Industry Summary Articles

Wipro Limited 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-GAAP²constant 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-GAAP²constant 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.”

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 = ₹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
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

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

Capital Allocation

The interim dividend of ₹1 and ₹5 declared by the Board at its meetings held on January 14^th and March 25^th, 2022 shall be considered as the final dividend for the financial year 2021-22.

IT Services

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.

IT Products

• 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)

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