EX-99.5 6 d553426dex995.htm EX-99.5

Exhibit 99.5

WIPRO LIMITED

CIN: L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakanneli, Sarjapur Road, Bengaluru - 560035, India

Website: www.wipro.com ; Email id – info@wipro.com ; Tel: +91-80-2844 0011 ; Fax: +91-80-2844 0054

STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED

DECEMBER 31, 2019

UNDER IFRS (IASB)

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

|  | Particulars |  | Three months ended |  |  | Nine months ended |  |  | Year ended |
|  |  |  | December 31, 2019 |  |  | September 30, 2019 |  |  | December 31, 2018 |  |  | December 31, 2019 |  |  | December 31, 2018 |  |  | March 31, 2019 |
|  | Income from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | a) Revenue |  |  | 154,705 |  |  |  | 151,256 |  |  |  | 150,595 |  |  |  | 453,122 |  |  |  | 435,782 |  |  |  | 585,845 |
|  | b) Other operating income |  |  | — |  |  |  | 50 |  |  |  | — |  |  |  | 749 |  |  |  | 2,798 |  |  |  | 4,344 |
|  | c) Foreign exchange gains/(losses), net |  |  | 727 |  |  |  | 591 |  |  |  | 911 |  |  |  | 2,176 |  |  |  | 2,899 |  |  |  | 3,215 |
I |  | Total income from operations |  |  | 155,432 |  |  |  | 151,897 |  |  |  | 151,506 |  |  |  | 456,047 |  |  |  | 441,479 |  |  |  | 593,404 |
|  | Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | a) Purchase of stock-in-trade |  |  | 2,083 |  |  |  | 1,357 |  |  |  | 2,741 |  |  |  | 6,423 |  |  |  | 10,733 |  |  |  | 14,073 |
|  | b) (Increase)/Decrease in inventories of finished goods and stock-in-trade |  |  | 604 |  |  |  | 1,443 |  |  |  | 111 |  |  |  | 1,814 |  |  |  | (636 | ) |  |  | (673 | )
|  | c) Employee benefit expense |  |  | 82,381 |  |  |  | 81,266 |  |  |  | 76,129 |  |  |  | 241,123 |  |  |  | 222,387 |  |  |  | 299,774 |
|  | d) Depreciation, amortization and impairment |  |  | 5,295 |  |  |  | 4,814 |  |  |  | 5,172 |  |  |  | 15,064 |  |  |  | 13,879 |  |  |  | 19,474 |
|  | e) Sub-contracting/ technical fees |  |  | 22,764 |  |  |  | 22,423 |  |  |  | 24,030 |  |  |  | 67,750 |  |  |  | 70,791 |  |  |  | 94,725 |
|  | f) Facility expenses |  |  | 4,881 |  |  |  | 5,048 |  |  |  | 5,227 |  |  |  | 14,662 |  |  |  | 16,375 |  |  |  | 22,213 |
|  | g) Travel |  |  | 4,956 |  |  |  | 4,549 |  |  |  | 4,688 |  |  |  | 14,138 |  |  |  | 13,305 |  |  |  | 17,768 |
|  | h) Communication |  |  | 1,213 |  |  |  | 1,146 |  |  |  | 1,011 |  |  |  | 3,495 |  |  |  | 3,464 |  |  |  | 4,561 |
|  | i) Legal and professional fees |  |  | 1,142 |  |  |  | 1,239 |  |  |  | 1,282 |  |  |  | 3,477 |  |  |  | 3,731 |  |  |  | 4,361 |
|  | j) Marketing and brand building |  |  | 690 |  |  |  | 491 |  |  |  | 696 |  |  |  | 1,953 |  |  |  | 1,970 |  |  |  | 2,714 |
|  | k) Lifetime expected credit loss |  |  | (72 | ) |  |  | 190 |  |  |  | (789 | ) |  |  | 649 |  |  |  | 1,254 |  |  |  | 980 |
|  | l) Other expenses |  |  | 2,262 |  |  |  | 1,196 |  |  |  | 2,540 |  |  |  | 6,158 |  |  |  | 11,636 |  |  |  | 13,524 |
II |  | Total expenses |  |  | 128,199 |  |  |  | 125,162 |  |  |  | 122,838 |  |  |  | 376,706 |  |  |  | 368,889 |  |  |  | 493,494 |
III |  | Finance expenses |  |  | 1,844 |  |  |  | 2,247 |  |  |  | 1,627 |  |  |  | 5,675 |  |  |  | 4,845 |  |  |  | 7,375 |
IV |  | Finance and Other Income |  |  | 5,370 |  |  |  | 6,857 |  |  |  | 5,362 |  |  |  | 19,174 |  |  |  | 15,695 |  |  |  | 22,923 |
V |  | Share of net profit/(loss) of associates accounted for using the equity method |  |  | 34 |  |  |  | (2 | ) |  |  | 7 |  |  |  | 16 |  |  |  | (26 | ) |  |  | (43 | )
VI |  | Profit before tax [I-II-III+IV+V] |  |  | 30,793 |  |  |  | 31,343 |  |  |  | 32,410 |  |  |  | 92,856 |  |  |  | 83,414 |  |  |  | 115,415 |
VII |  | Tax expense |  |  | 6,164 |  |  |  | 5,731 |  |  |  | 6,966 |  |  |  | 18,594 |  |  |  | 18,178 |  |  |  | 25,242 |
VIII |  | Net profit for the period [VI-VII] |  |  | 24,629 |  |  |  | 25,612 |  |  |  | 25,444 |  |  |  | 74,262 |  |  |  | 65,236 |  |  |  | 90,173 |
IX |  | Total Other comprehensive income |  |  | 297 |  |  |  | 1,302 |  |  |  | 423 |  |  |  | 2,889 |  |  |  | 15 |  |  |  | 1,023 |
|  | Total comprehensive income for the period [VIII+IX] |  |  | 24,926 |  |  |  | 26,914 |  |  |  | 25,867 |  |  |  | 77,151 |  |  |  | 65,251 |  |  |  | 91,196 |
X |  | Profit for the period attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Equity holders of the Company |  |  | 24,558 |  |  |  | 25,526 |  |  |  | 25,103 |  |  |  | 73,958 |  |  |  | 65,198 |  |  |  | 90,031 |
|  | Non-controlling Interest |  |  | 71 |  |  |  | 86 |  |  |  | 341 |  |  |  | 304 |  |  |  | 38 |  |  |  | 142 |
|  |  |  |  | 24,629 |  |  |  | 25,612 |  |  |  | 25,444 |  |  |  | 74,262 |  |  |  | 65,236 |  |  |  | 90,173 |
|  | Total comprehensive income for the period attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Equity holders of the Company |  |  | 24,842 |  |  |  | 26,773 |  |  |  | 25,616 |  |  |  | 76,793 |  |  |  | 65,074 |  |  |  | 90,945 |
|  | Non-controlling Interest |  |  | 84 |  |  |  | 141 |  |  |  | 251 |  |  |  | 358 |  |  |  | 177 |  |  |  | 251 |
|  |  |  |  | 24,926 |  |  |  | 26,914 |  |  |  | 25,867 |  |  |  | 77,151 |  |  |  | 65,251 |  |  |  | 91,196 |
XI |  | Paid up equity share capital (Face value ₹ 2 per share) |  |  | 11,426 |  |  |  | 11,426 |  |  |  | 9,050 |  |  |  | 11,426 |  |  |  | 9,050 |  |  |  | 12,068 |

1

XII |  | Reserves excluding revaluation reserves and Non-Controlling Interest as per balance sheet of previous accounting period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 556,048 |
XIII |  | Earnings per share (EPS) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | (Equity shares of par value of ₹ 2/- each) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | (EPS for the three and nine months ended period is not annualized) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Basic (in ₹) |  |  | 4.31 |  |  |  | 4.30 |  |  |  | 4.18 |  |  |  | 12.58 |  |  |  | 10.86 |  |  |  | 14.99 |
|  | Diluted (in ₹) |  |  | 4.30 |  |  |  | 4.29 |  |  |  | 4.17 |  |  |  | 12.55 |  |  |  | 10.83 |  |  |  | 14.95 |

1. | The audited consolidated financial results of the Company for the three and nine months ended December 31, 2019 have been approved by the Board of Directors of the Company at its meeting held on January 14, 2020. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued an audit report with unmodified opinion on the consolidated financial results.

2. | The above consolidated financial results have been prepared from the interim condensed consolidated financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).

3. | Adoption of IFRS 16 – Leases

On April 1, 2019, the Company has adopted IFRS 16, Leases, using modified retrospective method. Accordingly, the comparatives have not been retrospectively adjusted. The adoption of IFRS 16, did not have any material impact on the consolidated results for three months ended December 31, 2019, September 30, 2019 and nine months ended December 31, 2019.

4. | List of subsidiaries and investments accounted for using equity method as at December 31, 2019 are provided in the table below:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro, LLC |  |  |  |  |  | USA
|  | Wipro Gallagher Solutions, LLC |  |  |  | USA
|  |  |  | Opus Capital Markets Consultants, LLC |  | USA
|  |  |  | Wipro Promax Analytics Solutions Americas, LLC |  | USA
|  | Wipro Insurance Solutions, LLC |  |  |  | USA
|  | Wipro IT Services, LLC |  |  |  | USA
|  |  |  | HealthPlan Services, Inc. ** |  | USA
|  |  |  | Appirio, Inc. ** |  | USA
|  |  |  | Cooper Software, Inc. |  | USA
|  |  |  | Infocrossing, LLC |  | USA
|  |  |  | Wipro US Foundation |  | USA
|  |  |  | International TechneGroup Incorporated ** |  | USA
Wipro Overseas IT Services Pvt. Ltd |  |  |  |  |  | India
Wipro Japan KK |  |  |  |  |  | Japan
Wipro Shanghai Limited |  |  |  |  |  | China
Wipro Trademarks Holding Limited |  |  |  |  |  | India
Wipro Travel Services Limited |  |  |  |  |  | India
Wipro Holdings (UK) Limited |  |  |  |  |  | U.K.
|  | Wipro Digital Aps |  |  |  | Denmark
|  |  |  | Designit A/S ** |  | Denmark
|  | Wipro Europe Limited |  |  |  | U.K.
|  |  |  | Wipro UK Limited |  | U.K.
|  | Wipro Financial Services UK Limited |  |  |  | U.K.
|  | Wipro IT Services S.R.L. |  |  |  | Romania

2

Wipro IT Services SE (formerly Wipro Cyprus SE) |  |  |  |  |  | U.K.
|  | Wipro Doha LLC # |  |  |  | Qatar
|  | Wipro Technologies SA DE CV |  |  |  | Mexico
|  | Wipro Philippines, Inc. |  |  |  | Philippines
|  | Wipro Holdings Hungary Korlátolt Felelosségu Társaság |  |  |  | Hungary
|  |  |  | Wipro Holdings Investment Korlátolt Felelosségu Társaság |  | Hungary
|  | Wipro Information Technology Egypt SAE |  |  |  | Egypt
|  | Wipro Arabia Co. Limited * |  |  |  | Saudi Arabia
|  |  |  | Women’s Business Park Technologies Limited * |  | Saudi Arabia
|  | Wipro Poland SP Z.O.O |  |  |  | Poland
|  | Wipro IT Services Poland SP Z.O.O |  |  |  | Poland
|  | Wipro Technologies Australia Pty Ltd |  |  |  | Australia
|  | Wipro Corporate Technologies Ghana Limited |  |  |  | Ghana
|  | Wipro Technologies South Africa (Proprietary) Limited |  |  |  | South Africa
|  |  |  | Wipro Technologies Nigeria Limited |  | Nigeria
|  | Wipro IT Service Ukraine, LLC |  |  |  | Ukraine
|  | Wipro Information Technology Netherlands BV. |  |  |  | Netherlands
|  |  |  | Wipro Portugal S.A. ** |  | Portugal
|  |  |  | Wipro Technologies Limited |  | Russia
|  |  |  | Wipro Technology Chile SPA |  | Chile
|  |  |  | Wipro Solutions Canada Limited |  | Canada
|  |  |  | Wipro Information Technology Kazakhstan LLP |  | Kazakhstan
|  |  |  | Wipro Technologies W.T. Sociedad Anonima |  | Costa Rica
|  |  |  | Wipro Outsourcing Services (Ireland) Limited |  | Ireland
|  |  |  | Wipro Technologies VZ, C.A. |  | Venezuela
|  |  |  | Wipro Technologies Peru S.A.C. |  | Peru
|  |  |  | Wipro do Brasil Servicos de Tecnologia S.A. |  | Brazil
|  |  |  | Wipro do Brasil Technologia Ltda ** |  | Brazil
|  | Wipro Technologies SA |  |  |  | Argentina
|  | Wipro Technologies S.R.L. |  |  |  | Romania
|  | PT. WT Indonesia |  |  |  | Indonesia
|  | Wipro (Thailand) Co. Limited |  |  |  | Thailand
|  | Wipro Bahrain Limited Co. S.P.C. |  |  |  | Bahrain
|  | Wipro Gulf LLC |  |  |  | Sultanate of Oman
|  | Rainbow Software LLC |  |  |  | Iraq
|  | Cellent GmbH |  |  |  | Germany
|  |  |  | Cellent GmbH |  | Austria
Wipro Networks Pte Limited |  |  |  |  |  | Singapore
|  | Wipro (Dalian) Limited |  |  |  | China
|  | Wipro Technologies SDN BHD |  |  |  | Malaysia
Wipro Chengdu Limited |  |  |  |  |  | China
Wipro IT Services Bangladesh Limited |  |  |  |  |  | Bangladesh
Wipro HR Services India Private Limited |  |  |  |  |  | India

* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Co. Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited.

3

# | 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the Company.

The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa and Wipro Foundation in India

** | Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Designit A/S, HealthPlan Services, Inc, Appirio, Inc. and International TechneGroup Incorporated are as follows:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro Portugal S.A. |  |  |  |  |  | Portugal
|  | Wipro Technologies GmbH |  |  |  | Germany
Wipro do Brasil Technologia Ltda |  |  |  |  |  | Brazil
|  | Wipro Do Brasil Sistemetas De Informatica Ltd |  |  |  | Brazil
Designit A/S |  |  |  |  |  | Denmark
|  | Designit Denmark A/S |  |  |  | Denmark
|  | Designit Germany GmbH |  |  |  | Germany
|  | Designit Oslo A/S |  |  |  | Norway
|  | Designit Sweden AB |  |  |  | Sweden
|  | Designit T.L.V Ltd. |  |  |  | Israel
|  | Designit Tokyo Ltd. |  |  |  | Japan
|  | Designit Spain Digital, S.L |  |  |  | Spain
|  |  |  | Designit Colombia S A S |  | Colombia
|  |  |  | Designit Peru SAC |  | Peru
HealthPlan Services, Inc. |  |  |  |  |  | USA
|  | HealthPlan Services Insurance Agency, LLC |  |  |  | USA
International TechneGroup Incorporated |  |  |  |  |  | USA
|  | International TechneGroup Ltd. |  |  |  | U.K.
|  | ITI Proficiency Ltd |  |  |  | Israel
|  | IT S.R.L. |  |  |  | Italy
|  |  |  | Mech Works S.R.L. |  | Italy
Appirio, Inc. |  |  |  |  |  | USA
|  | Appirio, K.K |  |  |  | Japan
|  | Topcoder, LLC. |  |  |  | USA
|  | Appirio Ltd |  |  |  | Ireland
|  |  |  | Appirio GmbH |  | Germany
|  |  |  | Apprio Ltd (UK) |  | U.K.

As at December 31, 2019 the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim Group Management, LLC, accounted for using the equity method.

The list of controlled trusts are:

Name of the entity |  | Country of incorporation
Wipro Equity Reward Trust |  | India
Wipro Foundation |  | India

4

5. | Segment Information

The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals.

The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

IT Products: The Company is a value-added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.

India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by Government of India and/ or any State Governments.

The Chairman of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.

Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Information on reportable segment for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018, and nine months ended December 31, 2019 and December 31, 2018 and the year ended March 31, 2019 is as follows:

|  | Three months ended |  |  | Nine months ended |  |  | Year ended |
Particulars |  | December 31, 2019 |  |  | September 30, 2019 |  |  | December 31, 2018 |  |  | December 31, 2019 |  |  | December 31, 2018 |  |  | March 31, 2019 |
|  | Audited |  |  | Audited |  |  | Audited |  |  | Audited |  |  | Audited |  |  | Audited |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BFSI |  |  | 46,612 |  |  |  | 45,760 |  |  |  | 45,979 |  |  |  | 137,767 |  |  |  | 129,219 |  |  |  | 175,262 |
Health BU |  |  | 19,799 |  |  |  | 18,981 |  |  |  | 19,241 |  |  |  | 57,651 |  |  |  | 55,793 |  |  |  | 75,081 |
CBU |  |  | 25,443 |  |  |  | 23,530 |  |  |  | 22,875 |  |  |  | 71,339 |  |  |  | 65,646 |  |  |  | 89,313 |
ENU |  |  | 19,553 |  |  |  | 18,888 |  |  |  | 18,996 |  |  |  | 56,873 |  |  |  | 54,202 |  |  |  | 72,830 |
TECH |  |  | 18,584 |  |  |  | 19,148 |  |  |  | 19,104 |  |  |  | 56,392 |  |  |  | 58,189 |  |  |  | 76,591 |
MFG |  |  | 12,450 |  |  |  | 11,886 |  |  |  | 11,981 |  |  |  | 35,672 |  |  |  | 34,945 |  |  |  | 46,496 |
COMM |  |  | 8,565 |  |  |  | 8,368 |  |  |  | 8,480 |  |  |  | 25,387 |  |  |  | 24,394 |  |  |  | 32,680 |
Total of IT Services |  |  | 151,006 |  |  |  | 146,561 |  |  |  | 146,656 |  |  |  | 441,081 |  |  |  | 422,388 |  |  |  | 568,253 |
IT Products |  |  | 2,576 |  |  |  | 3,233 |  |  |  | 3,145 |  |  |  | 8,218 |  |  |  | 9,553 |  |  |  | 12,312 |
ISRE |  |  | 1,847 |  |  |  | 2,069 |  |  |  | 1,713 |  |  |  | 6,059 |  |  |  | 6,757 |  |  |  | 8,544 |
Reconciling Items |  |  | 3 |  |  |  | (16 | ) |  |  | (8 | ) |  |  | (60 | ) |  |  | (17 | ) |  |  | (49 | )
Total Revenue |  |  | 155,432 |  |  |  | 151,847 |  |  |  | 151,506 |  |  |  | 455,298 |  |  |  | 438,681 |  |  |  | 589,060 |
Other operating Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  | — |  |  |  | 50 |  |  |  | — |  |  |  | 749 |  |  |  | 2,798 |  |  |  | 4,344 |
Total Other Operating Income |  |  | — |  |  |  | 50 |  |  |  | — |  |  |  | 749 |  |  |  | 2,798 |  |  |  | 4,344 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BFSI |  |  | 8,246 |  |  |  | 8,407 |  |  |  | 9,095 |  |  |  | 25,988 |  |  |  | 24,182 |  |  |  | 33,831 |
Health BU |  |  | 3,186 |  |  |  | 2,863 |  |  |  | 1,973 |  |  |  | 8,978 |  |  |  | 6,698 |  |  |  | 8,638 |

5

CBU |  |  | 4,725 |  |  |  | 3,952 |  |  |  | 5,291 |  |  |  | 12,183 |  |  |  | 12,112 |  |  |  | 16,828 |
ENU |  |  | 3,130 |  |  |  | 3,084 |  |  |  | 3,613 |  |  |  | 8,410 |  |  |  | 4,294 |  |  |  | 7,081 |
TECH |  |  | 3,256 |  |  |  | 3,624 |  |  |  | 4,177 |  |  |  | 10,406 |  |  |  | 12,885 |  |  |  | 15,916 |
MFG |  |  | 2,385 |  |  |  | 2,439 |  |  |  | 2,391 |  |  |  | 6,916 |  |  |  | 6,065 |  |  |  | 8,327 |
COMM |  |  | 1,444 |  |  |  | 1,044 |  |  |  | 1,578 |  |  |  | 4,006 |  |  |  | 3,411 |  |  |  | 4,396 |
Unallocated |  |  | 1,360 |  |  |  | 1,044 |  |  |  | 976 |  |  |  | 3,124 |  |  |  | 1,981 |  |  |  | 3,142 |
Other Operating Income |  |  | — |  |  |  | 50 |  |  |  | — |  |  |  | 749 |  |  |  | 2,798 |  |  |  | 4,344 |
Total of IT Services |  |  | 27,732 |  |  |  | 26,507 |  |  |  | 29,094 |  |  |  | 80,760 |  |  |  | 74,426 |  |  |  | 102,503 |
IT Products |  |  | (140 | ) |  |  | 149 |  |  |  | 212 |  |  |  | (398 | ) |  |  | (954 | ) |  |  | (1,047 | )
ISRE |  |  | (528 | ) |  |  | (177 | ) |  |  | (686 | ) |  |  | (1,341 | ) |  |  | (1,054 | ) |  |  | (1,829 | )
Reconciling Items |  |  | 169 |  |  |  | 256 |  |  |  | 48 |  |  |  | 320 |  |  |  | 172 |  |  |  | 283 |
Total |  |  | 27,233 |  |  |  | 26,735 |  |  |  | 28,668 |  |  |  | 79,341 |  |  |  | 72,590 |  |  |  | 99,910 |
Finance Expense |  |  | (1,844 | ) |  |  | (2,247 | ) |  |  | (1,627 | ) |  |  | (5,675 | ) |  |  | (4,845 | ) |  |  | (7,375 | )
Finance and Other Income |  |  | 5,370 |  |  |  | 6,857 |  |  |  | 5,362 |  |  |  | 19,174 |  |  |  | 15,695 |  |  |  | 22,923 |
Share of net profit/ (loss) of associates accounted for using the equity method |  |  | 34 |  |  |  | (2 | ) |  |  | 7 |  |  |  | 16 |  |  |  | (26 | ) |  |  | (43 | )
Profit before tax |  |  | 30,793 |  |  |  | 31,343 |  |  |  | 32,410 |  |  |  | 92,856 |  |  |  | 83,414 |  |  |  | 115,415 |

Notes:

| a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate activities.

| b) | Revenue from sale of traded cloud-based licenses is reported as part of IT Services revenues.

| c) | For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues amounting to ₹727, ₹591 and ₹911 for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively, and ₹2,176 and ₹2,899 for the nine months ended December 31, 2019 and December 31, 2018, respectively and ₹3,215 for the year ended March 31, 2019, which is reported as a part of operating profit in the interim consolidated statement of income.

| d) | For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight-line amortization. The differential impact of accelerated amortization of stock compensation expense, over stock compensation expense allocated to the individual operating segments is reported in reconciling items.

| e) | The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

| f) | Other Operating income amounting to Nil, ₹50 and Nil is included as part of IT Services segment results for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively, and ₹749 and ₹2,798 for the nine months ended December 31, 2019 and December 31, 2018, respectively and ₹4,344 for the year ended March 31, 2019. Refer Note 6.

| g) | Segment results for ENU industry vertical for the nine months ended December 31, 2018 and year ended March 31, 2019, is after considering the impact of ₹5,141 ($75 million) paid to National Grid on settlement of a legal claim against the Company.

| h) | Segment results for Health BU industry vertical for the three and nine months ended December 31, 2018 and year ended March 31, 2019 is after considering the impact of ₹838 of impairment on certain intangible assets recognized on acquisitions.

| i) | Segment results for Health BU industry vertical for the year ended March 31, 2019 is after considering the impact of ₹1,480 of impairment on certain software platform recognized on acquisitions.

6. | Other operating income

Nine months ended December 31, 2019

During the period ended December 31, 2019, the Company concluded the sale of assets pertaining to Workday and Cornerstone OnDemand business in Portugal, France and Sweden. Gain arising from such transaction ₹152 has been recognized under Other operating income.

During the period ended December 31, 2019, the Company has partially met the first-year business targets pertaining to sale of data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement of the business targets amounting to ₹597 is recognized under Other operating income.

Nine months ended December 31, 2018

Sale of hosted data center services business: During the nine months ended December 31, 2018, the Company had concluded the divestment of its hosted data center services business. The calculation of the gain on sale is shown below:

Particulars |  | Total |
Cash considerations (net of disposal costs ₹660) |  | ₹ | 25,098 |
Less: Carrying amount of net assets disposed (including goodwill of ₹13,009) |  |  | (26,418 | )
Add: Reclassification of exchange difference on foreign currency translation |  |  | 4,131 |
Gain on sale |  | ₹ | 2,811 |

In accordance with the sale agreement, total cash consideration was ₹27,790 and the Company paid ₹3,766 to subscribe for units issued by the buyer. Units amounting to ₹2,032 are callable by the buyer if certain business targets committed by the Company are not met over a period of three years. The fair value of these callable units was estimated to be insignificant as at December 31, 2018. Consequently, the sale consideration accounted represents cash proceeds of ₹24,024 and units amounting to ₹1,734 issued by the buyer.

6

Loss of control in subsidiary: During the nine months ended December 31, 2018, the Company had reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.

For the Year ended March 31, 2019

Sale of hosted data center services business: During the year ended March 31, 2019, the Company had concluded the divestment of its hosted data center services business. The calculation of the gain on sale is shown below:

Particulars |  | Total |
Cash considerations (net of disposal costs ₹660) |  | ₹ | 25,432 |
Less: Carrying amount of net assets disposed (including goodwill of ₹13,009) |  |  | (26,455 | )
Add: Reclassification of exchange difference on foreign currency translation |  |  | 4,131 |
Gain on sale |  | ₹ | 3,108 |

In accordance with the sale agreement, total cash consideration was ₹28,124 and the Company paid ₹3,766 to subscribe for units issued by the buyer. Units amounting to ₹2,032 are callable by the buyer if certain business targets committed by the Company are not met over a period of three years. The fair value of these callable units was estimated to be insignificant as at March 31, 2019. Consequently, the sale consideration accounted represents cash proceeds of ₹24,358 and units amounting to ₹1,734 issued by the buyer.

Loss of control in subsidiary: During the year ended March 31, 2019, the Company has reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.

Sale of Workday and Cornerstone OnDemand business: During the year ended March 31, 2019, the Company had concluded the Sale of Workday and Cornerstone OnDemand business except in Portugal, France and Sweden. The calculation of the gain is as shown below:

Particulars |  | Total |
Cash considerations |  | ₹ | 6,645 |
Less: Carrying amount of net assets disposed (includes goodwill of ₹4,893 and intangible assets of ₹740) |  |  | 5,475 |
Add: Reclassification of exchange difference on foreign currency translation |  |  | 79 |
Gain on sale |  | ₹ | 1,249 |

These disposal groups do not constitute a major component of the Company and hence were not classified as discontinued operations.

7. | Business combinations:

During the period ended December 31, 2019, the Company has completed two business combinations (which individually are not material) for a total consideration of ₹6,533. These include (a) taking over customer contracts, leased facilities, assets and employees of Vara Infotech Private Limited and (b) acquisition of International TechneGroup Incorporated, a global digital engineering and manufacturing solutions Company. The following table presents the provisional purchase price allocation:

Description |  | Purchase price allocated |
Net assets |  | ₹ | 858 |
Customer related intangibles |  |  | 2,618 |
Marketing related intangibles |  |  | 102 |
Deferred tax liabilities on intangible assets |  |  | (213 | )
Total |  | ₹ | 3,365 |
Goodwill |  |  | 3,168 |
Total purchase price |  | ₹ | 6,533 |

Net assets acquired include ₹152 of cash and cash equivalents.

The goodwill of ₹3,168 comprises value of acquired workforce and expected synergies arising from the business combinations.

Goodwill is partially deductible for Indian income tax purpose.

The pro-forma effects of these business combinations on the Company’s results were not material.

7

8. | Events after the reporting period

The Board of Directors in their meeting held on January 14, 2020, declared an interim dividend of ₹1/- (US$ 0.01) per equity share and ADR (50% on an equity share of par value of ₹2/-)

By order of the Board, |  | For, Wipro Limited
Place: Bengaluru Date: January 14, 2020 |  | Rishad A Premji Chairman |  | Abidali Z Neemuchwala Chief Executive Officer & Managing Director

8