Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended September 30, 2024.
Highlights of the Results
Results for the Quarter ended September 30, 2024:
Outlook for the Quarter ending December 31, 2024
We expect revenue from our IT Services business segment to be in the range of $2,607 million to $2,660 million*. This translates to sequential guidance of (-) 2.0% to 0.0% in constant currency terms.
* Outlook for the Quarter ending December 31, 2024, is based on the following exchange rates: GBP/USD at 1.32, Euro/USD at 1.10, AUD/USD at 0.68, USD/INR at 83.65 and CAD/USD at 0.74
Performance for the Quarter ended September 30, 2024
Srini Pallia, CEO and Managing Director, said, “Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 Bn once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, Consumer and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro.”
Aparna Iyer, Chief Financial Officer, said, “I am pleased with our performance across all parameters including Revenue, Bookings, Operating margin, cash flow and EPS. On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ. Our operating cash flow continues to be robust at 132.3% of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1B in operating cash flow.”
Highlights of Strategic Deal Wins
In the second quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
Analyst Recognition
Source & Disclaimer: *Gartner, “Magic Quadrant for Public Cloud IT Transformation Services”, Mark Ray, et al, 5 August 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner's research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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IT Products
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 Key Metrics and Non-GAAP Financial Measures
This press release contains key metrics and 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 financial 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. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.
Our key metrics and 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. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our 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.
Results for the Quarter ended September 30, 2024, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com/investors/
Quarterly Conference Call
We will hold an earnings conference call today at 07:00 p.m. Indian Standard Time (9:30 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a webcast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP171024
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
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With over 230,000 employees and business partners across 65 countries, we deliver on the promise of helping our clients, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at 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, the benefits its customers experience 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, complete proposed corporate actions, 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 |
|||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|||||||
(Rs in millions, except share and per share data, unless otherwise stated) |
|||||||
|
As at March 31, 2024 |
As at September 30, 2024 |
|||||
Convenience translation into US dollar in millions
|
|||||||
ASSETS |
|||||||
Goodwill |
|
316,002 |
319,207 |
3,811 |
|||
Intangible assets |
|
32,748 |
28,195 |
336 |
|||
Property, plant and equipment |
|
81,608 |
78,822 |
941 |
|||
Right-of-Use assets |
|
17,955 |
21,854 |
261 |
|||
Financial assets |
|
||||||
Derivative assets |
|
25 |
- |
- |
|||
Investments |
|
21,629 |
31,385 |
375 |
|||
Trade receivables |
|
4,045 |
587 |
7 |
|||
Other financial assets |
|
5,550 |
5,148 |
61 |
|||
Investments accounted for using the equity method |
|
1,044 |
1,008 |
12 |
|||
Deferred tax assets |
|
1,817 |
1,922 |
23 |
|||
Non-current tax assets |
|
9,043 |
7,782 |
93 |
|||
Other non-current assets |
|
10,331 |
7,744 |
92 |
|||
Total non-current assets |
|
501,797 |
503,654 |
6,012 |
|||
Inventories |
|
907 |
1,052 |
13 |
|||
Financial assets |
|
||||||
Derivative assets |
|
1,333 |
651 |
8 |
|||
Investments |
|
311,171 |
407,309 |
4,863 |
|||
Cash and cash equivalents |
|
96,953 |
104,592 |
1,249 |
|||
Trade receivables |
|
115,477 |
112,655 |
1,345 |
|||
Unbilled receivables |
|
58,345 |
64,776 |
773 |
|||
Other financial assets |
|
10,536 |
8,973 |
107 |
|||
Contract assets |
|
19,854 |
17,788 |
212 |
|||
Current tax assets |
|
6,484 |
6,086 |
73 |
|||
Other current assets |
|
29,602 |
32,561 |
389 |
|||
Total current assets |
650,662 |
756,443 |
9,032 |
||||
TOTAL ASSETS |
1,152,459 |
1,260,097 |
15,044 |
||||
EQUITY |
|||||||
Share capital |
10,450 |
10,463 |
125 |
||||
Share premium |
3,291 |
6,000 |
72 |
||||
Retained earnings |
630,936 |
693,688 |
8,282 |
||||
Share-based payment reserve |
6,384 |
6,315 |
75 |
||||
Special Economic Zone re-investment reserve |
42,129 |
41,497 |
495 |
||||
Other components of equity |
56,693 |
60,380 |
721 |
||||
Equity attributable to the equity holders of the Company |
749,883 |
818,343 |
9,770 |
||||
Non-controlling interests |
1,340 |
1,798 |
21 |
||||
TOTAL EQUITY |
751,223 |
820,141 |
9,791 |
||||
LIABILITIES |
|||||||
Financial liabilities |
|||||||
Loans and borrowings |
|
62,300 |
62,653 |
748 |
|||
Lease liabilities |
|
13,962 |
18,965 |
226 |
|||
Derivative liabilities |
|
4 |
1 |
^ |
|||
Other financial liabilities |
|
4,985 |
5,862 |
70 |
|||
Deferred tax liabilities |
|
17,467 |
16,625 |
198 |
|||
Non-current tax liabilities |
|
37,090 |
40,122 |
479 |
|||
Other non-current liabilities |
|
12,970 |
14,823 |
177 |
|||
Total non-current liabilities |
|
148,778 |
159,051 |
1,898 |
|||
Financial liabilities |
|
||||||
Loans, borrowings and bank overdrafts |
|
79,166 |
103,157 |
1,232 |
|||
Lease liabilities |
|
9,221 |
8,047 |
96 |
|||
Derivative liabilities |
|
558 |
1,064 |
13 |
|||
Trade payables and accrued expenses |
|
88,566 |
82,810 |
989 |
|||
Other financial liabilities |
|
2,272 |
2,976 |
36 |
|||
Contract liabilities |
|
17,653 |
18,439 |
220 |
|||
Current tax liabilities |
|
21,756 |
30,599 |
365 |
|||
Other current liabilities |
|
31,295 |
32,004 |
382 |
|||
Provisions |
|
1,971 |
1,809 |
22 |
|||
Total current liabilities |
252,458 |
280,905 |
3,355 |
||||
TOTAL LIABILITIES |
401,236 |
439,956 |
5,253 |
||||
TOTAL EQUITY AND LIABILITIES |
1,152,459 |
1,260,097 |
15,044 |
||||
^ Value is less than 0.5 |
|||||||
WIPRO LIMITED AND SUBSIDIARIES |
|||||||||||||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME |
|||||||||||||||||||
(Rs in millions, except share and per share data, unless otherwise stated) |
|||||||||||||||||||
Three months ended September 30, |
Six months ended September 30, |
||||||||||||||||||
|
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
||||||
|
Convenience
|
Convenience
|
|||||||||||||||||
Revenues |
|
|
225,159 |
|
223,016 |
|
2,663 |
|
453,469 |
|
442,654 |
|
5,285 |
|
|||||
Cost of revenues |
|
|
(159,191 |
) |
(155,049 |
) |
(1,851 |
) |
(320,452 |
) |
(308,355 |
) |
(3,681 |
) |
|||||
Gross profit |
|
|
65,968 |
|
67,967 |
|
812 |
|
133,017 |
|
134,299 |
|
1,604 |
|
|||||
|
|||||||||||||||||||
Selling and marketing expenses |
|
|
(18,767 |
) |
(17,388 |
) |
(207 |
) |
(35,351 |
) |
(33,232 |
) |
(397 |
) |
|||||
General and administrative expenses |
|
|
(14,124 |
) |
(13,034 |
) |
(156 |
) |
(30,011 |
) |
(27,247 |
) |
(325 |
) |
|||||
Foreign exchange gains/(losses), net |
|
|
268 |
|
(396 |
) |
(5 |
) |
206 |
|
(602 |
) |
(7 |
) |
|||||
Results from operating activities |
|
|
33,345 |
|
37,149 |
|
444 |
|
67,861 |
|
73,218 |
|
875 |
|
|||||
|
|||||||||||||||||||
Finance expenses |
|
|
(3,033 |
) |
(3,569 |
) |
(43 |
) |
(6,119 |
) |
(6,857 |
) |
(82 |
) |
|||||
Finance and other income |
|
|
4,810 |
|
9,195 |
|
110 |
|
11,352 |
|
16,675 |
|
199 |
|
|||||
Share of net profit/ (loss) of associate and joint venture accounted for using the equity method |
|
|
(30 |
) |
3 |
|
^ |
(27 |
) |
(42 |
) |
(1 |
) |
||||||
Profit before tax |
|
|
35,092 |
|
42,778 |
|
511 |
|
73,067 |
|
82,994 |
|
991 |
|
|||||
Income tax expense |
|
|
(8,419 |
) |
(10,512 |
) |
(126 |
) |
(17,534 |
) |
(20,362 |
) |
(243 |
) |
|||||
Profit for the period |
|
|
26,673 |
|
32,266 |
|
385 |
|
55,533 |
|
62,632 |
|
748 |
|
|||||
|
|||||||||||||||||||
Profit attributable to: |
|
|
|||||||||||||||||
Equity holders of the Company |
|
|
26,463 |
|
32,088 |
|
383 |
|
55,164 |
|
62,120 |
|
742 |
|
|||||
Non-controlling interests |
|
|
210 |
|
178 |
|
2 |
|
369 |
|
512 |
|
6 |
|
|||||
Profit for the period |
|
|
26,673 |
|
32,266 |
|
385 |
|
55,533 |
|
62,632 |
|
748 |
|
|||||
|
|||||||||||||||||||
Earnings per equity share: |
|
|
|||||||||||||||||
Attributable to equity holders of the Company |
|
||||||||||||||||||
Basic |
|
5.06 |
|
6.14 |
|
0.07 |
|
10.30 |
|
11.89 |
|
0.14 |
|
||||||
Diluted |
|
5.04 |
|
6.12 |
|
0.07 |
|
10.27 |
|
11.85 |
|
0.14 |
|
||||||
|
|||||||||||||||||||
Weighted average number of equity shares |
|
||||||||||||||||||
used in computing earnings per equity share |
|
||||||||||||||||||
Basic |
|
5,232,867,366 |
|
5,226,755,635 |
|
5,226,755,635 |
|
5,357,394,940 |
|
5,226,444,619 |
|
5,226,444,619 |
|
||||||
Diluted |
5,245,641,198 |
|
5,241,078,937 |
|
5,241,078,937 |
|
5,370,078,563 |
|
5,239,886,408 |
|
5,239,886,408 |
|
|||||||
^ Value is less than 0.5 |
|||||||||||||||||||
Information on reportable segments for the three months ended September 30, 2024, June 30, 2024, September 30, 2023, six months ended September 30, 2024, September 30, 2023, and year ended March 31, 2024 are as follows:
Particulars |
Three months ended |
Six months ended |
Year ended |
|||||||||
September
|
June
|
September
|
September
|
September
|
March
|
|||||||
Audited |
Audited |
Audited |
Audited |
Audited |
Audited |
|||||||
Segment revenue |
||||||||||||
IT Services |
||||||||||||
Americas 1 |
68,393 |
|
67,700 |
|
66,813 |
|
136,093 |
|
132,420 |
|
268,230 |
|
Americas 2 |
67,932 |
|
67,338 |
|
66,914 |
|
135,270 |
|
135,217 |
|
269,482 |
|
Europe |
61,821 |
|
60,422 |
|
63,976 |
|
122,243 |
|
131,110 |
|
253,927 |
|
APMEA |
23,811 |
|
23,503 |
|
26,255 |
|
47,314 |
|
52,765 |
|
102,177 |
|
Total of IT Services |
221,957 |
|
218,963 |
|
223,958 |
|
440,920 |
|
451,512 |
|
893,816 |
|
IT Products |
663 |
|
469 |
|
1,469 |
|
1,132 |
|
2,163 |
|
4,127 |
|
Total segment revenue |
222,620 |
|
219,432 |
|
225,427 |
|
442,052 |
|
453,675 |
|
897,943 |
|
Segment result |
||||||||||||
IT Services |
||||||||||||
Americas 1 |
13,338 |
|
13,687 |
|
15,287 |
|
27,025 |
|
28,824 |
|
59,364 |
|
Americas 2 |
15,005 |
|
15,533 |
|
14,023 |
|
30,538 |
|
28,192 |
|
59,163 |
|
Europe |
7,821 |
|
5,873 |
|
7,547 |
|
13,694 |
|
17,515 |
|
33,354 |
|
APMEA |
3,070 |
|
2,441 |
|
2,985 |
|
5,511 |
|
5,785 |
|
12,619 |
|
Unallocated |
(1,912 |
) |
(1,477 |
) |
(3,784 |
) |
(3,389 |
) |
(7,741 |
) |
(20,304 |
) |
Total of IT Services |
37,322 |
|
36,057 |
|
36,058 |
|
73,379 |
|
72,575 |
|
144,196 |
|
IT Products |
(183 |
) |
(47 |
) |
(467 |
) |
(230 |
) |
(628 |
) |
(371 |
) |
Reconciling Items |
10 |
|
59 |
|
(2,246 |
) |
69 |
|
(4,086 |
) |
(7,726 |
) |
Total segment result |
37,149 |
|
36,069 |
|
33,345 |
|
73,218 |
|
67,861 |
|
136,099 |
|
Finance expenses |
(3,569 |
) |
(3,288 |
) |
(3,033 |
) |
(6,857 |
) |
(6,119 |
) |
(12,552 |
) |
Finance and other income |
9,195 |
|
7,480 |
|
4,810 |
|
16,675 |
|
11,352 |
|
23,896 |
|
Share of net profit/ (loss) of associate and joint venture accounted for using the equity method |
3 |
|
(45 |
) |
(30 |
) |
(42 |
) |
(27 |
) |
(233 |
) |
Profit before tax |
42,778 |
|
40,216 |
|
35,092 |
|
82,994 |
|
73,067 |
|
147,210 |
|
Additional Information:
The Company is organized into the following operating segments: IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT services offerings to customers organized by four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East and Africa (“APMEA”). Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America: Communications, media and information services, Software and gaming, New age technology, Consumer goods, medical devices and life sciences, Healthcare, and Technology products and services. Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: Banking and financial services, Energy, Manufacturing and resources, Capital markets and insurance, and Hi-tech.
Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Northern Europe and Southern Europe.
APMEA consists of Australia and New Zealand, India, Middle East, South-East Asia, Japan and Africa.
Revenue from each customer is attributed to the respective SMUs based on the location of the customer’s primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customer’s buying centers, but the total revenue related to these strategic global customers are attributed to a single SMU based on the geographical location of key decision makers.
IT Products: The Company is a value-added reseller of security, packaged and SaaS software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to these items is reported as revenue from the sale of IT Products.
Reconciliation of selected GAAP measures to Non-GAAP measures
1. Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn)
Three Months ended September 30, 2024 |
||
IT Services Revenue as per IFRS |
$2,660.1 |
|
Effect of Foreign currency exchange movement |
($18.0) |
|
|
|
|
Non-GAAP Constant Currency IT Services Revenue
|
$2,642.0 |
Three Months ended September 30, 2024 | ||
IT Services Revenue as per IFRS |
$2,660.1 |
|
Effect of Foreign currency exchange movement |
($10.1) |
|
|
|
|
Non-GAAP Constant Currency IT Services Revenue
|
$2,650.0 |
2. Reconciliation of Free Cash Flow for three months and six months ended September 30, 2024
|
Amount in INR Mn |
Amount in INR Mn |
|
Three months ended |
Six months ended |
30-Sep-24 |
30-Sep-24 |
|
Net Income for the period [A] |
32,266 |
62,632 |
Computation of Free Cash Flow |
|
|
Net cash generated from operating activities [B] |
42,690 |
82,649 |
Add/ (deduct) cash inflow/ (outflow)on: |
|
|
Purchase of property, plant and equipment |
(2,398) |
(5,017) |
Proceeds from sale of property, plant and equipment |
1,423 |
1,459 |
Free Cash Flow [C] |
41,715 |
79,091 |
Operating Cash Flow as percentage of Net Income [B/A] |
132.3% |
132.0% |
Free Cash Flow as percentage of Net Income [C/A] |
129.3% |
126.3% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017796218/en/
Contact for Investor Relations
Dipak Kumar Bohra
Phone: +91-80-6142 7201
dipak.bohra@wipro.com
Abhishek Jain
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