SIP Trunking News

TMCNet:  Wipro Limited Announces Results for the Quarter ended June 30, 2018 under IFRS

[July 20, 2018]

Wipro Limited Announces Results for the Quarter ended June 30, 2018 under IFRS

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:

  • Gross Revenue was Rs 139.8 billion ($2.0 billion1), up 1.5% sequentially and 2.6% YoY.
  • IT Services Segment Revenue at Rs 137.0 billion ($2.0 billion1), up 2.2% sequentially and 5.2% YoY.
  • IT Services Segment Revenue in dollar terms at $2,026.5 million, down 1.7% sequentially, up 2.8% YoY.
  • Non-GAAP constant currency IT Services Segment Revenue up 0.1% sequentially and 2.4% YoY.
  • IT Services Margin2 for the quarter at 17.2%. This includes a gain of Rs 2,529 million ($36.9 million1) from the sale of our hosted data center business in the quarter ended June 30, 2018.
  • EPS for the quarter at Rs 4.71 ($0.071) per share, an increase of 9.9% YoY.

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 direction."

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, 2018
We 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.

IT Services

Wipro continued its momentum in winning large deals globally as described below:

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.

Digital Highlights

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

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:

  • An American retailer has extended its HR transformation contract with Wipro. This program will improve the customer experience as well as the employee satisfaction in its stores.
  • A large medical advocacy group has selected Wipro as a partner to transform its employee and member experience. Wipro will implement a cloud-based solution to enhance the group's human capital management, payroll and finance operations.

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 Vendor Assessment.

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 owners.

IT Products

  • IT Products Segment Revenue for the quarter ended June 30, 2018 was ?3.5 billion ($51.6 million1).
  • IT Products Margin for the quarter was -20.9%.

Please refer 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 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

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-

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

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 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 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 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 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 67.61.


IT Services Margin refers to Segment Results Total.



(Rupees in millions, except share and per share data, unless otherwise stated)
As of March 31,     As of June 30,
2018 2018 2018

translation into
dollar in millions
(unaudited) Refer
footnote 1


Goodwill 117,584 121,610 1,776
Intangible assets 18,113 17,868 261
Property, plant and equipment 64,443 65,357 955
Derivative assets 41 29 -
Investments 7,668 6,448 94
Investment in equity accounted investee 1,206 1,212 18
Trade receivables 4,446 4,179 61
Deferred tax assets 6,908 6,724 98
Non-current tax assets 18,349 19,269 281
Other non-current assets 15,726 16,547 242
Total non-current assets 254,484 259,243 3,786
Inventories 3,370 3,803 56
Trade receivables 100,990 97,608 1,426
Other current assets 30,596 26,415 386
Unbilled receivables 42,486 26,691 390
Contract assets - 18,209 266
Investments 249,094 250,729 3,662
Current tax assets 6,262 6,787 99
Derivative assets 1,232 3,065 45
Cash and cash equivalents 44,925 70,685 1,033
478,955 503,992 7,363
Assets held for sale 27,201 - -
Total current assets 506,156 503,992 7,363
TOTAL ASSETS 760,640 763,235 11,149


Share capital 9,048 9,048 132
Share premium 800 861 13
Retained earnings 453,265 472,454 6,901
Share based payment reserve 1,772 1,958 29
Other components of equity 18,051 15,332 224
Equity attributable to the equity holders of the Company 482,936 499,653 7,299
Non-controlling interest 2,410 2,172 32
TOTAL EQUITY 485,346 501,825 7,331


Long - term loans and borrowings 45,268 47,060 687
Derivative liabilities 7 - -
Deferred tax liabilities 3,059 2,407 35
Non-current tax liabilities 9,220 8,925 130
Other non-current liabilities 4,230 4,079 60
Provisions 3 2 -
Total non-current liabilities 61,787 62,473 912
Loans, borrowings and bank overdrafts 92,991 70,668 1,032
Trade payables and accrued expenses 68,129 75,530 1,103
Unearned revenues 17,139 18,801 276
Current tax liabilities 9,417 13,304 194
Derivative liabilities 2,210 3,287 48
Other current liabilities 16,613 16,575 242
Provisions 796 772 11
207,295 198,937 2,906
Liabilities directly associated with assets held for sale 6,212 - -
Total current liabilities 213,507 198,937 2,906
TOTAL LIABILITIES 275,294 261,410 3,818
TOTAL EQUITY AND LIABILITIES 760,640 763,235 11,149
(Rupees in millions, except share and per share data, unless otherwise stated)
Three months ended June 30,
2017     2018   2018  

translation into US
dollar in millions
(unaudited) Refer
Footnote 1

Gross revenues 136,261 139,777 2,042
Cost of revenues (97,111 ) (100,350 ) (1,466 )
Gross profit 39,150 39,427 576
Selling and marketing expenses (10,146 ) (10,813 ) (158 )
General and administrative expenses (7,264 ) (8,608 ) (126 )
Foreign exchange gains/(losses), net 353 771 11
Other Operating Income - 2,529 37
Results from operating activities 22,093 23,306 340
Finance expenses (1,601 ) (1,649 ) (24 )
Finance and other income 6,327 5,197 76
Share of profits/(loss) of equity accounted investee (1 ) (53 ) (1 )
Profit before tax 26,818 26,801 391
Income tax expense (5,994 )   (5,865 ) (86 )
Profit for the period 20,824     20,936   305  
Attributable to:
Equity holders of the Company 20,765 21,206 310
Non-controlling interest 59     (270 ) (5 )
Profit for the period 20,824     20,936   305  
Earnings per equity share:
Attributable to equity share holders of the Company
Basic 4.29 4.71 0.07
Diluted 4.28 4.70 0.07
Weighted average number of equity shares used in
computing earnings per equity share
Basic 4,845,115,238 4,503,615,899 4,503,615,899
Diluted 4,851,070,943 4,511,794,217 4,511,794,217
Additional Information
Segment Revenue
IT Services Business Units
BFSI 34,934 41,054 600
HLS 19,150 18,209 266
CBU 20,535 21,987 321
ENU 17,464 17,205 251
TECH 17,664 19,504 285
MFG 11,678 11,304 165
COMM 8,831     7,740   113  
IT SERVICES TOTAL 130,256 137,003 2,001
IT PRODUCTS 6,343 3,532 52
RECONCILING ITEMS 15     13   -  
TOTAL 136,614     140,548   2,053  
Segment Result
IT Services Business Units
BFSI 5,441 7,149 104
HLS 2,734 2,070 30
CBU 2,934 2,615 38
ENU 3,651 2,690 39
TECH 3,481 4,064 59
MFG 1,694 1,402 20
COMM 1,449 754 11
UNALLOCATED 532 695 10
OTHER OPERATING INCOME -     2,529   37  
TOTAL IT SERVICES 21,916 23,968 348
IT PRODUCTS 31 (740 ) (11 )
RECONCILING ITEMS 146     78   1  
TOTAL 22,093     23,306   338  
FINANCE EXPENSE (1,601 ) (1,649 ) (24 )
PROFIT BEFORE TAX 26,818 26,801 391
INCOME TAX EXPENSE (5,994 )   (5,865 ) (86 )
PROFIT FOR THE PERIOD 20,824     20,936   305  
Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within "Finance and other income" in the statement of Income.

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 process services.


Comparative information has been restated to give effect to the above changes.


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 ($MN)

Three Months ended June 30, 2018
IT Services Revenue as per IFRS $ 2,026.5
Effect of Foreign currency exchange movement $ 37.7  
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates $ 2,064.2
Three Months ended June 30, 2018
IT Services Revenue as per IFRS $ 2,026.5
Effect of Foreign currency exchange movement $ (7.2 )
Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year $ 2,019.3

[ Back To SIP Trunking Home's Homepage ]