Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2016.
Highlights of the Results for the Quarter ended June 30, 2016:
- Gross Revenues were `136.0 billion ($2.0 billion1), an increase of 11% YoY.
- Net Income2 was `20.5 billion ($304 million1), a decrease of 6% YoY.
- IT Services Segment Revenue was $1,930.8 million, a sequential increase of 2.6% and YoY increase of 7.6%
- Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 2.0% sequentially and grew 9.5% YoY
- IT Services Segment Revenue in Rupee terms was `131.1 billion ($1.9 billion1), an increase of 13% YoY.
- IT Services Segment Profits3 was `23.3 billion ($345 million1), a decrease of 3% YoY.
- IT Services Margins4 was 17.8% for the quarter, as compared to 19.7% for the quarter ended March 31, 2016.
Performance for the quarter ended June 30, 2016
Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board, said, “We have delivered Revenues in line with our guidance. Our early investments in areas such as our Digital practice and cognitive intelligence, notably Wipro HOLMES is positioning as the partner of choice for customers in the CHANGE side of their business. We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory”
Jatin Dalal, Chief Financial Officer, said – “IT Services margins reflect the investments in rewarding our employees as well as the impact of consolidation of our acquisitions for the full quarter. We continue to expand the reach of our automation programs to harness efficiency gains.”
Outlook for the Quarter ending September 30, 2016
We expect Revenues from our IT Services business to be in the range of $ 1,931 million to $ 1,950 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.46, Euro/USD at 1.13, AUD/USD at 0.74, USD/INR at 67.12 and USD/CAD at 1.29
IT Services
- For the convenience of the reader, the amounts in Indian Rupees in this release have been translated into United States Dollars at the noon buying rate in New York City on June 30, 2016, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= `67.51. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2016 was US$1= `67.89
- Net Income refers to ‘Profit for the period attributable to equity holders of the Company’
- Segment Profit refers to segment results. Effective April 1, 2016, the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same.
- Margins have been computed based on the change as listed in 3. above.
The IT Services segment had a headcount of 173,863 as of June 30, 2016.
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