Wipro Limited Announces Results for the Quarter ended December 31, 2018 under IFRS

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its quarter ended December 31, 2018.

As stated in our last quarters earnings release, we have carved out the India State Run Enterprises (ISRE i.e. Public Sector Undertakings and Government business in India) from our IT Services segment into a separate segment effective quarter ended December 31, 2018.

Highlights of the Results for the quarter ended December 31, 2018

  • Gross Revenue was Rs 150.6 billion ($2.2 billion1) and grew 3.6% QoQ and 10.2% YoY
  • Non-GAAP3 constant currency IT Services Segment Revenue grew by 2.4% QoQ. Adjusted2 Non-GAAP constant currency IT Services Segment Revenue grew 7.0% YoY
  • IT Services Segment Reported Revenue was at $2,046.5 million and grew 1.8% QoQ
  • IT Services Operating Margin4 for the quarter was at 19.8% and expanded by 480bps QoQ and 496bps YoY
  • Net Income for the quarter was Rs 25.1 billion ($360.8 million1) and grew by 29.6% YoY
  • EPS for the quarter was Rs 5.57 ($0.081) per share and grew 38.2% YoY
  • Wipro declared an interim dividend of Rs 1 ($0.011) per equity share/ADS
  • Wipros Board of Directors recommended issue of bonus shares to shareholders (including stock dividend to ADS holders) in the ratio of 1:3 (One equity share for every Three equity shares held), subject to approval of shareholders.

Performance for the Quarter ended December 31, 2018


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Abidali Z. Neemuchwala, CEO and Executive Director said, Our strategic investments, backed by strong client relationships and client spends towards enterprise modernization and digital transformation have enabled us to deliver a very satisfying quarter.

Jatin Dalal, Chief Financial Officer said, Relentless focus on the quality of revenues and operational improvements have led to the expansion of IT Services Operating Margins to 19.8%. Our Operating Cash flows grew by 19.5% on YoY basis and was at 142% of Net Income.

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 69.58, as published by the Federal Reserve Board of Governors on December 31, 2018. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2018 was US$1= Rs 71.66.
2. YoY growth rates for Q3’19 have been computed by adjusting revenues for Q3’18 for the impact from the divestment of our hosted data center services business.
3. 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.
4. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.

Outlook for the Quarter ending March 31, 2019

We expect Revenue from our IT Services business to be in the range of $2,047 million to $2,088 million*. This translates to a sequential growth of 0.0% to 2.0%.

* Outlook is based on the following exchange rates: GBP/USD at 1.27, Euro/USD at 1.14, AUD/USD at 0.72, USD/INR at 71.11 and USD/CAD at 1.32

IT Services

Wipro continued its momentum in winning large deals globally as described below:

  • A leading foods distribution company has selected Wipro as its technology modernization and digital transformation partner. Wipro will provide a range of services that will include digital, data science and infrastructure services
  • An Australasian government agency has selected Wipro as its cloud transformation partner. The engagement, which will leverage Wipros cloud migration expertise and the Wipro HOLMES„¢ artificial intelligence and automation platform, will migrate the clients existing applications to hybrid cloud, and provide applications development and infrastructure support
  • A leading global financial services firm has chosen Wipro to be its workplace modernization partner. This multi-year engagement will leverage Wipros VirtuaDesk„¢ solution and partner ecosystem and will help the client enhance their user experience in an outcome-based model
  • Wipro has won an end-to-end managed security services contract from a leading American global telecommunications company

Digital & Cloud Application Services Highlights

We continue to see increasing traction in digital oriented deals as illustrated below:

  • As banks recognize the opportunity to turn large volumes of data within their organization into actionable insights, Wipro has been chosen as the exclusive partner by a global financial services company to improve decision making and customer and employee experience by tightly integrating data across their IT stack and within a full portfolio of applications
  • The strength of our technology expertise, digital framework for transformation and experience-led design has been recognized by a North American healthcare provider who has hired Wipro Digital to enable the design, development and launch of their new healthcare marketplace. We are their partner for a new brand, platform and service, bringing agility and new ways of working to them
  • Wipro Digital has been selected by a Middle Eastern telecommunications company to improve the customer experience of their digital self-service channels
  • A North American chemicals company has selected Wipro Digital to develop an artificial intelligence-based search solution that will transform decades of digitized information into actionable insights for their plant operations
  • A North American telecommunications company has awarded an IT development engagement to Appirio, which will leverage Appirios strengths in user experience, applications and testing services

Analyst Accolades and Awards

  • Wipro was recognised as a Leader and Star Performer by Everest Group in Digital Services “ PEAK Matrix„¢ Assessment and Market Trends 2019
  • Wipro was recognised as a Leader by Everest Group in Cloud Enablement Services “ Market Trends and Services PEAK Matrix„¢ 2019
  • Wipro was recognized as a Leader in IDC MarketScape: Worldwide DevOps Services 2018 Vendor Assessment, Doc #US41235417, November 2018
  • Wipro was ranked among the HFS Top 10 Digital Change Management Providers & Digital Technology Strategy and Consulting Services 2018
  • Wipro was recognised as a Leader and Star Performer by Everest Group in IT Security Services – Market Trends and PEAK Matrix TM Assessment 2019
  • Wipro was recognized as a Leader in Magic Quadrant for Application Testing Services, Worldwide by: Gartner, Magic Quadrant for Application Testing Services, Worldwide, Susanne Matson et al, 21 November 2018

Disclaimer: 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 research publications consist of the opinions of Gartners 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 3.1 billion ($45.2 million1).
  • IT Products Operating Margin for the quarter was 6.7%.

India business from State Run Enterprises (SRE)

  • India SRE Segment Revenue for the quarter was Rs 1.7 billion ($24.6 million1).
  • India SRE Operating Margin for the quarter was “40.0%.

Please refer the table at the end of the release for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

All product names, logos, and brands are property of their respective owners.

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 at the end of the release 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.

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 ended December 31, 2018, 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 (08:45 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- http://services.choruscall.eu/links/wipro190118.html

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 160,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

Forward-Looking Statements

The forward-looking statements contained herein represent Wipros beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipros control. Such statements include, but are not limited to, statements regarding Wipros 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 companys 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.


(Rs in millions, except share and per share data, unless otherwise stated)


As at March 31,

  As at December 31,
2018   2018   2018

Convenience translation into US dollar in millions (unaudited). Refer Footnote 1 on Page 1


Goodwill 117,584 123,192 1,771
Intangible assets 18,113 15,445 222
Property, plant and equipment 64,443 70,208 1,009
Derivative assets 41 93 1
Investments 7,668 7,461 107
Investment in equity accounted investee 1,206 1,262 18
Trade receivables 4,446 4,179 60
Deferred tax assets 6,908 7,496 108
Non-current tax assets 18,349 20,550 295
Other non-current assets 15,726 19,598 282
Total non-current assets 254,484 269,484 3,873
Inventories 3,370 3,923 56
Trade receivables 100,990 100,044 1,437
Other current assets 30,596 25,829 371
Unbilled receivables 42,486 24,322 350
Contract assets 16,847 242
Investments 249,094 212,103 3,048
Current tax assets 6,262 7,818 112
Derivative assets 1,232 5,543 80
Cash and cash equivalents 44,925 142,769 2,052
478,955 539,198 7,748
Assets held for sale 27,201
Total current assets 506,156 539,198 7,748
TOTAL ASSETS 760,640 808,682 11,621


Share capital 9,048 9,050 130
Share premium 800 1,183 17
Retained earnings 453,265 516,604 7,425
Share based payment reserve 1,772 2,352 34
Other components of equity 18,051 17,927 258
Equity attributable to the equity holders of the Company 482,936 547,116 7,864
Non-controlling interest 2,410 2,563 37
TOTAL EQUITY 485,346 549,679 7,901


Long – term loans and borrowings 45,268 49,984 718
Derivative liabilities 7

Deferred tax liabilities 3,059 2,535 36
Non-current tax liabilities 9,220 8,917 128
Other non-current liabilities 4,230 4,452 64
Provisions 3 4

Total non-current liabilities 61,787 65,892 946
Loans, borrowings and bank overdrafts 92,991 53,863 774
Trade payables and accrued expenses 68,129 79,271 1,138
Unearned revenues 17,139 26,316


Current tax liabilities 9,417 14,674


Derivative liabilities 2,210 1,245


Other current liabilities 16,613 17,092


Provisions 796 650


207,295 193,111


Liabilities directly associated with assets held for sale


Total current liabilities 213,507 193,111


TOTAL LIABILITIES 275,294 259,003






(Rs in millions, except share and per share data, unless otherwise stated)
Three months ended December 31,  

Nine months ended December 31,

2017   2018 2018  







Convenience translation into US dollar in millions (unaudited). Refer Footnote 1 on Page 1


Convenience translation into US dollar in millions (unaudited). Refer Footnote 1 on Page 1

Gross Revenues 136,690 150,595 2,164 407,185 435,782 6,263

Cost of revenues

(95,976 )   (103,971 )   (1,494 )   (287,781 )   (306,091 )   (4,399 )
Gross profit 40,714 46,624 670 119,404 129,691 1,864
Selling and marketing expenses (11,073 ) (11,889 ) (171 ) (31,086 ) (33,516 ) (482 )
General and administrative expenses (9,991 ) (6,978 ) (100 ) (24,340 ) (29,282 ) (421 )
Foreign exchange gains/(losses), net 125 911 13 931 2,899 42
Other operating income                 2,798     40  
Results from operating activities 19,775 28,668 412 64,909 72,590 1,043
Finance expenses


) (1,627 ) (23 ) (4,266 ) (4,845 ) (70 )
Finance and other income 6,160 5,362 77 19,196 15,695 226
Share of profit /(loss) of equity accounted investee 10     7         14     (26 )    
Profit before tax 24,714 32,410 466 79,853 83,414 1,199
Income tax expense (5,355 )   (6,966 )   (100 )   (17,775 )   (18,178 )   (261 )
Profit for the period 19,359     25,444     366     62,078     65,236     938  
Profit attributable to:
Equity holders of the Company 19,371 25,103 361 62,053 65,198 937
Non-controlling interest (12 )   341     5     25     38     1  
Profit for the period 19,359     25,444     366     62,078     65,236     938  
Earnings per equity share:
Attributable to equity share holders of the Company
Basic 4.03 5.57 0.08 12.85 14.47 0.21
Diluted 4.03 5.56 0.08 12.83 14.45 0.21
Weighted average number of equity shares used in computing earnings per equity share
Basic 4,802,285,697 4,504,546,939 4,504,546,939 4,830,841,298 4,504,645,092 4,504,645,092
Diluted 4,809,300,296 4,515,503,476 4,515,503,476 4,838,385,830 4,515,105,097 4,515,105,097




Additional Information

Three months ended December 31, Nine months ended December 31,
Segment Revenue 2017     2018     2018 2017     2018     2018
IT Services Business Units
BFSI 36,849 45,979 661 106,364 129,219 1,857
HEALTH 18,450 19,241 277 55,577 55,793 802
CBU 19,580 22,875 329 58,238 65,646 943
ENU 16,491 18,996 273 51,221 54,202 779
TECH 18,630 19,104 275 54,789 58,189 836
MFG 11,358 11,981 172 34,434 34,945 502
COMM 8,422       8,480       122   25,824       24,394       351  
IT SERVICES TOTAL 129,780       146,656       2,108   386,447       422,388       6,071  
IT PRODUCTS 4,498 3,145 45 13,829 9,553 137
ISRE 2,566 1,713 25 7,844 6,757 97
RECONCILING ITEMS (29 )     (8 )     (0 ) (4 )     (17 )     (0 )
TOTAL 136,815       151,506       2,149   408,116       438,681       6,305  
Segment Result
IT Services Business Units
BFSI 6,777 9,095 131 18,293 24,182 348
HEALTH 2,360 1,973 28 7,798 6,698 96
CBU 3,496 5,291 76 9,676 12,112 174
ENU (1,164 ) 3,613 52 5,810 4,294 62
TECH 3,740 4,177 60 10,963 12,885 185
MFG 1,937 2,391 34 5,268 6,065 87
COMM 1,330 1,578 23 3,985 3,411 49
UNALLOCATED 830 976 14 2,167 1,981 28
OTHER OPERATING INCOME                     2,798       40  
TOTAL IT SERVICES 19,306 29,094 418 63,960 74,426 1,070
IT PRODUCTS 195 212 3 314 (954 ) (14 )
ISRE 284 (686 ) (10 ) 330 (1,054 ) (15 )
RECONCILING ITEMS (10 )     48       1   305       172       2  
TOTAL 19,775       28,668       412   64,909       72,590       1,043  
FINANCE EXPENSE (1,231 ) (1,627 ) (23 ) (4,266 ) (4,845 ) (70 )
FINANCE AND OTHER INCOME 6,160 5,362 77 19,196 15,695 226
SHARE OF PROFIT/(LOSS) OF EQUITY ACCOUNTED INVESTEE 10       7       0   14       (26 )     (0 )
PROFIT BEFORE TAX 24,714 32,410 466 79,853 83,414 1,199
INCOME TAX EXPENSE (5,355 )     (6,966 )     (100 ) (17,775 )     (18,178 )     (261 )
PROFIT FOR THE PERIOD 19,359       25,444       366   62,078       65,236       938  

Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within Finance and other income in the statement of Income.

The Company is organized by the following operating segments: IT Services, IT Products and India State Run Enterprises service segment (ISRE).

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. Effective April 1, 2018, consequent to change in organization structure, the Company reorganized its industry verticals. The Manufacturing (MFG) and Technology Business unit are split from the former Manufacturing & Technology (MNT) business unit. The revised industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (HEALTH) previously known as Health Care and Life Sciences Business unit (HLS), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). IT Services segment also includes Others which comprises dividend income relating to strategic investments, which are presented within Financial and other Income in the interim condensed consolidated statement of income. Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

Comparative information has been restated to give effect to the above changes.

IT Products: The Company is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.

ISRE: India State Run Enterprises represents the business from Public Sector Undertakings and Government in India.


Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)


Three Months ended December 31, 2018

IT Services Revenue as per IFRS



Effect of Foreign currency exchange movement



Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates




Three Months ended December 31, 2018

IT Services Revenue as per IFRS



Effect of Foreign currency exchange movement



Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year



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