Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced
financial results under International Financial Reporting Standards
(IFRS) for its quarter ended June 30, 2018.
Highlights of the Results
Results for the Quarter ended June 30, 2018:
Performance for the Quarter ended June 30, 2018
Abidali Z. Neemuchwala, CEO and Member of the Board said - "We
have seen pickup in spending in the developed markets, particularly in
North America and BFSI. Our investments in Digital continue to help us
build differentiation in key industry segments, which is resulting in a
consistent improvement in our client metrics. We have had a good quarter
of order bookings and I am confident we are moving in the right
Jatin Dalal, Chief Financial Officer said -"We successfully
concluded the sale of our hosted data center business in the quarter. We
continue to improve our operating metrics and generated strong operating
cash flows at 136% of our Net Income during the quarter."
Outlook for the Quarter ending September 30,
2018We expect Revenue from our IT Services business
to be in the range of $2,009 million to $2,049 million*. This translates
to a sequential growth of 0.3% to 2.3%, excluding the impact of the
divestment of our hosted data center services business which concluded
in the quarter ended June 30, 2018.
* Outlook is based on the following exchange rates: GBP/USD at 1.34,
Euro/USD at 1.18, AUD/USD at 0.75, USD/INR at 68.50 and USD/CAD at 1.29.
Wipro continued its momentum in winning large deals globally as
Wipro has won an applications cloud migration contract from a European
investment bank for their repository of applications.
A major US airline has renewed its multi-year contract with Wipro for
global contact center support and other business process services.
Wipro has won a multi-year business process operations transformation
contract from an Australian construction and property management
company. The engagement will leverage Wipro's AI, cognitive-driven
automation and platforms to standardize and transform the client's
finance and HR operations into a global shared services model.
Wipro has been awarded a multi-year cargo management contract by LATAM
Cargo S.A., a leader in air cargo transport to, from and within Latin
America. Wipro will deploy its end to end cargo management system,
CROAMIS, for the client.
Wipro has been awarded a multi-year quality engineering transformation
contract by a leading African financial services company. Our
proprietary platforms - Wipro AssureNXT and Wipro HOLMESTM
will drive cost optimization as well as standardize and transform the
quality engineering landscape for the client.
We continue to see increasing traction in digital oriented deals as
A global pharmaceutical company has selected Wipro to support its
strategic assessment and go-to-market approach for its diagnostics
business unit. The project will leverage Wipro's industry expertise and
service design methodology to help define a futuristic strategy roadmap
for the business unit.
Wipro has won an application modernization and cloud migration contract
from a global financial services company, aimed at driving greater
business agility and improved end-customer experience.
Wipro and Designit have been selected by a leading North American
student aid organization to help transform and reimagine its customer
experience across its loan portals through redesigned business processes
and digital touchpoints.
Wipro also continues to win deals in the cloud applications space by
leveraging Appirio Cloud Services:
Analyst Accolades and Awards
Wipro was recognized as a Leader in the Nelson Hall NEAT assessment on
Business Process Transformation through RPA & AI.
Wipro was recognized as a Leader in IDC MarketScape for Worldwide
Manufacturing Information Transformation Strategic Consulting 2018
Wipro was recognized as a Leader in Everest Group's Know Your
Customer-Anti Money Laundering (KYC-AML) BPO - State of the Market with
Services PEAK Matrix™ Assessment 2018.
Wipro has been awarded the National Intellectual Property (IP) Award
2018 by Intellectual Property Office (IPO), Government of India and The
Department of Industrial Policy and Promotion (DIPP), in the 'Top Public
Limited Company / Private Limited Company for Patents &
Commercialization in India' category.
All product names, logos, and brands are property of their respective
Please refer the table at the end for reconciliation between IFRS IT
Services Revenue and IT Services Revenue on a non-GAAP constant currency
About Non-GAAP Financial MeasuresThis 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
The table at the end of the release 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.
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 June 30, 2018, 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- http://services.choruscall.eu/links/wipro180720.html
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 LimitedWipro 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 160,000 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 StatementsThe 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
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 68.46,
as published by the Federal Reserve Board of Governors on June 30,
2018. However, the realized exchange rate in our IT Services
business segment for the quarter ended June 30, 2018 was US$1= Rs
IT Services Margin refers to Segment Results Total.
WIPRO LIMITED AND SUBSIDIARIES
in millions(unaudited) Refer footnote 1
Conveniencetranslation into USdollar
in millions(unaudited) ReferFootnote 1
The Company is organized by the following operating segments: IT
Services and IT Products.
IT Services: The IT Services segment primarily consists of
IT Service offerings to customers organized by industry verticals.
Effective April 1, 2018, consequent to change in organization
structure, the Company reorganized its industry verticals. The
Manufacturing (MFG) and Technology Business unit are split from
the former Manufacturing & Technology (MNT) business unit. The
revised industry verticals are as follows: Banking, Financial
Services and Insurance (BFSI), Health Business unit (Health BU)
previously known as Health Care and Life Sciences Business unit
(HLS), Consumer Business unit (CBU), Energy, Natural Resources &
Utilities (ENU), Manufacturing (MFG), Technology (TECH) and
Communications (COMM). IT Services segment also includes Others
which comprises dividend income relating to strategic investments,
which are presented within "Financial and other Income" in the
interim condensed consolidated statement of income. 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
Comparative information has been restated to give effect to the
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.
Reconciliation of Non-GAAP Constant
Currency IT Services Revenue to IT Services Revenue as per IFRS
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