Bangalore, India and East Brunswick, New Jersey, USA – April 21, 2015
-- Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2015.
Highlights of the Results
Results for the Year ended March 31, 2015:
- Total Revenues were `469.5 billion ($7.5 billion1 ), an increase of 8% YoY.
- Net Income2 was `86.5 billion ($1.4 billion1 ), an increase of 11% YoY.
- Wipro declared a final dividend of `7 ($0.11) per share/ADS, taking the total dividend declared for the year 2014-15 to `12 ($0.19) per share/ADS.
- IT Services Revenue was $7,081.6 million, a YoY increase of 7.0%.
- Non-GAAP Constant Currency IT Services Revenue in dollar terms grew 8.7% to $7,190.6 million.
- IT Services Segment Revenues in Rupee terms was `440.2 billion ($7.1 billion1 ), an increase of 10% YoY.
- IT Services Segment Result was `97.6 billion ($1.6 billion1 ), an increase of 8% YoY.
- IT Services Margins for the year was 22.2%.
Results for the Quarter ended March 31, 2015:
- Total Revenues were `121.4 billion ($1.9 billion1 ), an increase of 4% YoY.
- Net Income2 was `22.7 billion ($366 million1 ), an increase of 2% YoY.
- Non-GAAP constant currency IT Services Revenue in dollar terms grew 1.2% to $1,817.8 million, within our guidance range of $1,814 million to $1,850 million.
- IT Services Revenue was $1,774.5 million, a sequential decrease of 1.2% and YoY increase of 3.2%.
- IT Services Segment Revenues in Rupee terms was `112.4 billion ($1.8 billion1 ), an increase of 6% YoY.
- IT Services Segment Result was `24.8 billion ($398 million1 ), a decrease of 5% YoY.
- IT Services Margins was 22.0%, an expansion of 23 bps sequentially.
Performance for the quarter and year ended March 31, 2015 T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said, “We continue to execute on our strategy and have achieved improved customer satisfaction through better articulated solutions and improved delivery. We are well-positioned to take advantage of the opportunities in the market, while tackling headwinds in certain areas. We see Digital, Open Source and Artificial Intelligence as key levers for driving business change and reshaping the delivery model for the future.”
Jatin Dalal, Chief Financial Officer of Wipro, said – “We continue to maintain our focus on operational improvements and productivity enhancements. This has resulted in margin expansion despite adverse crosscurrency movements.”
- 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 31, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= `62.31. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2015 was US$1= `63.35 2.
- Refers to ‘Profit for the period attributable to equity holders of the company
Outlook for the Quarter ending June 30, 2015
We expect Revenues from our IT Services business to be in the range of $ 1,765 million to $ 1,793 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.49, Euro/USD at 1.07, AUD/USD at 0.77, USD/INR at 62.10 and USD/CAD at 1.27
The IT Services segment had a headcount of 158,217 as of March 31, 2015. We added 65 new customers during the quarter.
Wipro continued its momentum in winning Large Deals globally as listed below:
Wipro Limited has won a multi-year engagement with Allied Irish Bank in Ireland for managing their core datacenter infrastructure. The engagement includes end-to-end management of mainframe and distributed systems and will enable the bank to provide high availability services to its end customers. Wipro is setting up its ServiceNXT™ Delivery Center in Dublin to cater to the near-shore requirements of this program and also add to its existing portfolio of global delivery centers.
Wipro has signed a five-year agreement with Symetra Life Insurance Company, a leader in retirement benefits and life products, to provide a range of IT Infrastructure services. Wipro’s services will include hosting and servicing of mainframe and server environments, service desk and other technologies at the company’s data centers.
A leading global apparel and footwear company has engaged Wipro to transform their End User Services, Network and Distributed Computing platforms in addition to expanding their IT applications portfolio. As the customer organization grows its lifestyle brands, this strategic initiative will be the global backbone for operational excellence with a high degree of automation, real-time analytics, self-help and self-heal.
Wipro has won an integrated Applications and Infrastructure deal with T-Mobile Polska S.A. In this strategic partnership spanning 5 years, Wipro would help T-Mobile systemize and standardize the IT architecture and operations of their Poland entity.
Wipro has been chosen as the engineering partner by a leading global technology company for establishing a shared services team, to support testing and maintenance of its core platform products. As part of this multiyear engagement, Wipro will leverage its product engineering capabilities to bring about process agility, faster delivery, enhanced quality and year-on-year efficiency gains for the customer.
A global manufacturing major has engaged Wipro in a multi-year and multi-million dollar workplace transformation and support program. As part of this engagement, Wipro will leverage its workplace transformation framework and automation tools to help enhance end-user experience and productivity for the manufacturing company.
Wipro’s Cloud business continued to build significant momentum in the applications and infrastructure areas. We have expanded our cloud applications business into new geographies with deal wins that include a leading Australian banking and insurance provider and a leading energy provider in Canada. Wipro’s ServiceNXT™ Cloud Operations Center has been selected for hosting and providing managed services for affiliate/partner applications by a global cigarette and tobacco company and for customer care and billing platform of a global telecom company. Wipro has also been selected as a strategic Cloud partner for the assessment and migration of 3000+ web-based applications for a large US-based multinational bank.
Wipro’s Open Source practice continued to gain traction with customers in the areas of Middleware, Cloud, Analytics, Big Data, API (Application Program Interface) and Operating Systems across industries. Some marquee wins in Q4 include building treasury, budgeting, financial operations and MIS systems for a government organization, middleware integration for a global retail giant and migration of applications from a proprietary platform to an Open Source application server for a global investment bank.
Awards and accolades
Wipro was positioned in the ‘Winner’s Circle’ of the HfS Blueprint Report on Enterprise Analytics Services 2015. Wipro’s Vertical expertise, Big Data Analytics capabilities and collaborative approach with clients, have been called out as key areas of strength in the report.
Wipro has been positioned amongst ‘Leaders’ by Everest Group in their PEAK MatrixTM assessment 2015 on Record-to-Report (R2R) BPO Service provider within Finance & Accounting Outsourcing. This report examines multiple aspects of the R2R BPO market. It focuses on each service provider’s position on the Everest Group Performance, Experience, Ability and Knowledge (PEAK) Matrix while assessing their capabilities on the dimensions of market success, scale, scope, delivery capability, technology solution, and buyer satisfaction. The report also encompasses analysis of R2R BPO landscape and key solution characteristics.
Wipro was recognized by the Ethisphere Institute, as a 2015 World's Most Ethical Company® for the fourth consecutive year. The World's Most Ethical Companies designation recognizes those organizations that have had a material impact on the way business is operated. Wipro is one of only three companies in the Information Technology Services industry honored this year.
Our IT Products Segment delivered Revenue of `9.5 billion ($152 million1 ) for the quarter ended March 31, 2015, a sequential growth of 22%.
IT Products Segment results for the quarter ended March 31, 2015 was `58 million ($1 million1 ).
Revenue for the year ended March 31, 2015 was `34.0 billion ($546 million1 ) a degrowth of 12% YoY.
Segment Results for the year ended March 31, 2015 was `374 million ($6 million1 ).
IT Products Revenues for the fiscal year ended March 31, 2014 included sales of Wipro branded desktops, laptops and servers which Wipro ceased manufacturing in the quarter ended December 31, 2013.
Please refer the table on page 7 for reconciliation between 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 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 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.
This non-GAAP financial measure is 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 this non-GAAP measure, 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 and year ended March 31, 2015, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com.
Quarterly Conference Call
We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (09:45 a.m. US Eastern Time) to discuss our performance for the quarter. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com.
About Wipro Limited (NYSE: WIT)
Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 150,000, serving clients in 175+ cities across 6 continents.
For more information, please visit www.wipro.com
Contact for Investor Relations
Aravind V S
Phone: +91-80-2505 6186
Contact for Media & Press
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.
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