraging Wipro’s digital platform and digital operations services.
- Wipro has secured a contract from a leading US-based healthcare technology company to transform its healthcare system by providing application development and support, quality engineering, and production engineering services.
- Wipro has won a strategic, multi-year managed services contract from a leading US-based manufacturing company to transform its entire procure to pay operations, leveraging Wipro HOLMES® solutions such as Intelligent Document Processing (IDP), Contract Intelligence and Order digitization.
Digital & Cloud Application Services Highlights
We continue to see increasing traction in digital oriented deals as illustrated below:
- Wipro has been awarded a multi-year contract as a transformation partner for Cynergy Bank, a UK Bank specialised in serving the financial needs of property and commercial business owners. Wipro will leverage its core capabilities, IP, partnerships, Wipro ventures and best practices to comprehensively manage and transform the Bank’s IT Infrastructure and Security operations as part of this IT co-source engagement. Wipro has also been chosen as the prime partner to deliver digital transformation at the Bank, thereby realising the Bank’s future vision and architectural roadmap leveraging Wipro Digital, Designit, Topcoder and NewAgeEcosystem.
- Wipro and Designit have been selected by a regional water authority in Asia Pacific to transform their customer experience, workflow, case management and IoT analytics platforms. The integrated solution, built on Microsoft Azure, will provide a common platform for data acquisition and visualization, device management, and interface with other IT and third party agencies/ systems. It will also support new IoT devices to implement various dam safety and water monitoring measures.
- A leading semiconductor manufacturer has awarded Wipro a turnkey silicon development contract for its 5G wireless infrastructure and Automotive Vehicle-to-everything (V2X) market. Wipro’s strong expertise in very large-scale integration (VLSI) and firmware domain will help the customer develop variants of the product for different market segments and accelerate their time-to-market.
- A global bank has chosen Designit, a Wipro company, to support a new startup business focused on small and medium-sized enterprises leveraging strategic design, logistics & operations management, data analysis, and growth strategy consultancy services.
Partner and Analyst Recognition
- Wipro has been positioned as a Leader in The Forrester New Wave™: RPA Service Providers in Healthcare, Q3 2020
- Wipro is a Leader in Everest Group PEAK Matrix® Assessments for Banking BPS, Cloud-Native Application Development Services, Finance and Accounting Outsourcing (FAO) 2020
- Wipro is named a Leader and Star Performer in Everest Group’s PEAK Matrix® Assessments on Digital Workplace Services, Data and Analytics Services 2020
- Wipro has been positioned a leader in IDC MarketScape: Worldwide Managed Security Services 2020 Vendor Assessment (Doc # US46235320 - Sep 2020)
- Wipro has been positioned a Leader in IDC MarketScape: Worldwide Customer Experience Improvement Services 2020 Vendor Assessment (Doc # US45658220 - Sep 2020)
- Wipro has been positioned as a Leader in IDC MarketScape: Worldwide Manufacturing Intelligence Transformation 2020 Vendor Assessment (Doc # US46844820 - Sep 2020)
- Wipro is rated as a Leader in ISG Provider LensTM SAP HANA and Leonardo Ecosystem Partners quadrant report for the U.K. and U.S. 2020, in multiple quadrants.
- Wipro is rated as a Leader in ISG Provider LensTM Microsoft Ecosystem U.S. 2020
- Wipro was named as a Leader in Gartner Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, North America, Mark Ray et al., 9 Jun 2020
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.
State of Intelligent Enterprises Report
A Wipro study finds 95% of business leaders consider AI critical, yet only 17% leverage it across their organization. The ‘State of Intelligent Enterprises’ report examines the current landscape and shows the challenges and the driving factors for businesses to become truly intelligent enterprises.
IT Products
- IT Products Segment Revenue for the quarter was Rs 1.7 billion ($23.0 million1)
- IT Products Segment Results for the quarter was a loss of Rs 0.3 billion ($4.1 million1)
India business from State Run Enterprises (ISRE)
- India SRE Segment Revenue for the quarter was Rs 2.1 billion ($28.8 million1)
- India SRE Segment Results for the quarter was a profit of Rs 0.1 billion ($1.6 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, 2020, 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=WIPRO1310.
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 180,000 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.
- 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 73.54, as published by the Federal Reserve Board of Governors on September 30, 2020. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2020 was US$1= Rs 74.12
- 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
- IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
| 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, 2020 | As at September 30, 2020 | ||||||
| Convenience translation into US dollar in millions Refer footnote 1 | |||||||
| ASSETS | |||||||
| Goodwill | 131,012 | 135,137 | 1,838 | ||||
| Intangible assets | 16,362 | 15,347 | 209 | ||||
| Property, plant and equipment | 81,120 | 81,984 | 1,115 | ||||
| Right-of-Use assets | 16,748 | 14,943 | 203 | ||||
| Financial assets | |||||||
| Derivative assets | - | 14 | ^ | ||||
| Investments | 9,302 | 8,363 | 114 | ||||
| Trade receivables | 6,049 | 6,011 | 82 | ||||
| Other financial assets | 5,881 | 6,720 | 91 | ||||
| Investments accounted for using the equity method | 1,383 | 1,374 | 19 | ||||
| Deferred tax assets | 6,005 | 1,437 | 20 | ||||
| Non-current tax assets | 11,414 | 13,446 | 183 | ||||
| Other non-current assets | 11,935 | 11,192 | 152 | ||||
| Total non-current assets | 297,211 | 295,968 | 4,026 | ||||
| Inventories | 1,865 | 1,311 | 18 | ||||
| Financial assets | |||||||
| Derivative assets | 3,025 | 3,200 | 44 | ||||
| Investments | 189,635 | 258,129 | 3,510 | ||||
| Cash and cash equivalents | 144,499 | 152,423 | 2,073 | ||||
| Trade receivables | 104,474 | 89,541 | 1,217 | ||||
| Unbilled receivables | 25,209 | 23,884 | 324 | ||||
| Other financial assets | 8,614 | 10,893 | 148 | ||||
| Contract assets | 17,143 | 15,492 | 211 | ||||
| Current tax assets | 2,882 | 2,294 | 31 | ||||
| Other current assets | 22,505 | 22,080 | 300 | ||||
| Total current assets | 519,851 | 579,247 | 7,876 | ||||
| TOTAL ASSETS | 817,062 | 875,215 | 11,902 | ||||
| EQUITY | |||||||
| Share capital | 11,427 | 11,430 | 155 | ||||
| Share premium | 1,275 | 1,711 | 23 | ||||
| Retained earnings | 476,103 | 517,217 | 7,033 | ||||
| Share-based payment reserve | 1,550 | 1,747 | 24 | ||||
| SEZ Re-investment reserve | 43,804 | 51,437 | 699 | ||||
| Other components of equity | 23,299 | 29,008 | 395 | ||||
| Equity attributable to the equity holders of the Company | 557,458 | 612,550 | 8,329 | ||||
| Non-controlling interest | 1,875 | 1,201 | 16 | ||||
| TOTAL EQUITY | 559,333 | 613,751 | 8,345 | ||||
| LIABILITIES | |||||||
| Financial liabilities | |||||||
| Loans and borrowings | 4,840 | 225 | 3 | ||||
| Derivative liabilities | 138 | 13 | ^ | ||||
| Lease liabilities | 12,638 | 12,320 | 168 | ||||
| Other financial liabilities | 151 | 657 | 9 | ||||
| Deferred tax liabilities | 2,825 | 3,067 | 42 | ||||
| Non-current tax liabilities | 13,205 | 12,186 | 166 | ||||
| Other non-current liabilities | 7,537 | 7,320 | 100 | ||||
| Provisions | 2 | 1 | ^ | ||||
| Total non-current liabilities | 41,336 | 35,789 | 488 | ||||
| Financial liabilities | |||||||
| Loans, borrowings and bank overdrafts | 73,202 | 74,293 | 1,010 | ||||
| Derivative liabilities | 7,231 | 1,732 | 24 | ||||
| Trade payables and accrued expenses | 78,129 | 82,023 | 1,115 | ||||
| Lease liabilities | 6,560 | 7,286 | 99 | ||||
| Other financial liabilities | 899 | 1,151 | 16 | ||||
| Contract liabilities | 18,775 | 19,427 | 264 | ||||
| Current tax liabilities | 11,731 | 14,531 | 198 | ||||
| Other current liabilities | 19,254 | 24,445 | 332 | ||||
| Provisions | 612 | 787 | 11 | ||||
| Total current liabilities | 216,393 | 225,675 | 3,069 | ||||
| TOTAL LIABILITIES | 257,729 | 261,464 | 3,557 | ||||
| TOTAL EQUITY AND LIABILITIES | 817,062 | 875,215 | 11,902 | ||||
| ^ 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, | ||||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | 2020 | ||||||||
| Convenience translation into US dollar in millions Refer footnote 1 |
Convenience translation into US dollar in millions Refer footnote 1 |
||||||||||||
| Revenues | 151,256 | 151,145 | 2,055 | 298,417 | 300,276 | 4,083 | |||||||
| Cost of revenues | (108,006) | (105,387) | (1,433) | (212,279) | (209,087) | (2,843) | |||||||
| Gross profit | 43,250 | 45,758 | 622 | 86,138 | 91,189 | 1,240 | |||||||
| Selling and marketing expenses | (10,629) | (9,606) | (132) | (21,582) | (19,395) | (264) | |||||||
| General and administrative expenses | (6,527) | (8,177) | (111) | (14,646) | (18,183) | (247) | |||||||
| Foreign exchange gains | 591 | 338 | 5 | 1,449 | 1,543 | 21 | |||||||
| Other operating income/(loss), net | 50 | (178) | (2) | 749 | (81) | (1) | |||||||
| Results from operating activities | 26,735 | 28,135 | 382 | 52,108 | 55,073 | 749 | |||||||
| Finance expenses | (2,247) | (1,267) | (17) | (3,831) | (2,566) | (35) | |||||||
| Finance and other income | 6,857 | 5,209 | 71 | 13,804 | 10,490 | 143 | |||||||
| Share of net profit /(loss) of associates accounted for using the equity method | (2) | (6) | ^ | (18) | 25 | ^ | |||||||
| Profit before tax | 31,343 | 32,071 | 436 | 62,063 | 63,022 | 857 | |||||||
| Income tax expense | (5,731) | (7,228) | (98) | (12,430) | (14,066) | (191) | |||||||
| Profit for the period | 25,612 | 24,843 | 338 | 49,633 | 48,956 | 666 | |||||||
| Profit attributable to: | |||||||||||||
| Equity holders of the Company | 25,526 | 24,656 | 335 | 49,400 | 48,558 | 661 | |||||||
| Non-controlling interest | 86 | 187 | 3 | 233 | 398 | 5 | |||||||
| Profit for the period | 25,612 | 24,843 | 338 | 49,633 | 48,956 | 666 | |||||||
| Earnings per equity share: | |||||||||||||
| Attributable to equity holders of the Company | |||||||||||||
| Basic | 4.30 | 4.33 | 0.06 | 8.27 | 8.53 | 0.12 | |||||||
| Diluted | 4.29 | 4.32 | 0.06 | 8.25 | 8.51 | 0.12 | |||||||
| Weighted average number of equity shares | |||||||||||||
| used in computing earnings per equity share | |||||||||||||
| Basic | 5,936,393,069 | 5,694,035,551 | 5,694,035,551 | 5,975,454,269 | 5,693,689,502 | 5,693,689,502 | |||||||
| Diluted | 5,948,113,661 | 5,706,874,339 | 5,706,874,339 | 5,986,683,086 | 5,705,850,555 | 5,705,850,555 | |||||||
| ^ Value is less than 1 | |||||||||||||
Additional Information:
| Particulars | Three months ended | Six months ended | Year ended | |||
| September 30, 2020 |
June 30, 2020 |
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
March 31, 2020 |
|
| Audited | Audited | Audited | Audited | Audited | Audited | |
| Revenue | ||||||
| IT Services | ||||||
| BFSI | 45,995 | 44,828 | 45,760 | 90,823 | 91,155 | 184,457 |
| Health BU | 20,294 | 19,760 | 18,981 | 40,054 | 37,852 | 78,240 |
| CBU | 23,927 | 23,179 | 23,530 | 47,106 | 45,896 | 97,008 |
| ENU | 18,990 | 19,279 | 18,888 | 38,269 | 37,320 | 76,443 |
| TECH | 18,478 | 19,670 | 19,148 | 38,148 | 37,808 | 75,895 |
| MFG | 12,175 | 11,820 | 11,886 | 23,995 | 23,222 | 48,158 |
| COMM | 7,822 | 7,420 | 8,368 | 15,242 | 16,822 | 33,840 |
| Total of IT Services | 147,681 | 145,956 | 146,561 | 293,637 | 290,075 | 594,041 |
| IT Products | 1,691 | 2,258 | 3,233 | 3,949 | 5,642 | 11,010 |
| ISRE | 2,119 | 2,117 | 2,069 | 4,236 | 4,212 | 8,400 |
| Reconciling Items | (8) | 5 | (16) | (3) | (63) | (50) |
| Total Revenue | 151,483 | 150,336 | 151,847 | 301,819 | 299,866 | 613,401 |
| Other operating income/(loss), net | ||||||
| IT Services | (178) | 97 | 50 | (81) | 749 | 1,144 |
| Total Other operating income/(loss), net | (178) | 97 | 50 | (81) | 749 | 1,144 |
| Segment Result | ||||||
| IT Services | ||||||
| BFSI | 9,209 | 8,517 | 8,407 | 17,726 | 17,742 | 34,132 |
| Health BU | 4,005 | 2,728 | 2,863 | 6,733 | 5,792 | 12,027 |
| CBU | 5,507 | 4,419 | 3,952 | 9,926 | 7,458 | 16,729 |
| ENU | 3,329 | 3,569 | 3,084 | 6,898 | 5,280 | 12,176 |
| TECH | 2,632 | 4,167 | 3,624 | 6,799 | 7,150 | 14,312 |
| MFG | 2,379 | 2,228 | 2,439 | 4,607 | 4,531 | 9,252 |
| COMM | 1,320 | 891 | 1,044 | 2,211 | 2,562 | 5,336 |
| Unallocated | 148 | 1,206 | 1,044 | 1,354 | 1,764 | 2,577 |
| Other operating income/(loss), net | (178) | 97 | 50 | (81) | 749 | 1,144 |
| Total of IT Services | 28,351 | 27,822 | 26,507 | 56,173 | 53,028 | 107,685 |
| IT Products | (300) | 124 | 149 | (176) | (258) | (282) |
| ISRE | 114 | (100) | (177) | 14 | (813) | (1,822) |
| Reconciling Items | (30) | (908) | 256 | (938) | 151 | 149 |
| Total | 28,135 | 26,938 | 26,735 | 55,073 | 52,108 | 105,730 |
| Finance Expense | (1,267) | (1,299) | (2,247) | (2,566) | (3,831) | (7,328) |
| Finance and Other Income | 5,209 | 5,281 | 6,857 | 10,490 | 13,804 | 24,081 |
| Share of net profit/ (loss) of associates accounted for using the equity method | (6) | 31 | (2) | 25 | (18) | 29 |
| Profit before tax | 32,071 | 30,951 | 31,343 | 63,022 | 62,063 | 122,512 |
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).
IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals.
The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.
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, 2020
IT Services Revenue as per IFRS $ 1992.4
Effect of Foreign currency exchange movement $ (32.9)
Non-GAAP Constant Currency IT Services Revenue based on $ 1959.5
previous quarter exchange rates
Three Months ended September 30, 2020
IT Services Revenue as per IFRS $ 1992.4
Effect of Foreign currency exchange movement $ (12.9)
Non-GAAP Constant Currency IT Services Revenue based on $ 1979.5
exchange rates of comparable period in previous year
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