Wipro Limited Announces Results for the Quarter ended June 30 2022 under IFRS

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the q

By NewsOnFloor
Wipro Limited Announces Results for the Quarter ended June 30 2022 under IFRS

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2022.

Highlights of the Results

Results for the Quarter ended June 30, 2022:

  • Gross Revenue was Rs 215.3 billion ($2.7 billion1), an increase of 17.9% YoY
  • IT Services Segment Revenue was at $2,735.5 million, an increase of 13.3% YoY
  • Non-GAAP2 constant currency IT Services segment revenue increased by 2.1% QoQ and 17.2% YoY
  • IT Services Operating Margin3 for the quarter was at 15.0%, a decrease of 200 bps QoQ
  • Net Income for the quarter was Rs 25.6 billion ($324.4 million1) and Earnings Per Share for the quarter was at Rs 4.69 ($0.061)
  • Our closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ

Performance for the Quarter ended June 30, 2022

Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.”

Jatin Dalal, Chief Financial Officer said, “We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.”

Outlook for the quarter ending September 30, 2022

We expect Revenue from our IT Services business to be in the range of $2,817 million to $2,872 million*. This translates to a sequential growth of 3.0% to 5.0%.

*Outlook is based on the following exchange rates: GBP/USD at 1.25, Euro/USD at 1.06, AUD/USD at 0.72, USD/INR at 76.60 and CAD/USD at 0.77

IT Services

Wipro continued its momentum in winning large deals with our customers as described below:

  • A large, US-based healthcare company has selected Wipro for the consolidation and transformation of its Commercial Claims Operations. This strategic partnership will provide the client with significant savings through best-in-class execution, transformation, process remodelling, and automation.
  • The global leader in sustainable stainless steel, Outokumpu, has signed a five-year deal of Application Management Services with Wipro to drive agile and application cloud transformation.
  • Wipro has entered a five-year engagement with Insignia Financial Limited, an ASX-listed Top 200 company and one of Australia’s leading financial services providers. Through this partnership, Wipro and Insignia Financial will focus on delivering innovative solutions, including efficient processes around technology and operations capabilities, superior end-customer outcomes as well as cost optimization.
  • Wipro has won a multi-year engagement with a global communications agency to build their future model for ERP and digitization. Wipro's delivery centres in UK and India will build and scale operations to enhance the company’s capacity.
  • Wipro has won a multi-year contract with one of Australia's largest financial services firms to provide application and infrastructure support services. Wipro will support the client's technology transformation, improve efficiency and enhance customer experience. 

Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:

  • A leading Mobility Technology company has selected Wipro as an extension of their global engineering team to support them on the development of software defined vehicle applications.
  • A US-based multinational company has awarded Designit a managed services contract to provide a team of designers who will work with the company’s user experience team.
  • A global, athletic apparel and footwear company has selected Designit to re-imagine the customer experience and logistics of all its new retail store openings in North America.
  • A US-based multinational financial services corporation has selected Wipro to manage and transform the customer’s global application landscape with industry-leading practices and deliver enhanced consumer experiences.

 Analyst Recognition

  • Wipro was recognized as a Leader in the 2022 Gartner ® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
  • Wipro was recognized as a Leader in Everest Group's Healthcare Payer Digital Services and Life Sciences Operations PEAK Matrix® Assessment 2022
  • Wipro was named as a Leader in IDC MarketScape: Worldwide Intelligent Automation Services 2022 Vendor Assessment (Doc # US48061422, May 2022)
  • Wipro was recognized as a Leader in IDC MarketScape: Gulf Countries Cloud Professional Services 2022 Vendor Assessment (Doc # META47590721, May 2022)
  • Wipro was positioned as a Leader in multiple quadrants in ISG Provider Lens™ - Salesforce Ecosystem Partners 2022 - Germany and US
  • Wipro is recognized amongst the top ten service providers in Whitelane IT Sourcing Study 2022 - UK
  • Wipro was rated as a Leader in Avasant Retail Digital and Banking Digital Services RadarView™ 2022 - 2023
  • Wipro was rated as a Leader in Avasant Salesforce, Internet of Things, Risk and Compliance, Cybersecurity and Banking Process Transformation Services RadarView™ 2022
  • Wipro was recognized as a Leader in Avasant Multisourcing Service Integration RadarView™ 2021 - 2022
  • Wipro was recognized as a Leader in Avasant Applied AI and Advanced Analytics Services RadarView™ 2021

 Disclaimer: Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Sanjay Champaneri, et al, 27 June 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner's research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

IT Products

  • IT Products segment revenue for the quarter was Rs 1.9 billion ($24.6 million1)
  • IT Products segment results for the quarter was a loss of Rs 0.06 billion ($0.70 million1)

 India business from State Run Enterprises (ISRE)

  • India SRE segment revenue for the quarter was Rs 1.5 billion ($19.3 million1)
  • India SRE segment results for the quarter was a profit of Rs 0.17 billion ($2.2 million1)

 Please refer to the table at the end for reconciliation between 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 at the end provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial 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 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. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.

This non-GAAP financial measure is 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 this non-GAAP measure, 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.

Results for the Quarter ended June 30, 2022, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com

Quarterly Conference Call

We will hold an earnings conference call today at 07:30 p.m. Indian Standard Time (10:00 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a web-cast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP220720

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

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With over 240,000 employees and business partners across 66 countries, we deliver on the promise of helping our customers, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com

Forward-Looking 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, complete proposed corporate actions, 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.

  1. For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = Rs 79.02, as published by the Federal Reserve Board of Governors on June 30, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2022 was US$1= Rs 77.81
  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
  3. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
(Rs in millions, except share and per share data, unless otherwise stated)
      As at March 31, 2022   As at June 30, 2022
              Convenience translation into US dollar in millions
Refer footnote 1
Goodwill     246,989    296,126    3,747 
Intangible assets     43,555    49,199    623 
Property, plant and equipment     90,898    91,676    1,160 
Right-of-Use assets     18,870    18,789    238 
Financial assets              
Derivative assets          ^
Investments      19,109    21,336    270 
Trade receivables      4,765    4,565    58 
Other financial assets     6,084    6,340    80 
Investments accounted for using the equity method     774    791    10 
Deferred tax assets     2,298    3,848    49 
Non-current tax assets     10,256    10,237    130 
Other non-current assets     14,826    14,898    189 
Total non-current assets     458,430    517,807    6,554 
Inventories     1,334    1,678    21 
Financial assets              
Derivative assets     3,032    3,678    47 
Investments     241,655    226,564    2,867 
Cash and cash equivalents     103,836    82,828    1,048 
Trade receivables     115,219    127,312    1,611 
Unbilled receivables     60,809    66,640    843 
Other financial assets     42,914    12,969    164 
Contract assets     20,647    24,969    316 
Current tax assets     2,373    3,734    47 
Other current assets     28,933    34,701    439 
Total current assets     620,752    585,073    7,403 
TOTAL ASSETS     1,079,182    1,102,880    13,957 
Share capital     10,964    10,965    139 
Share premium     1,566    1,658    21 
Retained earnings     551,252    576,094    7,290 
Share-based payment reserve     5,258    6,410    81 
Special Economic Zone re-investment reserve     47,061    47,992    607 
Other components of equity     42,057    43,772    554 
Equity attributable to the equity holders of the Company     658,158    686,891    8,692 
Non-controlling interests     515    415   
TOTAL EQUITY     658,673    687,306    8,697 
Financial liabilities              
Loans and borrowings      56,463    58,862    745 
Lease liabilities      15,177    15,033    190 
Derivative liabilities      48    146   
Other financial liabilities      2,961    2,504    32 
Deferred tax liabilities      12,141    14,062    179 
Non-current tax liabilities      17,818    16,237    205 
Other non-current liabilities      7,571    8,244    104 
Provisions       1    ^   ^
Total non-current liabilities     112,180    115,088    1,457 
Financial liabilities              
Loans, borrowings and bank overdrafts      95,233    115,330    1,460 
Lease liabilities      9,056    8,652    109 
Derivative liabilities      585    5,022    64 
Trade payables and accrued expenses      99,034    88,480    1,120 
Other financial liabilities      33,110    6,081    77 
Contract liabilities      27,915    26,377    334 
Current tax liabilities      13,231    21,105    267 
Other current liabilities      27,394    26,872    340 
Provisions      2,771    2,567    32 
Total current liabilities     308,329    300,486    3,803 
TOTAL LIABILITIES     420,509    415,574    5,260 
TOTAL EQUITY AND LIABILITIES     1,079,182    1,102,880    13,957 


^ Value is less than 1  



(Rs in millions, except share and per share data, unless otherwise stated)
      Three months ended June 30,
      2021   2022   2022
              Convenience translation into US dollar in millions
Refer footnote 1
Revenues     182,524    215,286    2,724 
Cost of revenues     (127,567)   (155,600)   (1,969)
Gross profit     54,957    59,686    755 
Selling and marketing expenses     (13,017)   (15,359)   (194)
General and administrative expenses     (10,530)   (13,471)   (170)
Foreign exchange gains/(losses), net     1,160    1,034    13 
Other operating income     2,150    -   -
Results from operating activities     34,720    31,890    404 
Finance expenses     (746)   (2,045)   (26)
Finance and other income     4,619    3,690    47 
Share of net profit/ (loss) of associates accounted for using the equity method       (15)   ^
Profit before tax     38,600    33,520    425 
Income tax expense     (6,225)   (7,931)   (100)
Profit for the period     32,375    25,589    325 
Profit attributable to:              
Equity holders of the Company     32,321    25,636    326 
Non-controlling interests      54    (47)   (1)
Profit for the period     32,375    25,589    325 
Earnings per equity share:              
Attributable to equity holders of the Company              
Basic     5.92    4.69    0.06 
Diluted     5.90    4.67    0.06 
Weighted average number of equity shares              
used in computing earnings per equity share              
Basic     5,462,996,981    5,471,449,783    5,471,449,783 
Diluted     5,476,992,662    5,485,057,994    5,485,057,994 
^ Value is less than 1              

 Additional Information:

Particulars Three months ended  Year ended
June 30,
March 31,
June 30,
31, 2022
Audited Audited Audited Audited
IT Services        
Americas 1 61,702  58,342  49,683  217,874 
Americas 2 66,613  63,963  55,105  239,404 
Europe 60,276  60,743  54,461  233,443 
APMEA 24,257  23,560  21,232  91,103 
Total of IT Services 212,848  206,608  180,481  781,824 
IT Products 1,946  1,201  1,311  6,173 
ISRE 1,526  1,868  1,937  7,295 
Reconciling Items - (2) (45) (3)
Total Revenue 216,320  209,675  183,684  795,289 
Other operating income        
IT Services - 2,150  2,186 
Total Other operating income - 2,150  2,186 
Segment Result        
IT Services        
Americas 1 11,030  11,530  9,379  42,820 
Americas 2 12,454  12,150  11,350  47,376 
Europe 7,374  9,056  8,325  35,739 
APMEA 1,604  1,946  3,066  10,523 
 Unallocated (630) 361  56  434 
Other operating income - 2,150  2,186 
Total of IT Services 31,832  35,050  34,326  139,078 
IT Products (55) (22) (53) 115 
ISRE 173  171  475  1,173 
Reconciling Items (60) (88) (28) (80)
Total Segment result 31,890  35,111  34,720  140,286 
Finance expenses (2,045) (1,717) (746) (5,325)
Finance and Other Income 3,690  3,946  4,619  16,257 
Share of net profit/ (loss) of associates accounted for using the equity method (15) (16) 57 
Profit before tax 33,520  37,324  38,600 


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

IT Services: As announced on November 12, 2020, effective January 1, 2021, the Company re-organized IT Services segment to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).

Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.

Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM"). Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada. Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.

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 the Government of India and/ or any State Governments.

Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn)

Three Months ended June 30, 2022
IT Services Revenue as per IFRS                                                          $          2,735.5                       
Effect of Foreign currency exchange movement                              $               43.9
Non-GAAP Constant Currency IT Services Revenue based on       $            2,779.4
previous quarter exchange rates                   

Three Months ended June 30, 2022
IT Services Revenue as per IFRS                                                         $            2,735.5
Effect of Foreign currency exchange movement                             $                 93.7
Non-GAAP Constant Currency IT Services Revenue based on      $            2,829.3
exchange rates of comparable period in previous year  

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