EX-99.1 2 d664253dex991.htm EX-99.1

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Results for the quarter ended December 31, 2013 under IFRS

Net Income Grew 27% YoY

IT Services Operating Margin Expanded by 54 basis points sequentially

IT Services Revenue grew 20%; IT Services EBIT grew 33% YoY respectively

Bangalore, India and East Brunswick, New Jersey, USA – January 17, 2014 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2013.

Highlights of the Results:

Results for the Quarter ended December 31, 2013:

• Revenues from continuing operations were 113.3 billion ($1.8 billion¹⁾, an increase of 18% YoY.

• Net Income from continuing operations was 20.1 billion ($325 million¹⁾, an increase of 27% YoY which includes a non-recurring expense incurred due to the cessation of manufacturing Wipro branded desktop, laptops and servers. Excluding the non-recurring expense, Net Income from continuing operations was 20.3 billion ($328 million¹⁾, an increase of 28% YoY

• Non-GAAP Adjusted Net Income from continuing operations was 20.1 billion ($325 million¹⁾, an increase of 27% YoY.

• IT Services Revenue was $1,678.4 million, a sequential increase of 2.9% and YoY increase of 6.4%.

• IT Services Revenues in Rupee terms was 103.3 billion ($1,668 million¹⁾, an increase of 20% YoY.

• IT Services Earnings Before Interest and Tax (EBIT) was 23.8 billion ($384 million¹⁾, an increase of 33% YoY.

• Operating Income to Revenue for IT Services was 23% for the quarter.

• The Opus CMC acquisition (announced in December 2013) was completed in January 2014, upon completion of customary closing conditions. Opus CMC’s revenue for calendar year 2013, prior to the closing of the acquisition, was approximately $ 43 million.

• Wipro declared an interim dividend of 3 ($0.05¹⁾ per share /ADS.

Performance for the quarter ended December 31, 2013

Azim Premji, Chairman of Wipro, commenting on the results said, “As the global economy is progressing towards stability, we see optimism amongst clients, especially in the West. Corporations are leveraging technology to reduce operational costs and investing resources in differentiating themselves in the marketplace.”

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 December 31, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= 61.92. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2013 was US$1= 61.53

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, “Our focus on account management has yielded encouraging results. We continue to execute to our strategy for superior engagement with clients while investing in emerging technologies to drive towards a higher growth trajectory. During the quarter, our Global Infrastructure Services business grew strongly on revenues.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “Our strategy of ‘standardization at the core’ is yielding results. Our investments in automation and productivity tools have driven efficiencies and helped us expand margins of IT Services by 54 basis points to 23%.”

Outlook for the Quarter ending March 31, 2014

We expect Revenues from our IT Services business to be in the range of $ 1,712 million to $1,745 million* including the revenues from our acquisition.

* Guidance is based on the following exchange rates: GBP/USD at 1.63, Euro/USD at 1.37, AUD/USD at 0.92, USD/INR at 62.0

IT Services

The IT Services segment had 146,402 employees as of December 31, 2013. We added 42 new customers for the quarter.

A leading integrated construction and support services company has selected Wipro as its sole preferred global strategic partner to provide integrated IT and BPO services. As part of the multi-year relationship, Wipro will deliver operational and cost efficiency through its outsourcing services and partner with the customer in business and technology transformation initiatives.

One of the world’s largest consumer goods companies has renewed its infrastructure services contract with Wipro. Wipro will provide Network, Datacenter, Global Service Desk and Security Services in a managed services model and partner to transform their IT landscape.

One of the largest banks in Africa has extended its existing relationship with Wipro for an additional 3 years. This renewed engagement is a validation of the value that Wipro is bringing to the bank’s ‘transformation journey’ in its capacity as an Enterprise Testing Partner.

A large global universal bank has selected Wipro as one of its strategic partners to provide application development, maintenance and testing services.

Wipro won a deal from a non-profit research institution in the Kingdom of Saudi Arabia to provide IT infrastructure and applications management services. Wipro has been chosen by a leading hospital group in Saudi Arabia to provide end-to-end IT Infrastructure services.

Awards and accolades

Wipro has been recognized by Amazon Web Services as an AWS Partner Network (APN) Premier Consulting Partner for 2014, marking the second year in a row that the Company has achieved this designation.

Wipro Life Sciences has been positioned as a ‘Leader’ in the IDC MarketScape: Worldwide Life Science Manufacturing & Supply Chain ITO 2013 Vendor Assessment (doc #HI244265, November 2013), being recognized for its account management capabilities. Wipro Healthcare and Life sciences continues to leverage its strengths in differentiated domain offerings—patient centricity and compliance through sales and marketing analytics, business intelligence and master data management.

Wipro was named as a leader in the India 200 Climate Disclosure Leadership Index (CDLI), for the second time in a row. Wipro continues to retain the top position with a disclosure score of 98/100. The average disclosure score of Indian companies is 68.

Wipro was named a “Leader” by technology global research and advisory firm Forrester Research Inc. in its report “The Forrester Wave™: Business Intelligence Service Providers in Asia Pacific, Q4 2013”. Forrester Research Inc. evaluated leading Business Intelligence (BI) Services providers across 53 criteria relating to current offering, strategy and market presence based on client inquiries, user needs assessments, and vendor and expert interviews. It identified Wipro as a leader in Business Intelligence Services for Asia Pacific-based organizations.

Wipro received the ‘2013 ESCAP-Sasakawa Award for Disability-Inclusive Business in Asia and the Pacific’ in the category ‘Disability-Inclusive Multinational Enterprise’.

IT Products

• Our IT Products segment delivered Revenue of 10.2 billion ($164 million¹⁾ for the quarter, a YoY increase of 2%.

• EBIT was negative 116 million (negative $2 million¹⁾ for the quarter. The operating income of IT Products segment for the quarter includes non-recurring expense of 209 ($3 million¹⁾ incurred due to cessation of manufacturing of Wipro branded desktops, laptops and servers. Operating income of the IT Products segment excluding the above non-recurring expense is 93 million ($1.5 million¹⁾.

Please see the table on page 8 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 8 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 and 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 ended December 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 Call

We will hold a conference call today at 06:45 p.m. Indian Standard Time (08:15 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.

Contact for Investor Relations				Contact for Media & Press
Aravind V S		Sridhar Ramasubbu		Vipin Nair
Phone: +91-80-25056186		Phone: +1 408-242-6285		Phone: 91-80-3991-6154
aravind.viswanathan@wipro.com		sridhar.ramasubbu@wipro.com		vipin.nair1@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.

# # #

(Tables to follow)

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 December 31,
		2013				2013				2013
										Convenience translation into US$ in millions (Unaudited) Refer note 2 (iv)
ASSETS
Goodwill			54,756				62,150				1,004
Intangible assets			1,714				1,668				27
Property, plant and equipment			50,525				51,863				838
Derivative assets			51				625				10
Non-current tax assets			10,308				10,981				177
Deferred tax assets			4,235				4,653				75
Other non-current assets			10,738				14,491				234
Total non-current assets			132,327				146,431				2,365
Inventories			3,263				2,825				46
Trade receivables			76,635				85,091				1,374
Other current assets			31,069				39,825				643
Unbilled revenues			31,988				38,199				617
Available for sale investments			69,171				79,128				1,278
Current tax assets			7,408				9,552				154
Derivative assets			3,031				1,329				21
Cash and cash equivalents			84,838				79,932				1,291
Total current assets			307,403				335,881				5,424
TOTAL ASSETS			439,730				482,312				7,789
EQUITY
Share capital			4,926				4,931				80
Share premium			11,760				12,463				201
Retained earnings			259,178				301,338				4,867
Share based payment reserve			1,316				1,045				17
Other components of equity			7,174				10,318				167
Shares held by controlled trust			(542	)			(542	)			(9	)
Equity attributable to the equity holders of the company			283,812				329,553				5,323
Non-controlling Interest			1,171				1,300				21
Total equity			284,983				330,853				5,344
LIABILITIES
Long—term loans and borrowings			854				11,357				183
Deferred tax liabilities			846				1,383				22
Derivative liabilities			118				1,525				25
Non-current tax liability			4,790				4,557				74
Other non-current liabilities			3,390				3,076				50
Provisions			9				4				—
Total non-current liabilities			10,007				21,902				354
Loans and borrowings and bank overdrafts			62,962				36,159				584
Trade payables and accrued expenses			48,067				50,313				813
Unearned revenues			10,347				12,856				208
Current tax liabilities			10,226				12,055				195
Derivative liabilities			975				3,179				51
Other current liabilities			10,989				13,697				221
Provisions			1,174				1,298				21
Total current liabilities			144,740				129,557				2,091
TOTAL LIABILITIES			154,747				151,459				2,445
TOTAL EQUITY AND LIABILITIES			439,730				482,312				7,789

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

		Three months ended December 31,												Nine months ended December 31,
		2012				2013				2013				2012				2013				2013
										translation into US $ in millions (Unaudited)												translation into US $ in millions (Unaudited)
Continuing Operations
Gross revenues			95,140				112,713				1,820				278,170				317,734				5,131
Cost of revenues			(66,003	)			(76,365	)			(1,233	)			(193,657	)			(217,788	)			(3,517	)
Gross profit			29,137				36,348				588				84,513				99,946				1,614
Selling and marketing expenses			(6,298	)			(7,759	)			(125	)			(18,030	)			(22,224	)			(359	)
General and administrative expenses			(5,557	)			(5,775	)			(93	)			(16,214	)			(17,028	)			(275	)
Foreign exchange gains/(losses), net			747				604				10				2,563				2,849				46
Results from operating activities			18,029				23,418				378				52,832				63,543				1,026
Finance expenses			(472	)			(898	)			(15	)			(2,298	)			(2,049	)			(33	)
Finance and other income			2,896				3,812				62				8,239				10,585				171
Profit before tax			20,454				26,332				425				58,773				72,079				1,164
Income tax expense			(4,472	)			(6,060	)			(98	)			(12,939	)			(16,064	)			(259	)
Profit for the period from continuing operation			15,981				20,272				327				45,834				56,015				905
Discontinued operation
Profit after tax for the period from discontinued operation			1,273				—				—				3,488				—				—
Profit for the period			17,254				20,272				327				49,322				56,015				905
Attributable to:
Equity holders of the company			17,164				20,147				325				49,071				55,703				900
Non-controlling interest			90				125				2				251				312				5
Profit for the period			17,254				20,272				327				49,322				56,015				905
Profit from continuing operations attributable to:
Equity holders of the company			15,895				20,147				325				45,595				55,703				900
Non-controlling interest			86				125				2				239				312				5
			15,981				20,272				327				45,834				56,015				905
Earnings per equity share:
Attributable to equity share holders of the company
Basic			6.99				8.20				0.13				20.01				22.69				0.37
Diluted			6.98				8.18				0.13				19.96				22.62				0.37
From continuing operations
Basic			6.48				8.20				0.13				18.59				22.69				0.37
Diluted			6.46				8.18				0.13				18.55				22.62				0.37
Weighted average number of equity shares used incomputing earnings per equity share
Basic			2,454,147,915				2,455,541,979				2,455,541,979				2,452,383,566				2,454,745,433				2,454,745,433
Diluted			2,458,907,939				2,462,432,622				2,462,432,622				2,458,419,557				2,462,073,492				2,462,073,492
Additional Information
Segment Revenue
IT Services			86,018				103,274				1,668				252,893				293,316				4,737
IT Products			9,969				10,155				164				28,492				27,695				447
IT Services & Products			95,987				113,429				1,832				281,385				321,011				5,184
Consumer Care and Lighting (Discontinued operation)			10,281				—				—				30,154				—				—
Others (Discontinued operation)			3,727				—				—				11,392				—				—
Others			251				(112	)			(2	)			412				(428	)			(7	)
Total			110,246				113,317				1,830				323,343				320,583				5,177
Operating Income
IT Services			17,917				23,790				384				52,665				64,279				1,038

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

		Three months ended December 31,												Nine months ended December 31,
		2012				2013				2013				2012				2013				2013
										translation into												translation into
										US $ in												US $ in
										millions												millions
										(Unaudited)												(Unaudited)
IT Products			239				(116	)			(2	)			722				167				3
IT Services & Products			18,156				23,674				382				53,387				64,446				1,041
Consumer Care and Lighting (Discontinued operation)			1,402				—				—				3,675				—				—
Others (Discontinued operation)			36				—				—				313				—				—
Others			(135	)			(256	)			(4	)			(607	)			(903	)			(15	)
Total			19,459				23,418				378				56,768				63,543				1,026
Reconciliation of adjusted Non-GAAP profit to profit as per IFRS
Profit for the period attributable to Equity holders of the Company (Continuing operations)			15,895				20,147				325				45,595				55,703				900
Adjustments :
Accelerated amortization of stock options that vest in a graded manner			(68	)			1				—				—				(5	)			(0	)
Non-GAAP adjusted profit (Continuing operations)			15,827				20,148				325				45,595				55,698				900
Profit for the period attributable to Equity holders of the Company (Discontinued operations)			1,269				—				—				3,476				—				—
Adjustments :
Accelerated amortization of stock options that vest in a graded manner			(1	)			—				—				(12	)			—				—
Non-GAAP adjusted profit (Discontinued operations)			1,268				—				—				3,464				—				—
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)
IT Services Revenue as per IFRS			1,678.4
Effect of Foreign currency exchange movement			10.6
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates			1,667.8
IT Services Revenue as per IFRS			1,678.4
Effect of Foreign currency exchange movement			29.0
Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates			1,707.4