Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its quarter ended September 30, 2019.
Highlights of the Results
Results for the Quarter ended September 30, 2019:
- Gross Revenue was Rs. 151.3 billion ($2.1 billion1), an increase of 4.0% YoY
- IT Services Segment Revenue was at $2,048.9 million, an adjusted2 increase of 2.5% YoY
- Non-GAAP3 constant currency IT Services Segment Revenue increased by 1.1% QoQ. Adjusted2 Non-GAAP3 constant currency IT Services Segment Revenue grew 3.8% YoY
- IT Services Operating Margin4 for the quarter was at 18.1%, an increase of 3.1% YoY
- Net Income for the quarter was Rs. 25.5 billion ($361.4 million1), an increase of 35.1% YoY
- EPS for the quarter was Rs. 4.3 ($0.061) per share and grew 36.7% YoY
Performance for the quarter ended September 30, 2019
Abidali Z. Neemuchwala, CEO and Managing Director said, "We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a YoY basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers."
Jatin Dalal, Chief Financial Officer said, "We delivered operating margins in a tight range after absorbing the impact of two months of wage hike. Growth remains our priority and we remain invested for future. We also successfully completed the Share Buyback program in September, which saw strong participation from our investors."
Outlook for the Quarter ending December 31, 2019
We expect Revenue from our IT Services business to be in the range of $2,065 million to $2,106 million*. This translates to a sequential growth of 0.8% to 2.8%.
* Outlook is based on the following exchange rates: GBP/USD at 1.23, Euro/USD at 1.11, AUD/USD at 0.68, USD/INR at 70.59 and USD/CAD at 1.32
Share Buyback Update
In the quarter ended September 30, 2019, the Company has concluded the buyback of 323.1 million equity shares as approved earlier by the Board of Directors at their meeting held on April 16, 2019. This has resulted in a total cash outflow of Rs. 105 billion ($1.49 billion1).
Shares of WIPRO LTD. was last trading in BSE at Rs.243.7 as compared to the previous close of Rs. 243.35. The total number of shares traded during the day was 422607 in over 4636 trades.
The stock hit an intraday high of Rs. 245.5 and intraday low of 239.2. The net turnover during the day was Rs. 102510096.
1. For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = Rs. 70.64, as published by the Federal Reserve Board of Governors on September 30, 2019. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2019 was US$1= Rs. 71.56.
2. YoY growth rates for Q2'20 have been computed by adjusting revenues for Q2'19 for the impact from the divested Workday and Cornerstone on Demand business.
3. Constant currency revenue for a period is the product of volumes in those period times the average actual exchange rate of the corresponding comparative period.
4. Operating Margin refers to Segment Results Total as reflected in IFRS financials.