Wipro Announces Results for the Quarter Ended December 31, 2024
$WIPRO #GrossRevenue--Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Stan...
Revenue grows 0.1% QoQ, above upper end of guidance.
Operating margin 12 quarter high at 17.5%; Expands 0.7% QoQ.
Net income grows 24.5% YoY and 4.5% QoQ; EPS growth of 24.4% YoY.
Operating cash flows at 146.5% of net income.
EAST BRUNSWICK, N.J. & BANGALORE, India: $WIPRO #GrossRevenue--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 ended December 31, 2024.
Highlights of the Results
Results for the Quarter ended December 31, 2024:
Outlook for the Quarter ending March 31, 2025
We expect revenue from our IT Services business segment to be in the range of $2,602 million to $2,655 million*. This translates to sequential guidance of (-)1.0 % to 1.0 % in constant currency terms.
*Outlook for the Quarter ending March 31, 2025, is based on the following exchange rates: GBP/USD at 1.27, Euro/USD at 1.06, AUD/USD at 0.65, USD/INR at 84.29 and CAD/USD at 0.71
Performance for the Quarter ended December 31, 2024
Srini Pallia, CEO and Managing Director, said, “In a seasonally weak quarter, our strong in quarter execution helped us deliver above the top end of our revenue guidance. We also achieved our highest margins in the past three years while continuing to invest in our people. We closed 17 large deals with a total value of $1B. We are advancing steadily and investing decisively to lead our clients in an AI-driven future.”
Aparna Iyer, Chief Financial Officer, said, “We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5%. Our EPS grew 24.4% YoY and operating cash flow was at 146.5% of net income. We are pleased to share that the board has approved our revised capital allocation policy that increases the committed payout percentage to 70% or above in a block of 3 years. In addition, board has also declared an interim dividend of INR 6 per share.”
Highlights of Strategic Deal Wins
In the third quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
Analyst Recognition
Source & Disclaimer: *Gartner, “Magic Quadrant for Managed Network Services”, Ted Corbett, et al, 14 October 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
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.
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release, and the opinions expressed in the Gartner Content are subject to change without notice.
IT Products
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 ended December 31, 2024, 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 07:00 p.m. Indian Standard Time (8:30 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 webcast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP170125
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 230,000 employees and business partners across 65 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, the benefits its customers experience 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, 2024 | As at December 31, 2024 | ||||
| Convenience translation into US | |||||
ASSETS | ||||||
Goodwill | 316,002 | 324,686 | 3,795 | |||
Intangible assets | 32,748 | 29,101 | 340 | |||
Property, plant and equipment | 81,608 | 77,760 | 909 | |||
Right-of-Use assets | 17,955 | 21,886 | 256 | |||
Financial assets | ||||||
Derivative assets | 25 | - | - | |||
Investments | 21,629 | 30,100 | 352 | |||
Trade receivables | 4,045 | 599 | 7 | |||
Other financial assets | 5,550 | 5,039 | 59 | |||
Investments accounted for using the equity method | 1,044 | 1,034 | 12 | |||
Deferred tax assets | 1,817 | 1,811 | 21 | |||
Non-current tax assets | 9,043 | 7,861 | 92 | |||
Other non-current assets | 10,331 | 7,424 | 87 | |||
Total non-current assets | 501,797 | 507,301 | 5,930 | |||
Inventories | 907 | 724 | 8 | |||
Financial assets | ||||||
Derivative assets | 1,333 | 859 | 10 | |||
Investments | 311,171 | 436,108 | 5,098 | |||
Cash and cash equivalents | 96,953 | 125,744 | 1,470 | |||
Trade receivables | 115,477 | 114,616 | 1,340 | |||
Unbilled receivables | 58,345 | 58,775 | 686 | |||
Other financial assets | 10,536 | 9,107 | 106 | |||
Contract assets | 19,854 | 14,205 | 166 | |||
Current tax assets | 6,484 | 5,868 | 69 | |||
Other current assets | 29,602 | 28,712 | 336 | |||
Total current assets | 650,662 | 794,718 | 9,289 | |||
| ||||||
TOTAL ASSETS | 1,152,459 | 1,302,019 | 15,219 | |||
| ||||||
EQUITY | ||||||
Share capital | 10,450 | 20,938 | 245 | |||
Share premium | 3,291 | 1,921 | 22 | |||
Retained earnings | 630,936 | 733,625 | 8,576 | |||
Share-based payment reserve | 6,384 | 6,496 | 76 | |||
Special Economic Zone re-investment reserve | 42,129 | 31,905 | 373 | |||
Other components of equity | 56,693 | 58,964 | 689 | |||
Equity attributable to the equity holders of the Company | 749,883 | 853,849 | 9,981 | |||
Non-controlling interests | 1,340 | 1,963 | 23 | |||
TOTAL EQUITY | 751,223 | 855,812 | 10,004 | |||
| ||||||
LIABILITIES | ||||||
Financial liabilities | ||||||
Loans and borrowings | 62,300 | 64,034 | 748 | |||
Lease liabilities | 13,962 | 18,783 | 220 | |||
Derivative liabilities | 4 | 5 | ^ | |||
Other financial liabilities | 4,985 | 7,825 | 91 | |||
Deferred tax liabilities | 17,467 | 16,813 | 197 | |||
Non-current tax liabilities | 37,090 | 41,330 | 483 | |||
Other non-current liabilities | 12,970 | 16,161 | 189 | |||
Provisions | - | 381 | 4 | |||
Total non-current liabilities | 148,778 | 165,332 | 1,932 | |||
Financial liabilities | ||||||
Loans, borrowings and bank overdrafts | 79,166 | 102,638 | 1,200 | |||
Lease liabilities | 9,221 | 8,104 | 95 | |||
Derivative liabilities | 558 | 2,947 | 34 | |||
Trade payables and accrued expenses | 88,566 | 81,200 | 949 | |||
Other financial liabilities | 2,272 | 3,110 | 36 | |||
Contract liabilities | 17,653 | 21,413 | 250 | |||
Current tax liabilities | 21,756 | 30,301 | 354 | |||
Other current liabilities | 31,295 | 29,664 | 347 | |||
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