Wipro Records 18% YoY Growth in Net Income in the quarter
Results for the quarter ended December 31, 2012 under IFRS
BANGALORE, India and EAST BRUNSWICK, N.J., Jan. 17, 2013
BANGALORE, India and EAST BRUNSWICK, N.J., Jan. 17, 2013 /PRNewswire/ -- Wipro
Limited (NYSE:WIT) today announced financial results under International
Financial Reporting Standards (IFRS) for its third quarter ended December 31,
Highlights of the Results:
Results for the Quarter ended December 31, 2012:
oTotal Revenues were rupees 10.25 billion ($2.01 billion^1), an increase of
oNet Income was rupees 17.16 billion ($313 million^1), an increase of 18%
YoY. Non-GAAP Adjusted Net Income was rupees 17.09 billion ($312
million^1), an increase of 17% YoY.
oIT Services Revenue was $1,577 million, a sequential increase of 2.4% and
YoY increase of 4.8%.
oNon-GAAP constant currency IT Services Revenue in dollar terms was $1,571
million, within our guidance range of $1,560 million to $1,590 million.
oIT Services Revenues in Rupee terms was rupees 86.02 billion ($1,568
million^1), an increase of 13% YoY.
oIT Services Earnings Before Interest and Tax (EBIT) was rupees 17.92
billion ($327 million^1), an increase of 13% YoY.
oOperating Income to Revenue for IT Services was 20.8% for the quarter, up
oWipro declared an interim dividend of rupees 2 ($0.04^1) per share /ADS.
Performance for the quarter ended December 31, 2012
Azim Premji, Chairman of Wipro, commenting on the results said – "While the
overall mood on economic growth continues to be muted, global corporations
continue to leverage technology to drive revenues and productivity."
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said –
"We have expanded operating margins sequentially through improvements in
revenue productivity and improved cash flow generation through efficient
working capital management. We commend and welcome the circular implementing
the recommendation of the Rangachary Committee, which has dealt with the tax
disputes the industry has been facing over the years."
T K Kurien, Executive Director & Chief Executive Officer, IT Business, said –
"We have seen broad based growth in the quarter with all our verticals growing
sequentially. Our improvement in customer and employee engagement is reflected
in client mining with 10 customers contributing more than $100 million and
lower attrition. We continue to make investments in our go to market
organization and technology themes to be a strategic partner to our
1.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 December 31, 2012, for cable transfers in Indian
rupees, as certified by the Federal Reserve Board of New York, which was US
$1= rupees 54.86. However, the realized exchange rate in our IT Services
business segment for the quarter ended December 31, 2012 was US$1= rupees
Outlook for the Quarter ending March 31, 2013
We expect Revenues from our IT Services business to be in the range of $1,585
million to $1,625 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.61, Euro/USD
at 1.31, AUD/USD at 1.04, USD/INR at 54.65.
IT Services (78% of Total Revenue and 92% of Operating Income for the quarter
ended December 31, 2012)
The IT Services segment had 142,905 employees as of December 31, 2012, an
increase of 2,336 people in the quarter. We added 50 new customers for the
Wipro has secured a large R&D Applications and Infrastructure services deal
from a Europe-based Telecom Equipment Vendor. IT will be a key enabler in the
client's ongoing business transformation program and this deal was a natural
extension of Wipro's longstanding partnership with the client.
Sears Holdings Corporation, a leading integrated Retailer in the US has
extended its agreement with Wipro through a multi-year Business Process
Outsourcing contract in the areas of Finance & Accounting, Human Resources and
Procurement. Wipro will continue to build on the relationship to deliver
results, quality, innovation and flexibility.
Wipro has won a multi-year IT Infrastructure Outsourcing engagement with one
of the largest Retailers in Australia. This transformational program, which
also involves cloud deployment, will leverage a high degree of automation to
improve operational efficiencies. This will help the Retailer improve business
agility and enhance the end-user experience.
Wipro has won a multi-year engagement with a large not-for-profit Healthcare
Provider in the US to enable the seamless integration of the IT infrastructure
of its recently acquired entities. The partnership will help the customer
leverage new technologies like cloud, analytics, pervasive computing and
mobility to deliver and improve the quality of care.
Wipro has won a deal for a Core Banking Solution implementation across 2,520
branches of Punjab and Sind Bank, a public sector bank in India. Wipro will be
providing hardware and software, WAN roll-out, network & security devices,
data center and disaster site co-hosting.
Awards and accolades
Wipro was named a Leader in The Forrester Wave™: Business Intelligence (BI)
Services Providers, Q4 2012. The report said that Wipro is closing the gap
with multinational companies, investing substantially in dedicated local
market consulting resources, coupled with significant amounts of
industry-specific productized IP and platform BI solutions, giving clients a
good mix of process consulting skills backed by leading technology.
Wipro was recognized at the 'National Centre for Promotion of Employment for
Disabled People (NCPEDP)-Shell Helen Keller Awards 2012', in the category
'Role Model Organizations'.
Wipro won the Global MAKE (Most Admired Knowledge Enterprises) Award 2012,
administered by Teleos, an independent research firm based in the United
Kingdom. This was the fifth time that Wipro has been recognized as one of the
top global organizations that transforms corporate knowledge into intellectual
capital for the enterprise and increases stakeholder wealth by transforming
new as well as existing enterprise knowledge into superior products, services
Wipro has been selected by Amazon Web Services (AWS) as a 'Premier Consulting
Partner' for 2013. This title recognizes Wipro as one of the top Consulting
Partners in the Amazon Partner Network program, having distinguished itself by
investing significantly in its Cloud and AWS practice and providing
exceptional customer service.
Wipro topped the 'Guide to Greener Electronics' ranking released by Greenpeace
International. The guide ranked 16 Electronic companies across the world based
on their commitment and progress in three environment criteria: Energy and
Climate, Greener Products and Sustainable Operations.
IT Products (9% of Total Revenue and 1% of Operating Income for the quarter
ended December 31, 2012)
oOur IT Products segment recorded Revenue of rupees 9.97 billion ($182
million^1) for the quarter, a YoY increase of 11%.
oEBIT was rupees 239 million ($4 million^1) for the quarter.
oOperating Income to Revenue for this segment was 2% for the quarter.
Consumer Care and Lighting (9% of Total Revenue and 7% of Operating Income for
the quarter ended December 31, 2012)
oOur Consumer Care and Lighting business segment recorded Revenue of rupees
10.28 billion ($187 million^1) for the quarter, an increase of 17% YoY.
oEBIT was rupees 1.4 billion ($26 million^1) for the quarter, an increase
of 34% YoY.
oOperating Income to Revenue for this segment was 14% for the quarter.
oWipro signed a definitive agreement to acquire 100% shareholding of the
L.D. Waxson Group, a Singapore-based Fast Moving Consumer Goods (FMCG)
company for an all cash consideration of about USD 144 million.
oTotal Revenue for the quarter ended December 31, 2012 was rupees 110.25
billion ($2.01 billion^1).
oNet Income for the quarter ended December 31, 2012 was rupees 17.16
billion ($313 million^1).
oNon-GAAP Adjusted Net Income (excluding impact of accelerated amortization
of stock based compensation) for the quarter ended December 31, 2012 was
rupees 17.09 billion ($312 million^1).
Please see the table on page 7 for a reconciliation between (i) IFRS Net
Income and non-GAAP Adjusted Net Income (excluding the impact of stock-based
compensation) and (ii) 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 on page 7 provides Adjusted Net Income for the period, which is a
non-GAAP measure that excludes the impact of accelerated amortization in
respect of stock options that vest in a graded manner, and 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 consider a stock option award with a graded vesting
schedule to be in substance a single award not multiple stock option awards
and accordingly believe the straight line amortization reflects the economic
substance of the award. 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. We believe that the presentation of this Non-GAAP
Adjusted Net Income, when shown in conjunction with the corresponding IFRS
measure, provides useful information to investors and management regarding
financial and business trends relating to its Net Income for the period.
These Non-GAAP financial measures are 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 these non-GAAP measures, 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.
For internal budgeting process, our management also uses financial statements
that exclude the impact of accelerated amortization relating to stock options
that vest in a graded manner. Management of the Company also uses Non-GAAP
Adjusted Net Income, in addition to the corresponding IFRS measure, in
reviewing our financial results.
Results for the quarter ended December 31, 2012, computed under IFRS, along
with individual business segment reports, are available in the Investors
section of our website at www.wipro.com.
Quarterly Conference Calls
We will hold a conference call today at 02:00 p.m. Indian Standard Time (03:30
a.m. US Eastern Time) and at 6:15 p.m. Indian Standard Time (7:45 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.
About Wipro Limited (NYSE: WIT)
Wipro provides comprehensive IT solutions and services, including systems
integration, Information Systems outsourcing, IT enabled services, package
implementation, software application development and maintenance, and research
and development services to corporations globally. Wipro Limited is the first
PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Wipro
also has a strong presence in niche market segments of Infrastructure
Engineering and Consumer Products & Lighting.
For more information, please visit our websites at www.wipro.com.
Forward-looking and Cautionary 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
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(`in millions, except share and per share data, unless otherwise stated)
Three months ended December 31, Nine months ended December 31,
2011 2012 2012 2011 2012 2012
into US $ in into US $ in
Gross revenues 98,808 109,487 1,996 273,807 320,717 5,846
Cost of revenues (69,704) (75,531) (1,377) (194,704) (221,563) (4,039)
Gross profit 29,104 33,956 619 79,103 99,154 1,807
marketing (7,459) (9,152) (167) (20,253) (27,057) (493)
administrative (5,570) (6,104) (111) (14,531) (17,955) (327)
gains/(losses), 1,164 759 14 2,750 2,626 48
operating 17,239 19,459 355 47,070 56,768 1,035
Finance expenses (1,017) (516) (9) (3,027) (2,420) (44)
Finance and 2,149 3,224 59 6,454 9,149 167
of equity 117 (65) (1) 326 (203) (4)
Profit before 18,488 22,102 405 50,823 63,294 1,154
Income tax (3,810) (4,848) (88) (9,748) (13,972) (255)
Profit for the 14,677 17,254 317 41,075 49,322 899
Equity holders 14,564 17,164 313 40,921 49,071 894
of the company
Non-controlling 114 90 2 153 251 5
Profit for the 14,678 17,254 315 41,075 49,322 899
Basic 5.94 7.00 0.13 16.71 20.02 0.36
Diluted 5.93 6.98 0.13 16.67 19.97 0.36
number of equity
shares used in
Basic 2,449,813,576 2,453,446,461 2,453,446,461 2,449,013,412 2,451,682,112 2,451,682,112
Diluted 2,454,941,301 2,457,295,329 2,457,295,329 2,455,414,799 2,456,806,947 2,456,806,947
IT Services 76,076 86,018 1,568 208,417 252,893 4,610
IT Products 9,000 9,969 182 29,066 28,492 519
IT Services & 85,077 95,987 1,750 237,483 281,385 5,129
Consumer Care 8,787 10,281 187 24,334 30,154 550
Others 6,109 3,978 73 14,741 11,804 215
Total 99,972 110,246 2,010 276,558 323,343 5,894
IT Services 15,828 17,917 327 43,536 52,665 960
IT Products 475 239 4 1,349 722 13
IT Services & 16,303 18,156 331 44,885 53,387 973
Consumer Care 1,045 1,402 26 2,822 3,675 67
Others (109) (100) (2) (638) (294) (5)
Total 17,238 19,458 355 47,070 56,768 1,035
to profit as per
Profit for the
attributable to 14,564 17,164 313 40,921 49,071 894
of the Company
stock options 1 (69) (1) (123) (252) (5)
that vest in a
Non-GAAP 14,565 17,095 312 40,798 48,819 889
Reconciliation of Non-GAAP Constant Currency
IT Services Revenue to IT Services Revenue as
per IFRS ($MN)
Revenue as per 1,577
Foreign currency (6)
Services Revenue 1,571
Revenue as per 1,577
Foreign currency 3
Services Revenue 1,580
WIPRO LIMITED AND SUBSIDIARIES
AUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Rupees in millions, except share and per share data, unless otherwise stated)
As of March As of December 31,
2012 2012 2012
US$ in millions
Goodwill 67,937 74,538 1,359
Intangible assets 4,229 4,575 83
Property, plant and equipment 58,988 60,571 1,104
Investment in equity accounted 3,232 3,096 56
Derivative assets 3,462 35 1
Non-current tax assets 10,287 10,678 195
Deferred tax assets 2,597 2,607 48
Other non-current assets 11,781 10,182 186
Total non-current assets 162,513 166,282 3,031
Inventories 10,662 11,321 206
Trade receivables 80,328 81,825 1,492
Other current assets 25,743 30,893 563
Unbilled revenues 30,025 33,400 609
Available for sale investments 41,961 87,408 1,593
Current tax assets 5,635 10,056 183
Derivative assets 1,468 3,818 70
Cash and cash equivalents 77,666 69,445 1,266
Total current assets 273,488 328,166 5,982
TOTAL ASSETS 436,001 494,448 9,013
Share capital 4,917 4,925 90
Share premium 30,457 31,632 577
Retained earnings 241,912 279,608 5,097
Share based payment reserve 1,976 1,199 22
Other components of equity 6,594 12,943 236
Shares held by controlled trust (542) (542) (10)
Equity attributable to the equity 285,314 329,765 6,011
holders of the company
Non-controlling Interest 849 1,165 21
Total equity 286,163 330,930 6,032
Long - term loans and borrowings 22,510 757 14
Deferred tax liabilities 353 430 8
Derivative liabilities 307 138 3
Non-current tax liability 5,403 5,282 96
Other non-current liabilities 3,519 3,953 72
Provisions 61 25 -
Total non-current liabilities 32,153 10,585 193
Loans and borrowings and bank 36,448 62,276 1,135
Trade payables and accrued expenses 47,258 51,683 942
Unearned revenues 9,569 10,699 195
Current tax liabilities 7,232 12,606 230
Derivative liabilities 6,354 3,049 56
Other current liabilities 9,703 11,452 209
Provisions 1,121 1,168 21
Total current liabilities 117,685 152,933 2,788
TOTAL LIABILITIES 149,838 163,518 2,981
TOTAL EQUITY AND LIABILITIES 436,001 494,448 9,013
SOURCE Wipro Technologies
Contact: Investor Relations: Manoj Jaiswal, +91-80-25056186,
Manoj.Jaiswal@wipro.com or Sridhar Ramasubbu, +1-408-242-6285,
email@example.com; or Media & Press: Vipin Nair, 91-80-3991-6154,
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