Wipro Announces Fourth Quarter and Year End Results, Delivers Record Total Bookings

IT Services Revenue for the year increased by 11.5% YoY

Total Bookings up by 28% YoY for the Year

Operating Cash Flows at 115% of Net Income for the Year

Board approves Buy-Back for the value of Rs 120 billion

EAST BRUNSWICK, N.J. & BANGALORE, India–(BUSINESS WIRE)–$WIPRO #FinancialResults–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 and year ended March 31, 2023.

Highlights of the Results

Results for the Quarter ended March 31, 2023:

  1. Gross Revenue reached Rs 231.9 billion ($2.8 billion1), a decrease of 0.2% QoQ, increased 11.2% YoY
  2. IT Services Segment Revenue increased to $2,823.0 million, an increase of 0.7% QoQ and 3.7% YoY
  3. Non-GAAP2 constant currency IT Services segment revenue decreased 0.6% QoQ, increased 6.5% YoY
  4. Total Bookings4 were up by 29% and large deal bookings5 were up by 155% YoY
  5. IT Services Operating Margin3 for the quarter was at 16.3%, flat QoQ
  6. Net Income for the quarter was at Rs 30.7 billion ($374.1 million1), an increase of 0.7% QoQ and decrease of 0.4% YoY
  7. Earnings Per Share for the quarter was at Rs 5.61 ($0.071), an increase of 0.7% QoQ and decrease of 0.5% YoY
  8. Operating Cash Flows at 120.6% of Net Income for the quarter was at Rs 37.3 billion ($453.8 million1), an increase of 60.0% YoY
  9. Voluntary attrition6 decreased 330 bps from the previous quarter, landing at 14.1% on a quarterly annualised basis and at 19.2% on a trailing twelve months basis

Results for the Year ended March 31, 2023:

  1. Gross Revenue reached Rs 904.9 billion ($11.0 billion1), an increase of 14.4% YoY
  2. IT Services Segment Revenue increased to $11,159.7 million, an improvement of 7.8% YoY
  3. Non-GAAP2 constant currency IT Services segment revenue was up 11.5% YoY
  4. IT Services Operating Margin3 for the year was at 15.7%, a decrease of 205bps YoY
  5. IT Services Operating profit was higher than any previous period at Rs 140.8 billion, an improvement of 1.2% YoY
  6. Earnings Per Share for the year was at Rs 20.73 ($0.251), a decrease of 7.2% YoY
  7. Operating Cash Flows at 114.9% of Net Income for the year was at Rs 130.6 billion ($1,589.0 million1), an increase of 17.9% YoY

Performance for the Quarter and Year ended March 31, 2023

Thierry Delaporte, CEO and Managing Director, said, “We closed FY23 with the strongest-ever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155% year-over-year for the quarter. We are also pleased to announce our share buyback, which is part of our philosophy to deliver consistent returns to shareholders.

“Compared to just a few years ago, we are seeing a visible change in the structure of our deals and our market position. We are winning large transformation deals, benefitting from a consolidating market, and deepening relationships with existing clients.”

“We have built a strong foundation to sustain through this period of increased uncertainty. We have the growth mindset, right organizational structure, and the talent for long-term success.”

Jatin Dalal, Chief Financial Officer, said, “We continue to maintain our focus on operational improvements and productivity enhancements which led to our IT services margin exit at 16.3% in Q4 despite macro headwinds. We generated strong operating cash flows at 121% of our net income for the Quarter.”

Outlook for the Quarter ending June 30, 2023

We expect Revenue from our IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million*. This translates to sequential guidance of -3.0% to -1.0% in constant currency terms.

* Outlook for the Quarter ending June 30, 2023, is based on the following exchange rates: GBP/USD at 1.22, Euro/USD at 1.07, AUD/USD at 0.68, USD/INR at 81.74 and CAD/USD at 0.74

Capital Allocation

The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the Company of up to 269,662,921 equity shares of Rs 2 each (being 4.91% of total paid-up equity shares) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of Rs 445 ($5.411) per equity share for an aggregate amount not exceeding Rs 120 billion ($1.5 billion1) , in accordance with the provisions contained in the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013 and rules made thereunder.

The interim dividend of Rs 1 declared by the Board at its meetings held on January 13th, 2023, shall be considered as the final dividend for the financial year 2022-23.

  1. 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 = Rs 82.19, as published by the Federal Reserve Board of Governors on March 31, 2023. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2023 was US$1= Rs 81.63
  2. Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period
  3. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
  4. Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2
  5. Large deal bookings consist of deals greater than or equal to $30 million in total contract value
  6. Voluntary attrition is in IT Services and excludes DOP measured for the trailing twelve months

Highlights of Strategic Deal Wins

In the fourth quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:

  • A US-based healthcare company selected Wipro to transform its technology-enabled health services business and supercharge growth. Wipro will help reshape the end-to-end member, patient, and provider journey by building a standardized, interoperable, and integrated care delivery platform. The project will improve talent allocation as well as care coordination, reducing costs, increasing effectiveness and, ultimately, improving the quality of healthcare.
  • A US-based multinational apparel and fashion major selected Wipro to spearhead end-to-end automation across its applications and infrastructure landscape globally. Wipro will offer a range of services including business and technical support to manage various business process areas, data center operations, and network and voice services. This will help the client achieve 30% automation, cost optimization, and improve end-user experience.
  • Wipro was selected in a strategic, multi-year engagement by a global personal care and home products distribution company to deliver enhanced business experience to the client. An integrated delivery model powered by SmartOps will provide round the clock proactive and preventative support for business-critical applications. This will help the client drive higher application stability and minimize related problems that hinder business operations.
  • Wipro won a multi-year engagement with a leading Europe-based communications group to accelerate global deployment of their enterprise software platform for business operations. The goal of this program is to rollout a core model template, localize, integrate, and conduct change management for a consistent process across front office and operations in Finance, Procurement, Projects, Analytics, and Reporting. This will enable the client to synchronize their business processes, decommission existing local systems, innovate, and enhance user experience across regions.
  • A UK-based health insurer selected Wipro to consolidate and transform the business process services for its international private medical insurance business. Wipro will set up a global servicing hub to provide experience and support services to clients, while driving operational efficiencies and maintaining compliance.
  • A large, US-based life and annuities insurance firm selected Wipro to modernize their business, migrate existing workloads to cloud and offer infrastructure-as-a-service for their entire data center infrastructure. Wipro will also deliver enhanced employee experience through an integrated service desk, mainframe services while enhancing service levels, providing a secured environment through their identity and access managed services, as well as business continuity through disaster recovery services.
  • A US-based multinational bank has selected Wipro to provide engineering and operations services to modernize its infrastructure across the globe. Wipro will deliver a simple, easy-to-access services platform that will enhance the user experience and maximize the technology solutions used across the company. The end-to-end platform management will drive new efficiencies and better productivity through automation and standardization of processes.
  • Wipro signed a second eight-year large deal with a leading European outsourcing & facilities management company to digitise its core Finance & Accounting systems and processes. Wipro will leverage Lab45 as a strategic technology & innovation hub to foster and accelerate automation, digitisation, and transformation of client’s service propositions and delivery models.
  • A US-based sports entertainment company selected Wipro to digitize its nation-wide network and monetize the centers of a recreational sports chain, resulting in the creation of a new Digital Out-of-Home (DOOH) ad network. Leveraging Wipro VisionEDGE, a dynamic digital signage and omni channel advertising platform, Wipro, in partnership with Cisco, will deliver immersive client experiences with high-quality, interactive displays that are adaptive and easy to deploy.
  • Wipro was awarded a contract by a global apparel and fashion company to create a unified, omnichannel experience across more than 2,000 retail stores and ecommerce platforms in over 37 countries. The client will benefit from the increased supply chain efficiency and compliance with applicable international and local standards. Wipro will also deliver an uninterrupted, flexible, and personalised service that will allow end-users to transact seamlessly across devices and channels.

Analyst Recognition

  1. Wipro was recognized as a Leader in the 2023 Gartner® Magic Quadrant™ for Outsourced Digital Workplace Services
  2. Wipro was positioned as a Leader in IDC MarketScape: Worldwide Manufacturing Intelligence Transformation Strategic Consulting 2023 Vendor Assessment (Doc# US50247922 Feb 2023)
  3. Wipro was positioned as a Leader in IDC MarketScape: Asia/Pacific Intelligent Digital Workplace Services 2023 Vendor Assessment (Doc # AP49091222 March 2023)
  4. Wipro was recognized as a Leader in Everest Group’s Capital Markets Operations – Services PEAK Matrix® Assessment 2023 and Advanced Analytics and Insights (AA&I) Services PEAK Matrix® Assessment 2023
  5. Wipro was positioned as a Leader in ISG Provider Lens™ – AWS Ecosystem Partners 2022 – Germany, US
  6. Wipro was positioned as a Leader in ISG Provider Lens™ – Digital Business Enablement and ESG Services 2022 – UK, US
  7. Wipro was listed in the top 10 with a customer satisfaction score of 75% in Whitelane’s IT Sourcing Study 2022 – Europe
  8. Wipro was positioned as a Leader in Avasant Blockchain Services RadarView™ 2022 – 2023 and Intelligent Automation Services RadarView™ 2022 – 2023
  9. Wipro was rated as a Leader in Avasant Hybrid Enterprise Cloud Services RadarView™ 2022 – 2023 and SAP S/4HANA Services RadarView™ 2022 – 2023
  10. Wipro was featured in HFS Horizons: The Best Service Providers for Retail Banks, 2023 and Metaverse Services Providers 2023

Source & Disclaimer: *Gartner, “Magic Quadrant for Outsourced Digital Workplace Services “, Daniel Barros, et al, 13 March 2023. 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

  • IT Products segment revenue for the quarter was Rs 1.1 billion ($13.8 million1)
  • IT Products segment results for the quarter was a loss of Rs 0.06 billion ($0.7 million1)
  • IT Products segment revenue for the year was Rs 6.0 billion ($73.6 million1)
  • IT Products segment results for the year was a loss of Rs 0.18 billion ($2.1 million1)

India business from State Run Enterprises (ISRE)

  • India SRE segment revenue for the quarter was Rs 1.3 billion ($16.0 million1)
  • India SRE segment results for the quarter was a profit of Rs 0.02 billion ($0.2 million1)
  • India SRE segment revenue for the year was Rs 5.8 billion ($70.8 million1)
  • India SRE segment results for the year was a profit of Rs 0.4 billion ($5.4 million1)

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 and Year ended March 31, 2023, 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 07:30 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=WIP270423

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 250,000 employees and business partners across 66 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, 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, 2022

As at March 31, 2023

Convenience translation into US dollar in millions

Refer footnote

ASSETS

Goodwill

246,989

307,970

3,747

Intangible assets

43,555

43,045

524

Property, plant and equipment

90,898

88,659

1,079

Right-of-Use assets

18,870

18,702

228

Financial assets

Derivative assets

6

29

^

Investments

19,109

20,720

252

Trade receivables

4,765

863

11

Other financial assets

6,084

6,330

77

Investments accounted for using the equity method

774

780

9

Deferred tax assets

2,298

2,100

26

Non-current tax assets

10,256

11,922

145

Other non-current assets

14,826

13,606

166

Total non-current assets

458,430

514,726

6,264

Inventories

1,334

1,188

14

Financial assets

Derivative assets

3,032

1,844

22

Investments

241,655

309,232

3,762

Cash and cash equivalents

103,836

91,880

1,118

Trade receivables

115,219

126,350

1,537

Unbilled receivables

60,809

60,515

736

Other financial assets

42,914

9,096

111

Contract assets

20,647

23,001

280

Current tax assets

2,373

5,091

62

Other current assets

28,933

32,899

400

Total current assets

620,752

661,096

8,042

 

TOTAL ASSETS

1,079,182

1,175,822

14,306

 

EQUITY

Share capital

10,964

10,976

134

Share premium

1,566

3,689

45

Retained earnings

551,252

660,964

8,042

Share-based payment reserve

5,258

5,632

69

Special Economic Zone re-investment reserve

47,061

46,803

569

Other components of equity

42,057

53,100

646

Equity attributable to the equity holders of the Company

658,158

781,164

9,505

Non-controlling interests

515

589

7

TOTAL EQUITY

658,673

781,753

9,512

 

LIABILITIES

Financial liabilities

Loans and borrowings

56,463

61,272

745

Lease liabilities

15,177

15,953

194

Derivative liabilities

48

179

2

Other financial liabilities

2,961

2,649

32

Deferred tax liabilities

12,141

15,153

184

Non-current tax liabilities

17,818

21,777

265

Other non-current liabilities

7,571

9,333

114

Provisions

1

^

^

Total non-current liabilities

112,180

126,316

1,536

Financial liabilities

Loans, borrowings and bank overdrafts

95,233

88,821

1,081

Lease liabilities

9,056

8,620

105

Derivative liabilities

585

2,825

34

Trade payables and accrued expenses

94,477

89,054

1,084

Other financial liabilities

33,110

4,141

50

Contract liabilities

27,915

22,682

276

Current tax liabilities

13,231

18,846

229

Other current liabilities

31,951

30,215

368

Provisions

2,771

2,549

31

Total current liabilities

308,329

267,753

3,258

TOTAL LIABILITIES

420,509

394,069

4,794

 

TOTAL EQUITY AND LIABILITIES

1,079,182

1,175,822

14,306

^ Value is less than 1

 

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 March 31,

Year ended March 31,

2022

2023

2023

2022

2023

2023

Convenience translation into US dollar in millions

Refer footnote

Convenience translation into US dollar in millions

Refer footnote

Revenues

208,600

 

231,903

 

2,822

 

790,934

 

904,876

 

11,011

 

Cost of revenues

(147,965

)

(162,738

)

(1,980

)

(555,872

)

(645,446

)

(7,853

)

Gross profit

60,635

 

69,165

 

842

 

235,062

 

259,430

 

3,158

 

 

Selling and marketing expenses

(14,078

)

(16,906

)

(206

)

(54,935

)

(65,157

)

(793

)

General and administrative expenses

(12,528

)

(15,672

)

(191

)

(46,382

)

(59,139

)

(720

)

Foreign exchange gains/(losses), net

1,075

 

990

 

12

 

4,355

 

4,472

 

54

 

Other operating income

7

 

 

 

2,186

 

 

 

Results from operating activities

35,111

 

37,577

 

457

 

140,286

 

139,606

 

1,699

 

 

Finance expenses

(1,717

)

(2,860

)

(35

)

(5,325

)

(10,077

)

(123

)

Finance and other income

3,946

 

5,463

 

67

 

16,257

 

18,185

 

222

 

Share of net profit/ (loss) of associates accounted for using the equity method

(16

)

4

 

^

57

 

(57

)

(1

)

Profit before tax

37,324

 

40,184

 

489

 

151,275

 

147,657

 

1,797

 

Income tax expense

(6,399

)

(9,249

)

(113

)

(28,946

)

(33,992

)

(414

)

Profit for the period

30,925

 

30,935

 

376

 

122,329

 

113,665

 

1,383

 

 

Profit attributable to:

Equity holders of the Company

30,873

 

30,745

 

374

 

122,191

 

113,500

 

1,381

 

Non-controlling interests

52

 

190

 

2

 

138

 

165

 

2

 

Profit for the period

30,925

 

30,935

 

376

 

122,329

 

113,665

 

1,383

 

 

Earnings per equity share:

Attributable to equity holders of the Company

Basic

5.64

 

5.61

 

0.07

 

22.35

 

20.73

 

0.25

 

Diluted

5.63

 

5.60

 

0.07

 

22.29

 

20.68

 

0.25

 

 

Weighted average number of equity shares

used in computing earnings per equity share

Basic

5,470,020,412

 

5,481,366,536

 

5,481,366,536

 

5,466,705,840

 

5,477,466,573

 

5,477,466,573

 

Diluted

5,486,955,729

 

5,489,878,685

 

5,489,878,685

 

5,482,083,438

 

5,488,991,175

 

5,488,991,175

 

^ Value is less than 1

 

Contacts

Contact for Investor Relations

Dipak Kumar Bohra

Phone: +91-80-6142 7201

dipak.bohra@wipro.com

Abhishek Kumar Jain

Phone: +91-80-6142 6143

abhishekkumar.jain@wipro.com

Contact for Media & Press
Purnima Burman

Phone: +91-80-6142 6450

purnima.burman@wipro.com

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