WIPRO LIMITED 
By 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
billion(1)), an increase of 18% YoY.
-- Net Income from continuing operations was rupees 20.1 billion ($325
million(1)), 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
million(1)), an increase of 28% YoY.
-- Non-GAAP Adjusted Net Income from continuing operations was rupees 20.1
billion ($325 million(1)), 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
million(1)), an increase of 20% YoY.
-- IT Services Earnings Before Interest and Tax (EBIT) was rupees 23.8
billion ($384 million(1)), 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 ($0.05(1)) 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(TM): 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
million(1)) for the quarter, a YoY increase of 2%.
-- EBIT was negative rupees 116 million (negative $2 million(1)) for the
quarter. The operating income of IT Products segment for the quarter
includes non-recurring expense of rupees 209 million ($3 million(1))
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
million(1)).
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 Convenience
translation translation
into US $ in into US $ in
millions millions
(Unaudited) (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
