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Wipro financial results for the quarter ended December 31, 2021

Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended December 31, 2021.

Highlights of the Results
Results for the quarter ended December 31, 2021:

• Gross Revenue was ₹203.1 billion ($2.7 billion1), an increase of 3.3% QoQ and 29.6% YoY
• IT Services Segment Revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY
• Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY
• IT Services Operating Margin3 for the quarter was at 17.6%, a decrease of 19 bps QoQ
• Net Income for the quarter was ₹29.7 billion ($399.1 million1), increase of 1.3% QoQ
Earnings Per Share for the quarter was at ₹5.43 ($0.071), an increase of 4.2% YoY
• Operating Cash Flow was at ₹30.1 billion ($404.2 million1), which is 101.3% of Net Income
• Our closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis
• YoY. We added 10,306 employees during the quarter
• Wipro declared an interim dividend of ₹1 ($0.0131) per equity share/ADS

Performance for the quarter ended December 31, 2021
Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly.”

Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of ₹1 per equity share.”

Outlook for the quarter ending March 31, 2022
We expect Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million. This translates to a sequential growth of 2.0% to 4.0%.

IT services
Wipro continued its momentum in winning large deals with our customers as described below:
• A US-based healthcare company has awarded Wipro a business process and platform services contract spanning claims processing and setting up a customer service center using Wipro’s proprietary healthcare platform. Wipro will enable the client to expand its product offerings and go- to-market strategies and grow in this business segment.
• A leading US-based student-aid organization has awarded Wipro a multi -million dollar engagement to manage and streamline their mainframe operations to support their mission critical platform and help enhance end- user experience.
• Wipro has won a multi -million dollar engagement with a US -based industrial manufacturing company to drive workplace transformation that delivers best-in-class end-user experience with an effective approach for mergers and acquisitions integrations.
• Wipro has won an engagement with a leading US -based retail brokerage for a large integration program that includes modernizing and scaling applications across its multiple lines of business.
• A technology-driven travel marketplace has selected Wipro as its strategic partner to modernize its core travel platform and help set up a capability hub in Mexico. The modernized platform will significantly enhance customer experience and help generate new revenue streams for the customer.

Digital services highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
• A large, Brazil-based water and waste management company has awarded Wipro a strategic engagement to transform their internal processes, improve operational efficiency, and enhance competitiveness leveraging Wipro FullStride Cloud Services.
• A leading US-based Cloud Security and Identity Governance solutions provider has selected Wipro to develop demanding functionalities and enhancements to support their core Product Development function. Wipro will help the customer meet growing demands, enable a quicker time to market and scale their software business globally.
• A leading US-based financial advice firm has selected Wipro and Capco as strategic partners to deliver multiple digital transformation programs. Together with Capco, Wipro will lead an innovation program to facilitate greater adoption of new technologies to accelerate the company’s digital transformation journey.
• Wipro has won an engagement with a US -based multi -state healthcare organization to deliver modernized member services. Wipro will leverage a new cloud- based, globalized contact center service delivery model to digitally transform and optimize stakeholder experience and ensure cost savings, quality, compliance and growth for the customer.

Analyst recognition
Wipro has been recognized as a Leader for the second consecutive time in the 2021 Gartner Magic Quadrant™ for Managed Network Services (Ted Corbett et al., 10 Nov 2021)
• Wipro positioned as a Leader in The Forrester Wave™: Data Management Service Providers, Q4 2021
• Wipro was featured in the Top 3 players in HFS Top 10: Life Sciences Service Providers 2021
• Wipro was featured in the Top 4 players in HFS Top 10: Energy Services 2021
Wipro was rated as a Leader in Avasant High-Tech Industry Digital Services 2021–2022 RadarView
• Wipro was positioned as a Leader in IDC MarketScape: Worldwide Salesforce Implementation Services 2021 Vendor Assessment (Doc # US47073921, Nov 2021)
Wipro was rated as a Leader and Star Performer in Everest Group’s Enterprise Quality Assurance (QA) Services PEAK Matrix Assessment 2022
• Wipro was recognized as a Leader in Everest Group’s Cloud Services PEAK Matrix® Assessment 2022 –Europe, North America
• Wipro was recognized as a Leader in Everest Group’s Advanced Analytics and Insights (AA&I) Services PEAK Matrix Assessment 2022
• Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitel ane & Navisco Germany IT Outsourcing Study 2021
• Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane French IT Outsourcing Study 2021
• Wipro was recognized as a Leader in Everest Group’s Intelligent Aut omation in Healthcare – Solutions PEAK Matrix Assessment 2022

IT products
• IT Products Segment Revenue for the quarter was ₹1.8 billion ($23.8 million1)
• IT Products Segment Results for the quarter was a profit of ₹0.1 billion ($1.3 million1)
• India business from State Run Enterprises (ISRE)
• India SRE Segment Revenue for the quarter was ₹1.6 billion ($21.8 million1)
• India SRE Segment Results for the quarter was a profit of ₹0.1 billion ($1.8 million1)

Please refer to the table on page 9 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

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. CT Bureau

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