EX-99.10 12 f95907exv99w10.htm EXHIBIT 99.10 EXHIBIT 99.10
 

EXHIBIT 99.10

Wipro Limited - Results for the nine months period ended December 31, 2003

Wipro Limited - Consolidated Audited Segment-wise
Business performance for the nine months period ended
December 31, 2003 (In Rs. Million)

                                 
    Nine months ended December 31,   Year ended
   
 
Particulars   2003   2002   Growth %   March 31, 2003
 
 
 
 
Segment Revenue
                                
Global IT Services & Products
     31,026       21,795       42       30,487  
India & AsiaPac IT Services & Products
     6,096       5,945       3       8,395  
Consumer Care & Lighting
     2,629       2,210       19       2,991  
Others
     1,198       1,014               1,468  
Continuing Operations
     40,949       30,964       32       43,341  
Discontinued ISP Business
     —       42               42  
Total
     40,949       31,006       32       43,383  
Profit Before Interest and Tax (PBIT)
                                
Global IT services & Products
     6,573       6,322       4       8,451  
India & AsiaPac IT Services & Products
     393       316       24       557  
Consumer Care & Lighting
     415       329       26       436  
Others
     158       115               240  
Continuing Operations
     7,539       7,082       6       9,684  
Discontinued ISP Business
     —       (182 )             (182 )
Total
     7,539       6,900       9       9,502  
Interest income
     530       527               634  
Profit Before Tax
     8,069       7,427       9       10,136  
Income Tax expense
     (922 )     (894 )             (1,276 )
Profit before extraordinary items
     7,147       6,533       9       8,860  
Discontinuance of ISP business
     —       (289 )             (263 )
Profit before equity in earnings / (losses) of affiliates and minority interest
     7,147       6,244       14       8,597  
Equity in earnings / (losses) of affiliates
     (5 )     (259 )             (355 )
Minority interest
     (35 )     (34 )             (37 )
Profit after tax
     7,107       5,951       19       8,205  
Earnings per share (in Rs.)
                                
Basic
                                
On profit for the period from continuing operations
     30.90       28.76       7       38.83  
On losses of discountinued ISP business
     —       (0.50 )             (0.50 )
On extraordinary items
     —       (1.25 )             (1.14 )
On equity in earnings of affiliates / minority interest
     (0.17 )     (1.27 )             (1.70 )
On profit for the period
     30.73       25.74       19       35.49  
Diluted
                                
On profit for the period from continuing operations
     30.89       28.71       8       38.75  
On losses of discountinued ISP business
     —       (0.50 )             (0.50 )
On extraordinary items
     —       (1.25 )             (1.13 )
On equity in earnings of affiliates / minority interest
     (0.17 )     (1.27 )             (1.69 )
On profit for the period
     30.71       25.69       20       35.43  
Operating Margin
                                
Global IT Services & Products
     21 %     29 %             28 %
India & AsiaPac IT Services & Products
     6 %     5 %             7 %
Consumer Care & Lighting
     16 %     15 %             15 %
Continuing Operations
     18 %     23 %             22 %
Total
     18 %     22 %             22 %
Capital employed
                                
Global IT Services & Products
     19,163       14,722               18,536  
India & AsiaPac IT Services & Products
     1,496       1,199               1,075  
Consumer Care & Lighting
     520       612               682  
Others
     22,552       16,578               15,082  
Continuing Operations
     43,731       33,111               35,375  
Discontinued ISP Business
     —       (150 )             (7 )
Total
     43,731       32,961               35,368  
Return on average capital employed from continuing business
                                
Global IT Services & Products
     46 %     72 %             62 %
India & AsiaPac IT Services & Products
     41 %     39 %             54 %
Consumer Care & Lighting
     92 %     64 %             60 %
Continuing Operations
     25 %     32 %             31 %
Total
     25 %     31 %             31 %

Wipro Limited - Stand alone - Parent Company
Audited Financial Results for the nine months period ended
December 31, 2003 (In Rs. Million)

                                         
    Three months ended   Nine months ended   Year ended
    December 31,   December 31,   March 31,
   
 
 
    2003   2002   2003   2002   2003
   
 
 
 
 
Net Income from Sales / Services
     13,273       10,214       35,898       29,156       40,327  
Cost of Sales / Services
                                        
a. Consumption of raw materials
     1,956       1,593       5,170       5,237       7,243  
b. Other expenditure
     6,567       4,516       17,551       12,350       17,268  
Gross Profit
     4,750       4,105       13,177       11,569       15,816  
Selling General and Administrative expenses
     1,779       1,427       5,134       4,060       5,506  
 
    
     
     
     
     
 
Operating Profit before interest and depreciation
     2,971       2,678       8,043       7,509       10,310  
 
    
     
     
     
     
 
Interest expense
     14       5       24       18       29  
Depreciation
     391       352       1,073       986       1,380  
 
    
     
     
     
     
 
Operating Profit after interest and depreciation
     2,566       2,321       6,946       6,505       8,901  
 
    
     
     
     
     
 
Other income
     198       220       544       588       705  
Profit before tax
     2,764       2,541       7,490       7,093       9,606  
Provision for tax
     319       325       930       834       1,211  
Profit before non-recurring / extraordinary items
     2,445       2,216       6,560       6,259       8,395  
Extraordinary / non-recurring expense
     —       (1 )     —       (289 )     (263 )
 
    
     
     
     
     
 
Profit for the period / year
     2,445       2,215       6,560       5,970       8,132  
 
    
     
     
     
     
 
Paid up equity share capital
     465       465       465       465       465  
Reserves excluding revaluation reserves
     39,468       30,918       39,468       30,918       32,837  
Earnings Per Share
                                        
Basic
                                        
Profit before extraordinary items
     10.57       9.58       28.37       27.07       36.31  
Extraordinary items
     —       —       —       (1.25 )     (1.14 )
Profit for the period
     10.57       9.58       28.37       25.82       35.17  
Diluted
                                        
Profit before extraordinary items
     10.55       9.57       28.35       27.03       36.25  
Extraordinary items
     —       —       —       (1.25 )     (1.13 )
Profit for the period
     10.55       9.57       28.35       25.78       35.12  
Aggregate of non-promoters shareholding
                                        
Number of shares
     37,501,449       37,420,035       37,501,449       37,420,035       37,436,882  
Percentage of holding
     16.12       16.09       16.12       16.09       16.10  
Details of expenditure
                                        
Staff Cost
     2,270       1,772       6,075       4,590       6,424  
Items exceeding 10% of total expenditure
                                        
Travelling and allowance
     4,204       2,908       11,677       8,027       11,180  

Status of Redressal of Complaints received for the period
from October 1, 2003 to December 31, 2003

                                 
    Opening balance   Complaints received   Complaints disposed        
Nature of Complaints   for the quarter   during the quarter   during the quarter   Unresolved
 
 
 
 
Complaints with respect to transfer / transmission / split / consolidation / exchange / duplicate issue of shares     0       0       0       0  
Complaints with respect to Dematerialisation / Rematerialisation of shares     0       4       4       0  
Complaints with regard to non-receipt of Corporate benefits like Dividend / Interest / Bonus Shares     0       0       0       0  
General queries     0       0       0       0  
Total     0       4       4       0  
                                 
(In Rs. Million)
Geography   December 31, 2003   %   December 31, 2002   %
 
 
 
 
India
     9,479       23       9,081       29  
USA
     22,131       54       13,846       45  
Rest of the world
     9339       23       8,079       26  
Total
     40,949       100       31,006       100  

Notes to segment report:

1.     The segment report of Wipro Limited and its consolidated subsidiaries and associates has been prepared in accordance with the Accounting Standard 17 “Segment Reporting” issued by the Institute of Chartered Accountants of India.
 
2.     The Company has three geographic segments: India, USA and Rest of the World. Significant portion of the segment assets are in India. Revenue from geographic segments based on domicile of the customers is outlined in the table alongside.
 
3.     For the purpose of reporting, business segments are considered as primary segments and geographic segments are considered as secondary segment.
 
4.     Effective April 1, 2003, Wipro Spectramind is included in the Global IT Services segment. Wipro Nervewire, the business acquired in May 2003, has been included in Global IT Services segment.
 
In April 2003, the Company restructured the HealthScience business segment. The HealthScience business which addresses the IT requirement of clients in healthcare and life sciences sector and Wipro Healthcare IT, the Company acquired in August 2002, will now form part of the Global IT Services and Products segment. Wipro Biomed, a business segment that was reported as part of the HealthScience segment has now been reported as part of ‘Others’. Segment data for previous periods has been reclassified on a comparable basis.
 
5.     In accordance with Accounting Standard 21 “Consolidated Financial Statements” issued by the Institute of Chartered Accountants of India, the consolidated financial statements of Wipro Limited include the financial statements of all subsidiaries which are more than 50% owned and controlled.
 
6.     The company has a 49% equity interest in Wipro GE Medical Systems Limited (WGE), a joint venture with General Electric, USA. The joint venture agreement provides specific rights to the joint venture partners. The rights conferred to Wipro are primarily protective in nature. Therefore, WGE is not considered as a joint venture, and consolidation of financial statements are carried out as per equity method in terms of Accounting Standard 23 “Accounting for Investments in Associates in Consolidated Financial statements”.
 
7.     In accordance with the guidance provided in Accounting Standard 23 “Accounting for Investments in Associates in Consolidated Financial Statements” WeP Peripherals have been accounted for by equity method of accounting.

The above financial results were approved by the Board of Directors of the Company at its meeting held on January 21, 2004. There are no qualifications in the report issued by the Auditors for these periods.

     
Place: Bangalore   By order of the Board
 
Date: January 21, 2004   Azim H Premji
    Chairman and Managing Director

(WIPRO LOGO)