Wipro Limited Announces Results for the Quarter and Year ended March 31, 2022 under IFRS

Business Wire IndiaWipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the quarter and year ended March 31, 2022.   Highlights of the Results Results for the Quarter ended March 31, 2022:   Gross Revenue was Rs 208.6 billion ($2.7 billion1), an increase of 28.4% […]

Business Wire India
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the quarter and year ended March 31, 2022.
 
Highlights of the Results

Results for the Quarter ended March 31, 2022:

 
  • Gross Revenue was Rs 208.6 billion ($2.7 billion1), an increase of 28.4% YoY
  • IT Services Segment Revenue was at $2,721.7 million, an increase of 3.1% QoQ and 26.4% YoY
  • Non-GAAP2 constant currency IT Services segment revenue increased by 3.1% QoQ and 28.5% YoY
  • IT Services Operating Margin3 for the quarter was at 17.0%, a decrease of 60 bps QoQ
  • Net Income for the quarter was Rs 30.9 billion ($406.9 million1), an increase of 4.0% QoQ and 3.9% YoY
  • Earnings Per Share for the quarter was at Rs 5.64 ($0.071), an increase of 4.6% YoY
  • Operating Cash Flow was at Rs 23.3 billion ($307.3 million1), which is 75.5% of Net Income

 
Results for the Year ended March 31, 2022:

 
  • Gross Revenue was Rs 790.9 billion ($10.4 billion1), an increase of 27.7% YoY
  • IT Services Segment Revenue was at $10,355.9 million, an increase of 27.3% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 26.9% YoY
  • IT Services Operating Margin3 for the year was at 17.7%, a decrease of 254 bps YoY
  • Net Income for the year was Rs 122.2 billion ($1,610.5 million1), an increase of 13.2% YoY
  • Earnings Per Share for the year was at Rs 22.35 ($0.291), an increase of 17.0% YoY
  • Operating Cash Flow was at Rs 110.8 billion ($1,460.4 million1), which is 90.7% of Net Income
  • Our closing strength of employees for IT Services was at 243,128, an increase of 45,416 employees on a YoY

 
Performance for the Quarter and Year ended March 31, 2022
 
Thierry Delaporte, CEO and Managing Director said, “We have had an outstanding year, finishing with $10.4 Bn in revenues, and an industry-leading growth of 27% year on year. This is our sixth straight quarter of strong revenue growth at or over 3%. We are excited with the addition of Rizing and the CAS Group to Wipro’s service offerings. With all markets, sectors and Global Business Lines now growing in double-digits year on year, we have a strong foundation for next year’s growth.”
 
Jatin Dalal, Chief Financial Officer said, “Our efforts on client mining have resulted in an addition of eight customers in more than $100 Mn bucket on YoY basis. We delivered operating margins of 17.7% for the year, after significant investments on solutions, capabilities and talent. Net Income for the year was highest ever at $1.6 Bn and delivered robust growth in EPS of 17.0% YoY.”
 
Outlook for the quarter ending June 30, 2022

We expect Revenue from our IT Services business to be in the range of $2,748 million to $2,803 million*. This translates to a sequential growth of 1% to 3%.
 
*Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.12, AUD/USD at 0.73, USD/INR at 75.26 and CAD/USD at 0.79
 
Capital Allocation
 
The interim dividend of Rs 1 and Rs 5 declared by the Board at its meetings held on January 14th and March 25th, 2022 shall be considered as the final dividend for the financial year 2021-22.
 
IT Services

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

 
  • A US-based global healthcare company will leverage Wipro FullStride Cloud Services to engineer products for cloud and digital technologies based on a Product Oriented Delivery (POD) model.
  • A US-based multinational technology company has renewed its existing contract to curate geospatial information that will enable the customer with evaluations and recommendations on map modelling processes.
  • A leading US-based global benefits and payroll administration company has awarded Wipro a transformational business process services contract to optimize costs in health & wealth benefits and customer care.
  • A multinational telecommunications network company, headquartered in the Nordics, has awarded Wipro a contract to drive transformation and digitalization of business processes that enhances customer value through high quality service delivery.
  • A leading Europe-based provider of transport solutions has partnered with Wipro to transform their digital workplace, supporting the shift towards sustainable transport solutions.

 
Digital Services Highlights

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

 
  • A leading global cosmetics company has selected Wipro to rollout their SAP S/4HANA in a region that will drive their business growth. This transformation will enable the customer to harmonize their business processes, accelerate time to market, innovate, and enhance user experience.
  • A leading Asia-based multinational automotive electronics supplier has selected Wipro to develop the engineering blueprint for their next generation software defined vehicle platform using Wipro’s Cloud Car architecture.
  • Designit has been selected by a multinational technology conglomerate to design a digital onboarding experience and support hybrid working needs of employees of a large company in the mobility sector.
  • A Smart City based in the Middle East has selected Wipro to build a secure, reliable on-demand 5G network using autonomous drones for the high-bandwidth requirements of residents, businesses, and visitors.
  • A Europe based financial services company has renewed is its Data Center and cloud infrastructure management contract with Wipro to support its transformation to a Hybrid Cloud model.
  • A government body based in the Middle East has selected Wipro as the digital partner to build a data-led AI marketplace that will bring the local talent, government and private sector together.
  • Wipro is engaged as the primary partner to design and develop hardware for a series of RUs (radio units) to enable end to end O-RAN 5G solution deployment for service provider customers with one of the leading US based telecommunications networking provider.

Analyst Recognition
 

  • Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Data and Analytics Service Providers
  • Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Outsourced Digital Workplace Services
  • Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Customer Service BPO
  • Wipro was featured in HFS Top 10: Retail and CPG Services, Application Modernization Services and SAP S/4HANA Services, 2022
  • Wipro ranks among the Top Service Providers in Whitelane Benelux IT Sourcing Study 2022 and Netherlands IT Outsourcing Study 2021
  • Wipro was rated as a Leader in Everest Group’s Digital Interactive Experience (IX) and Digital Product Engineering Services PEAK Matrix® Assessment 2022
  • Wipro was rated as a Leader in Everest Group’s Artificial Intelligence (AI) Services and Intelligent Process Automation (IPA) Solution Provider Landscape with PEAK Matrix® Assessment 2022
  • Wipro was recognized as a Leader in Everest Group’s Healthcare Payer Operations and Oracle Cloud Applications (OCA) Services PEAK Matrix® Assessment 2022 – Global
  • Wipro was recognized as a Leader in Avasant Healthcare Payor Digital Services and Provider Digital Services RadarView™ 2022 – 2023
  • Wipro was rated as a Leader in Avasant Intelligent Automation Services RadarView™ 2021 – 2022

Disclaimer: *Gartner, “Magic Quadrant for Data and Analytics Service Providers “, Jorgen Heisenberg, et al, 7 February 2022. Gartner, “Magic Quadrant for Data and Analytics Service Providers”, Gartner, “Magic Quadrant for Outsourced Digital Workplace Services”, Daniel Barros, et al, 22 February 2022. Gartner, “Magic Quadrant for Customer Service BPO“, Deborah Alvord, et al, 28 March 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner's research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

IT Products

 
  • IT Products segment revenue for the quarter was Rs 1.2 billion ($15.8 million1)
  • IT Products segment results for the quarter was a loss of Rs 0.02 billion ($0.29 million1)
  • IT Products segment revenue for the year was Rs 6.2 billion ($81.4 million1)
  • IT Products segment results for the year was a profit of Rs 0.12 billion ($1.5 million1)

 
India business from State Run Enterprises (ISRE)

 
  • India SRE segment revenue for the quarter was Rs 1.9 billion ($24.6 million1)
  • India SRE segment results for the quarter was a profit of Rs 0.17 billion ($2.3 million1)
  • India SRE segment revenue for the year was Rs 7.3 billion ($96.2 million1)
  • India SRE segment results for the year was a profit of Rs 1.2 billion ($15.5 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 and Year ended March 31, 2022, 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 07:30 p.m. Indian Standard Time (10:00 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=WIP290422
 
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 240,000 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 75.87, as published by the Federal Reserve Board of Governors on March 31, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2022 was US$1= Rs 75.91
  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

        
 

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 March 31, 2022
              Convenience translation into US dollar in millions
Refer footnote 1
ASSETS              
Goodwill     139,127    246,989    3,255 
Intangible assets     13,085    43,555    574 
Property, plant and equipment     85,192    90,898    1,198 
Right-of-Use assets     16,420    18,870    249 
Financial assets              
Derivative assets      16      ^
Investments      10,576    19,109    252 
Trade receivables      4,358    4,765    63 
Other financial assets     6,088    6,084    80 
Investments accounted for using the equity method     1,464    774    10 
Deferred tax assets     1,664    2,298    30 
Non-current tax assets     14,323    10,256    136 
Other non-current assets     15,935    14,826    195 
Total non-current assets     308,248    458,430    6,042 
Inventories     1,064    1,334    18 
Financial assets              
Derivative assets     4,064    3,032    40 
Investments     175,707    241,655    3,185 
Cash and cash equivalents     169,793    103,836    1,369 
Trade receivables     94,298    115,219    1,519 
Unbilled receivables     27,124    60,809    801 
Other financial assets     7,245    42,914    566 
Contract assets     16,507    20,647    272 
Current tax assets     2,461    2,373    31 
Other current assets     24,923    28,933    381 
Total current assets     523,186    620,752    8,182 
               
TOTAL ASSETS     831,434    1,079,182    14,224 
               
EQUITY              
Share capital     10,958    10,964    145 
Share premium     714    1,566    21 
Retained earnings     466,692    551,252    7,266 
Share-based payment reserve     3,071    5,258    69 
Special Economic Zone Re-investment reserve     41,154    47,061    620 
Other components of equity     30,506    42,057    554 
Equity attributable to the equity holders of the Company     553,095    658,158    8,675 
Non-controlling interests     1,498    515   
TOTAL EQUITY     554,593    658,673    8,682 
               
LIABILITIES              
Financial liabilities              
Loans and borrowings     7,458    56,463    744 
Lease liabilities      13,513    15,177    200 
Derivative liabilities        –      48   
Other financial liabilities     2,291    2,961    39 
Deferred tax liabilities     4,633    12,141    160 
Non-current tax liabilities     11,069    17,818    235 
Other non-current liabilities     7,835    7,571    100 
Provisions          ^
Total non-current liabilities     46,801    112,180    1,479 
Financial liabilities              
Loans, borrowings and bank overdrafts     75,874    95,233    1,255 
Lease liabilities     7,669    9,056    119 
Derivative liabilities     1,070    585   
Trade payables and accrued expenses     76,512    99,034    1,305 
Other financial liabilities     1,470    33,110    436 
Contract liabilities     22,535    27,915    368 
Current tax liabilities     17,324    13,231    174 
Other current liabilities     24,552    27,394    361 
Provisions     3,034    2,771    37 
Total current liabilities     230,040    308,329    4,063 
TOTAL LIABILITIES     276,841    420,509    5,542 
               
TOTAL EQUITY AND LIABILITIES     831,434    1,079,182    14,224 
^ 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 March 31,   Year ended March 31,
      2021   2022   2022   2021   2022   2022
              Convenience translation into US dollar in millions
Refer footnote 1
          Convenience translation into US dollar in millions
Refer footnote 1
Revenues     162,454    208,600    2,749    619,430    790,934    10,425 
Cost of revenues     (109,805)   (147,965)   (1,950)   (423,205)   (555,872)   (7,327)
Gross profit     52,649    60,635    799    196,225    235,062    3,098 
                           
Selling and marketing expenses     (10,679)   (14,078)   (185)   (41,400)   (54,935)   (724)
General and administrative expenses     (8,689)   (12,528)   (165)   (34,686)   (46,382)   (611)
Foreign exchange gains/(losses), net     886    1,075    14    2,995    4,355    57 
Other operating income/(loss), net     –        ^   (81)   2,186    29 
Results from operating activities     34,167    35,111    463    123,053    140,286    1,849 
                           
Finance expenses     (1,122)   (1,717)   (23)   (5,088)   (5,325)   (70)
Finance and other income     4,447    3,946    52    20,912    16,257    214 
Share of net profit/ (loss) of associates accounted for using the equity method       (16)   ^   130    57   
Profit before tax     37,496    37,324    492    139,007    151,275    1,994 
Income tax expense     (7,755)   (6,399)   (84)   (30,345)   (28,946)   (382)
Profit for the period     29,741    30,925    408    108,662    122,329    1,612 
                           
Profit attributable to:                          
Equity holders of the Company     29,721    30,873    407    107,946    122,191    1,610 
Non-controlling interests      20    52      716    138   
Profit for the period     29,741    30,925    408    108,662    122,329    1,612 
                           
Earnings per equity share:                          
Attributable to equity holders of the Company                          
Basic     5.39    5.64    0.07    19.11    22.35    0.29 
Diluted     5.38    5.63    0.07    19.07    22.29    0.29 
                           
Weighted average number of equity shares                          
used in computing earnings per equity share                          
Basic     5,510,335,838    5,470,020,412    5,470,020,412    5,649,265,885    5,466,705,840    5,466,705,840 
Diluted     5,524,619,810    5,486,955,729    5,486,955,729    5,661,657,822    5,482,083,438    5,482,083,438 
^ Value is less than 1                          

 
 
Additional Information:
 

Particulars Three months ended  Year ended
March
31, 2022
December
31, 2021
March
31, 2021
March
31, 2022
March
31, 2021
Audited Audited Audited Audited Audited
Revenue          
IT Services          
Americas 1 58,342  56,644  46,510  217,874  178,091 
Americas 2 63,963  61,076  46,475  239,404  179,821 
Europe 60,743  59,620  45,107  233,443  165,441 
APMEA 23,560  23,596  20,825  91,103  82,462 
Total of IT Services 206,608  200,936  158,917  781,824  605,815 
IT Products 1,201  1,767  2,117  6,173  7,685 
ISRE 1,868  1,623  2,302  7,295  8,912 
Reconciling Items (2) (3) (3) 13 
Total Revenue 209,675  204,323  163,340  795,289  622,425 
           
Other operating income/(loss), net          
IT Services 14  –    2,186  (81)
Total Other operating income/(loss), net 14      2,186  (81)
           
Segment Result          
IT Services          
Americas 1 11,530  11,390  9,863  42,820  33,040 
Americas 2 12,150  12,057  10,500  47,376  41,589 
Europe 9,056  9,172  8,704  35,739  31,673 
APMEA 1,946  2,483  3,074  10,523  11,476 
   Unallocated 361  173  1,257  434  5,153 
Other operating income/(loss), net 14  –    2,186  (81)
Total of IT Services 35,050  35,289  33,398  139,078  122,850 
IT Products (22) 96  145  115  45 
ISRE 171  134  587  1,173  1,061 
Reconciling Items (88) 16  37  (80) (903)
Total Segment result 35,111  35,535  34,167  140,286  123,053 
Finance expenses (1,717) (1,403) (1,122) (5,325) (5,088)
Finance and Other Income 3,946  3,578  4,447  16,257  20,912 
Share of net profit/ (loss) of associates accounted for using the equity method (16) 76  57  130 
Profit before tax 37,324  37,786  37,496  151,275  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 March 31, 2022
IT Services Revenue as per IFRS                                                          $          2,721.7         
Effect of Foreign currency exchange movement                                      $             (1.3)
Non-GAAP Constant Currency IT Services Revenue based on                 $         2,720.4
previous quarter exchange rates                     
 
Three Months ended March 31, 2022
IT Services Revenue as per IFRS                                                         $         2,721.7
Effect of Foreign currency exchange movement                                      $              43.2
Non-GAAP Constant Currency IT Services Revenue based on                $         2,764.9
exchange rates of comparable period in previous year  
 
 
Year ended March 31, 2022
IT Services Revenue as per IFRS                                                         $         10,355.9
Effect of Foreign currency exchange movement                                      $            (33.0)
Non-GAAP Constant Currency IT Services Revenue based on                $         10,322.9
exchange rates of comparable period in previous year          
Source: PRESS RELEASE


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