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 Wipro Limited: Results for the Quarter and Year Ended March 31, 2015 Under IFRS
   Tuesday, April 21, 2015 12:37:00 PM ET

Wipro Limited (WIT ) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2015.

Highlights of the Results

Results for the Year ended March 31, 2015:

-- Total Revenues were Rupees 469.5 billion ($7.5 billion1), an increase of 8% YoY.

-- Net Income2 was Rupees 86.5 billion ($1.4 billion1), an increase of 11% YoY.

-- Wipro declared a final dividend of Rupees 7 ($0.11) per share/ADS, taking the total dividend declared for the year 2014-15 to Rupees 12 ($0.19) per share/ADS.

-- IT Services Revenue was $7,081.6 million, a YoY increase of 7.0%.

-- Non-GAAP Constant Currency IT Services Revenue in dollar terms grew 8.7% to $7,190.6 million.

-- IT Services Segment Revenues in Rupee terms was Rupees 440.2 billion ($7.1 billion1), an increase of 10% YoY.

-- IT Services Segment Result was Rupees 97.6 billion ($1.6 billion1), an increase of 8% YoY.

-- IT Services Margins for the year was 22.2%.

Results for the Quarter ended March 31, 2015:

-- Total Revenues were Rupees 121.4 billion ($1.9 billion1), an increase of 4% YoY.

-- Net Income2 was Rupees 22.7 billion ($366 million1), an increase of 2% YoY.

-- Non-GAAP constant currency IT Services Revenue in dollar terms grew 1.2% to $1,817.8 million, within our guidance range of $1,814 million to $1,850 million.

-- IT Services Revenue was $1,774.5 million, a sequential decrease of 1.2% and YoY increase of 3.2%.

-- IT Services Segment Revenues in Rupee terms was Rupees 112.4 billion ($1.8 billion1), an increase of 6% YoY.

-- IT Services Segment Result was Rupees 24.8 billion ($398 million1), a decrease of 5% YoY.

-- IT Services Margins was 22.0%, an expansion of 23 bps sequentially.

Performance for the quarter and year ended March 31, 2015

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said, "We continue to execute on our strategy and have achieved improved customer satisfaction through better articulated solutions and improved delivery. We are well-positioned to take advantage of the opportunities in the market, while tackling headwinds in certain areas. We see Digital, Open Source and Artificial Intelligence as key levers for driving business change and reshaping the delivery model for the future."

Jatin Dalal, Chief Financial Officer of Wipro, said - "We continue to maintain our focus on operational improvements and productivity enhancements. This has resulted in margin expansion despite adverse cross-currency movements."

Outlook for the Quarter ending June 30, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,765 million to $ 1,793 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.49, Euro/USD at 1.07, AUD/USD at 0.77, USD/INR at 62.10 and USD/CAD at 1.27

IT Services

The IT Services segment had a headcount of 158,217 as of March 31, 2015. We added 65 new customers during the quarter.

Wipro continued its momentum in winning Large Deals globally as listed below:

Wipro Limited has won a multi-year engagement with Allied Irish Bank in Ireland for managing their core datacenter infrastructure. The engagement includes end-to-end management of mainframe and distributed systems and will enable the bank to provide high availability services to its end customers. Wipro is setting up its ServiceNXT(TM) Delivery Center in Dublin to cater to the near-shore requirements of this program and also add to its existing portfolio of global delivery centers.

Wipro has signed a five-year agreement with Symetra Life Insurance Company, a leader in retirement benefits and life products, to provide a range of IT Infrastructure services. Wipro’s services will include hosting and servicing of mainframe and server environments, service desk and other technologies at the company’s data centers.

A leading global apparel and footwear company has engaged Wipro to transform their End User Services, Network and Distributed Computing platforms in addition to expanding their IT applications portfolio. As the customer organization grows its lifestyle brands, this strategic initiative will be the global backbone for operational excellence with a high degree of automation, real-time analytics, self-help and self-heal.

Wipro has won an integrated Applications and Infrastructure deal with T-Mobile Polska S.A. In this strategic partnership spanning 5 years, Wipro would help T-Mobile systemize and standardize the IT architecture and operations of their Poland entity.

Wipro has been chosen as the engineering partner by a leading global technology company for establishing a shared services team, to support testing and maintenance of its core platform products. As part of this multi-year engagement, Wipro will leverage its product engineering capabilities to bring about process agility, faster delivery, enhanced quality and year-on-year efficiency gains for the customer.

A global manufacturing major has engaged Wipro in a multi-year and multi-million dollar workplace transformation and support program. As part of this engagement, Wipro will leverage its workplace transformation framework and automation tools to help enhance end-user experience and productivity for the manufacturing company.

Cloud highlights

Wipro’s Cloud business continued to build significant momentum in the applications and infrastructure areas. We have expanded our cloud applications business into new geographies with deal wins that include a leading Australian banking and insurance provider and a leading energy provider in Canada. Wipro’s ServiceNXT(TM) Cloud Operations Center has been selected for hosting and providing managed services for affiliate/partner applications by a global cigarette and tobacco company and for customer care and billing platform of a global telecom company. Wipro has also been selected as a strategic Cloud partner for the assessment and migration of 3000+ web-based applications for a large US-based multinational bank.

OpenSource highlights

Wipro’s Open Source practice continued to gain traction with customers in the areas of Middleware, Cloud, Analytics, Big Data, API (Application Program Interface) and Operating Systems across industries. Some marquee wins in Q4 include building treasury, budgeting, financial operations and MIS systems for a government organization, middleware integration for a global retail giant and migration of applications from a proprietary platform to an Open Source application server for a global investment bank.

Awards and accolades

Wipro was positioned in the ’Winner’s Circle’ of the HfS Blueprint Report on Enterprise Analytics Services 2015. Wipro’s Vertical expertise, Big Data Analytics capabilities and collaborative approach with clients, have been called out as key areas of strength in the report.

Wipro has been positioned amongst ’Leaders’ by Everest Group in their PEAK MatrixTM assessment 2015 on Record-to-Report (R2R) BPO Service provider within Finance & Accounting Outsourcing. This report examines multiple aspects of the R2R BPO market. It focuses on each service provider’s position on the Everest Group Performance, Experience, Ability and Knowledge (PEAK) Matrix while assessing their capabilities on the dimensions of market success, scale, scope, delivery capability, technology solution, and buyer satisfaction. The report also encompasses analysis of R2R BPO landscape and key solution characteristics.

Wipro was recognized by the Ethisphere Institute, as a 2015 World’s Most Ethical Company? for the fourth consecutive year. The World’s Most Ethical Companies designation recognizes those organizations that have had a material impact on the way business is operated. Wipro is one of only three companies in the Information Technology Services industry honored this year.

IT Products

-- Our IT Products Segment delivered Revenue of Rupees 9.5 billion ($152 million1) for the quarter ended March 31, 2015, a sequential growth of 22%.

-- IT Products Segment results for the quarter ended March 31, 2015 was Rupees 58 million ($1 million1).

-- Revenue for the year ended March 31, 2015 was Rupees 34.0 billion ($546 million1) a degrowth of 12% YoY.

-- Segment Results for the year ended March 31, 2015 was Rupees 374 million ($6 million1).

-- IT Products Revenues for the fiscal year ended March 31, 2014 included sales of Wipro branded desktops, laptops and servers which Wipro ceased manufacturing in the quarter ended December 31, 2013.

Please refer the table on page 7 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 on page 7 provides 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 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.

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 and year ended March 31, 2015, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website

Quarterly Conference Call

We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (09:45 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

About Wipro Limited (WIT )

Wipro Ltd. (WIT ) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 150,000, serving clients in 175+ cities across 6 continents.

For more information, please visit

Contact for Investor Relations                        Contact for Media & Press
Aravind V S                   Vaibhav Saha            Vipin Nair
Phone:  +91-80-2505 6186      Phone:+1 732-509-1362   Phone: +91-80-3991-6154

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, 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 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 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 March 31, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= Rupees 62.31. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2015 was US$1= Rupees 63.35
2 Refers to ’Profit for the period attributable to equity holders of the company’
Wipro limited and subsidiaries
(Rupees in millions, except share and per share data, unless otherwise stated)
                                                           As of March 31,  As of March 31,
                                                           2014             2015       2015
                                                                                       translation into US
                                                                                       dollar in millions
                                                                                       (unaudited) Refer Note
Goodwill                                                   63,422           68,078     1,093
Intangible assets                                          1,936            7,931      127
Property, plant and equipment                              51,449           54,206     870
Derivative assets                                          286              736        12
Available for sale investments                             2,676            3,867      62
Non-current tax assets                                     10,192           11,409     183
Deferred tax assets                                        3,362            2,945      47
Other non-current assets                                   14,295           14,369     231
Total non-current assets                                   147,618          163,541    2,625
Inventories                                                2,293            4,849      78
Trade receivables                                          85,392           91,531     1,469
Other current assets                                       39,474           73,359     1,177
Unbilled revenues                                          39,334           42,338     679
Available for sale investments                             60,557           53,908     865
Current tax assets                                         9,774            6,490      104
Derivative assets                                          3,661            5,077      81
Cash and cash equivalents                                  114,201          158,940    2,551
Total  current assets                                      354,686          436,492    7,004
TOTAL ASSETS                                               502,304          600,033    9,629
Share capital                                              4,932            4,937      79
Share premium                                              12,664           14,031     225
Retained earnings                                          314,952          372,248    5,974
Share based payment reserve                                1,021            1,312      21
Other components of equity                                 10,472           15,454     248
Shares held by controlled trust                            (542)            -          -
Equity attributable to the equity holders of the company   343,499          407,982    6,547
Non-controlling interest                                   1,387            1,646      26
Total equity                                               344,886          409,628    6,573
Long - term loans and borrowings                           10,909           12,707     204
Deferred tax liabilities                                   1,796            3,240      52
Derivative liabilities                                     629              71         1
Non-current tax liability                                  3,448            6,695      107
Other non-current liabilities                              4,478            3,658      59
Provisions                                                 6                5          -
Total non-current liabilities                              21,266           26,376     423
Loans and borrowings and bank overdrafts                   40,683           66,206     1,063
Trade payables and accrued expenses                        51,917           58,745     945
Unearned revenues                                          12,767           16,549     264
Current tax liabilities                                    12,482           8,036      129
Derivative liabilities                                     2,504            753        12
Other current liabilities                                  14,429           12,223     196
Provisions                                                 1,370            1,517      24
Total current liabilities                                  136,152          164,029    2,633
TOTAL LIABILITIES                                          157,418          190,405    3,056
TOTAL EQUITY AND LIABILITIES                               502,304          600,033    9,629
Wipro limited and subsidiaries
(Rupees in millions, except share and per share data, unless otherwise stated)
                                                    Three Months ended March 31,                                                                            Year ended March 31,
                                                    2014                      2015          2015                                                            2014           2015          2015
                                                                                            Convenience translation into US dollar in millions (unaudited)                               Convenience translation into US dollar in millions (unaudited)
Gross revenues                                      116,535                   121,420       1,949                                                           434,269        469,545       7,536
Cost of revenues                                    (77,700)                  (82,609)      (1,326)                                                         (295,488)      (321,284)     (5,156)
Gross profit                                        38,835                    38,811        623                                                             138,781        148,261       2,380
Selling and marketing expenses                      (7,025)                   (7,916)       (127)                                                           (29,248)       (30,625)      (491)
General and administrative expenses                 (6,510)                   (6,633)       (106)                                                           (23,538)       (25,850)      (415)
Foreign exchange gains/(losses), net                510                       294           5                                                               3,359          3,637         58
Results from operating activities                   25,810                    24,556        395                                                             89,354         95,423        1,532
Finance expenses                                    (842)                     (912)         (15)                                                            (2,891)        (3,599)       (58)
Finance and other income                            3,959                     5,476         88                                                              14,542         19,859        319
Profit before tax                                   28,927                    29,120        468                                                             101,005        111,683       1,793
Income tax expense                                  (6,536)                   (6,255)       (100)                                                           (22,600)       (24,624)      (395)
Profit for the period                               22,391                    22,865        368                                                             78,405         87,059        1,398
Attributable to:
Equity holders of the company                       22,265                    22,720        366                                                             77,967         86,528        1,389
Non-controlling interest                            126                       145           2                                                               438            531           9
Profit for the period                               22,391                    22,865        368                                                             78,405         87,059        1,398
Earnings per equity share:
Attributable to equity share holders of the company
Basic                                               9.07                      9.25          0.15                                                            31.76          35.25         0.57
Diluted                                             9.04                      9.21          0.15                                                            31.66          35.13         0.56
Weighted average number of equity shares used in
computing earnings per equity share
Basic                                               2,455,543,231             2,456,575,761 2,456,575,761                                                   2,454,745,434  2,454,681,650 2,454,681,650
Diluted                                             2,462,876,367             2,465,876,236 2,465,876,236                                                   2,462,626,739  2,462,579,161 2,462,579,161
Additional Information
Segment Revenue
IT Services Business Units
BFSI                                                28,468                    29,852        479                                                             106,035        115,505       1,854
HLS                                                 11,275                    13,171        211                                                             41,130         49,884        801
RCTG                                                15,412                    16,258        261                                                             58,893         62,209        998
ENU                                                 17,173                    17,437        280                                                             63,923         71,229        1,143
MFG                                                 19,095                    20,582        330                                                             74,423         80,303        1,289
GMT                                                 14,770                    15,117        243                                                             55,105         61,050        980
IT SERVICES TOTAL                                   106,193                   112,417       1,804                                                           399,509        440,180       7,064
IT PRODUCTS                                         11,090                    9,454         152                                                             38,785         34,006        546
RECONCILING ITEMS                                   (238)                     (157)         (3)                                                             (666)          (1,004)       (16)
TOTAL                                               117,045                   121,714       1,953                                                           437,628        473,182       7,594
Segment Result
IT Services Business Units
BFSI                                                7,005                     7,474         120                                                             24,153         27,378        439
HLS                                                 2,482                     3,031         49                                                              7,637          10,565        170
RCTG                                                4,048                     3,542         57                                                              13,012         13,190        212
ENU                                                 4,887                     4,078         65                                                              17,418         17,561        282
MFG                                                 4,909                     4,497         72                                                              17,348         17,127        275
GMT                                                 3,332                     2,878         46                                                              11,569         13,574        218
OTHERS                                                                        -             -                                                                              583           10
UNALLOCATED                                         (609)                     (723)         (12)                                                            (804)          (2,329)       (37)
TOTAL IT SERVICES                                   26,054                    24,777        398                                                             90,333         97,649        1,568
IT PRODUCTS                                         143                       58            1                                                               310            374           6
RECONCILING ITEMS                                   (387)                     (279)         (4)                                                             (1,289)        (2,600)       (42)
TOTAL                                               25,810                    24,556        395                                                             89,354         95,423        1,532
FINANCE EXPENSE                                     (842)                     (912)         (15)                                                            (2,891)        (3,599)       (58)
FINANCE AND OTHER INCOME                            3,959                     5,476         88                                                              14,542         19,859        319
PROFIT BEFORE TAX                                   28,927                    29,120        468                                                             101,005        111,683       1,793
INCOME TAX EXPENSE                                  (6,536)                   (6,255)       (100)                                                           (22,600)       (24,624)      (395)
PROFIT FOR THE PERIOD                               22,391                    22,865        368                                                             78,405         87,059        1,398
Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within "Finance and other income" in the statement of Income.
The Company is organized by the following operating segments; IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT Service offerings to our customers organized by industry verticals as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing (MFG), Global Media and Telecom (GMT). Starting with quarter ended September 30, 2014, it also includes Others which comprises dividend income and gains or losses (net) relating to strategic investments, which are presented within "Finance and other income" in the statement of Income. Key service offering 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.
The IT Products segment sells a range of Wipro personal desktop computers, Wipro servers and Wipro notebooks. The Company is also 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. During the fiscal year ended March 31, 2014 the Company ceased the manufacturing of ’Wipro branded desktops, laptops and servers’. Revenue relating to the above items is reported as revenue from the sale of IT Products.
Reconciliation  of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)
Three Months ended March 31,2015                                                                                                                                                                                                                                                                                                                                              Year ended March 31, 2015
IT Services Revenue as per IFRS                                                            $           1,775                                                                           IT Services Revenue as per IFRS                                                             $            1,775                                                                         IT Services Revenue as per IFRS                                                              $           7,082
Effect of Foreign currency exchange movement                                               $                43                                                                         Effect of Foreign currency exchange movement                                                $                 90                                                                       Effect of Foreign currency exchange movement                                                 $              109
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates    $           1,818                                                                           Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates        $            1,865                                                                         Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates         $           7,191

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SOURCE Wipro Limited

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