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Press release from PR Newswire

Wipro Records 19% YoY Growth in Net Income for the year

Friday, April 19, 2013

Wipro Records 19% YoY Growth in Net Income for the year

01:13 EDT Friday, April 19, 2013

Results for the quarter and year ended March 31, 2013 under IFRS

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

For further information: Investor Relations, Manoj Jaiswal, Phone: +91-80-25056186, Manoj.Jaiswal@wipro.com, or Sridhar Ramasubbu, Phone: +1 408-242-6285, sridhar.ramasubbu@wipro.com, or Media & Press, Vipin Nair, Phone: 91-80-3991-6154, vipin.nair1@wipro.com

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