WIPRO announced financial results under International Financial Reporting Standards (IFRS) for the
Quarter and Year ended March 31, 2021.
Highlights of the Results
Results for the Quarter ended March 31, 2021:
Gross Revenue was ₹162.5 billion ($2.2 billion1), an increase of 3.4% YoY
IT Services Segment Revenue was at $2,152.4 million, an increase of 3.9% QoQ and 3.8% YoY
Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 0.5% YoY
IT Services Operating Margin3 for the quarter was at 21.0%, an expansion of 344 bps YoY
Net Income for the quarter was ₹29.7 billion ($406.4 million1), an increase of 27.8% YoY
Earnings Per Share for the quarter was at ₹5.39 ($0.071), an increase of 31.8% YoY
Results for the Year ended March 31, 2021:
Gross Revenue was ₹619.4 billion ($8.5 billion1), an increase of 1.5% YoY
IT Services Segment Revenue was at $8,136.5 million, a decrease of 1.4% YoY
Non-GAAP2 constant currency IT Services Segment Revenue decreased by 2.3% YoY
IT Services Operating Margin3 for the year was at 20.3%, an expansion of 218 bps YoY
Net Income for the year was ₹107.9 billion ($1,475.9 million1), an increase of 11.0% YoY
Earnings Per Share for the year was at ₹19.11 ($0.261 ), an increase of 14.6% YoY
Operating Cash Flow was at ₹147.6 billion ($2,017.4 million1 ), an increase of 46.6% YoY, which is 136.7% of Net Income
Performance for the quarter and year ended March 31, 2021
Thierry Delaporte, CEO and Managing Director said, “I am delighted with the way we have finished the financial year. We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates.”
Jatin Dalal, Chief Financial Officer said, “We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7% of our net income for the full year. We successfully completed the share buyback program returning $1.3Bn to our shareholders.”
Outlook for the quarter ending June 30, 2021
We expect Revenue from our IT Services business to be in the range of $2,195 million to $2,238 million*. This translates to a sequential growth of 2.0% to 4.0%. This does not include revenue from our recently announced acquisitions of Capco and Ampion * Outlook is based on the following exchange rates: GBP/USD at 1.39, Euro/USD at 1.20, AUD/USD at 0.78, USD/INR at 72.76 and CAD/USD at 0.78
Capital Allocation
In the quarter ended March 31, 2021, the Company has concluded the buyback of 237.5 million equity shares as approved earlier by the Board of Directors at their meeting held on October 13, 2020 for an aggregate amount of ₹95 billion ($1.3 billion1), excluding buyback tax
The interim dividend of ₹1 declared by the Board at its meeting held on January 13, 2021 shall be considered as the final dividend for the financial year 2020-21
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
Wipro has won a multi-million-dollar integrated engagement from a leading US-based industrial manufacturing company to transform and modernize its business functions and enable it to become a digital enterprise via transformation in applications, infrastructure, cyber security and service delivery.
Wipro has won a multi-year strategic contract from a US-based digital transformation and consulting agency to provide Infrastructure Managed Services for its Data Center, and Network and Tools landscape.
Wipro will leverage AI Ops tool stack to automate the client’s infrastructure to reduce turnaround time across requests and incidents, improve operational efficiency, and deliver a superior user experience for its end customer, a leading US-based Federal agency.
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
A leading Indian e-commerce and technology company has selected Wipro to enhance customer experience, leveraging its expertise in digital operations and new-age solutions.
A leading technology provider has awarded Wipro a contract to consolidate its enterprise digital assets on cloud and on-premise to a centralized content repository to enable robust management of its marketing content needs.
A global communications and networking giant has extended their decade-long partnership with Wipro Designit to research, prototype, and design their major product family, as well as associated services and experience.
Wipro has won a multi-year engagement with a US-based utilities company to provide System Integrator services for a large business and IT transformation program in the areas of Supply Chain and Enterprise Work and Asset Management. Wipro will leverage its strong domain expertise and capabilities in Digital, Applications, and Dataand Analytics to implement leading practices and business processes across the enterprise.
A multinational professional services company has engaged Wipro Designit to design next generation, usercentric experience for its employees. Designit will apply research, service design blueprinting and experience design to transform the workplace and the computing experience for the client’s global workforce.
IT Products
IT Products Segment Revenue for the year was ₹7.7 billion ($105.1 million1)
IT Products Segment Results for the year was a profit of ₹0.05 billion ($0.62 million1)
IT Products Segment Revenue for the quarter was ₹2.1 billion ($28.9 million1)
IT Products Segment Results for the quarter was a profit of ₹0.15 billion ($2.0 million1)
India business from State Run Enterprises (ISRE)
India SRE Segment Revenue for the year was ₹8.9 billion ($121.8 million1)
India SRE Segment Results for the year was a profit of ₹1.1 billion ($14.5 million1)
India SRE Segment Revenue for the quarter was ₹2.3 billion ($31.5 million1)
India SRE Segment Results for the quarter was a profit of ₹0.6 billion ($8.0 million1)