EX-99.3 4 f42331exv99w3.htm EXHIBIT 99.3
Exhibit 99.3

Performance of Wipro Limited for Quarter ended June 30, 2008

July 18, 2008

Suresh C Senapaty

Executive Director & Chief Financial Officer

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Financial Summary of quarter ended June 30, 2008 (Indian GAAP) – Wipro Limited Consolidated

Wipro Limited (Consolidated) Revenue Growth Growth Particulars Rs. Crores QoQ YoY

Revenue 5,967 5% 43% Profits Before Interest & Tax 1,022 3% 40% Profits After Tax 908 3% 25% Key Segmental Results Revenue Growth PBIT Growth Segment Rs Crores YoY Rs Crores ; YoY IT Services 4,405 39% 919 37% IT Products. 746 44% 25 7% Consumer Care & Lighting 513 119% 61 100%

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Highlights for the quarter – IT Services

· Revenues at $1067M (YoY growth of 37%), ahead of guidance of $1060 M for the quarter. IT revenues cross Rs. 5000 cr.

· IT Services added 31 new clients in the quarter

· Realizations up by 3.5% YoY and 3% QoQ; Revenues from Fixed price projects increased by about 140 bps sequentially to 30.6%.

· Gross Utilization in IT services improved by 50 bps QoQ; BPO gross utilization improved 640 bps YoY.

· IT Services margins flat in spite of grant of Restricted Stock Units through improvements in operational parameters

· India & Middle East services with 44% revenue growth YoY

· Total employee strength in IT Services at 95,675 employees.

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Revenue Dynamics-IT Services

Vertical distribution ( Q1 FY09) Geographical distribution ( Q1 FY09)

· Verticals:

Financial Services delivered 5.5% seq growth and 47% YoY Retail & Transportation grew of 8% seq growth and 36% YoY

Energy & Utilities grew 30% YoY Technology, Media and Telecom grew 27% YoY

· Differentiated Services: Testing grew 41% YoY, BPO grew 44% YoY Technology Infrastructure Services grew 76% YoY

· Geography: U.S grew 4.1% QoQ and 36% YoY while Europe grew 30% YoY

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Customer Dynamics – IT Services

· Added 31 new clients, out of which 4 are from Fortune 1000/ Global 500 corporations.

· 14 clients with >$50Mn run rate (11 in Q4) and 404 customers with > $1 Mn Revenue run-rate (362 in Q4).

· 2 accounts with revenue run-rate of USD 100Mn; Won three large deals (value between $50-$100M) during the quarter.

· Announced 7 multiyear multimillion dollar deals: o A 7-year Multi million dollar engagement with a Worldwide leader in the manufacture of high-quality electronic products, for providing end to end management of its IT Infrastructure. o Key strategic partner of a Global Apparel & Footwear manufacturer for development of robust sales systems o An engagement with a global integrated Steel major as the system integration partner for transforming its core manufacturing execution business solution. o Designing and deploying a solution to enable supply chain visibility for a large automotive Original Equipment Manufacturer (OEM).

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Customer Dynamics – IT Services

· A 5-year multi-million dollar with one of the leading Mail & Express company in Europe for SAP rollout and support.

· Assisting a Large European Energy Equipment Manufacturer in their next generation application management initiative- to provide the customer with real-time information on the performance and health of the IT application platform and improve the overall operational efficiency.

· Global Support for SAP applications for a Leading Alcoholic Beverages company deploying the Flexible Delivery Model.

Awards and Recognition:

· SAP Pinnacle Award for thought leadership around enterprise SOA.

· Top Network Integrator award for the fourth consecutive year by Voice and Data

· Partner of the year award from IBM and the Fastest growing Solution Partner award for Asia Pacific from Packeteer.

· Recognized by Emerson Rosemount as top IT partner for Continuous Improvement in the areas of Quality, Speed, Flexibility, Service, Technology, and Cost

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Other Highlights

Wipro Consumer Care and Lighting (WCCL)

· For the quarter, Wipro Consumer Care and Lighting (including Unza) recorded Revenues of Rs. 5.13 billion, a growth of 119% YoY and PBIT of Rs. 609 million, a growth of 100% YoY.

· Our domestic business continued its robust revenue growth at 32% YoY, our 10th consecutive quarter of 25%+ YoY growth.

· Unza continued to see good underlying value growth in Malaysia, Middle East, Indochina and Indonesia.

Wipro Infrastructure Engineering (WIN)

· Globally No 2 in Hydraulic Cylinder Business.

· Continue to Maintain market share across segments.

· Expanded margins by 16% YoY and 12% YoY growth in revenues.

· Investments to capture market opportunities in Europe and other geographies.

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Summary

· Satisfying results considering the underlying uncertainties in the global economy.

· Differentiated service lines continue to demonstrate significantly higher growth.

· Retained IT Services margins in spite of grant of Restricted Stock Units through improvements in operational parameters.

· 7 Large deals announced in IT services with healthy deal pipeline.

· Forays in India and Middle East markets continue to pay rich dividends.

· Other businesses growing well ahead of industry growth rates.

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Supplemental Data

· Financial Results as per US GAAP

· Key Operating Metrics in IT Services

· Key Client Metrics

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Financial Summary of quarter ended June 30, 2008 (As per US GAAP)

Wipro Limited (Consolidated) Revenue Growth Growth Particulars Rs Cr QoQ YoY

Revenue 5,962 7% 43% Profits Before Interest & Tax 975 (0.4%) 42% Profits After Tax (GAAP) 814 (7%) 15% Key Segmental Results Revenue Growth PBIT Growth

Segment Rs Cr YoY Rs Cr YoY IT Services 4,393 40% 882 35% IT Products 696 53% 30 65% Consumer Care & Lighting 475 114% 60 98%

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Key Operating Metrics in IT Services for quarter ended June 30, 2008

Particulars Q1 09 Q4 08 Q1 08 Revenue Break-down:

Technology, Media & Telecom 31.2% 31.5% 33.8% Financial Services 25.4% 24.9% 23.7% Manufacturing & Healthcare 19.0% 19.6% 17.6% Retail & Transportation 15.7% 15.1% 15.8% E&U 8.7% 8.9% 9.1% Geography Break-down:

US 59.8% 59.4% 60.4% Europe 26.9% 27.1% 28.2% Japan 2.7% 2.6% 2.6% India & Middle East business 7.1% 7.5% 6.4% Other Emerging Markets 3.5% 3.4% 2.4% People related No of people

IT Services 61,345 62,070 53,390

BPO Services 20,837 20,445 19,064

India / Middle East IT Services 13,493 13,052 10,111

Total 95,675 95,567 82,565 Net Addition during the quarter

IT Services (725) 1,983 2,734

BPO Services 392 355 1,600

India / Middle East IT Services 441 1,473 891

Total 108 3,811 5,225

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Key Client Metrics in IT Services for quarter ended June 30, 2008

Particulars Q1 09 Q4 08 Q1 08 Customer Concentration

Top Customer 2.7% 2.5% 2.9% Top 5 11.4% 11.4% 12.8% Top 10 20.9% 20.8% 22.6% Active Customers 928 927 670

No. of New Customers 31 48 33

Revenue from New Customers 0.8% 3.2% 0.5% Onsite Revenue (IT Services) 53.9% 54.2% 55.2% Off Shore Revenue (IT Services) 46.1% 45.8% 44.8% Customer Size Distribution

> $ 50 M 14 11 9

$20- 50Mn 33 33 28

$10 — $20Mn 33 36 36

$5 — $10Mn 58 49 42

$3- $5Mn 71 64 40

$1- $3Mn 195 169 140

Total >$1Mn 404 362 295