Wipro announces fourth quarter and year end results, delivers record total bookings
East brunswick, n.j. & bangalore, india--(business wire)--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 and year ended march 31, 2023. highlights of the results results for the quarter ended march 31, 2023: results for the year ended march 31, 2023: performance for the quarter and year ended march 31, 2023 thierry delaporte, ceo and managing director, said, “we closed fy23 with the strongest-ever bookings recorded in a year. we delivered two consecutive quarters of total bookings of over $4.1 billion. our large deal order booking grew by 155% year-over-year for the quarter. we are also pleased to announce our share buyback, which is part of our philosophy to deliver consistent returns to shareholders. “compared to just a few years ago, we are seeing a visible change in the structure of our deals and our market position. we are winning large transformation deals, benefitting from a consolidating market, and deepening relationships with existing clients.” “we have built a strong foundation to sustain through this period of increased uncertainty. we have the growth mindset, right organizational structure, and the talent for long-term success.” jatin dalal, chief financial officer, said, “we continue to maintain our focus on operational improvements and productivity enhancements which led to our it services margin exit at 16.3% in q4 despite macro headwinds. we generated strong operating cash flows at 121% of our net income for the quarter.” outlook for the quarter ending june 30, 2023 we expect revenue from our it services business including india state run enterprise (isre) segment to be in the range of $2,753 million to $2,811 million*. this translates to sequential guidance of -3.0% to -1.0% in constant currency terms. * outlook for the quarter ending june 30, 2023, is based on the following exchange rates: gbp/usd at 1.22, euro/usd at 1.07, aud/usd at 0.68, usd/inr at 81.74 and cad/usd at 0.74 capital allocation the board of directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 269,662,921 equity shares of rs 2 each (being 4.91% of total paid-up equity shares) from the shareholders of the company on a proportionate basis by way of a tender offer at a price of rs 445 ($5.411) per equity share for an aggregate amount not exceeding rs 120 billion ($1.5 billion1) , in accordance with the provisions contained in the securities and exchange board of india (buy-back of securities) regulations, 2018 and the companies act, 2013 and rules made thereunder. the interim dividend of rs 1 declared by the board at its meetings held on january 13th, 2023, shall be considered as the final dividend for the financial year 2022-23. highlights of strategic deal wins in the fourth quarter, wipro continued to win large and strategic deals across industries. key highlights include: a us-based healthcare company selected wipro to transform its technology-enabled health services business and supercharge growth. wipro will help reshape the end-to-end member, patient, and provider journey by building a standardized, interoperable, and integrated care delivery platform. the project will improve talent allocation as well as care coordination, reducing costs, increasing effectiveness and, ultimately, improving the quality of healthcare. a us-based multinational apparel and fashion major selected wipro to spearhead end-to-end automation across its applications and infrastructure landscape globally. wipro will offer a range of services including business and technical support to manage various business process areas, data center operations, and network and voice services. this will help the client achieve 30% automation, cost optimization, and improve end-user experience. wipro was selected in a strategic, multi-year engagement by a global personal care and home products distribution company to deliver enhanced business experience to the client. an integrated delivery model powered by smartops will provide round the clock proactive and preventative support for business-critical applications. this will help the client drive higher application stability and minimize related problems that hinder business operations. wipro won a multi-year engagement with a leading europe-based communications group to accelerate global deployment of their enterprise software platform for business operations. the goal of this program is to rollout a core model template, localize, integrate, and conduct change management for a consistent process across front office and operations in finance, procurement, projects, analytics, and reporting. this will enable the client to synchronize their business processes, decommission existing local systems, innovate, and enhance user experience across regions. a uk-based health insurer selected wipro to consolidate and transform the business process services for its international private medical insurance business. wipro will set up a global servicing hub to provide experience and support services to clients, while driving operational efficiencies and maintaining compliance. a large, us-based life and annuities insurance firm selected wipro to modernize their business, migrate existing workloads to cloud and offer infrastructure-as-a-service for their entire data center infrastructure. wipro will also deliver enhanced employee experience through an integrated service desk, mainframe services while enhancing service levels, providing a secured environment through their identity and access managed services, as well as business continuity through disaster recovery services. a us-based multinational bank has selected wipro to provide engineering and operations services to modernize its infrastructure across the globe. wipro will deliver a simple, easy-to-access services platform that will enhance the user experience and maximize the technology solutions used across the company. the end-to-end platform management will drive new efficiencies and better productivity through automation and standardization of processes. wipro signed a second eight-year large deal with a leading european outsourcing & facilities management company to digitise its core finance & accounting systems and processes. wipro will leverage lab45 as a strategic technology & innovation hub to foster and accelerate automation, digitisation, and transformation of client’s service propositions and delivery models. a us-based sports entertainment company selected wipro to digitize its nation-wide network and monetize the centers of a recreational sports chain, resulting in the creation of a new digital out-of-home (dooh) ad network. leveraging wipro visionedge, a dynamic digital signage and omni channel advertising platform, wipro, in partnership with cisco, will deliver immersive client experiences with high-quality, interactive displays that are adaptive and easy to deploy. wipro was awarded a contract by a global apparel and fashion company to create a unified, omnichannel experience across more than 2,000 retail stores and ecommerce platforms in over 37 countries. the client will benefit from the increased supply chain efficiency and compliance with applicable international and local standards. wipro will also deliver an uninterrupted, flexible, and personalised service that will allow end-users to transact seamlessly across devices and channels. analyst recognition source & disclaimer: *gartner, “magic quadrant for outsourced digital workplace services “, daniel barros, et al, 13 march 2023. 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 1.1 billion ($13.8 million1) it products segment results for the quarter was a loss of rs 0.06 billion ($0.7 million1) it products segment revenue for the year was rs 6.0 billion ($73.6 million1) it products segment results for the year was a loss of rs 0.18 billion ($2.1 million1) india business from state run enterprises (isre) india sre segment revenue for the quarter was rs 1.3 billion ($16.0 million1) india sre segment results for the quarter was a profit of rs 0.02 billion ($0.2 million1) india sre segment revenue for the year was rs 5.8 billion ($70.8 million1) india sre segment results for the year was a profit of rs 0.4 billion ($5.4 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 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 and year ended march 31, 2023, 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 07:30 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=wip270423 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 250,000 employees and business partners across 66 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, 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, 2022 as at march 31, 2023 convenience translation into us dollar in millions refer footnote assets goodwill 246,989 307,970 3,747 intangible assets 43,555 43,045 524 property, plant and equipment 90,898 88,659 1,079 right-of-use assets 18,870 18,702 228 financial assets derivative assets 6 29 ^ investments 19,109 20,720 252 trade receivables 4,765 863 11 other financial assets 6,084 6,330 77 investments accounted for using the equity method 774 780 9 deferred tax assets 2,298 2,100 26 non-current tax assets 10,256 11,922 145 other non-current assets 14,826 13,606 166 total non-current assets 458,430 514,726 6,264 inventories 1,334 1,188 14 financial assets derivative assets 3,032 1,844 22 investments 241,655 309,232 3,762 cash and cash equivalents 103,836 91,880 1,118 trade receivables 115,219 126,350 1,537 unbilled receivables 60,809 60,515 736 other financial assets 42,914 9,096 111 contract assets 20,647 23,001 280 current tax assets 2,373 5,091 62 other current assets 28,933 32,899 400 total current assets 620,752 661,096 8,042 total assets 1,079,182 1,175,822 14,306 equity share capital 10,964 10,976 134 share premium 1,566 3,689 45 retained earnings 551,252 660,964 8,042 share-based payment reserve 5,258 5,632 69 special economic zone re-investment reserve 47,061 46,803 569 other components of equity 42,057 53,100 646 equity attributable to the equity holders of the company 658,158 781,164 9,505 non-controlling interests 515 589 7 total equity 658,673 781,753 9,512 liabilities financial liabilities loans and borrowings 56,463 61,272 745 lease liabilities 15,177 15,953 194 derivative liabilities 48 179 2 other financial liabilities 2,961 2,649 32 deferred tax liabilities 12,141 15,153 184 non-current tax liabilities 17,818 21,777 265 other non-current liabilities 7,571 9,333 114 provisions 1 ^ ^ total non-current liabilities 112,180 126,316 1,536 financial liabilities loans, borrowings and bank overdrafts 95,233 88,821 1,081 lease liabilities 9,056 8,620 105 derivative liabilities 585 2,825 34 trade payables and accrued expenses 94,477 89,054 1,084 other financial liabilities 33,110 4,141 50 contract liabilities 27,915 22,682 276 current tax liabilities 13,231 18,846 229 other current liabilities 31,951 30,215 368 provisions 2,771 2,549 31 total current liabilities 308,329 267,753 3,258 total liabilities 420,509 394,069 4,794 total equity and liabilities 1,079,182 1,175,822 14,306 ^ value is less than 1 wipro limited and subsidiaries interim condensed consolidated statement of income (rs in millions, except share and per share data, unless otherwise stated) three months ended march 31, year ended march 31, 2022 2023 2023 2022 2023 2023 convenience translation into us dollar in millions refer footnote convenience translation into us dollar in millions refer footnote revenues 208,600 231,903 2,822 790,934 904,876 11,011 cost of revenues (147,965 ) (162,738 ) (1,980 ) (555,872 ) (645,446 ) (7,853 ) gross profit 60,635 69,165 842 235,062 259,430 3,158 selling and marketing expenses (14,078 ) (16,906 ) (206 ) (54,935 ) (65,157 ) (793 ) general and administrative expenses (12,528 ) (15,672 ) (191 ) (46,382 ) (59,139 ) (720 ) foreign exchange gains/(losses), net 1,075 990 12 4,355 4,472 54 other operating income 7 - - 2,186 - - results from operating activities 35,111 37,577 457 140,286 139,606 1,699 finance expenses (1,717 ) (2,860 ) (35 ) (5,325 ) (10,077 ) (123 ) finance and other income 3,946 5,463 67 16,257 18,185 222 share of net profit/ (loss) of associates accounted for using the equity method (16 ) 4 ^ 57 (57 ) (1 ) profit before tax 37,324 40,184 489 151,275 147,657 1,797 income tax expense (6,399 ) (9,249 ) (113 ) (28,946 ) (33,992 ) (414 ) profit for the period 30,925 30,935 376 122,329 113,665 1,383 profit attributable to: equity holders of the company 30,873 30,745 374 122,191 113,500 1,381 non-controlling interests 52 190 2 138 165 2 profit for the period 30,925 30,935 376 122,329 113,665 1,383 earnings per equity share: attributable to equity holders of the company basic 5.64 5.61 0.07 22.35 20.73 0.25 diluted 5.63 5.60 0.07 22.29 20.68 0.25 weighted average number of equity shares used in computing earnings per equity share basic 5,470,020,412 5,481,366,536 5,481,366,536 5,466,705,840 5,477,466,573 5,477,466,573 diluted 5,486,955,729 5,489,878,685 5,489,878,685 5,482,083,438 5,488,991,175 5,488,991,175 ^ value is less than 1 additional information: particulars three months ended year ended march 31, 2023 december 31, 2022 march 31, 2022 march 31, 2023 march 31, 2022 audited audited audited audited audited revenue it services americas 1 66,430 67,788 58,342 261,270 217,874 americas 2 70,563 71,168 63,963 278,374 239,404 europe 67,562 66,323 60,743 256,845 233,443 apmea 25,889 25,278 23,560 100,989 91,103 total of it services 230,444 230,557 206,608 897,478 781,824 it products 1,131 1,721 1,201 6,047 6,173 isre 1,318 1,403 1,868 5,823 7,295 reconciling items - - (2 ) - (3 ) total revenue 232,893 233,681 209,675 909,348 795,289 other operating income it services - - 7 - 2,186 total other operating income - - 7 - 2,186 segment result it services americas 1 12,890 12,986 11,530 49,264 42,820 americas 2 15,118 14,776 12,150 56,567 47,376 europe 10,314 9,485 9,056 35,048 35,739 apmea 2,671 2,476 1,946 8,945 10,523 unallocated (3,347 ) (2,219 ) 361 (9,041 ) 434 other operating income - - 7 - 2,186 total of it services 37,646 37,504 35,050 140,783 139,078 it products (59 ) 41 (22 ) (176 ) 115 isre 20 102 171 441 1,173 reconciling items (30 ) (11 ) (88 ) (1,442 ) (80 ) total segment result 37,577 37,636 35,111 139,606 140,286 finance expenses (2,860 ) (2,902 ) (1,717 ) (10,077 ) (5,325 ) finance and other income 5,463 4,992 3,946 18,185 16,257 share of net profit/ (loss) of associates accounted for using the equity method 4 26 (16 ) (57 ) 57 profit before tax 40,184 39,752 37,324 147,657 151,275 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 selected gaap measures to non-gaap measures reconciliation of non-gaap constant currency it services revenue to it services revenue as per ifrs ($mn) three months ended march 31, 2023 it services revenue as per ifrs $ 2,823.0 effect of foreign currency exchange movement $ (37.6 ) non-gaap constant currency it services revenue based on $ 2,785.4 previous quarter exchange rates three months ended march 31, 2023 it services revenue as per ifrs $ 2,823.0 effect of foreign currency exchange movement $ 74.4 non-gaap constant currency it services revenue based on $ 2,897.4 exchange rates of comparable period in previous year year ended march 31, 2023 it services revenue as per ifrs $ 11,159.7 effect of foreign currency exchange movement $ 391.3 non-gaap constant currency it services revenue based on $ 11,551.0 exchange rates of comparable period in previous year reconciliation of free cash flow for three months and year ended march 31, 2023 amount in inr mn three months ended march 31, 2023 year ended march 31, 2023 net income for the period [a] 30,935 113,665 computation of free cash flow net cash generated from operating activities [b] 37,298 130,601 add/ (deduct) cash inflow/ (outflow)on: purchase of property, plant and equipment (3,015 ) (14,834 ) proceeds from sale of property, plant and equipment 97 546 free cash flow [c] 34,380 116,313 operating cash flow as percentage of net income [b/a] 120.6 % 114.9 % free cash flow as percentage of net income [c/a] 111.1 % 102.3 %
