Le Lézard
Classified in: Science and technology
Subjects: Conference Call, Webcast, Reminder

Wipro Limited Announces Results for the Quarter ended December 31, 2021 under IFRS


Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended December 31, 2021.

Highlights of the Results

Results for the Quarter ended December 31, 2021:

Performance for the quarter ended December 31, 2021

Thierry Delaporte, CEO and Managing Director, said, "Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly."

Jatin Dalal, Chief Financial Officer, said, "We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of Rs 1 per equity share."

Outlook for the quarter ending March 31, 2022
We expect Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million*. This translates to a sequential growth of 2.0% to 4.0%.

*Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79

  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 74.39, as published by the Federal Reserve Board of Governors on December 31, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2021 was US$1= Rs 76.12
  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

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

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

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.

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 December 31, 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 (08:45 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=WIP20220112

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.

 

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 December 31, 2021

 

Convenience translation
into US dollar in millions
Refer footnote 1

ASSETS

 

Goodwill

 

139,127

242,945

3,266

Intangible assets

 

13,085

44,320

596

Property, plant and equipment

 

85,192

90,248

1,213

Right-of-Use assets

 

16,420

18,445

248

Financial assets

 

Derivative assets

 

16

35

^

Investments

 

10,576

17,543

236

Trade receivables

 

4,358

1,301

17

Other financial assets

 

6,088

6,052

81

Investments accounted for using the equity method

 

1,464

775

10

Deferred tax assets

 

1,664

2,357

32

Non-current tax assets

 

14,323

10,222

137

Other non-current assets

 

15,935

12,377

166

Total non-current assets

 

308,248

446,620

6,002

Inventories

 

1,064

1,025

14

Financial assets

 

Derivative assets

 

4,064

5,277

71

Investments

 

175,707

235,740

3,169

Cash and cash equivalents

 

169,793

107,458

1,445

Trade receivables

 

94,298

122,365

1,645

Unbilled receivables

 

27,124

38,908

523

Other financial assets

 

7,245

9,608

129

Contract assets

 

16,507

16,680

224

Current tax assets

 

2,461

4,185

56

Other current assets

 

24,923

29,504

397

Total current assets

 

523,186

570,750

7,673

 

TOTAL ASSETS

 

831,434

1,017,370

13,675

 

EQUITY

 

Share capital

 

10,958

10,962

147

Share premium

 

714

1,304

18

Retained earnings

 

466,692

555,789

7,471

Share-based payment reserve

 

3,071

4,094

55

SEZ Re-investment reserve

 

41,154

44,167

594

Other components of equity

 

30,506

37,609

506

Equity attributable to the equity holders of the Company

 

553,095

653,925

8,791

Non-controlling interests

 

1,498

446

6

TOTAL EQUITY

 

554,593

654,371

8,797

 

LIABILITIES

 

Financial liabilities

 

Loans and borrowings

 

7,458

55,417

745

Derivative liabilities

 

-

1

^

Lease liabilities

 

13,513

15,056

202

Other financial liabilities

 

2,291

3,676

49

Deferred tax liabilities

 

4,633

14,989

201

Non-current tax liabilities

 

11,069

14,520

195

Other non-current liabilities

 

7,835

8,238

111

Provisions

 

2

6

^

Total non-current liabilities

 

46,801

111,903

1,503

Financial liabilities

 

Loans, borrowings and bank overdrafts

 

75,874

78,501

1,055

Derivative liabilities

 

1,070

340

5

Trade payables and accrued expenses

 

78,870

87,506

1,175

Lease liabilities

 

7,669

8,647

116

Other financial liabilities

 

1,470

3,906

53

Contract liabilities

 

22,535

28,161

379

Current tax liabilities

 

17,324

18,992

255

Other current liabilities

 

24,552

24,238

326

Provisions

 

676

805

11

Total current liabilities

 

230,040

251,096

3,375

TOTAL LIABILITIES

276,841

362,999

4,878

 

TOTAL EQUITY AND LIABILITIES

831,434

1,017,370

13,675

^ 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,

 

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

 

156,700

 

203,136

 

2,731

 

456,976

 

582,334

 

7,828

Cost of revenues

 

(104,313)

 

(142,778)

 

(1,919)

 

(313,400)

 

(407,907)

 

(5,483)

Gross profit

 

52,387

 

60,358

 

812

 

143,576

 

174,427

 

2,345

 

         

Selling and marketing expenses

 

(11,326)

 

(13,988)

 

(189)

 

(30,721)

 

(40,857)

 

(549)

General and administrative expenses

 

(7,814)

 

(12,036)

 

(162)

 

(25,997)

 

(33,854)

 

(455)

Foreign exchange gains/(losses), net

 

566

 

1,187

 

16

 

2,109

 

3,280

 

44

Other operating income/(loss), net

 

-

 

14

 

^

 

(81)

 

2,179

 

29

Results from operating activities

 

33,813

 

35,535

 

477

 

88,886

 

105,175

 

1,414

 

         

Finance expenses

 

(1,400)

 

(1,403)

 

(19)

 

(3,966)

 

(3,608)

 

(49)

Finance and other income

 

5,975

 

3,578

 

48

 

16,465

 

12,311

 

165

Share of net profit/ (loss) of associates accounted
for using the equity method

 

101

 

76

 

1

 

126

 

73

 

1

Profit before tax

 

38,489

 

37,786

 

507

 

101,511

 

113,951

 

1,531

Income tax expense

 

(8,524)

 

(8,063)

 

(108)

 

(22,590)

 

(22,547)

 

(303)

Profit for the period

 

29,965

 

29,723

 

399

 

78,921

 

91,404

 

1,228

 

         

Profit attributable to:

 

         

Equity holders of the Company

 

29,667

 

29,690

 

399

 

78,225

 

91,318

 

1,227

Non-controlling interests

 

298

 

33

 

^

 

696

 

86

 

1

Profit for the period

 

29,965

 

29,723

 

399

 

78,921

 

91,404

 

1,228

 

         

Earnings per equity share:

 

         

Attributable to equity holders of the Company

 

         

Basic

5.21

 

5.43

 

0.07

 

13.74

 

16.71

 

0.22

Diluted

5.17

 

5.42

 

0.07

 

13.46

 

16.67

 

0.22

           

Weighted average number of equity shares

         

used in computing earnings per equity share

         

Basic

5,696,798,493

 

5,467,954,878

 

5,467,954,878

 

5,694,731,405

 

5,465,359,077

 

5,465,359,077

Diluted

5,741,070,466

 

5,481,204,821

 

5,481,204,821

 

5,812,779,105

 

5,478,766,612

 

5,478,766,612

^ Value is less than 1

         

Additional Information:

Particulars

Three months ended

Nine months ended

Year ended

December
31, 2021

September
30, 2021

December
31, 2020

December
31, 2021

December
31, 2020

March
31, 2021

Audited

Audited

Audited

Audited

Audited

Audited

Revenue

IT Services

Americas 1

56,644

53,205

45,015

159,532

131,581

178,091

Americas 2

61,076

59,260

44,702

175,441

133,346

179,821

Europe

59,620

58,619

42,880

172,700

120,334

165,441

APMEA

23,596

22,715

20,717

67,543

61,637

82,462

Total of IT Services

200,936

193,799

153,314

575,216

446,898

605,815

IT Products

1,767

1,894

1,563

4,972

5,568

7,685

ISRE

1,623

1,867

2,388

5,427

6,610

8,912

Reconciling Items

(3)

47

1

(1)

9

13

Total Revenue

204,323

197,607

157,266

585,614

459,085

622,425

 

Other operating income/(loss), net

IT Services

14

15

-

2,179

(81)

(81)

Total Other operating income/(loss), net

14

15

-

2,179

(81)

(81)

 

Segment Result

IT Services

Americas 1

11,390

10,521

8,075

31,290

23,177

33,040

Americas 2

12,057

11,819

10,190

35,226

31,089

41,589

Europe

9,172

9,186

9,283

26,683

22,969

31,673

APMEA

2,483

3,028

2,778

8,577

8,402

11,476

Unallocated

173

(156)

2,945

73

3,896

5,153

Other operating income/(loss), net

14

15

-

2,179

(81)

(81)

Total of IT Services

35,289

34,413

33,271

104,028

89,452

122,850

IT Products

96

94

78

137

(100)

45

ISRE

134

393

471

1,002

474

1,061

Reconciling Items

16

20

(7)

8

(940)

(903)

Total

35,535

34,920

33,813

105,175

88,886

123,053

Finance expenses

(1,403)

(1,459)

(1,400)

(3,608)

(3,966)

(5,088)

Finance and Other Income

3,578

4,114

5,975

12,311

16,465

20,912

Share of net profit/ (loss) of associates
accounted for using the equity method

76

(10)

101

73

126

130

Profit before tax

37,786

37,565

38,489

113,951

101,511

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 December 31, 2021

   

 

IT Services Revenue as per IFRS

   

$

    2,639.7

Effect of Foreign currency exchange movement

   

$

         17.2

Non-GAAP Constant Currency IT Services Revenue based on

   

$

    2,656.9

previous quarter exchange rates                     

   

 

 

   

 

Three Months ended December 31, 2021

   

 

IT Services Revenue as per IFRS

   

$

       2,639.7

Effect of Foreign currency exchange movement

   

$

            21.2

Non-GAAP Constant Currency IT Services Revenue based on

   

$

     2,660.9

exchange rates of comparable period in previous year       

   

 

 


These press releases may also interest you

at 16:51
The Georgia Eminent Domain Law Firm has officially onboarded with GrowPath, a leading global provider of case management solutions for eminent domain and other contingency-based lawyers. The onboarding comes shortly after the firm chose GrowPath...

at 16:50
Cerebral Inc., the leading online provider of psychiatric and behavioral therapy services, announced today the launch of a new transformation program ? Cerebral Core ? which will allow the company to fully realize its mission to increase access to...

at 16:45
The "Global Digital Intelligence Growth Opportunities" report has been added to ResearchAndMarkets.com's offering. This research service looks at the digital intelligence solutions market, identifying particular trends, best practices, and customer...

at 16:40
Zero Gravity Corporation ("Zero-G") recently announced a new partnership with the Space Prize Foundation, which offers a life-changing competition that encourages and inspires young women to pursue careers in STEAM (Science, Technology,...

at 16:39
Universal Audio Inc. (UA), a worldwide leader in audio production tools including the popular Apollo and Volt audio interfaces, UAD plug-ins, UA microphones, and UAFX guitar pedals, is proud to introduce UAFX Guitar Amp...

at 16:35
DermTech, Inc. ("DermTech" or the "Company"), a leader in precision dermatology enabled by a non-invasive skin genomics platform, announced today that it is sponsoring The Sun Bus, a community service provided by the Colorado Melanoma Foundation in...



News published on 12 january 2022 at 08:25 and distributed by: