$WIPRO #ConferenceCall--Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting St...
Large Deal Bookings at $1.2 billion.
IT Services Margin expands 0.4% YoY. EPS increases 9.9% YoY.
Operating cash flows at 131.6% of net income.
EAST BRUNSWICK, N.J. & BANGALORE, India: $WIPRO #ConferenceCall--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, 2024.
Highlights of the Results
Results for the Quarter ended June 30, 2024:
Outlook for the Quarter ending September 30, 2024
We expect revenue from our IT Services business segment to be in the range of $2,600 million to $2,652 million*. This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms.
* Outlook for the Quarter ending September 30, 2024, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.08, AUD/USD at 0.66, USD/INR at 83.27 and CAD/USD at 0.73
Performance for the Quarter ended June 30, 2024
Srini Pallia, CEO and Managing Director, said, “We recorded another quarter of total large deal bookings over $1 bn, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and preparing our workforce for an AI-first future.”
Aparna Iyer, Chief Financial Officer, said, “We continued to expand our margins to 16.5% in Q1’25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10% YoY. Our operating cash flows continue to be strong at 131.6% of our net income which takes our current investment and cash balance to $5.4 billion.”
Highlights of Strategic Deal Wins
In the first quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
Analyst Recognition
Source & Disclaimer: *Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Jan Ambergen, et al, 21 May 2024.
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IT Products
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 Key Metrics and Non-GAAP Financial Measures
This press release contains key metrics and 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.
Our key metrics and non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS and may be different from non-GAAP measures used by other companies. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our non-GAAP measures, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.
Results for the Quarter ended June 30, 2024, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com/investors/
Quarterly Conference Call
We will hold an earnings conference call today at 07:00 p.m. Indian Standard Time (9:30 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 webcast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP19072024
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 230,000 employees and business partners across 65 countries, we deliver on the promise of helping our clients, 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, the benefits its customers experience 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.
WIPRO LIMITED AND SUBSIDIARIES | |||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
(Rs in millions, except share and per share data, unless otherwise stated) | |||||||
| As at March 31, 2024 | As at June 30, 2024 | |||||
Convenience translation | |||||||
ASSETS | |||||||
Goodwill |
| 316,002 | 316,054 | 3,793 | |||
Intangible assets |
| 32,748 | 30,971 | 372 | |||
Property, plant and equipment |
| 81,608 | 79,957 | 960 | |||
Right-of-Use assets |
| 17,955 | 19,233 | 231 | |||
Financial assets |
| ||||||
Derivative assets |
| 25 | - | - | |||
Investments |
| 21,629 | 21,262 | 255 | |||
Trade receivables |
| 4,045 | 584 | 7 | |||
Other financial assets |
| 5,550 | 5,290 | 63 | |||
Investments accounted for using the equity method |
| 1,044 | 999 | 12 | |||
Deferred tax assets |
| 1,817 | 1,752 | 21 | |||
Non-current tax assets |
| 9,043 | 9,453 | 113 | |||
Other non-current assets |
| 10,331 | 11,656 | 140 | |||
Total non-current assets |
| 501,797 | 497,211 | 5,967 | |||
Inventories |
| 907 | 912 | 11 | |||
Financial assets |
| ||||||
Derivative assets |
| 1,333 | 1,359 | 16 | |||
Investments |
| 311,171 | 351,917 | 4,223 | |||
Cash and cash equivalents |
| 96,953 | 98,304 | 1,180 | |||
Trade receivables |
| 115,477 | 114,071 | 1,369 | |||
Unbilled receivables |
| 58,345 | 61,720 | 741 | |||
Other financial assets |
| 10,536 | 9,050 | 109 | |||
Contract assets |
| 19,854 | 19,414 | 233 | |||
Current tax assets |
| 6,484 | 6,031 | 72 | |||
Other current assets |
| 29,602 | 30,827 | 370 | |||
Total current assets |
| 650,662 | 693,605 | 8,324 | |||
| |||||||
TOTAL ASSETS |
| 1,152,459 | 1,190,816 | 14,291 | |||
| |||||||
EQUITY | |||||||
Share capital |
| 10,450 | 10,460 | 126 | |||
Share premium |
| 3,291 | 5,512 | 66 | |||
Retained earnings |
| 630,936 | 661,495 | 7,938 | |||
Share-based payment reserve |
| 6,384 | 5,498 | 66 | |||
Special Economic Zone re-investment reserve |
| 42,129 | 41,602 | 499 | |||
Other components of equity |
| 56,693 | 55,526 | 666 | |||
Equity attributable to the equity holders of the Company |
| 749,883 | 780,093 | 9,361 | |||
Non-controlling interests |
| 1,340 | 1,669 | 20 | |||
TOTAL EQUITY |
| 751,223 | 781,762 | 9,381 | |||
| |||||||
LIABILITIES | |||||||
Financial liabilities |
| ||||||
Loans and borrowings |
| 62,300 | 62,317 | 748 | |||
Lease liabilities |
| 13,962 | 16,191 | 194 | |||
Derivative liabilities |
| 4 | - | - | |||
Other financial liabilities |
| 4,985 | 5,747 | 69 | |||
Deferred tax liabilities |
| 17,467 | 17,231 | 207 | |||
Non-current tax liabilities |
| 37,090 | 37,238 | 447 | |||
Other non-current liabilities |
| 12,970 | 13,879 | 167 | |||
Total non-current liabilities |
| 148,778 | 152,603 | 1,832 | |||
Financial liabilities |
| ||||||
Loans, borrowings and bank overdrafts |
| 79,166 | 82,283 | 987 | |||
Lease liabilities |
| 9,221 | 8,115 | 9 Related newsLast NewsSparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Dronus gets a strategic investment by Eni NextEni's VC company invest in the Italian drone company to develop new solutions for industrial plants monitoring Technology Reply wins the 2024 Oracle Partner Awards - Europe South InnovationOracle recognizes Technology Reply’s ability to develop and deliver pioneering solutions through partnering with Oracle 25 Italian Startups Will Be Present at Expand North Star 2024Scheduled for October, the world's largest startup event will bring together more than 2,000 exhibitors in Dubai, UAE Most readJenzabar One Named a Leader in IDC MarketScape for North America Higher…Jenzabar, Inc., a leading technology innovator in higher education, today announced that Jenzabar One was named a Leader in the IDC MarketScape: North… Audit & Beyond Hosts Record Number of Attendees, Includes Launch of Powerful…2024 AUDIT & BEYOND CONFERENCE — AuditBoard, the leading cloud-based platform transforming audit, risk, compliance, and ESG management, wrapped up… 24 Promising Korean Tech Companies at TechCrunch Disrupt 2024TechCrunch Disrupt 2024 will feature cutting-edge technology from 24 tech startups from South Korea. The Korea Pavilion is presented by Korea Trade-Investment… University of Phoenix Launches New Career-Focused Skill Pathways in Practical…In response to the growing demand for AI skills in the workforce, University of Phoenix is excited to announce the launch of new career-focused skill… G11 Media Networks |