Wipro Records 19% YoY Growth in Net Income for the year Results for the quarter and year ended March 31, 2013 under IFRS PR Newswire BANGALORE, India and EAST BRUNSWICK, N.J., April 19, 2013 BANGALORE, India and EAST BRUNSWICK, N.J., April 19, 2013 /PRNewswire/ -- Wipro Limited (NYSE: WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2013. Highlights of the Results: Results for the Quarter ended March 31, 2013: oThe Scheme of Arrangement for the demerger of the 'Diversified Business' of Wipro, including the Consumer Care and Lighting segment, is effective from March 31, 2013. Our financial statements show the performance of the 'Diversified Business' as discontinued operations. oTotal Revenues were rupees 110.26 billion ($2.02 billion^1), an increase of 12% YoY. Revenues for continuing operations were rupees 96.14 billion ($1.76 billion^1), an increase of 13% YoY. Revenues for discontinued operations were rupees 14.12 billion ($259 million^1), an increase of 4% YoY. oTotal Net Income was rupees 17.29 billion ($317 million^1), an increase of 17% YoY. Net Income for continuing operations was rupees 15.76 billion ($289 million^1), an increase of 13% YoY. Net Income for discontinued operations was rupees 1.53 billion ($28 million^1), an increase of 88% YoY. oTotal Non-GAAP Adjusted Net Income was rupees 17.22 billion ($316 million^1), an increase of 16% YoY. Non-GAAP Adjusted Net Income for continuing operations was rupees 15.69 billion ($288 million^1), an increase of 12% YoY. Non-GAAP Adjusted Net Income for discontinued operations was rupees 1.53 billion ($28 million^1), an increase of 88% YoY. oNon-GAAP constant currency IT Services Revenue in dollar terms was $1,598.6 million, within our guidance range of $1,585 million to $1,625 million. oIT Services Revenue was $1,585.1 million, a sequential increase of 0.5% and YoY increase of 3.2%. oIT Services Revenues in Rupee terms was rupees 85.54 billion ($1,569 million^1), an increase of 13% YoY. oIT Services Earnings Before Interest and Tax (EBIT) was rupees 17.27 billion ($317 million^1), an increase of 10% YoY. oOperating Income to Revenue for IT Services was 20.2% for the quarter. oWipro declares a final dividend of rupees 5 ($0.09^1) per share/ADS, taking the total dividend declared during the year to rupees 7 ($0.13^1) per share/ADS. 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 March 29, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= rupees 54.52. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2013 was US$1= rupees 53.96 Results for the Year ended March 31, 2013: oTotal Revenues for were rupees 433.61 billion ($7.95 billion^1), an increase of 16% YoY. Revenues for continuing operations were rupees 376.88 billion ($6.91 billion^1), an increase of 17% YoY. Revenues for discontinued operations were rupees 56.73 billion ($1.04 billion^1), an increase of 7% YoY. oTotal Net Income was rupees 66.36 billion ($1.22 billion^1), an increase of 19% YoY. Net Income for continuing operations was rupees 61.36 billion ($1.13 billion^1), an increase of 17% YoY. Net Income for discontinued operations was rupees 5.0 billion ($92 million^1), an increase of 47% YoY. oTotal Non-GAAP Adjusted Net Income was rupees 66.04 billion ($1.21 billion^1), an increase of 19% YoY. Non-GAAP Adjusted Net Income for continuing operations was rupees 61.05 billion ($1.12 billion^1), an increase of 17% YoY. Non-GAAP Adjusted Net Income for discontinued operations was rupees 5.0 billion ($92 million^1), an increase of 47% YoY. oIT Services Revenue was $6,217.8 million, an increase of 5% YoY. Non GAAP constant currency growth YoY for IT Services was 7.4%. oIT Services Revenues were rupees 338.43 billion ($6.21 billion^1), an increase of 19% YoY. oIT Services Earnings Before Interest and Tax (EBIT) was rupees 69.93 billion ($1.28 billion^1), an increase of 18% YoY. oOur Operating Income to Revenue for IT Services was 20.7% for the year. Performance for the quarter and year ended March 31, 2013 Azim Premji, Chairman of Wipro, commenting on the results said – "We have completed the demerger of the 'Diversified Business' effective March 31, 2013 to make Wipro Limited a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth." Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "The cross currencies have been volatile and impacted our financial performance in the quarter. Excluding the impact of foreign exchange, we have been able to maintain margins on a sequential basis. We have shown significant improvements in cash flow generation for the year." T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – "We continue to see improvement in our customer satisfaction and employee engagement. Our continued investments in the go-to-market organization positions us well for the future." Outlook for the Quarter ending June 30, 2013 We expect Revenues from our IT Services business to be in the range of $1,575 million to $1,610 million*. * Guidance is based on the following exchange rates: GBP/USD at 1.52, Euro/USD at 1.31, AUD/USD at 1.04, USD/INR at 54.14. IT Services The IT Services segment had 145,812 employees as of March 31, 2013, an increase of 2,907 people in the quarter. We added 52 new customers for the quarter. Wipro has secured a contract from a large Europe-based universal bank to build a "Centralized Testing Unit" that will help the bank achieve higher production stability and lower cost of avoidance in its Testing processes. Wipro's Transformation Services and Data Obfuscation Services along with industry leading testing services will help the bank achieve standardized Testing processes across the organization. GVK-led Mumbai International Airport Pvt. Ltd. (MIAL), the operator of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai has chosen Wipro to provide world-class IT services for the new integrated terminal "T2." Wipro will be responsible for providing Managed Services across the entire IT landscape at MIAL and deliver high availability and operational efficiency across all the critical airport processes. Wipro has won an ERP deal for Asset and Infrastructure Management from a key national defense organization. Awards and accolades Wipro was named a "Leader" by technology global research and advisory firm Forrester Research Inc., in its report "The Forrester Wave™: Enterprise Mobility Services, Q1 2013." Forrester Research Inc. evaluated 13 leading enterprise mobility service providers across 15 criteria, relating to current offering, strategy, and market presence based on interviews with clients. Wipro scored the highest for its breadth of mobile technology skills and competencies, R&D and go-to-market strategy. Wipro was appraised at Capability Maturity Model Integration CMMI-DEV 1.3 Level 5. This assessment is a validation of Wipro's process capability based on the CMMI standards that measure process improvements. Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and Inclusion, 2012,' in the category 'Most Effective Implementation of Practices & Technology for Persons with Disabilities,' at the annual NASSCOM Diversity and Inclusion Summit. Wipro was named a "Leader" by Verdantix, a leading analyst firm in providing advice to clients in the field of energy, environment and sustainability challenges, in its report "Green Quadrant® Sustainable Technology Services (Global), March 2013." Verdantix evaluated 16 of the leading sustainable technology service providers globally. Wipro won the Frost & Sullivan Product Leadership Award (2012) in the Middle East Managed Services Market for its flagship product, FixOmatic Endpoint Automation Product (EAP). IT Products oOur IT Products segment recorded Revenue of rupees 39.24 billion ($720 million^1) for the year ended March 31, 2013 an increase of 2% YoY. Revenue for the quarter was rupees 10.75 billion ($197 million^1), an increase of 15% YoY. oEBIT was rupees 990 million ($18 million^1) for the year, a decrease of 45% YoY. EBIT was rupees 268 million ($5 million^1) for the quarter, a decrease of 39% YoY. oThe ratio of our Operating Income to Revenue for this segment was 2.5% for the year and also for the quarter. Consumer Care & Lighting (Discontinued Operations) oConsumer Care & Lighting segment recorded Revenue of rupees 40.59 billion ($745 million^1) for the year ended March 31, 2013 an increase of 22% YoY. Revenue for the quarter was rupees 10.44 billion ($191 million^1), an increase of 15% YoY. oEBIT was rupees 5.01 billion ($92 million^1) for the year, an increase of 27% YoY. EBIT was rupees 1.34 billion ($25 million^1) for the quarter, an increase of 18% YoY. 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 and year ended March 31, 2013, 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 (04:30 a.m. US Eastern Time) and at 6:45 p.m. Indian Standard Time (9:15 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. 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 behalf. 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 March 31, 31, 2012 2013 2013 Convenience translation into US$ in millions ASSETS Goodwill 67,937 54,756 1,004 Intangible assets 4,229 1,714 31 Property, plant and equipment 58,988 50,525 927 Investment properties - - - Investment in equity accounted 3,232 - - investee Other Investments - 4 0 Derivative assets 3,462 51 1 Non-current tax assets 10,287 10,308 189 Deferred tax assets 2,597 4,235 78 Other non-current assets 11,781 10,738 197 Total non-current assets 162,513 132,327 2,427 Inventories 10,662 3,263 60 Trade receivables 80,328 76,635 1,406 Other current assets 25,743 31,069 570 Derivative assets - - Unbilled revenues 30,025 31,988 587 Available for sale investments 41,961 69,171 1,269 Derivative asset - - - Current tax assets 5,635 7,408 136 Derivative assets 1,468 3,031 56 Cash and cash equivalents 77,666 84,838 1,556 Total current assets 273,488 307,403 5,638 TOTAL ASSETS 436,001 439,730 8,065 EQUITY Share capital 4,917 4,926 90 Share premium 30,457 11,760 216 Retained earnings 241,912 259,178 4,754 Share based payment reserve 1,976 1,316 24 Other components of equity 6,594 7,174 132 Shares held by controlled trust (542) (542) (10) Equity attributable to the equity 285,314 283,812 5,206 holders of the company Non-controlling Interest 849 1,171 21 Total equity 286,163 284,983 5,227 LIABILITIES Long - term loans and borrowings 22,510 854 16 Deferred tax liabilities 353 846 16 Employee benefit obligations - - - Derivative liabilities 307 118 2 Non-current tax liability 5,403 4,790 88 Other non-current liabilities 3,519 3,390 62 Provisions 61 9 - Total non-current liabilities 32,153 10,007 184 Loans and borrowings and bank 36,448 62,962 1,155 overdrafts Trade payables and accrued expenses 47,258 48,067 882 Unearned revenues 9,569 10,347 190 Current tax liabilities 7,232 10,226 188 Derivative liabilities 6,354 975 18 Other current liabilities 9,703 10,989 202 Provisions 1,121 1,174 22 Total current liabilities 117,685 144,740 2,655 TOTAL LIABILITIES 149,838 154,747 2,838 TOTAL EQUITY AND LIABILITIES 436,001 439,730 8,065 WIPRO LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (`in millions, except share and per share data, unless otherwise stated) Three months ended March 31, Year ended March 31, 2012 2013 2013 2012 2013 2013 Convenience Convenience translation translation into into US $ in US $ in millions millions (Unaudited) (Unaudited) Continuing Operations Gross revenues 84,547 96,078 1,762 318,747 374,256 6,865 Cost of revenues (59,140) (67,008) (1,229) (225,794) (260,665) (4,781) Gross profit 25,407 29,070 533 92,953 113,591 2,084 Selling and (4,838) (6,183) (113) (17,953) (24,213) (444) marketing expenses General and administrative (5,263) (5,820) (107) (18,416) (22,032) (404) expenses Foreign exchange gains/(losses), 521 62 1 3,328 2,626 48 net Results from operating 15,827 17,129 314 59,912 69,972 1,284 activities Finance expenses (375) (395) (7) (3,371) (2,693) (49) Finance and other 2,448 3,077 56 8,982 11,317 208 income Share of profits/(losses) - - - - - - of equity accounted investee Profit before tax 17,900 19,811 364 65,523 78,596 1,442 Income tax expense (3,804) (3,973) (73) (12,955) (16,912) (310) Profit for the period from 14,096 15,838 291 52,568 61,684 1,132 continuing operation Discontinued operation Profit after tax for the period 816 1,535 28 3,419 5,012 92 from discontinued operation Profit for the 14,912 17,373 319 55,987 66,696 1,224 period Attributable to: Equity holders of 14,809 17,287 317 55,730 66,359 1,217 the company Non-controlling 103 86 2 257 337 6 interest Profit for the 14,912 17,373 319 55,987 66,696 1,223 period Profit from continuing operations attributable to: Equity holders of 13,996 15,756 289 52,325 61,362 1,126 the company Non-controlling 100 82 1 243 322 6 interest 14,096 15,838 290 52,568 61,684 1,132 Attributable to equity share holders of the company Basic 6.04 7.04 0.13 22.75 27.05 0.50 Diluted 6.03 7.02 0.13 22.68 26.98 0.49 From continuing operations Basic 5.71 6.42 0.12 21.36 25.01 0.46 Diluted 5.70 6.40 0.12 21.29 24.95 0.46 Weighted average number of equity shares used in computingearnings per equity share Basic 2,450,584,622 2,455,037,295 2,455,037,295 2,449,777,457 2,453,218,759 2,453,218,759 Diluted 2,457,137,406 2,460,940,973 2,460,940,973 2,457,511,538 2,459,184,321 2,459,184,321 Additional Information Segment Revenue IT Services 75,897 85,538 1,569 284,313 338,431 6,207 IT Products 9,370 10,746 197 38,436 39,238 720 IT Services & 85,267 96,284 1,766 322,749 377,669 6,927 Products Consumer Care and Lighting 9,067 10,440 191 33,401 40,594 745 (Discontinued operation) Others (Discontinued 4,288 3,393 62 18,565 14,785 271 operation) Reconciling Items 69 147 3 534 560 10 Total 98,691 110,264 2,022 375,249 433,608 7,953 Operating Income IT Services 15,731 17,268 317 59,265 69,933 1,283 IT Products 438 268 5 1,787 990 18 IT Services & 16,169 17,536 322 61,052 70,923 1,301 Products Consumer Care and Lighting 1,134 1,337 25 3,956 5,012 92 (Discontinued operation) Others (Discontinued 35 (23) - 110 290 5 operation) Reconciling Items (395) (473) (9) (1,105) (1,079) (20) Total 16,943 18,376 337 64,013 75,146 1,378 Reconciliation of adjusted Non-GAAP profit to profit as per IFRS Profit for the period attributable to Equity holders of 13,996 15,756 289 52,325 61,362 1,126 the Company (Continuing operations) Adjustments : Accelerated amortization of stock options that (3) (68) (1) (121) (308) (6) vest in a graded manner Non-GAAP adjusted profit (Continuing 13,993 15,688 288 52,204 61,054 1,120 Operations) Profit for the period attributable to Equity holders of 813 1,531 28 3,405 4,997 92 the Company (Discontinued operations) Adjustments : Accelerated amortization of stock options that 1 (2) - (4) (13) (0) vest in a graded manner Non-GAAP adjusted profit 814 1,529 28 3,401 4,984 92 (Discontinued operations) Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN) Q4 FY12-13 FY'13 IT Services Revenue as per 1,585 IFRS Effect of Foreign currency exchange 13 movement Non-GAAP Constant Currency IT Services Revenue 1,599 based on previous quarter exchange rates IT Services Revenue as per 1,585 6,218 IFRS Effect of Foreign currency exchange 30 139 movement Non-GAAP Constant Currency IT Services Revenue 1,615 6,357 based on previous year exchange rates SOURCE Wipro Limited Website: http://www.wipro.com Contact: Investor Relations, Manoj Jaiswal, Phone: +91-80-25056186, Manoj.Jaiswal@wipro.com, or Sridhar Ramasubbu, Phone: +1 408-242-6285, email@example.com, or Media & Press, Vipin Nair, Phone: 91-80-3991-6154, firstname.lastname@example.org
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Wipro Records 19% YoY Growth in Net Income for the year
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