Wipro Limited Announces Results for the Quarter and Year ended March 31, 2021 under IFRS

IT Services Revenue growth for the quarter at 3.9% QoQ

EPS for the year increased by 14.6% YoY

BANGALORE, India & EAST BRUNSWICK, N.J.–(BUSINESS WIRE)–#DevOps–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, 2021.

Highlights of the Results

Results for the Quarter ended March 31, 2021:

  • Gross Revenue was Rs 162.5 billion ($2.2 billion1), an increase of 3.4% YoY
  • IT Services Segment Revenue was at $2,152.4 million, an increase of 3.9% QoQ and 3.8% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 0.5% YoY
  • IT Services Operating Margin3 for the quarter was at 21.0%, an expansion of 344 bps YoY
  • Net Income for the quarter was Rs 29.7 billion ($406.4 million1), an increase of 27.8% YoY
  • Earnings Per Share for the quarter was at Rs 5.39 ($0.071), an increase of 31.8% YoY

Results for the Year ended March 31, 2021:

  • Gross Revenue was Rs 619.4 billion ($8.5 billion1), an increase of 1.5% YoY
  • IT Services Segment Revenue was at $8,136.5 million, a decrease of 1.4% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue decreased by 2.3% YoY
  • IT Services Operating Margin3 for the year was at 20.3%, an expansion of 218 bps YoY
  • Net Income for the year was Rs 107.9 billion ($1,475.9 million1), an increase of 11.0% YoY
  • Earnings Per Share for the year was at Rs 19.11 ($0.261), an increase of 14.6% YoY
  • Operating Cash Flow was at Rs 147.6 billion ($2,017.4 million1), an increase of 46.6% YoY, which is 136.7% of Net Income

Performance for the quarter and year ended March 31, 2021

Thierry Delaporte, CEO and Managing Director said, “I am delighted with the way we have finished the financial year. We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates.”

Jatin Dalal, Chief Financial Officer said, “We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7% of our net income for the full year. We successfully completed the share buyback program returning $1.3Bn to our shareholders.”

  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 73.14, as published by the Federal Reserve Board of Governors on March 31, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2021 was US$1= Rs 73.83
  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

Outlook for the quarter ending June 30, 2021

We expect Revenue from our IT Services business to be in the range of $2,195 million to $2,238 million*. This translates to a sequential growth of 2.0% to 4.0%. This does not include revenue from our recently announced acquisitions of Capco and Ampion.

* Outlook is based on the following exchange rates: GBP/USD at 1.39, Euro/USD at 1.20, AUD/USD at 0.78, USD/INR at 72.76 and CAD/USD at 0.78

Capital Allocation

  • In the quarter ended March 31, 2021, the Company has concluded the buyback of 237.5 million equity shares as approved earlier by the Board of Directors at their meeting held on October 13, 2020 for an aggregate amount of Rs 95 billion ($1.3 billion1), excluding buyback tax
  • The interim dividend of Rs 1 declared by the Board at its meeting held on January 13, 2021 shall be considered as the final dividend for the financial year 2020-21

IT Services

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

  • Wipro has won a multi-million-dollar integrated engagement from a leading US-based industrial manufacturing company to transform and modernize its business functions and enable it to become a digital enterprise via transformation in applications, infrastructure, cyber security and service delivery.
  • Wipro has won a multi-year strategic contract from a US-based digital transformation and consulting agency to provide Infrastructure Managed Services for its Data Center, and Network and Tools landscape. Wipro will leverage AI Ops tool stack to automate the client’s infrastructure to reduce turnaround time across requests and incidents, improve operational efficiency, and deliver a superior user experience for its end customer, a leading US-based Federal agency.

Digital Services Highlights

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

  • A leading Indian e-commerce and technology company has selected Wipro to enhance customer experience, leveraging its expertise in digital operations and new-age solutions.
  • A leading technology provider has awarded Wipro a contract to consolidate its enterprise digital assets on cloud and on-premise to a centralized content repository to enable robust management of its marketing content needs.
  • A global communications and networking giant has extended their decade-long partnership with Wipro Designit to research, prototype, and design their major product family, as well as associated services and experience.
  • Wipro has won a multi-year engagement with a US-based utilities company to provide System Integrator services for a large business and IT transformation program in the areas of Supply Chain and Enterprise Work and Asset Management. Wipro will leverage its strong domain expertise and capabilities in Digital, Applications, and Data and Analytics to implement leading practices and business processes across the enterprise.
  • A multinational professional services company has engaged Wipro Designit to design next generation, user-centric experience for its employees. Designit will apply research, service design blueprinting and experience design to transform the workplace and the computing experience for the client’s global workforce.

Analyst Recognition

  • Wipro was positioned as a Leader in Gartner Magic Quadrant for Managed Workplace Services, North America, Daniel Barros, Mark Ray, Stephanie Stoudt-Hansen, Tobi Bet, 24 Feb 2021
  • Wipro was positioned as a Leader in Gartner Magic Quadrant for Managed Workplace Services, Europe, David Groombridge, Claudio Da Rold, Alexandra Chavez, Daniel Barros, Katja Ruud, 24 Feb 2021
  • Wipro was positioned as a Leader in Gartner Magic Quadrant for Customer Service BPO, Deborah Alvord, Kim Dans, Philip Jenkins, John Quaglietta, TJ Singh, 9 Feb 2021
  • Wipro ranks among the Top Service Providers in Customer Satisfaction Category in Whitelane / Quint Netherlands IT Outsourcing Study 2021
  • Wipro ranks among the Top Service Providers in Customer Satisfaction Category in Whitelane & PA Consulting IT Outsourcing Study 2021 in Nordics Region
  • Wipro was positioned as a Leader in Everest Group’s Pharmacovigilance and Complaint Management Operations Services PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader in Everest Group’s Intelligent Process Automation (IPA) Solutions PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader in Everest Group’s Semiconductor Engineering Services PEAK Matrix® Assessment 2021
  • Wipro was rated as a Leader in ISG Provider Lens™ Salesforce Ecosystem Partners 2021 – US
  • Wipro was rated as a Leader in ISG Provider Lens™ Next-gen Application Development & Maintenance (ADM) Services 2020 – US and UK

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

  • IT Products Segment Revenue for the year was Rs 7.7 billion ($105.1 million1)
  • IT Products Segment Results for the year was a profit of Rs 0.05 billion ($0.62 million1)
  • IT Products Segment Revenue for the quarter was Rs 2.1 billion ($28.9 million1)
  • IT Products Segment Results for the quarter was a profit of Rs 0.15 billion ($2.0 million1)

India business from State Run Enterprises (ISRE)

  • India SRE Segment Revenue for the year was Rs 8.9 billion ($121.8 million1)
  • India SRE Segment Results for the year was a profit of Rs 1.1 billion ($14.5 million1)
  • India SRE Segment Revenue for the quarter was Rs 2.3 billion ($31.5 million1)
  • India SRE Segment Results for the quarter was a profit of Rs 0.6 billion ($8.0 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, 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=WIPRO210415

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 190,000 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, 2020

 

As at March 31, 2021

Convenience translation into US

dollar in millions

Refer footnote 1

ASSETS

Goodwill

131,012

139,127

1,902

Intangible assets

16,362

13,085

179

Property, plant and equipment

81,120

85,192

1,165

Right-of-Use assets

16,748

16,420

225

Financial assets

Derivative assets

16

^

Investments

9,302

10,576

145

Trade receivables

6,049

4,358

60

Other financial assets

5,881

6,088

83

Investments accounted for using the equity method

1,383

1,464

20

Deferred tax assets

6,005

1,664

23

Non-current tax assets

11,414

14,323

196

Other non-current assets

11,935

15,935

217

Total non-current assets

297,211

308,248

4,215

Inventories

1,865

1,064

15

Financial assets

Derivative assets

3,025

4,064

56

Investments

189,635

175,707

2,402

Cash and cash equivalents

144,499

169,793

2,321

Trade receivables

104,474

94,298

1,289

Unbilled receivables

25,209

27,124

371

Other financial assets

8,614

7,245

99

Contract assets

17,143

16,507

226

Current tax assets

2,882

2,461

34

Other current assets

22,505

24,923

340

Total current assets

519,851

523,186

7,153

 

TOTAL ASSETS

817,062

831,434

11,368

 

EQUITY

Share capital

11,427

10,958

150

Share premium

1,275

714

10

Retained earnings

476,103

466,692

6,381

Share-based payment reserve

1,550

3,071

42

SEZ Re-investment reserve

43,804

41,154

563

Other components of equity

23,299

30,506

418

Equity attributable to the equity holders of the Company

557,458

553,095

7,564

Non-controlling interests

1,875

1,498

20

TOTAL EQUITY

559,333

554,593

7,584

 

LIABILITIES

Financial liabilities

Loans and borrowings

4,840

7,458

102

Derivative liabilities

138

Lease liabilities

12,638

13,513

185

Other financial liabilities

151

2,291

31

Deferred tax liabilities

2,825

4,633

63

Non-current tax liabilities

13,205

11,069

151

Other non-current liabilities

7,537

7,835

107

Provisions

2

2

^

Total non-current liabilities

41,336

46,801

639

Financial liabilities

Loans, borrowings and bank overdrafts

73,202

75,874

1,037

Derivative liabilities

7,231

1,070

15

Trade payables and accrued expenses

78,129

78,870

1,078

Lease liabilities

6,560

7,669

105

Other financial liabilities

899

1,470

20

Contract liabilities

18,775

22,535

308

Current tax liabilities

11,731

17,324

237

Other current liabilities

19,254

24,552

336

Provisions

612

676

9

Total current liabilities

216,393

230,040

3,145

TOTAL LIABILITIES

257,729

276,841

3,784

 

TOTAL EQUITY AND LIABILITIES

817,062

831,434

11,368

^ 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,

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

157,110

 

162,454

 

2,221

 

610,232

 

619,430

 

8,469

 

Cost of revenues

(114,133

)

(109,805

)

(1,501

)

(436,085

)

(423,205

)

(5,786

)

Gross profit

42,977

 

52,649

 

720

 

174,147

 

196,225

 

2,683

 

 

Selling and marketing expenses

(10,295

)

(10,679

)

(146

)

(42,907

)

(41,400

)

(566

)

General and administrative expenses

(7,681

)

(8,689

)

(119

)

(29,823

)

(34,686

)

(474

)

Foreign exchange gains

993

 

886

 

12

 

3,169

 

2,995

 

41

 

Other operating income/(loss), net

395

 

 

 

1,144

 

(81

)

(1

)

Results from operating activities

26,389

 

34,167

 

467

 

105,730

 

123,053

 

1,683

 

 

Finance expenses

(1,653

)

(1,122

)

(15

)

(7,328

)

(5,088

)

(70

)

Finance and other income

4,907

 

4,447

 

61

 

24,081

 

20,912

 

286

 

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

13

 

4

 

^

29

 

130

 

2

 

Profit before tax

29,656

 

37,496

 

513

 

122,512

 

139,007

 

1,901

 

Income tax expense

(6,205

)

(7,755

)

(106

)

(24,799

)

(30,345

)

(415

)

Profit for the period

23,451

 

29,741

 

407

 

97,713

 

108,662

 

1,486

 

 

Profit attributable to:

Equity holders of the Company

23,260

 

29,721

 

407

 

97,218

 

107,946

 

1,476

 

Non-controlling interests

191

 

20

 

^

495

 

716

 

10

 

Profit for the period

23,451

 

29,741

 

407

 

97,713

 

108,662

 

1,486

 

 

Earnings per equity share:

Attributable to equity holders of the Company

Basic

4.09

 

5.39

 

0.07

 

16.67

 

19.11

 

0.26

 

Diluted

4.07

 

5.38

 

0.07

 

16.62

 

19.07

 

0.26

 

 

Weighted average number of equity shares

used in computing earnings per equity share

Basic

5,692,835,298

 

5,510,335,838

 

5,510,335,838

 

5,833,384,018

 

5,649,265,885

 

5,649,265,885

 

Diluted

5,703,378,727

 

5,524,619,810

 

5,524,619,810

 

5,847,823,239

 

5,661,657,822

 

5,661,657,822

 

^ Value is less than 1

Additional Information:

Particulars

Three months ended

Year ended

March 31,

2021

December 31,

2020

March 31,

2020

March 31,

2021

March 31,

2020

Audited

Audited

Audited

Audited

Audited

Revenue

IT Services

Americas 1

46,510

45,015

45,977

178,091

176,115

Americas 2

46,475

44,702

45,418

179,821

181,481

Europe

45,107

42,880

41,104

165,441

157,526

APMEA

20,825

20,717

20,395

82,462

78,676

Total of IT Services

158,917

153,314

152,894

605,815

593,798

IT Products

2,117

1,563

3,266

7,685

11,657

ISRE

2,302

2,388

1,931

8,912

7,950

Reconciling Items

4

1

12

13

(4)

Total Revenue

163,340

157,266

158,103

622,425

613,401

 

Other operating income/(loss), net

IT Services

395

(81)

1,144

Total Other operating income/(loss), net

395

(81)

1,144

 

Segment Result

IT Services

Americas 1

9,863

8,095

7,324

33,040

27,289

Americas 2

10,500

10,216

9,008

41,589

34,341

Europe

8,704

9,251

7,181

31,673

27,617

APMEA

3,074

2,765

2,426

11,476

9,550

Unallocated

1,257

2,944

609

5,153

7,732

Other operating income/(loss), net

395

(81)

1,144

Total of IT Services

33,398

33,271

26,943

122,850

107,673

IT Products

145

78

145

45

(323)

ISRE

587

471

(510)

1,061

(1,849)

Reconciling Items

37

(7)

(189)

(903)

229

Total

34,167

33,813

26,389

123,053

105,730

Finance Expense

(1,122)

(1,400)

(1,653)

(5,088)

(7,328)

Finance and Other Income

4,447

5,975

4,907

20,912

24,081

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

4

101

13

130

29

Profit before tax

37,496

38,489

29,656

139,007

122,512

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, 2021

IT Services Revenue as per IFRS

$

2,152.4

 

Effect of Foreign currency exchange movement

$

(18.7

)

Non-GAAP Constant Currency IT Services Revenue based on

$

2,133.7

 

previous quarter exchange rates

 

Three Months ended March 31, 2021

IT Services Revenue as per IFRS

$

2,152.4

 

Effect of Foreign currency exchange movement

$

(68.8

)

Non-GAAP Constant Currency IT Services Revenue based on

$

2,083.6

 

exchange rates of comparable period in previous year

 

Year ended March 31, 2021

IT Services Revenue as per IFRS

$

8,136.5

 

Effect of Foreign currency exchange movement

$

(72.2

)

Non-GAAP Constant Currency IT Services Revenue based on

$

8,064.4

 

exchange rates of comparable period in previous year

Contacts

Contact for Investor Relations
Aparna Iyer

Phone: +91-80-6142 7139

iyer.aparna@wipro.com

Abhishek Kumar Jain

Phone: +91-9845791363

abhishekkumar.jain@wipro.com

Contact for Media & Press

Vipin Nair

Phone: +91-80-6142 6450

vipin.nair1@wipro.com

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Author: dmnnewswire