Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2015. Highlights of the Results:
Ø Wipro Limited Gross Revenues were `128.6 billion ($1.9 billion1), an increase of 7% YoY.
Ø IT Services Segment Non-GAAP constant currency Revenue in dollar terms grew 1.4% sequentially and grew 6.3% YoY. IT Services Segment Revenue was $1,838.3 million, a sequential increase of 0.3%. Ø IT Services Segment Revenue was `123.1 billion ($1,861 million1), an increase of 9% YoY.
Ø Net Income2 was `22.3 billion ($338 million1), an increase of 2% YoY.
Ø IT Services Segment Profit3 was `24.8 billion ($375 million1).
Ø IT Services Segment Margins was 20.2%. Ø Headcount increased by 2,268 to 170,664.
Ø Wipro declared an interim dividend of `5 ($0.08) per share /ADS. Performance for the quarter ended December 31, 2015
T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said – “We delivered Revenues in line with our guidance. We saw a pick-up in large deal closures led by Global Infrastructure Services. It is becoming increasingly clear that customers want to simplify operations and optimize their IT spend while investing in Digital to transform their business. We are well-positioned to take advantage of this trend.”
Abidali Z. Neemuchwala, Chief Executive Officer-Designate of Wipro, said – “We are focused on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated Digital capabilities. We will leverage our strong culture of innovation and extremely talented employee pool to build compelling value propositions for our customers.”
Jatin Dalal, Chief Financial Officer of Wipro, said – “During the quarter, we have built competitive differentiation through the acquisition of two high-potential companies – cellent and Viteos. The impact on revenues from the Chennai floods were minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted operating margins for the quarter.”
Outlook for the Quarter ending March 31, 2016
We expect Revenues from our IT Services business to be in the range of $ 1,875 million to $1,912 million*. * Guidance is based on the following exchange rates: GBP/USD at 1.50, Euro/USD at 1.07, AUD/USD at 0.72, USD/INR at 66.13 and USD/CAD at 1.37 IT Services
The IT Services segment had a headcount of 170,664 as of December 31, 2015. We added 39 new customers during the quarter.
Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria and Switzerland.
On December 23, 2015, Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry.
