Wipro Limited, a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2022.
Highlights of the results
Results for the Quarter ended June 30, 2022:
- Gross Revenue was Rs 215.3 billion ($2.7 billion1), an increase of 17.9% YoY
- IT Services Segment Revenue was at $2,735.5 million, an increase of 13.3% YoY
- Non-GAAP2 constant currency IT Services segment revenue increased by 2.1% QoQ and 17.2% YoY
- IT Services Operating Margin3 for the quarter was at 15.0%, a decrease of 200 bps QoQ
- Net Income for the quarter was Rs 25.6 billion ($324.4 million1) and Earnings Per Share for the quarter was at Rs 4.69 ($0.061)
- Our closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ
Performance for the Quarter ended June 30, 2022
Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.”
Jatin Dalal, Chief Financial Officer said, “We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.”
Outlook for the quarter ending September 30, 2022
We expect Revenue from our IT Services business to be in the range of $2,817 million to $2,872 million*. This translates to a sequential growth of 3.0% to 5.0%.
*Outlook is based on the following exchange rates: GBP/USD at 1.25, Euro/USD at 1.06, AUD/USD at 0.72, USD/INR at 76.60 and CAD/USD at 0.77
Wipro continued its momentum in winning large deals with our customers as described below:
- A large, US-based healthcare company has selected Wipro for the consolidation and transformation of its Commercial Claims Operations. This strategic partnership will provide the client with significant savings through best-in-class execution, transformation, process remodelling, and automation.
- The global leader in sustainable stainless steel, Outokumpu, has signed a five-year deal of Application Management Services with Wipro to drive agile and application cloud transformation.
- Wipro has entered a five-year engagement with Insignia Financial Limited, an ASX-listed Top 200 company and one of Australia’s leading financial services providers. Through this partnership, Wipro and Insignia Financial will focus on delivering innovative solutions, including efficient processes around technology and operations capabilities, superior end-customer outcomes as well as cost optimization.
- Wipro has won a multi-year engagement with a global communications agency to build their future model for ERP and digitization.
- Wipro’s delivery centres in UK and India will build and scale operations to enhance the company’s capacity.
- Wipro has won a multi-year contract with one of Australia’s largest financial services firms to provide application and infrastructure support services. Wipro will support the client’s technology transformation, improve efficiency and enhance customer experience.
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
- A leading Mobility Technology company has selected Wipro as an extension of their global engineering team to support them on the development of software defined vehicle applications.
- A US-based multinational company has awarded Designit a managed services contract to provide a team of designers who will work with the company’s user experience team.
- A global, athletic apparel and footwear company has selected Designit to re-imagine the customer experience and logistics of all its new retail store openings in North America.
- A US-based multinational financial services corporation has selected Wipro to manage and transform the customer’s global application landscape with industry-leading practices and deliver enhanced consumer experiences.
- Wipro was recognized as a Leader in the 2022 Gartner ® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
- Wipro was recognized as a Leader in Everest Group’s Healthcare Payer Digital Services and Life Sciences Operations PEAK Matrix® Assessment 2022
- Wipro was named as a Leader in IDC MarketScape: Worldwide Intelligent Automation Services 2022 Vendor Assessment (Doc # US48061422, May 2022)
- Wipro was recognized as a Leader in IDC MarketScape: Gulf Countries Cloud Professional Services 2022 Vendor Assessment (Doc # META47590721, May 2022)
- Wipro was positioned as a Leader in multiple quadrants in ISG Provider Lens™ – Salesforce Ecosystem Partners 2022 – Germany and US
- Wipro is recognized amongst the top ten service providers in Whitelane IT Sourcing Study 2022 – UK
- Wipro was rated as a Leader in Avasant Retail Digital and Banking Digital Services RadarView™ 2022 – 2023
- Wipro was rated as a Leader in Avasant Salesforce, Internet of Things, Risk and Compliance, Cybersecurity and Banking Process
- Transformation Services RadarView™ 2022
- Wipro was recognized as a Leader in Avasant Multisourcing Service Integration RadarView™ 2021 – 2022
- Wipro was recognized as a Leader in Avasant Applied AI and Advanced Analytics Services RadarView™ 2021
- IT Products segment revenue for the quarter was Rs 1.9 billion ($24.6 million1)
- IT Products segment results for the quarter was a loss of Rs 0.06 billion ($0.70 million1)
India business from State Run Enterprises (ISRE)
- India SRE segment revenue for the quarter was Rs 1.5 billion ($19.3 million1)
- India SRE segment results for the quarter was a profit of Rs 0.17 billion ($2.2 million1)