Welcome!

News Feed Item

Wipro Limited Net Income Grew 27% YoY

IT Services Operating Margin Expanded by 54 basis points sequentially

BANGALORE, India and EAST BRUNSWICK, N.J., Jan. 17, 2014 /PRNewswire/ -- Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2013.

Highlights of the Results:
Results for the Quarter ended December 31, 2013:

  • Revenues from continuing operations were rupees 113.3 billion ($1.8 billion1), an increase of 18% YoY.
  • Net Income from continuing operations was rupees 20.1 billion ($325 million1), an increase of 27% YoY which includes a non-recurring expense incurred due to the cessation of manufacturing Wipro branded desktop, laptops and servers. Excluding the non-recurring expense, Net Income from continuing operations was rupees 20.3 billion ($328 million1), an increase of 28% YoY.
  • Non-GAAP Adjusted Net Income from continuing operations was rupees 20.1 billion ($325 million1), an increase of 27% YoY.
  • IT Services Revenue was $1,678.4 million, a sequential increase of 2.9% and YoY increase of 6.4%.
  • IT Services Revenues in Rupee terms was rupees 103.3 billion ($1,668 million1), an increase of 20% YoY.
  • IT Services Earnings Before Interest and Tax (EBIT) was rupees 23.8 billion ($384 million1), an increase of 33% YoY.
  • Operating Income to Revenue for IT Services was 23% for the quarter.
  • The Opus CMC acquisition (announced in December 2013) was completed in January 2014, upon completion of customary closing conditions. Opus CMC's revenue for calendar year 2013, prior to the closing of the acquisition, was approximately $43 million.
  • Wipro declared an interim dividend of rupees 3 ($0.051) per share /ADS.

Performance for the quarter ended December 31, 2013
Azim Premji, Chairman of Wipro, commenting on the results said, "As the global economy is progressing towards stability, we see optimism amongst clients, especially in the West. Corporations are leveraging technology to reduce operational costs and investing resources in differentiating themselves in the marketplace." 

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, "Our focus on account management has yielded encouraging results. We continue to execute to our strategy for superior engagement with clients while investing in emerging technologies to drive towards a higher growth trajectory. During the quarter, our Global Infrastructure Services business grew strongly on revenues."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "Our strategy of 'standardization at the core' is yielding results. Our investments in automation and productivity tools have driven efficiencies and helped us expand margins of IT Services by 54 basis points to 23%."

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, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= rupees 61.92. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2013 was US$1= rupees 61.53

Outlook for the Quarter ending March 31, 2014
We expect Revenues from our IT Services business to be in the range of $1,712 million to $1,745 million* including the revenues from our acquisition.

* Guidance is based on the following exchange rates: GBP/USD at 1.63, Euro/USD at 1.37, AUD/USD at 0.92, USD/INR at 62.0

IT Services
The IT Services segment had 146,402 employees as of December 31, 2013. We added 42 new customers for the quarter.

A leading integrated construction and support services company has selected Wipro as its sole preferred global strategic partner to provide integrated IT and BPO services. As part of the multi-year relationship, Wipro will deliver operational and cost efficiency through its outsourcing services and partner with the customer in business and technology transformation initiatives.

One of the world's largest consumer goods companies has renewed its infrastructure services contract with Wipro. Wipro will provide Network, Datacenter, Global Service Desk and Security Services in a managed services model and partner to transform their IT landscape.

One of the largest banks in Africa has extended its existing relationship with Wipro for an additional 3 years. This renewed engagement is a validation of the value that Wipro is bringing to the bank's 'transformation journey' in its capacity as an Enterprise Testing Partner.

A large global universal bank has selected Wipro as one of its strategic partners to provide application development, maintenance and testing services.

Wipro won a deal from a non-profit research institution in the Kingdom of Saudi Arabia to provide IT infrastructure and applications management services. Wipro has been chosen by a leading hospital group in Saudi Arabia to provide end-to-end IT Infrastructure services.

Awards and accolades

Wipro has been recognized by Amazon Web Services as an AWS Partner Network (APN) Premier Consulting Partner for 2014, marking the second year in a row that the Company has achieved this designation.

Wipro Life Sciences has been positioned as a 'Leader' in the IDC MarketScape: Worldwide Life Science Manufacturing & Supply Chain ITO 2013 Vendor Assessment (doc #HI244265, November 2013), being recognized for its account management capabilities. Wipro Healthcare and Life sciences continues to leverage its strengths in differentiated domain offerings - patient centricity and compliance through sales and marketing analytics, business intelligence and master data management.

Wipro was named as a leader in the India 200 Climate Disclosure Leadership Index (CDLI), for the second time in a row. Wipro continues to retain the top position with a disclosure score of 98/100. The average disclosure score of Indian companies is 68.

Wipro was named a "Leader" by technology global research and advisory firm Forrester Research Inc. in its report "The Forrester Wave™: Business Intelligence Service Providers in Asia Pacific, Q4 2013". Forrester Research Inc. evaluated leading Business Intelligence (BI) Services providers across 53 criteria relating to current offering, strategy and market presence based on client inquiries, user needs assessments, and vendor and expert interviews. It identified Wipro as a leader in Business Intelligence Services for Asia Pacific-based organizations.

Wipro received the '2013 ESCAP-Sasakawa Award for Disability-Inclusive Business in Asia and the Pacific' in the category 'Disability-Inclusive Multinational Enterprise'.

IT Products

  • Our IT Products segment delivered Revenue of rupees 10.2 billion ($164 million1) for the quarter, a YoY increase of 2%.
  • EBIT was negative rupees 116 million (negative $2 million1) for the quarter. The operating income of IT Products segment for the quarter includes non-recurring expense of rupees 209 million ($3 million1) incurred due to cessation of manufacturing of Wipro branded desktops, laptops and servers. Operating income of the IT Products segment excluding the above non-recurring expense is rupees 93 million ($1.5 million1).

Please see the table on page 8 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 8 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 and 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, 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 Call
We will hold a conference call today at 06:45 p.m. Indian Standard Time (08:15 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.

(Tables to follow)

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 31, 


As of December 31,




2013


2013


2013








Convenience
translation into








US$ in millions








(Unaudited)
Refer note 2 (iv)

ASSETS








Goodwill



54,756


62,150


1,004

Intangible assets



1,714


1,668


27

Property, plant and equipment



50,525


51,863


838

Derivative assets



51


625


10

Non-current tax assets



10,308


10,981


177

Deferred tax assets



4,235


4,653


75

Other non-current assets



10,738


14,491


234

Total non-current assets



132,327


146,431


2,365









Inventories



3,263


2,825


46

Trade receivables



76,635


85,091


1,374

Other current assets



31,069


39,825


643

Unbilled revenues



31,988


38,199


617

Available for sale investments



69,171


79,128


1,278

Current tax assets



7,408


9,552


154

Derivative assets



3,031


1,329


21

Cash and cash equivalents



84,838


79,932


1,291

Total current assets



307,403


335,881


5,424

TOTAL ASSETS



439,730


482,312


7,789









EQUITY








Share capital



4,926


4,931


80

Share premium



11,760


12,463


201

Retained earnings



259,178


301,338


4,867

Share based payment  reserve



1,316


1,045


17

Other components of equity



7,174


10,318


167

Shares held by controlled trust



(542)


(542)


(9)

Equity attributable to the equity holders of the company

283,812


329,553


5,323

Non-controlling Interest



1,171


1,300


21

Total equity



284,983


330,853


5,344









LIABILITIES








Long - term loans and borrowings



854


11,357


183

Deferred tax liabilities



846


1,383


22

Derivative liabilities



118


1,525


25

Non-current tax liability



4,790


4,557


74

Other non-current liabilities



3,390


3,076


50

Provisions



9


4


-

Total non-current liabilities



10,007


21,902


354









Loans and borrowings and bank overdrafts

62,962


36,159


584

Trade payables and accrued expenses



48,067


50,313


813

Unearned revenues



10,347


12,856


208

Current tax liabilities



10,226


12,055


195

Derivative liabilities



975


3,179


51

Other current liabilities



10,989


13,697


221

Provisions



1,174


1,298


21

Total current liabilities



144,740


129,557


2,091

TOTAL LIABILITIES



154,747


151,459


2,445









TOTAL EQUITY AND LIABILITIES



439,730


482,312


7,789









 

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 December 31, 


Nine months ended December 31, 


2012


2013


2013


2012


2013


2013






Convenience
translation
into US $ in
millions
(Unaudited)






Convenience
translation
into US $ in
millions
(Unaudited)











Continuing Operations












Gross revenues

95,140


112,713


1,820


278,170


317,734


5,131

Cost of revenues

(66,003)


(76,365)


(1,233)


(193,657)


(217,788)


(3,517)

Gross profit

29,137


36,348


588


84,513


99,946


1,614













Selling and marketing expenses

(6,298)


(7,759)


(125)


(18,030)


(22,224)


(359)

General and administrative expenses

(5,557)


(5,775)


(93)


(16,214)


(17,028)


(275)

Foreign exchange gains/(losses), net

747


604


10


2,563


2,849


46

Results from operating activities

18,029


23,418


378


52,832


63,543


1,026













Finance expenses

(472)


(898)


(15)


(2,298)


(2,049)


(33)

Finance and other income

2,896


3,812


62


8,239


10,585


171

Profit before tax

20,454


26,332


425


58,773


72,079


1,164

Income tax expense

(4,472)


(6,060)


(98)


(12,939)


(16,064)


(259)

Profit for the period from continuing operation

15,981


20,272


327


45,834


56,015


905













Discontinued operation












Profit after tax for the period from discontinued operation

1,273


-


-


3,488


-


-

Profit for the period

17,254


20,272


327


49,322


56,015


905













Attributable to:












Equity holders of the company

17,164


20,147


325


49,071


55,703


900

Non-controlling interest

90


125


2


251


312


5

Profit for the period

17,254


20,272


327


49,322


56,015


905













Profit from continuing operations attributable to:












Equity holders of the company

15,895


20,147


325


45,595


55,703


900

Non-controlling interest

86


125


2


239


312


5


15,981


20,272


327


45,834


56,015


905

Earnings per equity share: 












Attributable to equity share holders of the company












Basic

6.99


8.20


0.13


20.01


22.69


0.37

Diluted

6.98


8.18


0.13


19.96


22.62


0.37













From continuing operations












Basic

6.48


8.20


0.13


18.59


22.69


0.37

Diluted

6.46


8.18


0.13


18.55


22.62


0.37













Weighted average number of equity shares used in computing earnings per equity share












Basic

2,454,147,915


2,455,541,979


2,455,541,979


2,452,383,566


2,454,745,433


2,454,745,433

Diluted

2,458,907,939


2,462,432,622


2,462,432,622


2,458,419,557


2,462,073,492


2,462,073,492













Additional Information












Segment Revenue












IT Services

86,018


103,274


1,668


252,893


293,316


4,737

IT Products

9,969


10,155


164


28,492


27,695


447

IT Services & Products

95,987


113,429


1,832


281,385


321,011


5,184

Consumer Care and Lighting (Discontinued operation)

10,281


-


-


30,154


-


-

Others (Discontinued operation)

3,727


-


-


11,392


-


-

Others

251


(112)


(2)


412


(428)


(7)

Total

110,246


113,317


1,830


323,343


320,583


5,177













Operating Income












IT Services

17,917


23,790


384


52,665


64,279


1,038

IT Products

239


(116)


(2)


722


167


3

IT Services & Products

18,156


23,674


382


53,387


64,446


1,041

Consumer Care and Lighting (Discontinued operation)

1,402


-


-


3,675


-


-

Others (Discontinued operation)

36


-


-


313


-


-

Others

(135)


(256)


(4)


(607)


(903)


(15)

Total

19,459


23,418


378


56,768


63,543


1,026













Reconciliation  of adjusted Non-GAAP profit to profit as per IFRS



















Profit for the period attributable to Equity holders of the Company (Continuing operations)

15,895


20,147


325


45,595


55,703


900

Adjustments :












Accelerated amortization of stock options that vest in a graded manner

(68)


1


-


-


(5)


(0)

 Non-GAAP adjusted profit (Continuing operations)

15,827


20,148


325


45,595


55,698


900













Profit for the period attributable to Equity holders of the Company (Discontinued operations)

1,269


-


-


3,476


-


-

Adjustments :












Accelerated amortization of stock options that vest in a graded manner

(1)


-


-


(12)


-


-

 Non-GAAP adjusted profit (Discontinued operations)

1,268


-


-


3,464


-


-













Reconciliation  of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)

















IT Services Revenue as per IFRS

1,678.4











Effect of Foreign currency exchange movement

10.6











Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates

1,667.8























IT Services Revenue as per IFRS

1,678.4











Effect of Foreign currency exchange movement

29.0











Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates

1,707.4























 

SOURCE Wipro Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...