Bangalore, India and New Jersey, USA – April 29, 2022 - Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the quarter and year ended March 31, 2022.
Highlights of the Results
Results for the Quarter ended March 31, 2022:
- Gross Revenue was ₹208.6 billion ($2.7 billion1), an increase of 28.4% YoY
- IT Services Segment Revenue was at $2,721.7 million, an increase of 3.1% QoQ and 26.4% YoY
- Non-GAAP2 constant currency IT Services segment revenue increased by 3.1% QoQ and 28.5% YoY
- IT Services Operating Margin3 for the quarter was at 17.0%, a decrease of 60 bps QoQ
- Net Income for the quarter was ₹30.9 billion ($406.9 million1), an increase of 4.0% QoQ and 3.9% YoY
- Earnings Per Share for the quarter was at ₹5.64 ($0.071), an increase of 4.6% YoY
- Operating Cash Flow was at ₹23.3 billion ($307.3 million1), which is 75.5% of Net Income
Results for the Year ended March 31, 2022:
- Gross Revenue was ₹790.9 billion ($10.4 billion1), an increase of 27.7% YoY
- IT Services Segment Revenue was at $10,355.9 million, an increase of 27.3% YoY
- Non-GAAP2 constant currency IT Services Segment Revenue increased by 26.9% YoY
- IT Services Operating Margin3 for the year was at 17.7%, a decrease of 254 bps YoY
- Net Income for the year was ₹122.2 billion ($1,610.5 million1), an increase of 13.2% YoY
- Earnings Per Share for the year was at ₹22.35 ($0.291), an increase of 17.0% YoY
- Operating Cash Flow was at ₹110.8 billion ($1,460.4 million1), which is 90.7% of Net Income
- Our closing strength of employees for IT Services was at 243,128, an increase of 45,416 employees on a YoY
Performance for the Quarter and Year ended March 31, 2022
Thierry Delaporte, CEO and Managing Director said, “We have had an outstanding year, finishing with $10.4 Bn in revenues, and an industry-leading growth of 27% year on year. This is our sixth straight quarter of strong revenue growth at or over 3%. We are excited with the addition of Rizing and the CAS Group to Wipro’s service offerings. With all markets, sectors and Global Business Lines now growing in double-digits year on year, we have a strong foundation for next year’s growth.”
Jatin Dalal, Chief Financial Officer said, “Our efforts on client mining have resulted in an addition of eight customers in more than $100 Mn bucket on YoY basis. We delivered operating margins of 17.7% for the year, after significant investments on solutions, capabilities and talent. Net Income for the year was highest ever at $1.6 Bn and delivered robust growth in EPS of 17.0% YoY.”
- For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = ₹75.87, as published by the Federal Reserve Board of Governors on March 31, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2022 was US$1= ₹75.91
- Constant currency revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period
- IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
Outlook for the quarter ending June 30, 2022
We expect Revenue from our IT Services business to be in the range of $2,748 million to $2,803 million*. This translates to a sequential growth of 1% to 3%.
*Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.12, AUD/USD at 0.73, USD/INR at 75.26 and CAD/USD at 0.79
The interim dividend of ₹1 and ₹5 declared by the Board at its meetings held on January 14th and March 25th, 2022 shall be considered as the final dividend for the financial year 2021-22.
Wipro continued its momentum in winning large deals with our customers as described below:
- A US-based global healthcare company will leverage Wipro FullStride Cloud Services to engineer products for cloud and digital technologies based on a Product Oriented Delivery (POD) model.
- A US-based multinational technology company has renewed its existing contract to curate geospatial information that will enable the customer with evaluations and recommendations on map modelling processes.
- A leading US-based global benefits and payroll administration company has awarded Wipro a transformational business process services contract to optimize costs in health & wealth benefits and customer care.
- A multinational telecommunications network company, headquartered in the Nordics, has awarded Wipro a contract to drive transformation and digitalization of business processes that enhances customer value through high quality service delivery.
- A leading Europe-based provider of transport solutions has partnered with Wipro to transform their digital workplace, supporting the shift towards sustainable transport solutions.
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
- A leading global cosmetics company has selected Wipro to rollout their SAP S/4HANA in a region that will drive their business growth. This transformation will enable the customer to harmonize their business processes, accelerate time to market, innovate, and enhance user experience.
- A leading Asia-based multinational automotive electronics supplier has selected Wipro to develop the engineering blueprint for their next generation software defined vehicle platform using Wipro’s Cloud Car architecture.
- Designit has been selected by a multinational technology conglomerate to design a digital onboarding experience and support hybrid working needs of employees of a large company in the mobility sector.
- A Smart City based in the Middle East has selected Wipro to build a secure, reliable on-demand 5G network using autonomous drones for the high-bandwidth requirements of residents, businesses, and visitors.
- A Europe based financial services company has renewed is its Data Center and cloud infrastructure management contract with Wipro to support its transformation to a Hybrid Cloud model.
- A government body based in the Middle East has selected Wipro as the digital partner to build a data-led AI marketplace that will bring the local talent, government and private sector together.
- Wipro is engaged as the primary partner to design and develop hardware for a series of RUs (radio units) to enable end to end O-RAN 5G solution deployment for service provider customers with one of the leading US based telecommunications networking provider.
- Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Data and Analytics Service Providers
- Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Outsourced Digital Workplace Services
- Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Customer Service BPO
- Wipro was featured in HFS Top 10: Retail and CPG Services, Application Modernization Services and SAP S/4HANA Services, 2022
- Wipro ranks among the Top Service Providers in Whitelane Benelux IT Sourcing Study 2022 and Netherlands IT Outsourcing Study 2021
- Wipro was rated as a Leader in Everest Group’s Digital Interactive Experience (IX) and Digital Product Engineering Services PEAK Matrix® Assessment 2022
- Wipro was rated as a Leader in Everest Group’s Artificial Intelligence (AI) Services and Intelligent Process Automation (IPA) Solution Provider Landscape with PEAK Matrix® Assessment 2022
- Wipro was recognized as a Leader in Everest Group’s Healthcare Payer Operations and Oracle Cloud Applications (OCA) Services PEAK Matrix® Assessment 2022 – Global
- Wipro was recognized as a Leader in Avasant Healthcare Payor Digital Services and Provider Digital Services RadarView™ 2022 - 2023
- Wipro was rated as a Leader in Avasant Intelligent Automation Services RadarView™ 2021 – 2022
Disclaimer: *Gartner, “Magic Quadrant for Data and Analytics Service Providers “, Jorgen Heisenberg, et al, 7 February 2022. Gartner, “Magic Quadrant for Data and Analytics Service Providers”, Gartner, “Magic Quadrant for Outsourced Digital Workplace Services”, Daniel Barros, et al, 22 February 2022. Gartner, “Magic Quadrant for Customer Service BPO“, Deborah Alvord, et al, 28 March 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. 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
- IT Products segment revenue for the quarter was ₹1.2 billion ($15.8 million1)
- IT Products segment results for the quarter was a loss of ₹0.02 billion ($0.29 million1)
- IT Products segment revenue for the year was ₹6.2 billion ($81.4 million1)
- IT Products segment results for the year was a profit of ₹0.12 billion ($1.5 million1)
India business from State Run Enterprises (ISRE)
- India SRE segment revenue for the quarter was ₹1.9 billion ($24.6 million1)
- India SRE segment results for the quarter was a profit of ₹0.17 billion ($2.3 million1)
- India SRE segment revenue for the year was ₹7.3 billion ($96.2 million1)
- India SRE segment results for the year was a profit of ₹1.2 billion ($15.5 million1)
Please refer to the table on page 9 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 9 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.
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, 2022, 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 07:30 p.m. Indian Standard Time (10:00 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 web-cast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP290422
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 global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud,
analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 240,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.