EX-99.6 7 d626910dex996.htm EX-99.6 EX-99.6

Exhibit 99.6

Wipro Limited

Results for the Quarter ended September 30, 2018

Operating Metrics Pertaining to IT Services Segment

A. IT Services

 

         FY 18-19     FY 17-18  
         Q2Note 1     Q1     FY     Q4     Q3     Q2     Q1  

Revenue & OM%

   

IT Services Revenues ($MN)

     2,041.2       2,026.5       8,060.2       2,062.0       2,013.0       2,013.5       1,971.7  
  

Sequential Growth

     1.9 %Note 1      -1.7 %      4.6 %      2.4 %      0.0 %      2.1 %      0.9 % 
  

Sequential Growth in Constant CurrencyNote 2

     2.8 %Note 1      0.1 %      2.9 %      1.1 %      0.9 %      0.3 %      0.3 % 
  

Operating Margin %

     14.6 %Note 3      17.2 %Note 4      15.8 %Note 5      14.4 %Note 6      14.8 %Note 7      17.3 %      16.8 % 

Service Line Mix

   

Practices

              
  

Digital Operations and PlatformsNote 8

     12.7 %      12.1 %      12.2 %      12.1 %      12.6 %      12.1 %      12.0 % 
  

Cloud and Infrastructure Services

     26.5 %      27.4 %      28.4 %      28.8 %      28.2 %      28.4 %      28.1 % 
  

Data, Analytics and AI

     7.8 %      7.1 %      7.0 %      7.0 %      7.0 %      7.1 %      7.1 % 
  

Modern Application Services

     45.7 %      46.1 %      45.4 %      44.8 %      45.3 %      45.5 %      45.8 % 
  

Industrial & Engineering ServicesNote 9

     7.3 %      7.3 %      7.0 %      7.3 %      6.9 %      6.9 %      7.0 % 

SBU Mix

   

Strategic Business Units

              
  

Banking, Financial Services and Insurance

     30.7 %      30.0 %      28.1 %      29.2 %      28.5 %      27.6 %      26.7 % 
  

Communications

     5.7 %      5.6 %      6.4 %      5.8 %      6.4 %      6.5 %      6.8 % 
  

Consumer Business Unit

     16.3 %      16.0 %      15.8 %      15.6 %      16.0 %      15.9 %      15.8 % 
  

Energy, Natural Resources and Utilities

     12.6 %      12.5 %      12.9 %      12.5 %      12.4 %      13.5 %      13.4 % 
  

Health Business Unit

     12.8 %      13.4 %      14.1 %      13.9 %      14.0 %      13.7 %      14.8 % 
  

Manufacturing

     8.2 %      8.3 %      8.7 %      8.7 %      8.6 %      8.7 %      9.0 % 
  

Technology

     13.7 %      14.2 %      14.0 %      14.3 %      14.1 %      14.1 %      13.5 % 

Geography Mix

   

Geography

              
  

Americas

     55.2 %      54.9 %      53.4 %      52.7 %      53.1 %      53.6 %      54.5 % 
  

APAC and Other Emerging Markets

     11.4 %      10.9 %      11.1 %      10.9 %      11.0 %      11.4 %      10.9 % 
  

Europe

     25.3 %      25.6 %      25.6 %      27.0 %      25.9 %      25.1 %      24.2 % 
  

India & Middle East business

     8.1 %      8.6 %      9.9 %      9.4 %      10.0 %      9.9 %      10.4 % 

Guidance

   

Guidance ($MN)

     2,009-2,049       2,015-2,065         2,033-2,073       2,014-2,054       1,962-2,001       1,915-1,955  
  

Guidance restated based on actual currency realized ($MN)

     1,990-2,030       1,978-2,027         2,060-2,100       1,996-2,036       1,999-2,038       1,927-1,967  
  

IT Services Revenues ($MN)

     2,041.2       2,026.5       8,060.2       2,062.0       2,013.0       2,013.5       1,971.7  

Customer Relationships

   

Customer size distribution (TTM)

              
  

> $100MN

     9       8       8       8       9       9       9  
  

> $75MN

     19       19       20       20       17       16       18  
  

> $50MN

     39       40       39       39       41       39       36  
  

> $20MN

     93       91       95       95       90       90       90  
  

> $10MN

     180       173       171       171       167       170       163  
  

> $5MN

     274       278       277       277       272       270       262  
  

> $3MN

     358       368       369       369       364       370       357  
  

> $1MN

     612       624       631       631       635       627       624  

Customer Metrics

   

Revenue from Existing customers %

     98.6 %      99.5 %      98.6 %      97.4 %      98.2 %      99.2 %      99.6 % 
  

Number of new customers

     76       75       223       58       79       41       45  
  

Total Number of active customers

     1,193       1,254       1,248       1,248       1,281       1,274       1,244  
  

 

Customer Concentration

              
  

Top customer

     3.6 %      3.7 %      3.1 %      3.5 %      3.1 %      3.1 %      2.9 % 
  

Top 5

     12.1 %      11.7 %      11.1 %      11.9 %      11.3 %      11.0 %      10.3 % 
  

Top 10

     18.8 %      18.3 %      17.8 %      18.4 %      17.8 %      18.0 %      17.5 % 

Notes:

Note 1: Sequential/QoQ and YoY growth rates for Q2’19 have been computed by adjusting revenues for Q1’19 and Q2’18 for the impact from the divestment of our hosted data centre services business.

Note 2. Constant currency revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period.

Note 3. IT Services margin for the Quarter ended September 30, 2018 includes a loss of ₹5,141 million from the settlement with one of our key customers. Adjusted for this settlement, our operating margin was 18.1%.

Note 4. IT Services margin for the Quarter ended June 30, 2018 includes gain of ₹2,529 million from the sale of our hosted data center business during the quarter.

Note 5. Excluding the one time impact of insolvency of two of our customers & impairment loss booked for one of our acquisitions, normalized operating margin for the Year ended March 31, 2018 was 16.8%.

Note 6. Excluding the one time impact of insolvency of a customer & impairment loss booked for one of our acquisitions, normalized operating margin for the Quarter ended March 31, 2018 was 16.0%.

Note 7. Excluding the one time impact of insolvency of a customer, post balance sheet date, normalized operating margin for the Quarter ended December 31, 2017 was 17.2%.

Note 8. The service line formerly known as Business Process Services has been renamed as Digital Operations and Platforms (DO&P).

Note 9. The service line formerly known as Product Engineering Services has been renamed as Industrial & Engineering Services (I&ES).

 

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         FY 18-19     FY 17-18  
         Q2     Q1     FY     Q4     Q3     Q2     Q1  

Currency Mix

    % of Revenue              
   USD     60 %      60 %      58 %      58 %      58 %      58 %      59 % 
   GBP     10 %      11 %      10 %      11 %      10 %      10 %      10 % 
   EUR     9 %      8 %      9 %      9 %      9 %      9 %      9 % 
   INR     6 %      7 %      8 %      8 %      8 %      8 %      8 % 
   AUD     5 %      5 %      5 %      5 %      5 %      5 %      4 % 
   CAD     3 %      2 %      2 %      2 %      2 %      3 %      3 % 
   Others     7 %      7 %      8 %      7 %      8 %      7 %      7 % 
   Closing Employee Count     175,346       164,659       163,827       163,827       162,553       163,759       166,790  
  

Utilization

(IT Services excl. Infocrossing, DO&P, Designit, cellent, HPS, Appirio, Cooper, Infoserver and I&ME)

              
  

Gross Utilization

     74.4 %      74.5 %      72.2 %      73.1 %      71.0 %      72.9 %      72.0 % 
  

Net Utilization (Excluding Support)

     83.2 %      83.9 %      81.1 %      82.4 %      80.0 %      81.8 %      80.3 % 
  

Net Utilization (Excluding Trainees)

     85.5 %      85.2 %      82.5 %      83.4 %      81.9 %      82.5 %      82.1 % 
     Attrition                                          
     (IT Services excl. DO&P)                                          
   Voluntary TTM     17.4 %      17.0 %      16.6 %      16.6 %      15.9 %      15.7 %      15.9 % 
   Voluntary Quarterly Annualized     18.3 %      17.7 %      16.6 %      17.5 %      16.2 %      16.7 %      16.1 % 
   DO&P % - Quarterly     12.3 %      10.8 %      12.7 %      11.3 %      12.8 %      13.5 %      12.8 % 
   DO&P % - Post Training Quarterly     11.2 %      9.5 %      11.2 %      9.8 %      11.1 %      11.9 %      11.4 % 
   Sales & Support Staff - IT Services     14,862       15,076       14,936       15,215       14,881       14,880       14,769  
B. IT Services (Excluding Infocrossing, DO&P, Designit, cellent, HPS, Appirio, Cooper, Infoserver and I&ME)

 

Service delivery

    Revenue from FPP     58.9 %      58.9 %      58.1 %      58.7 %      57.7 %      57.7 %      58.2 % 
   Onsite Revenue - % of Services     52.8 %      52.9 %      53.2 %      52.7 %      53.5 %      53.2 %      53.6 % 
   Offshore Revenue - % of Services     47.2 %      47.1 %      46.8 %      47.3 %      46.5 %      46.8 %      46.4 % 

C. Growth Metrics for the Quarter ended September 30, 2018Note 1

 

     Reported
Currency
QoQ %		     Reported
Currency
YoY %		     Constant
Currency
QoQ %		     Constant
Currency
YoY %		  
IT Services      1.9 %      2.6 %      2.8 %      5.1 % 
Strategic Business Units                         

Banking, Financial Services and Insurance

      3.4 %      13.1 %      4.4 %      16.0 % 

Communications

      2.1 %      -11.4 %      4.2 %      -6.7 % 

Consumer Business Unit

      3.7 %      5.0 %      4.8 %      7.7 % 

Energy, Natural Resources and Utilities

      2.2 %      -4.3 %      4.0 %      0.0 % 

Health Business Unit

      -3.2 %      -5.3 %      -3.0 %      -4.4 % 

Manufacturing

      1.1 %      -3.6 %      1.7 %      -1.6 % 

Technology

      1.6 %      3.7 %      1.8 %      4.6 % 
Geography                         

Americas

      3.5 %      6.8 %      3.7 %      7.9 % 

APAC and Other Emerging Markets

      5.4 %      0.9 %      7.9 %      7.3 % 

Europe

      -0.5 %      2.3 %      0.9 %      5.0 % 

India & Middle East business

      -5.4 %      -17.1 %      -2.8 %      -11.7 % 
Practices                         

Digital Operations and PlatformsNote 8

      5.7 %      6.7 %      6.2 %      8.1 % 

Cloud and Infrastructure Services

      1.5 %      -1.6 %      2.6 %      1.8 % 

Data, Analytics and AI

      9.9 %      11.6 %      11.1 %      14.0 % 

Modern Application Services

      0.0 %      1.9 %      1.0 %      4.5 % 

Industrial & Engineering ServicesNote 9

      1.5 %      6.7 %      1.9 %      7.9 % 

D. Annexure to Datasheet

 

Segment-wise breakup of Cost of Revenues, S&M and G&A

    Q2 FY 18-19 (INR MN)  

Particulars

    IT
Services		      IT
Products		      Reconciling
Items		      Total  

Cost of revenues

      98,839        2,851        80        101,770  

Selling and marketing expenses

      10,774        76        (36 )       10,814  

General and administrative expenses

      13,432        374        (110 )       13,696  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      123,045        3,301        (66 )       126,280  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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