East Brunswick, New Jersey, United States & Bangalore, Karnataka, India | 14th January 2020:
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its quarter ended December 31, 2019.
Highlights of the Results
Results for the Quarter ended December 31, 2019:
- Gross Revenue was Rs 154.7 billion ($2.2 billion1), an increase of 2.7% YoY
- IT Services Segment Revenue was at $2,094.8 million, a sequential growth of 2.2%
- Non-GAAP2 constant currency IT Services Segment Revenue increased by 1.8% QoQ
- IT Services Operating Margin3 for the quarter was at 18.4%, an increase of 0.3% QoQ
- Net Income for the quarter was Rs 24.6 billion ($344 million1), a decrease of 2.2% YoY
- EPS for the quarter was Rs 4.3 ($0.061) per share and grew 3.2% YoY
- Wipro declared an interim dividend of Rs 1 ($0.0141) per equity share/ADS
Performance for the quarter ended December 31, 2019
Abidali Z. Neemuchwala, CEO and Managing Director said, “We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals.”
Jatin Dalal, Chief Financial Officer said, “We expanded operating margins by 0.3% aided by a favorable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124% of our Net Income.”
- 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 71.36, as published by the Federal Reserve Board of Governors on December 31, 2019. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2019 was US$1= Rs 72.09
- 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
- IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
Outlook for the quarter ending March 31, 2020
We expect Revenue from our IT Services business to be in the range of $2,095 million to $2,137 million*. This translates to a sequential growth of 0.0% to 2.0%.
* Outlook is based on the following exchange rates: GBP/USD at 1.30, Euro/USD at 1.11, AUD/USD at 0.68, USD/INR at 71.28 and USD/CAD at 1.32
Wipro continued its momentum in winning large deals globally as described below:
- Wipro has secured a multi-year managed IT services contract from a leading airport in the Middle East wherein Wipro will leverage its strong domain expertise, digital transformation & innovation capabilities and integrated service delivery model to transform the airport’s IT operations
- Wipro has won a large strategic deal from a leading European manufacturer of hi-tech components for the automotive industry to consolidate, standardize, and automate their IT operations globally. The engagement will drive operational excellence, enhance user experience and foster innovation. This will be done leveraging the hyper-automation capabilities of Wipro HOLMES™, Wipro’s global delivery model and strong domain & digital expertise
- Wipro has been awarded a strategic multi-year cyber governance, cloud and infrastructure services transformation engagement by Olympus, a global medtech company headquartered in Japan
- Wipro has won a multi-year managed services contract from a leading UK-headquartered construction company to run and transform their entire IT operations and enhance user experience
- A multinational food and drink processing conglomerate has awarded its Platform and Cloud Services contract with Wipro to transform their operations and ensure next-generation service readiness
Digital & Cloud Application Services Highlights
We continue to see increasing traction in digital oriented deals as illustrated below:
- Wipro has secured a contract from one of the largest US-based integrated healthcare delivery systems to bolster enterprise security and operations, leveraging Wipro’s Security Intelligence as a Service (SIaaS) managed services
- A US-based healthcare company has awarded Wipro a contract to streamline their enterprise operations and deploy new technologies to enable rapid growth, leveraging Topcoder
- A European start-up has awarded Wipro Digital a multi-year, multi-million-dollar strategic contract to develop and run a new-age payment and loyalty solution for the hospitality, travel and retail industry, leveraging Topcoder
- Wipro has secured a strategic contract from a global supplier of semiconductors and infrastructure software products to accelerate their product development
- A multinational financial services company has awarded Wipro Digital a contract to reimagine and redesign its investment platform
Analyst Accolades and Awards
- Wipro positioned as a Leader in Gartner Magic Quadrant for Application Testing Services, Worldwide, Gunjan Gupta et al., 25 Nov 2019
- Wipro positioned as a Leader in IDC MarketScape Worldwide Business Process Outsourcing for AML and KYC 2019 Vendor Assessment (Doc #US44398519, December 2019)
- Wipro recognized as a Leader and Star Performer by Everest Group in Enterprise Blockchain services PEAK Matrix™ Assessment 2020
- Wipro recognized as a Leader and Star Performer by Everest Group in Application Transformation Services PEAK Matrix™ Assessment 2020
- Wipro recognized as a Leader and Star Performer in Everest Group Application and Digital Services in Capital Markets – Services PEAK Matrix™ Assessment 2020
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- IT Products Segment Revenue for the quarter was Rs 2.6 billion ($36.1 million1).
- IT Products Segment Results for the quarter was a loss of Rs 0.14 billion ($1.96 million1).
India State Run Enterprises (ISRE)
- India SRE Segment Revenue for the quarter was Rs 1.8 billion ($25.9 million1).
- India SRE Segment Results for the quarter was a loss of Rs 0.53 billion ($7.4 million1).
Please refer the table on page 8 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.