IT Services delivers constant currency growth in revenues at 17.2% in YoY CC
New York, USA and Bangalore, India – July 20, 2022: 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 June 30, 2022.
Highlights of the Results
Results for the Quarter ended June 30, 2022:
- Gross Revenue was ₹215.3 billion ($2.7 billion1 ), an increase of 17.9% YoY
- IT Services Segment Revenue was at $2,735.5 million, an increase of 13.3% YoY
- Non-GAAP2 constant currency IT Services segment revenue increased by 2.1% QoQ and 17.2% YoY
- IT Services Operating Margin3 for the quarter was at 15.0%, a decrease of 200 bps QoQ
- Net Income for the quarter was ₹25.6 billion ($324.4 million1 ) and Earnings Per Share for the quarter was at ₹4.69 ($0.061 )
- Our closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ
Performance for the Quarter ended June 30, 2022
Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.”
Jatin Dalal, Chief Financial Officer said, “We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.”
- 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 = ₹79.02, as published by the Federal Reserve Board of Governors on June 30, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2022 was US$1= ₹77.81
- 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 September 30, 2022
We expect Revenue from our IT Services business to be in the range of $2,817 million to $2,872 million*. This translates to a sequential growth of 3.0% to 5.0%.
*Outlook is based on the following exchange rates: GBP/USD at 1.25, Euro/USD at 1.06, AUD/USD at 0.72, USD/INR at 76.60 and CAD/USD at 0.77
Wipro continued its momentum in winning large deals with our customers as described below:
- A large, US-based healthcare company has selected Wipro for the consolidation and transformation of its Commercial Claims Operations. This strategic partnership will provide the client with significant savings through best-in-class execution, transformation, process remodelling, and automation.
- The global leader in sustainable stainless steel, Outokumpu, has signed a five-year deal of Application Management Services with Wipro to drive agile and application cloud transformation.
- Wipro has entered a five-year engagement with Insignia Financial Limited, an ASX-listed Top 200 company and one of Australia’s leading financial services providers. Through this partnership, Wipro and Insignia Financial will focus on delivering innovative solutions, including efficient processes around technology and operations capabilities, superior endcustomer outcomes as well as cost optimization.
- Wipro has won a multi-year engagement with a global communications agency to build their future model for ERP and digitization. Wipro's delivery centres in UK and India will build and scale operations to enhance the company’s capacity.
- Wipro has won a multi-year contract with one of Australia's largest financial services firms to provide application and infrastructure support services. Wipro will support the client's technology transformation, improve efficiency and enhance customer experience.
Highlights We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
- A leading Mobility Technology company has selected Wipro as an extension of their global engineering team to support them on the development of software defined vehicle applications.
- A US-based multinational company has awarded Designit a managed services contract to provide a team of designers who will work with the company’s user experience team.
- A global, athletic apparel and footwear company has selected Designit to re-imagine the customer experience and logistics of all its new retail store openings in North America.
- A US-based multinational financial services corporation has selected Wipro to manage and transform the customer’s global application landscape with industry-leading practices and deliver enhanced consumer experiences.
- Wipro was recognized as a Leader in the 2022 Gartner ® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
- Wipro was recognized as a Leader in Everest Group's Healthcare Payer Digital Services and Life Sciences Operations PEAK Matrix® Assessment 2022
- Wipro was named as a Leader in IDC MarketScape: Worldwide Intelligent Automation Services 2022 Vendor Assessment (Doc # US48061422, May 2022)
- Wipro was recognized as a Leader in IDC MarketScape: Gulf Countries Cloud Professional Services 2022 Vendor Assessment (Doc # META47590721, May 2022)
- Wipro was positioned as a Leader in multiple quadrants in ISG Provider Lens™ - Salesforce Ecosystem Partners 2022 - Germany and US
- Wipro is recognized amongst the top ten service providers in Whitelane IT Sourcing Study 2022 - UK
- Wipro was rated as a Leader in Avasant Retail Digital and Banking Digital Services RadarView™ 2022 - 2023
- Wipro was rated as a Leader in Avasant Salesforce, Internet of Things, Risk and Compliance, Cybersecurity and Banking Process Transformation Services RadarView™ 2022
- Wipro was recognized as a Leader in Avasant Multisourcing Service Integration RadarView™ 2021 - 2022
- Wipro was recognized as a Leader in Avasant Applied AI and Advanced Analytics Services RadarView™ 2021
Disclaimer: Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Sanjay Champaneri, et al, 27 June 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 ₹1.9 billion ($24.6 million1 )
- IT Products segment results for the quarter was a loss of ₹0.06 billion ($0.70 million1 )
India business from State Run Enterprises (ISRE)
- India SRE segment revenue for the quarter was ₹1.5 billion ($19.3 million1 )
- India SRE segment results for the quarter was a profit of ₹0.17 billion ($2.2 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 nonGAAP 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 nonGAAP 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 ended June 30, 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=WIP220720
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 240,000 employees and business partners across 66 countries, we deliver on the promise of helping our customers, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com