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Wipro Records 19% YoY Growth in Net Income for the year
Apr 18, 2013 (09:04 PM EDT)


BANGALORE, India and EAST BRUNSWICK, N.J., April 19, 2013 /PRNewswire/ -- Wipro Limited (NYSE: WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2013.

Highlights of the Results:

Results for the Quarter ended March 31, 2013:

  • The Scheme of Arrangement for the demerger of the 'Diversified Business' of Wipro, including the Consumer Care and Lighting segment, is effective  from  March 31, 2013. Our financial statements show the performance of the 'Diversified Business' as discontinued operations.
  • Total Revenues were rupees 110.26 billion ($2.02 billion1), an increase of 12% YoY. Revenues for continuing operations were rupees 96.14 billion ($1.76 billion1), an increase of 13% YoY. Revenues for discontinued operations were rupees 14.12 billion ($259 million1), an increase of 4% YoY.
  • Total Net Income was rupees 17.29 billion ($317 million1), an increase of 17% YoY. Net Income for continuing operations was rupees 15.76 billion ($289 million1), an increase of 13% YoY. Net Income for discontinued operations was rupees 1.53 billion ($28 million1), an increase of 88% YoY.
  • Total Non-GAAP Adjusted Net Income was rupees 17.22 billion ($316 million1), an increase of 16% YoY. Non-GAAP Adjusted Net Income for continuing operations was rupees 15.69 billion ($288 million1), an increase of 12% YoY. Non-GAAP Adjusted Net Income for discontinued operations was rupees 1.53 billion ($28 million1), an increase of 88% YoY.
  • Non-GAAP constant currency IT Services Revenue in dollar terms was $1,598.6 million, within our guidance range of $1,585 million to $1,625 million.
  • IT Services Revenue was $1,585.1 million, a sequential increase of 0.5% and YoY increase of 3.2%.
  • IT Services Revenues in Rupee terms was rupees 85.54 billion ($1,569 million1), an increase of 13% YoY.
  • IT Services Earnings Before Interest and Tax (EBIT) was rupees 17.27 billion ($317 million1), an increase of 10% YoY.
  • Operating Income to Revenue for IT Services was 20.2% for the quarter.
  • Wipro declares a final dividend of rupees 5 ($0.091) per share/ADS, taking the total dividend declared during the year to rupees 7 ($0.131) per share/ADS.

1.   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 March 29, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= rupees 54.52. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2013 was US$1= rupees 53.96

Results for the Year ended March 31, 2013:

  • Total Revenues for were rupees 433.61 billion ($7.95 billion1), an increase of 16% YoY. Revenues for continuing operations were rupees 376.88 billion ($6.91 billion1), an increase of 17% YoY. Revenues for discontinued operations were rupees 56.73 billion ($1.04 billion1), an increase of 7% YoY.
  • Total Net Income was rupees 66.36 billion ($1.22 billion1), an increase of 19% YoY. Net Income for continuing operations was rupees 61.36 billion ($1.13 billion1), an increase of 17% YoY. Net Income for discontinued operations was rupees 5.0 billion ($92 million1), an increase of 47% YoY.
  • Total Non-GAAP Adjusted Net Income was rupees 66.04 billion ($1.21 billion1), an increase of 19% YoY. Non-GAAP Adjusted Net Income for continuing operations was rupees 61.05 billion ($1.12 billion1), an increase of 17% YoY. Non-GAAP Adjusted Net Income for discontinued operations was rupees 5.0 billion ($92 million1), an increase of 47% YoY.
  • IT Services Revenue was $6,217.8 million, an increase of 5% YoY. Non GAAP constant currency growth YoY for IT Services was 7.4%.
  • IT Services Revenues were rupees 338.43 billion ($6.21 billion1), an increase of 19% YoY.
  • IT Services Earnings Before Interest and Tax (EBIT) was rupees 69.93 billion ($1.28 billion1), an increase of 18% YoY.
  • Our Operating Income to Revenue for IT Services was 20.7% for the year.

Performance for the quarter and year ended March 31, 2013
Azim Premji, Chairman of Wipro, commenting on the results said – "We have completed the demerger of the 'Diversified Business' effective March 31, 2013 to make Wipro Limited a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "The cross currencies have been volatile and impacted our financial performance in the quarter. Excluding the impact of foreign exchange, we have been able to maintain margins on a sequential basis. We have shown significant improvements in cash flow generation for the year."

T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – "We continue to see improvement in our customer satisfaction and employee engagement. Our continued investments in the go-to-market organization positions us well for the future."

Outlook for the Quarter ending June 30, 2013
We expect Revenues from our IT Services business to be in the range of $1,575 million to $1,610 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.52, Euro/USD at 1.31, AUD/USD at 1.04, USD/INR at 54.14.

IT Services
The IT Services segment had 145,812 employees as of March 31, 2013, an increase of 2,907 people in the quarter. We added 52 new customers for the quarter.

Wipro has secured a contract from a large Europe-based universal bank to build a "Centralized Testing Unit" that will help the bank achieve higher production stability and lower cost of avoidance in its Testing processes. Wipro's Transformation Services and Data Obfuscation Services along with industry leading testing services will help the bank achieve standardized Testing processes across the organization.

GVK-led Mumbai International Airport Pvt. Ltd. (MIAL), the operator of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai has chosen Wipro to provide world-class IT services for the new integrated terminal "T2." Wipro will be responsible for providing Managed Services across the entire IT landscape at MIAL and deliver high availability and operational efficiency across all the critical airport processes.

Wipro has won an ERP deal for Asset and Infrastructure Management from a key national defense organization.

Awards and accolades
Wipro was named a "Leader" by technology global research and advisory firm Forrester Research Inc., in its report "The Forrester Wave™: Enterprise Mobility Services, Q1 2013." Forrester Research Inc. evaluated 13 leading enterprise mobility service providers across 15 criteria, relating to current offering, strategy, and market presence based on interviews with clients. Wipro scored the highest for its breadth of mobile technology skills and competencies, R&D and go-to-market strategy.

Wipro was appraised at Capability Maturity Model Integration CMMI-DEV 1.3 Level 5. This assessment is a validation of Wipro's process capability based on the CMMI standards that measure process improvements.

Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and Inclusion, 2012,' in the category 'Most Effective Implementation of Practices & Technology for Persons with Disabilities,' at the annual NASSCOM Diversity and Inclusion Summit.

Wipro was named a "Leader" by Verdantix, a leading analyst firm in providing advice to clients in the field of energy, environment and sustainability challenges, in its report "Green Quadrant® Sustainable Technology Services (Global), March 2013." Verdantix evaluated 16 of the leading sustainable technology service providers globally.

Wipro won the Frost & Sullivan Product Leadership Award (2012) in the Middle East Managed Services Market for its flagship product, FixOmatic Endpoint Automation Product (EAP).

IT Products

  • Our IT Products segment recorded Revenue of rupees 39.24 billion ($720 million1) for the year ended March 31, 2013 an increase of 2% YoY. Revenue for the quarter was rupees 10.75 billion ($197 million1), an increase of 15% YoY.
  • EBIT was rupees 990 million ($18 million1) for the year, a decrease of 45% YoY. EBIT was rupees 268 million ($5 million1) for the quarter, a decrease of 39% YoY.
  • The ratio of our Operating Income to Revenue for this segment was 2.5% for the year and also for the quarter.

Consumer Care & Lighting (Discontinued Operations)

  • Consumer Care & Lighting segment recorded Revenue of rupees 40.59 billion ($745 million1) for the year ended March 31, 2013 an increase of 22% YoY. Revenue for the quarter was rupees 10.44 billion ($191 million1), an increase of 15% YoY.
  • EBIT was rupees 5.01 billion ($92 million1) for the year, an increase of 27% YoY. EBIT was rupees 1.34 billion ($25 million1) for the quarter, an increase of 18% YoY.

Please see the table on page 7 for a reconciliation between (i) IFRS Net Income and non-GAAP Adjusted Net Income (excluding the impact of stock-based compensation) and (ii) IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

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 on page 7 provides Adjusted Net Income for the period, which is a non-GAAP measure that excludes the impact of accelerated amortization in respect of stock options that vest in a graded manner, and IT Services Revenue on a constant currency basis, which is a non-GAAP 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 consider a stock option award with a graded vesting schedule to be in substance a single award not multiple stock option awards and accordingly believe the straight line amortization reflects the economic substance of the award. 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. We believe that the presentation of this Non-GAAP Adjusted Net Income, when shown in conjunction with the corresponding IFRS measure, provides useful information to investors and management regarding financial and business trends relating to its Net Income for the period.

These Non-GAAP financial measures are 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 these non-GAAP measures, 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.

For internal budgeting process, our management also uses financial statements that exclude the impact of accelerated amortization relating to stock options that vest in a graded manner. Management of the Company also uses Non-GAAP Adjusted Net Income, in addition to the corresponding IFRS measure, in reviewing our financial results.

Results for the quarter and year ended March 31, 2013, computed under IFRS, along with individual business segment reports, are available in the Investors section of our website at www.wipro.com.

Quarterly Conference Calls
We will hold a conference call today at 02:00 p.m. Indian Standard Time (04:30 a.m. US Eastern Time) and at 6:45 p.m. Indian Standard Time (9:15 a.m. US Eastern Time) to discuss our performance for the quarter. 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 (NYSE: WIT)
Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, IT enabled services, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally.

For more information, please visit our websites at www.wipro.com.

Forward-looking and Cautionary Statements
The forward-looking statements contained herein represent Wipro's beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro's control. Such statements include, but are not limited to, statements regarding Wipro's 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, 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 company's 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.

 

WIPRO LIMITED AND SUBSIDIARIES

AUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

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












As of March 31, 


As of March 31,




2012


2013


2013








Convenience
translation into








US$ in millions

ASSETS








Goodwill



67,937


54,756


1,004

Intangible assets



4,229


1,714


31

Property, plant and equipment



58,988


50,525


927

Investment properties

-


-


-


Investment in equity accounted investee



3,232


-


-

Other Investments

-


4


0


Derivative assets



3,462


51


1

Non-current tax assets



10,287


10,308


189

Deferred tax assets



2,597


4,235


78

Other non-current assets



11,781


10,738


197

Total non-current assets



162,513


132,327


2,427









Inventories



10,662


3,263


60

Trade receivables



80,328


76,635


1,406

Other current assets



25,743


31,069


570

Derivative assets

-




-


Unbilled revenues



30,025


31,988


587

Available for sale investments



41,961


69,171


1,269

Derivative asset

-


-


-


Current tax assets



5,635


7,408


136

Derivative assets



1,468


3,031


56

Cash and cash equivalents



77,666


84,838


1,556

Total current assets



273,488


307,403


5,638

TOTAL ASSETS



436,001


439,730


8,065









EQUITY








Share capital



4,917


4,926


90

Share premium



30,457


11,760


216

Retained earnings



241,912


259,178


4,754

Share based payment  reserve



1,976


1,316


24

Other components of equity



6,594


7,174


132

Shares held by controlled trust



(542)


(542)


(10)

Equity attributable to the equity holders of the company



285,314


283,812


5,206

Non-controlling Interest



849


1,171


21

Total equity



286,163


284,983


5,227









LIABILITIES








Long - term loans and borrowings



22,510


854


16

Deferred tax liabilities



353


846


16

Employee benefit obligations

-


-


-


Derivative liabilities



307


118


2

Non-current tax liability



5,403


4,790


88

Other non-current liabilities



3,519


3,390


62

Provisions



61


9


-

Total non-current liabilities



32,153


10,007


184









Loans and borrowings and bank overdrafts



36,448


62,962


1,155

Trade payables and accrued expenses



47,258


48,067


882

Unearned revenues



9,569


10,347


190

Current tax liabilities



7,232


10,226


188

Derivative liabilities



6,354


975


18

Other current liabilities



9,703


10,989


202

Provisions



1,121


1,174


22

Total current liabilities



117,685


144,740


2,655









TOTAL LIABILITIES



149,838


154,747


2,838









TOTAL EQUITY AND LIABILITIES



436,001


439,730


8,065

 

 

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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















Three months ended March 31, 



Year ended March 31, 


2012


2013


2013



2012


2013


2013






Convenience
translation into
US $ in millions
(Unaudited)







Convenience
translation into
US $ in millions
(Unaudited)

























Continuing Operations













Gross revenues

84,547


96,078


1,762



318,747


374,256


6,865














Cost of revenues

(59,140)


(67,008)


(1,229)



(225,794)


(260,665)


(4,781)














Gross profit

25,407


29,070


533



92,953


113,591


2,084














Selling and marketing expenses

(4,838)


(6,183)


(113)



(17,953)


(24,213)


(444)

General and administrative expenses

(5,263)


(5,820)


(107)



(18,416)


(22,032)


(404)

Foreign exchange gains/(losses), net

521


62


1



3,328


2,626


48














Results from operating activities

15,827


17,129


314



59,912


69,972


1,284














Finance expenses

(375)


(395)


(7)



(3,371)


(2,693)


(49)

Finance and other income

2,448


3,077


56



8,982


11,317


208

Share of profits/(losses) of equity accounted investee

-


-


-



-


-


-














Profit before tax

17,900


19,811


364



65,523


78,596


1,442














Income tax expense

(3,804)


(3,973)


(73)



(12,955)


(16,912)


(310)














Profit for the period from continuing operation

14,096


15,838


291



52,568


61,684


1,132














Discontinued operation













Profit after tax for the period from discontinued operation

816


1,535


28



3,419


5,012


92














Profit for the period

14,912


17,373


319



55,987


66,696


1,224














Attributable to:













Equity holders of the company

14,809


17,287


317



55,730


66,359


1,217

Non-controlling interest

103


86


2



257


337


6

Profit for the period

14,912


17,373


319



55,987


66,696


1,223



























Profit from continuing operations attributable to:













Equity holders of the company

13,996


15,756


289



52,325


61,362


1,126

Non-controlling interest

100


82


1



243


322


6


14,096


15,838


290



52,568


61,684


1,132














Attributable to equity share holders of the company













Basic

6.04


7.04


0.13



22.75


27.05


0.50

Diluted

6.03


7.02


0.13



22.68


26.98


0.49














From continuing operations













Basic

5.71


6.42


0.12



21.36


25.01


0.46

Diluted

5.70


6.40


0.12



21.29


24.95


0.46














Weighted average number of equity shares used in computing earnings per equity share













Basic

2,450,584,622


2,455,037,295


2,455,037,295



2,449,777,457


2,453,218,759


2,453,218,759

Diluted

2,457,137,406


2,460,940,973


2,460,940,973



2,457,511,538


2,459,184,321


2,459,184,321














Additional Information













Segment Revenue













IT Services

75,897


85,538


1,569



284,313


338,431


6,207

IT Products

9,370


10,746


197



38,436


39,238


720

IT Services & Products

85,267


96,284


1,766



322,749


377,669


6,927

Consumer Care and Lighting (Discontinued operation)

9,067


10,440


191



33,401


40,594


745

Others (Discontinued operation)

4,288


3,393


62



18,565


14,785


271

Reconciling Items

69


147


3



534


560


10

Total

98,691


110,264


2,022



375,249


433,608


7,953














Operating Income













IT Services

15,731


17,268


317



59,265


69,933


1,283

IT Products

438


268


5



1,787


990


18

IT Services & Products

16,169


17,536


322



61,052


70,923


1,301

Consumer Care and Lighting (Discontinued operation)

1,134


1,337


25



3,956


5,012


92

Others (Discontinued operation)

35


(23)


-



110


290


5

Reconciling Items

(395)


(473)


(9)



(1,105)


(1,079)


(20)

Total

16,943


18,376


337



64,013


75,146


1,378














Reconciliation  of adjusted Non-GAAP profit to profit as per IFRS


























Profit for the period attributable to Equity holders of the Company (Continuing operations)

13,996


15,756


289



52,325


61,362


1,126

Adjustments :













Accelerated amortization of stock options that vest in a graded manner

(3)


(68)


(1)



(121)


(308)


(6)

 Non-GAAP adjusted profit (Continuing Operations)

13,993


15,688


288



52,204


61,054


1,120














Profit for the period attributable to Equity holders of the Company (Discontinued operations)

813


1,531


28



3,405


4,997


92

Adjustments :













Accelerated amortization of stock options that vest in a graded manner

1


(2)


-



(4)


(13)


(0)

 Non-GAAP adjusted profit (Discontinued operations)

814


1,529


28



3,401


4,984


92








































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
























 Q4 FY12-13 


 FY'13 










IT Services Revenue as per IFRS

1,585












Effect of Foreign currency exchange movement

13

























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

1,599

























IT Services Revenue as per IFRS

1,585


6,218










Effect of Foreign currency exchange movement

30


139










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

1,615


6,357










SOURCE Wipro Limited