BANGALORE, India & EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--
Wipro Limited (NYSE: WIT) today announced financial results under
International Financial Reporting Standards (IFRS) for its fourth
quarter and year ended March 31, 2016.
Highlights of the Results
Results for the Year ended March 31, 2016:
Gross Revenues were Rs. 512.4 billion ($7.7 billion1), an
increase of 9% YoY.
Net Income2 was Rs. 88.9 billion ($1.3 billion1),
an increase of 3% YoY.
IT Services Revenue was $7,346 million, a YoY increase of 3.7%.
Non-GAAP Constant Currency IT Services Revenue in dollar terms grew
7.6%.
IT Services Segment Revenues in Rupee terms was Rs. 487.3 billion
($7.4 billion1), an increase of 11% YoY.
IT Services Segment Profit3 was Rs. 99.7 billion ($1.5
billion1), an increase of 2% YoY. IT Services Margins for
the year was 20.5%.
Board of Directors recommended a final dividend of Rs. 1 ($0.021)
per share/ADS, taking the total dividend declared for the year to Rs.
6 ($0.091) per share/ADS.
Board of Directors approved a buyback proposal for purchase by the
company of up to 40 million shares at a price of Rs. 625 ($9.431)
per equity share for an aggregate amount not exceeding Rs. 25,000
million ($377million1).
Results for the Quarter ended March 31, 2016:
Gross Revenues were Rs. 136.3 billion ($2.1 billion1), an
increase of 12% YoY.
Net Income2 was Rs. 22.4 billion ($337 million1),
decrease of 2% YoY.
Non-GAAP constant currency IT Services Revenue in dollar terms grew
2.7% to $1,887.6 million, within our guidance range of $1,875 million
to $1,912 million.
IT Services Revenue was $1,882.0 million, a sequential increase of
2.4% and YoY increase of 6.1%.
IT Services Segment Revenues in Rupee terms was Rs. 128.0 billion
($1,932 million1), an increase of 14% YoY.
IT Services Segment Profit3 was Rs. 25.7 billion ($387
million1), an increase of 4% YoY.
IT Services Margins for the quarter was 20.1%.
Performance for the quarter and year ended
March 31, 2016
Abidali Z. Neemuchwala, Chief Executive Officer & Member of the
Board, said, "Our focus is to drive significant growth in our ‘run'
business through integrated services and hyper-automation while gaining
leadership in the ‘change' business through investments in Digital and
Consulting capabilities, IP-based platforms & products and creating
differentiated domain solutions for non-linear growth."
Jatin Dalal, Chief Financial Officer, said, "We have maintained
our margins in the quarter, with benefits from utilization and
operational efficiencies largely off-setting the margin impact from our
inorganic investments. We continue to generate robust cash flows during
the year. The move to buyback equity shares is part of the company's
policy to provide regular, stable and consistent return to investors
while striving to enhance long-term value for all stakeholders."
Buyback of Shares
The Board of Directors approved a buyback proposal for purchase by the
company of up to 40 million equity shares of Rs. 2 each (representing
1.62% of total equity capital) from the shareholders of the company on a
proportionate basis by way of a tender offer. The buyback price will be
Rs. 625 ($9.431) per equity share payable in cash for an
aggregate amount not exceeding Rs. 25,000 million ($377million1)
in accordance with the provision of Companies Act, 2013 and the SEBI
(Buy Back of Securities) Regulations, 1998 (Buyback Regulations).
Additional information regarding the terms and conditions of the buyback
will be disclosed in due course in accordance with Buyback Regulations.
Outlook for the Quarter ending June 30, 2016
We expect Revenues from our IT Services business to be in the range
of $1,901 million to $1,939 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.42,
Euro/USD at 1.12, AUD/USD at 0.74, USD/INR at 67.31 and USD/CAD at 1.35
IT Services
The IT Services segment had a headcount of 172,912 as of March 31, 2016.
We added 119 new customers during the quarter including the customers of
cellent and HealthPlan Services.
Wipro continued its momentum in winning Large Deals globally as listed
below:
Wipro has been awarded a contract by Saudi Aramco, the national oil
company of Saudi Arabia, for the design and implementation of
Communications & Security systems for its Fadhili Gas Plant project.
Wipro has won a multi-year engagement with a Top 5 news and information
provider as its digital transformation partner. This program will drive
innovation for the company, enable revenue growth through digital
platforms, augment its risk profile through enhanced cyber security and
improve service availability to the company's end customers.
A global wind energy equipment manufacturing company has selected Wipro
as its strategic IT partner to transform its workplace as a part of its
digital journey. Leveraging its strong understanding of the
manufacturing domain, Wipro's solution aims to enable a superior and
seamless user experience and offers increased mobility for employees of
the customer organization, while ensuring data security and optimized
costs.
Wipro has won a Customer Service and Billing Transformation engagement
with a large water utility company based in the United Kingdom. This
deployment, which leverages SaFeWater, Wipro's certified water industry
billing solution, will enable the utility company to transform customer
experiences and become more competitive, particularly, given the UK
Water Regulator, ofwat's Open Water market-deregulation initiative.
A leading United States-based natural gas distribution utility has
selected Wipro to manage its IT infrastructure for a period of five
years. Wipro will leverage its next-generation managed services
framework, ServiceNXT for the engagement.
A US-based Fortune 20 Healthcare Payer organization has selected Wipro
as its key implementation partner for Provider Contracting and Data
Management.
Digital highlights
Our Digital capability combining strategy, design, engineering and
analytics is seeing traction in the marketplace. Designit's unique
capabilities combined with Wipro's technological prowess is driving
synergistic deal wins.
Our Digital unit was brought in by a global tier 1 bank to support the
rebuild of their wealth management experience. We are supporting their
efforts across design and engineering, significantly shortening the time
to market and increasing the speed of engineering delivery.
Applying our deep Internet of Things (IoT) capability, we are helping a
leading provider of welding solutions with their vision for a
data-driven decision-making environment where fabricators and
manufacturers can move the true levers of productivity and quality, as
well as make better use of working capital.
Wipro has been named a strategic supplier to a global tier 1 bank, where
we continue to work to establish the digital banking platform globally,
providing digital expertise and support to help deliver the new core
banking platform.
Wipro has won a CRM transformation program with Telenor, a leading
global operator. This program will enable the Asian business unit of
Telenor to achieve business transformation and simplification of
complete customer management through simplified business processes. The
solution will be designed and built using Open Source technologies and
will be future cloud-ready. It will also enable Telenor to provide a
mobile interface to retailers for simplified business transactions.
A fragrance provider has selected our combined IoT and Cloud services to
support their connected vision for remote monitoring and control of
dispensing assets, which will improve visibility into product
utilization.
For a leading Asia-based airline, Designit and Wipro started to work on
the airline's future digital experience by creating a benchmark and
best-practice study as well as a future vision for C-level management.
For a large Scandinavian energy-provider, Designit and Wipro have been
assigned to rethink the company's digital strategy and transform the
digital customer and brand experience, responding to a market in radical
change.
A European bank has retained us to support their digital and customer
innovation strategy as they look to reimagine the banking experience for
their customers.
Cloud highlights
Wipro was chosen as a partner to manage, enhance and transform the sales
operations processes developed across multiple cloud platforms for a
global provider of products, technologies & software.
Wipro will partner with an Australia-based company that provides outdoor
advertising solutions to transform their financial processes on cloud.
The solution will involve implementing Cloud ERP solutions including
Financials, Purchasing, Planning and Budgeting processes.
Wipro has been awarded a project to streamline the Source-to-Pay
processes, improve supply chain relationship, and enhance the visibility
of procurement spend for an Australian corporation providing asset
management and infrastructure development services. The solution is
being delivered on a leading cloud procurement platform.
Delivery Excellence
Wipro's Healthcare Enrollment Platform ‘Member 360', was used by 16
Medicare Advantage plans for 2016 open enrollment. 125,000 members were
enrolled in the plan with 98% first pass enrollment, helping Medicare
Advantage plans meet federal mandated timeline for enrollment. Wipro's
Healthcare customers have benefited during this open enrollment, through
Wipro's investments in this ‘Member 360' platform, which enabled higher
automation, simplified work-flows and ensured scalability.
For a leading global medical devices OEM, Wipro's product cross
functional specialists worked to achieve a 6% reduction in the product
recall rate helping the customer to save about $16 million per annum.
We have been recognized by our clients for the value we have delivered:
Fruit of the Loom's CEO and CIO have recognized and presented the Slam
Dunk Champion Award to the Wipro Delivery Team for excellence in
delivery for the year 2015.
Patrik Ekström, CIO, Outokumpu said, "We have been working
with Wipro for almost 2 years now. The relationship is very open,
natural and we can easily engage in dialogue. We were surprised to see
that Wipro, whom we saw as an SAP maintenance partner, was able to bring
mathematical professor level skills and were able to convince our
business team that Wipro is the right partner. Wipro is a company which
focusses on asset building, as I understand, like for example, building
something that you might not be able to find in the market. One example
of what we have achieved together is how the manufacturing execution
systems have been connected to the Industrial Internet kind of
Automation Solutions. Those are clear examples of innovation Wipro is
bringing to us. We will recommend Wipro to peers for its willingness to
serve customers."
Douglas Yoder, IT Manager, Echostar Corporationsaid,
"Wipro has delivered the Dish Paperless Agreement mobile app (DPA) which
has significantly helped Dish save time, money and effort on creating
and maintaining the hard copies of the agreements. Dish is saving 10% on
its operational cost on every agreement. Wipro delivery team never
ceases to amaze me with their passion and commitment towards the
customer success. Wipro has broad and deep reserves of intellectual
resources across numerous enterprises whose experience the members of my
team can draw upon. My experience with Wipro in the past 5 years has
been rewarding and looking forward for many more success stories."
Awards and accolades
Wipro was recognized as a 2016 World's Most Ethical Company® for the
fifth successive year by the Ethisphere Institute, the global leader in
defining and advancing the standards of ethical business practices.
Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity
and Inclusion 2016', in the category of 'Best Program for Excellence in
Gender Diversity'. This award recognizes organizations that have
institutionalized robust and successful programs for driving and
sustaining gender diversity initiatives, policies and processes.
Wipro has been named a ‘Leader' by the global research and advisory firm
NelsonHall in its latest NEAT analysis on Internet of Things (IoT)
services. According to the profile detailing Wipro's IoT capabilities,
Wipro is an end-to-end service provider for IoT, moving the client from
consulting services, to device engineering and machine analytics,
systems integration, platform and application services, workflow
building, and managed services.
Wipro has been positioned as a Leader in The Forrester Wave™:
Information Security Consulting Services, Q1 2016.
Wipro was awarded the Systems Middleware Innovative Solution Award by
its partner IBM.
Wipro's Risk Intelligence Center has won the ‘Gold Award' in the Risk
Management category at Info Security Product Guide's 2016 Global
Excellence Awards.
IT Products
Revenue for the year ended March 31, 2016 was Rs. 29.7 billion ($449
million1) a de-growth of 13% YoY.
Our IT Products Segment delivered Revenue of Rs. 9.6 billion ($145
million1) for the quarter ended March 31, 2016, a
sequential growth of 48%.
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 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 and year ended March 31, 2016, 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. US Eastern Time) to discuss our performance
for the quarter. 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.
Wipro Limited (NYSE: WIT) is a leading information technology, consulting
and business process services company that delivers solutions to enable
its clients do business better. Wipro delivers winning business outcomes
through its deep industry experience and a 360 degree view of "Business
through Technology." By combining digital strategy, customer centric
design, advanced analytics and product engineering approach, Wipro helps
its clients create successful and adaptive businesses. A company
recognized globally for its comprehensive portfolio of services, strong
commitment to sustainability and good corporate citizenship, Wipro has a
dedicated workforce of over 160,000, serving clients in 175+ cities
across 6 continents. For more information, please visit www.wipro.com.
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, 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
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
(Rupees in millions, except share and per share data, unless
otherwise stated)
As of March 31,
As of March 31,
2015
2016
2016
Convenience translation into US dollar in millions (unaudited)
- Refer footnote 1
ASSETS
Goodwill
68,078
101,991
1,539
Intangible assets
7,931
15,841
239
Property, plant and equipment
54,206
64,952
980
Derivative assets
736
260
4
Available for sale investments
3,867
4,907
74
Non-current tax assets
11,409
11,751
177
Deferred tax assets
2,945
3,800
57
Other non-current assets
14,369
15,828
239
Total non-current assets
163,541
219,330
3,309
Inventories
4,849
5,390
81
Trade receivables
91,531
102,380
1,545
Other current assets
73,359
104,068
1,571
Unbilled revenues
42,338
48,273
729
Available for sale investments
53,908
132,944
2,007
Current tax assets
6,490
7,812
118
Derivative assets
5,077
5,675
86
Cash and cash equivalents
158,940
99,049
1,495
Total current assets
436,492
505,591
7,632
TOTAL ASSETS
600,033
724,921
10,941
EQUITY
Share capital
4,937
4,941
75
Share premium
14,031
14,642
221
Retained earnings
372,248
425,735
6,426
Share based payment reserve
1,312
2,229
34
Other components of equity
15,454
18,531
280
Equity attributable to the equity holders of the Company
407,982
466,078
7,036
Non-controlling interest
1,646
2,224
34
Total equity
409,628
468,302
7,070
LIABILITIES
Long - term loans and borrowings
12,707
17,361
262
Deferred tax liabilities
3,240
5,108
77
Derivative liabilities
71
119
2
Non-current tax liabilities
6,695
8,231
124
Other non-current liabilities
3,658
7,225
109
Provisions
5
14
-
Total non-current liabilities
26,376
38,058
574
Loans and borrowings and bank overdrafts
66,206
107,860
1,628
Trade payables and accrued expenses
58,745
68,187
1,027
Unearned revenues
16,549
18,076
273
Current tax liabilities
8,036
7,015
106
Derivative liabilities
753
2,340
35
Other current liabilities
12,223
13,821
209
Provisions
1,517
1,262
19
Total current liabilities
164,029
218,561
3,297
TOTAL LIABILITIES
190,405
256,619
3,871
TOTAL EQUITY AND LIABILITIES
600,033
724,921
10,941
Wipro Limited and subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(Rupees in millions, except share and per share data, unless
otherwise stated)
Three Months ended March 31,
Year ended March 31,
2015
2016
2016
2015
2016
2016
Convenience translation into US dollar in millions (unaudited)-
Refer footnote 1
Convenience translation into US dollar in millions (unaudited)
- Refer footnote 1
Gross revenues
121,420
136,324
2,058
469,545
512,440
7,735
Cost of revenues
(82,609
)
(95,843
)
(1,447
)
(321,284
)
(356,724
)
(5,385
)
Gross profit
38,811
40,481
611
148,261
155,716
2,350
Selling and marketing expenses
(7,916
)
(8,983
)
(136
)
(30,625
)
(34,097
)
(515
)
General and administrative expenses
(6,633
)
(7,755
)
(117
)
(25,850
)
(28,465
)
(430
)
Foreign exchange gains/(losses), net
294
1,093
16
3,637
3,867
58
Results from operating activities
24,556
24,836
374
95,423
97,021
1,463
Finance expenses
(912
)
(1,284
)
(19
)
(3,599
)
(5,582
)
(84
)
Finance and other income
5,476
5,617
85
19,859
23,280
351
Profit before tax
29,120
29,169
440
111,683
114,719
1,730
Income tax expense
(6,255
)
(6,626
)
(100
)
(24,624
)
(25,305
)
(382
)
Profit for the period
22,865
22,543
340
87,059
89,414
1,348
Attributable to:
Equity holders of the company
22,720
22,350
337
86,528
88,922
1,342
Non-controlling interest
145
193
3
531
492
7
Profit for the period
22,865
22,543
340
87,059
89,414
1,349
Earnings per equity share:
Attributable to equity share holders of the company
Basic
9.25
9.10
0.14
35.25
36.20
0.55
Diluted
9.21
9.08
0.14
35.13
36.12
0.54
Weighted average number of equity shares used in computing
earnings per equity share
Basic
2,456,575,761
2,457,344,850
2,457,344,850
2,454,681,650
2,456,559,400
2,456,559,400
Diluted
2,465,876,236
2,462,738,033
2,462,738,033
2,462,579,161
2,461,689,908
2,461,689,908
Additional Information
Segment Revenue
IT Services Business Units
BFSI
29,852
32,551
491
115,505
128,147
1,934
HLS
13,171
16,905
255
49,884
58,358
881
RCTG
16,258
19,721
298
62,209
74,372
1,123
ENU
17,437
17,917
270
71,229
70,866
1,070
MFG
20,582
24,109
364
80,303
90,877
1,372
GMT
15,117
16,764
253
61,050
64,696
977
IT SERVICES TOTAL
112,417
127,967
1,932
440,180
487,316
7,356
IT PRODUCTS
9,454
9,604
145
34,006
29,722
449
RECONCILING ITEMS
(157
)
(154
)
(2
)
(1,004
)
(731
)
(11
)
TOTAL
121,714
137,417
2,074
473,182
516,307
7,793
Segment Result
IT Services Business Units
BFSI
7,474
6,997
106
27,378
28,143
425
HLS
3,031
3,169
48
10,565
12,160
184
RCTG
3,542
3,687
56
13,190
13,898
210
ENU
4,078
3,638
55
17,561
14,382
217
MFG
4,497
4,482
68
17,127
17,752
268
GMT
2,878
3,389
51
13,574
12,317
186
OTHERS
-
-
-
583
-
-
UNALLOCATED
(723
)
303
5
(2,329
)
1,064
16
TOTAL IT SERVICES
24,777
25,665
387
97,649
99,716
1,505
IT PRODUCTS
58
(290
)
(4
)
374
(864
)
(13
)
RECONCILING ITEMS
(279
)
(539
)
(8
)
(2,600
)
(1,831
)
(28
)
TOTAL
24,556
24,836
375
95,423
97,021
1,464
FINANCE EXPENSE
(912
)
(1,284
)
(19
)
(3,599
)
(5,582
)
(84
)
FINANCE AND OTHER INCOME
5,476
5,617
85
19,859
23,280
351
PROFIT BEFORE TAX
29,120
29,169
440
111,683
114,719
1,732
INCOME TAX EXPENSE
(6,255
)
(6,626
)
(100
)
(24,624
)
(25,305
)
(382
)
PROFIT FOR THE PERIOD
22,865
22,543
340
87,059
89,414
1,350
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.
The IT Services segment primarily consists of IT Service offerings
to our customers organized by industry verticals as follows:
Banking, Financial Services and Insurance (BFSI), Healthcare and
Life Sciences (HLS), Retail, Consumer, Transport and Government
(RCTG), Energy, Natural Resources and Utilities (ENU),
Manufacturing (MFG), Global Media and Telecom (GMT). Starting with
quarter ended September 30, 2014, it also includes Others which
comprises dividend income and gains or losses (net) relating to
strategic investments, which are presented within "Finance and
other income" in the statement of Income. Key service offering 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.
In the IT Products segment, 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 products, software licenses and
other related deliverables.
Reconciliation of Non-GAAP Constant
Currency IT Services Revenue to IT Services Revenue as per IFRS
($MN)
Three Months ended March 31, 2016
Three Months ended March 31, 2016
IT Services Revenue as per IFRS
$
1,882.0
IT Services Revenue as per IFRS
$
1,882.0
Effect of Foreign currency exchange movement
$
5.6
Effect of Foreign currency exchange movement
$
30.3
Non-GAAP Constant Currency IT Services Revenue based on previous
quarter exchange rates
$
1,887.6
Non-GAAP Constant Currency IT Services Revenue based on previous
year exchange rates
$
1,912.3
For the convenience of the reader, the amounts in Indian Rupees in
this release have been translated into United States Dollars at the
noon buying rate in New York City on March 31, 2016, for cable
transfers in Indian rupees, as certified by the Federal Reserve Board
of New York, which was US $1= Rs. 66.25. However, the realized
exchange rate in our IT Services business segment for the quarter
ended March 31, 2016 was US$1= Rs. 68.00
Refers to ‘Profit for the period attributable to equity holders of the
company'
