Industry Summary Articles

Wipro Limited announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended September 30, 2021.

Results for the Quarter ended September 30, 2021:

• Gross Revenue was Rs 196.7 billion ($2.7 billion¹), an increase of 7.8% QoQ and 30.1% YoY
• IT Services Segment Revenue was at $2,580.0 million, an increase of 6.9% QoQ and 29.5% YoY
• Non-GAAP²constant currency IT Services Segment Revenue increased by 8.1% QoQ and 28.8% YoY
• IT Services Operating Margin³ for the quarter was at 17.8%, flat on adjusted⁴basis QoQ and reported decrease of 104 bps QoQ
• Net Income for the quarter was Rs 29.3 billion ($395.2 million¹), an increase of 18.9% YoY
• Earnings Per Share for the quarter was at Rs 5.36 ($0.07¹), an increase of 23.8% YoY

Performance for the quarter ended September 30, 2021

Thierry Delaporte, CEO and Managing Director said, "The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year. I thank our customers, partners, and colleagues as we surpassed the $10Bn milestone of annualized revenue run rate."

Jatin Dalal, Chief Financial Officer said, "We sustained our operating margins in Q2 in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent. We completed a salary increase covering 80% of our colleagues, making it the second hike in this calendar year. We delivered a robust growth in EPS of 23.8% YoY."

Outlook for the quarter ending December 31, 2021

We expect Revenue from our IT Services business to be in the range of $2,631 million to $2,683 million*. This translates to a sequential growth of 2.0% to 4.0%.

*Outlook is based on the following exchange rates: GBP/USD at 1.36, Euro/USD at 1.17, AUD/USD at 0.72, USD/INR at 74.13 and CAD/USD at 0.78

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 74.16, as published by the Federal Reserve Board of Governors on September 30, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2021 was US$1= Rs 75.11
2. 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
3. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
4. IT Services Operating Margin change has been adjusted for one time gains in ‘other operating income’ in Q1’22 for Rs 2,150 million

IT Services

Wipro continued its momentum in winning large deals with our customers as described below:

• Wipro has won a strategic, multi-year cloud migration and application modernization engagement with a leading North American financial institution to transform and migrate its enterprise applications across all lines of business. The engagement will lower total cost of ownership (TCO) and provide the bank with significant tools and intellectual property to modernize its processes and become more nimble.
• Wipro has won a multi-year engagement with ABB Information Systems to provide digital workplace services for their 100,000+ employees spread over 100+ countries. Wipro will support and contribute to the transformation of ABB’s end-user infrastructure to enhance the consumer experience, leveraging industry-leading practices.
• Wipro has won an engagement with a global healthcare company to consolidate and deliver member engagement services for various public assistance programs. The scope includes outreach, advocacy, retention services, as well as procuring and revival of patient’s health care records securely. Additionally, Wipro will guide dual eligible members on benefits and beneficiary protections.
• Wipro has won a strategic, multi-year engagement with a leading North American financial institution to modernize and transform the Quality Engineering and Testing portfolio within their Retail and Commercial Banking segment to the new ways of working. The engagement will focus on Digital Transformation for enhanced customer experience and cost optimization.
• Wipro has won an engagement with a US-based financial services organization to extend its capabilities into Infrastructure Operations and Engineering. The multi-year deal expands the partnership while driving greater productivity, increased delivery speed, and higher business value, ensuring a stable and modern IT Infrastructure.

Digital Services Highlights

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

• Wipro has won an engagement with a multinational electrical engineering and software company to transform their sales and marketing services across subsidiaries and affiliated companies spread over 55 countries. Wipro FullStride Cloud Services will develop and implement a cloud platform to empower the client with a single global view of their customer database.
• Wipro has won a strategic engagement with a leading multinational financial services company in LATAM to accelerate their digital transformation journey. Wipro will deliver API and micro services based on Banking Industry Architecture Network model and modernize the bank’s direct and assisted customer channels.
• A US-based software solutions company has selected Wipro to transfer their on-premise platforms to a SaaS-based business model. Wipro FullStride Cloud Services will modernize the client’s offerings using cloud native capabilities.
• A global technology company has hired Designit to support the operation and management of 100+ social and blog channels as part of their B2B marketing program.

IT Products

• IT Products Segment Revenue for the quarter was Rs 1.9 billion ($25.5 million¹)
• IT Products Segment Results for the quarter was a profit of Rs 0.1 billion ($1.3 million¹)

India business from State Run Enterprises (ISRE)

• India SRE Segment Revenue for the quarter was Rs 1.9 billion ($25.2 million¹)
• India SRE Segment Results for the quarter was a profit of Rs 0.4 billion ($5.3 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.

Results for the quarter ended September 30, 2021, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website.

Quarterly Conference Call

We will hold an earnings conference call October 13 at 07:15 p.m. Indian Standard Time (09:45 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online.

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.

To view the original press release, please click here.

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