Exhibit 3
Wipro Limited — Results for the Quarter & Year ended March 31, 2010
WIPRO LIMITED - CONSOLIDATED
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND YEAR ENDED MARCH 31, 2010
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND YEAR ENDED MARCH 31, 2010
Rs. in Million except share data)
Quarter ended | Year ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Particulars | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||
1 Net Income from Sales /Services | 69,829 | 64,514 | 271,241 | 255,338 | ||||||||||||
2 Cost of Sales /Services | ||||||||||||||||
a)(Increase/Decrease in Stock in trade and work in progress | (395 | ) | (195 | ) | (323 | ) | (943 | ) | ||||||||
b) Consumption of raw materials | 4,454 | 4,536 | 13,070 | 12,111 | ||||||||||||
c) Purchase of traded goods | 8,704 | 6,626 | 37,484 | 34,211 | ||||||||||||
d)Other expenditure | 33,333 | 32,646 | 129,152 | 128,478 | ||||||||||||
3 Gross Profit (1-2) | 23,733 | 20,901 | 91,858 | 81,481 | ||||||||||||
4 General and Administrative expenses | 3,582 | 3,511 | 14,481 | 14,281 | ||||||||||||
5 Selling and Distribution expenses | 4,900 | 4,184 | 18,036 | 16,952 | ||||||||||||
6 Depreciation and amortization | 1,887 | 1,950 | 7,831 | 6,949 | ||||||||||||
7 Operating Profit before interest (3) — (4+5+6) | 13,364 | 11,256 | 51,510 | 43,299 | ||||||||||||
8 Interest expense | (342 | ) | 928 | 990 | 3,824 | |||||||||||
9 Exceptional Items | — | — | — | — | ||||||||||||
10 Operating Profit after interest and Exceptional Items (7-8-9) | 13,706 | 10,328 | 50,520 | 39,475 | ||||||||||||
11 Other investment income | 1,270 | 1,159 | 4,360 | 5,058 | ||||||||||||
12 Profit from Ordinary Activities before tax (10+11) | 14,976 | 11,487 | 54,879 | 44,533 | ||||||||||||
13 Tax Expense (including Fringe Benefits Tax) | 3,015 | 1,461 | 9,294 | 6,035 | ||||||||||||
14 Net Profit from Ordinary Activities after tax (12-13) | 11,961 | 10,026 | 45,586 | 38,498 | ||||||||||||
15 Minority Interest | (46 | ) | (50 | ) | (185 | ) | (99 | ) | ||||||||
16 Share in Earnings of Associates | 176 | 35 | 530 | 362 | ||||||||||||
17 Extraordinary items (net of tax expense) | — | — | — | — | ||||||||||||
18 Net Profit for the period (14+15+16-17) | 12,091 | 10,011 | 45,931 | 38,761 | ||||||||||||
19 Paid up equity share capital (Face value Rs. 2 per share) | 2,936 | 2,930 | 2,936 | 2,930 | ||||||||||||
20 Reserves excluding Revaluation Reserves | 196,291 | 145,848 | 196,291 | 145,848 | ||||||||||||
21 EARNINGS PER SHARE (EPS) | ||||||||||||||||
Before extraordinary items (not annualised) | ||||||||||||||||
Basic (in Rs.) | 8.29 | 6.88 | 31.52 | 26.66 | ||||||||||||
Diluted (in Rs.) | 8.23 | 6.85 | 31.25 | 26.50 | ||||||||||||
After extraordinary items (not annualised) | ||||||||||||||||
Basic (in Rs.) | 8.29 | 6.88 | 31.52 | 26.66 | ||||||||||||
Diluted (in Rs.) | 8.23 | 6.85 | 31.25 | 26.50 | ||||||||||||
22 Public shareholding* | ||||||||||||||||
Number of shares | 276,454,859 | 271,856,435 | 276,454,859 | 271,856,435 | ||||||||||||
Percentage of holding | 18.83 | % | 18.56 | % | 18.83 | % | 18.56 | % | ||||||||
23 Promoters and promoter group shareholding | ||||||||||||||||
a) Pledged/Encumbered | ||||||||||||||||
— Number of shares | Nil | Nil | Nil | Nil | ||||||||||||
— Percentage of shares (as a % of the total shareholding of promoter and promoter group) | Nil | Nil | Nil | Nil | ||||||||||||
— Percentage of shares (as a % of the total share capital of the company) | Nil | Nil | Nil | Nil | ||||||||||||
b) Non - encumbered | ||||||||||||||||
— Number of shares | 1,167,572,260 | ** | 1,169,432,260 | ** | 1,167,572,260 | ** | 1,169,432,260 | ** | ||||||||
— Percentage of shares (as a % of the total shareholding of promoter and promoter group) | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
— Percentage of shares (as a % of the total share capital of the company) | 79.52 | % | 79.83 | % | 79.52 | % | 79.83 | % | ||||||||
Details of expenditure | ||||||||||||||||
Items exceeding 10% of total expenditure | ||||||||||||||||
— Employee Cost | 27,915 | 27,737 | 107,230 | 107,266 |
* | Public shareholding as defined under clause 40A of the listing agreement (excludes shares beneficially held by promoters and holders of American Depository Receipt) | |
** | Includes 6,506,000 (March 31, 2009: 8,316,000) equity shares on which Promoter does not have beneficiary interest. |
Status of redressal of Complaints received for the period January 1, 2010 to March 31, 2010
Opening | Complaints | Complaints | ||||||||||||||||||
Sl. | balance | received during | disposed during | |||||||||||||||||
No. | Nature of the complaint | Nature | 01.01.2010 | the quarter | the quarter | Unresolved | ||||||||||||||
1 | Non-Receipt of Securities | Complaint | — | 3 | 3 | — | ||||||||||||||
2 | Non Receipt of Annual Reports | Complaint | — | 3 | 3 | — | ||||||||||||||
3 | Correction / Duplicate / Revalidation of dividend warrants | Request | — | 85 | 85 | — | ||||||||||||||
4 | Non Receipt of Dividend warrants | Complaint | — | 37 | 37 | — | ||||||||||||||
5 | Others | Request | 1 | 1 | 2 | — | ||||||||||||||
TOTAL | 1 | 129 | 130 | — |
NOTE:
There are certain pending cases relating to disputes over title to shares in which the company has been made a party. However these cases are not material in nature.
1. | The above unaudited condensed consolidated interim financial results were approved by Directors of the Company at its meeting held on April 23,2010. |
2. | The above unaudited financial results have been prepared from the unaudited condensed consolidated interim financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements are covered by IFRS 1, “FirstTimeAdoption of IFRS”, as they are part of the annual period covered by the Company’s first IFRS financial statements for the year ended March 31, 2010 and are prepared in accordance withInternational Accounting Standard (IAS)34, “InterimFinancialReporting”. The transition to IFRS has been carried out from the accounting principles generally accepted in India (Indian GAAP), which is considered as “Previous GAAP”, for purposes of IFRS 1. |
3. | The unaudited condensed consolidated interim financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain financial instruments that have been measured at fair value as required by relevant IFRS. |
4. | The unaudited condensed consolidated financial interim statements incorporate the financial statements of the Parent Company and entities controlled by the Parent Company (its subsidiaries). Control is achieved where a company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are taken into account. All intra-company balances, transactions, income and expenses including unrealized income or expenses are eliminated in full on consolidation. |
5. | The total revenues represent the aggregate revenue and includes foreign exchange gains / (losses), net except exchange difference on foreign currency borrowings which are reported in the unaudited condensed consolidated interim financial statements. The exchange difference on foreign currency borrowings is included in interest expenses above. |
6. | The list of subsidiaries is included in the condensed consolidated financial statements of Wipro Limited and subsidiaries for the quarter ended March 31, 2010, which are available on our company websitewww.wipro.com. |
7. | Standalone information (Audited) |
(Rs. in Million)
Quarter ended March 31, | Year ended March 31, | |||||||||||||||
Particulars | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Revenues | 61,410 | 52,989 | 231,776 | 209,874 | ||||||||||||
Profit before tax | 15,095 | 9,952 | 56,888 | 35,479 | ||||||||||||
Profit after tax | 12,367 | 8,421 | 48,980 | 29,738 |
8. | Segment Information | |
The Company is currently organized by segments, which includes IT Services (comprising of IT Services and BPO Services), IT Products, Consumer Care and Lighting and ‘Others’. | ||
Corporate activities such as treasury, legal and accounting, which do not qualify as operating segments under IFRS 8, have been considered as ‘reconciling items’. | ||
Revenues include excise duty of Rs. 176 and Rs. 239 for the three months ended March 31, 2009 and 2010, respectively and Rs. 1,055 and Rs. 843 for the year ended March 31, 2009 and 2010, respectively. For the purpose of segment reporting, the segment revenues are net of excise duty. Excise duty are reported in reconciling items. | ||
For the purpose of segment reporting only, the Company has included the impact of foreign exchange gains / (losses), net’ in revenues. Further, the Company obtains short-term foreign currency borrowings for its working capital requirements. A portion of these foreign currency borrowings is used as a natural hedge for the foreign currency monetary assets. For segment purposes, the changes in fair value of such foreign currency borrowings is recorded in the respective segment of the underlying monetary assets and are eliminated in reconciling items. | ||
For evaluating performance of the individual business segments, stock compensation expense is allocated on the basis of straight line amortization. The incremental impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual business segments is reported in reconciling items. | ||
The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in Outsourcing contracts. Corporate Treasury provides internal financing to the business units offering multi-year payments terms, and accordingly such receivables are reflected in Capital Employed of Reconciling items. As of March 31, 2009 and 2010, Capital Employed of Reconciling items includes Rs. 4,401 and Rs. 8,516 respectively, of such receivables on extended collection terms. |
Information on reportable segments is as follows:
(Rs. in Million)
Three months ended March 31, 2009 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
IT Services and Products | Care and | Reconciling | ||||||||||||||||||||||||||
Particulars | IT Services | IT Products | Total | Lighting | Others | Items | Entity Total | |||||||||||||||||||||
Revenues | 49,306 | 8,761 | 58,067 | 4,802 | 1,320 | 325 | 64,514 | |||||||||||||||||||||
Cost of revenues | (33,000 | ) | (7,960 | ) | (40,960 | ) | (2,594 | ) | (1,501 | ) | (311 | ) | (45,365 | ) | ||||||||||||||
Selling and marketing expenses | (2,637 | ) | (334 | ) | (2,971 | ) | (1,238 | ) | (59 | ) | (50 | ) | (4,318 | ) | ||||||||||||||
General and administrative expenses | (3,028 | ) | (150 | ) | (3,178 | ) | (275 | ) | (93 | ) | (30 | ) | (3,376 | ) | ||||||||||||||
Operating income of segment | 10,641 | 317 | 10,958 | 695 | (333 | ) | (66 | ) | 11,255 | |||||||||||||||||||
Opening capital employed | 95,303 | 18,936 | 5,710 | 65,615 | 185,563 | |||||||||||||||||||||||
Closing capital employed | 115,089 | 18,782 | 5,638 | 64,763 | 204,272 | |||||||||||||||||||||||
Average capital employed | 105,196 | 18,859 | 5,674 | 65,189 | 194,918 | |||||||||||||||||||||||
Return on capital employed | 42 | % | 15 | % | (23 | )% | 23 | % |
Three months ended March 31, 2010 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
IT Services and Products | Care and | Reconciling | ||||||||||||||||||||||||||
Particulars | IT Services | IT Products | Total | Lighting | Others | Items | Entity Total | |||||||||||||||||||||
Revenues | 52,396 | 8,900 | 61,496 | 6,084 | 2,285 | (36 | ) | 69,829 | ||||||||||||||||||||
Cost of revenues | (33,827 | ) | (8,116 | ) | (41,943 | ) | (3,297 | ) | (2,335 | ) | (189 | ) | (47,764 | ) | ||||||||||||||
Selling and marketing expenses | (2,966 | ) | (257 | ) | (3,223 | ) | (1,752 | ) | (106 | ) | 20 | (5,061 | ) | |||||||||||||||
General and administrative expenses | (3,085 | ) | (265 | ) | (3,350 | ) | (228 | ) | (62 | ) | — | (3,640 | ) | |||||||||||||||
Operating income of segment | 12,718 | 262 | 12,980 | 807 | (218 | ) | (205 | ) | 13,364 | |||||||||||||||||||
Opening capital employed | 114,690 | 19,818 | 5,765 | 96,469 | 236,743 | |||||||||||||||||||||||
Closing capital employed | 136,280 | 20,074 | 7,068 | 96,091 | 259,513 | |||||||||||||||||||||||
Average capital employed | 125,485 | 19,946 | 6,417 | 96,280 | 248,128 | |||||||||||||||||||||||
Return on capital employed | 41 | % | 16 | % | (14 | )% | 22 | % |
Year ended March 31, 2009 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
IT Services and Products | Care and | Reconciling | ||||||||||||||||||||||||||
Particulars | IT Services | IT Products | Total | Lighting | Others | Items | Entity Total | |||||||||||||||||||||
Revenues | 191,613 | 34,277 | 225,890 | 19,249 | 8,995 | 1,204 | 255,338 | |||||||||||||||||||||
Cost of revenues | (128,473 | ) | (30,886 | ) | (159359 | ) | (10,782 | ) | (8,679 | ) | (1,395 | ) | (180,215 | ) | ||||||||||||||
Selling and marketing expenses | (10,672 | ) | (1,361 | ) | (12,033 | ) | (4,750 | ) | (249 | ) | (236 | ) | (17,313 | ) | ||||||||||||||
General and administrative expenses | (12,271 | ) | (667 | ) | (12,938 | ) | (1,125 | ) | (316 | ) | (131 | ) | (14,510 | ) | ||||||||||||||
Operating income of segment | 40,197 | 1,363 | 41,560 | 2,592 | (294 | ) | (558 | ) | 43,300 | |||||||||||||||||||
Opening capital employed | 93,845 | 17,359 | 6,149 | 53,081 | 170,433 | |||||||||||||||||||||||
Closing capital employed | 115,089 | 18,782 | 5,638 | 64,763 | 204,272 | |||||||||||||||||||||||
Average capital employed | 104,467 | 18,070 | 5,893 | 58,922 | 187,353 | |||||||||||||||||||||||
Return on capital employed | 40 | % | 14 | % | (5 | )% | 23 | % |
Year ended March 31, 2010 | ||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
IT Services and Products | Care and | Reconciling | ||||||||||||||||||||||||||
Particulars | IT Services | IT Products | Total | Lighting | Others | Items | Entity Total | |||||||||||||||||||||
Revenues | 202,490 | 38,205 | 240,695 | 22,584 | 7,143 | 819 | 271,241 | |||||||||||||||||||||
Cost of revenues | (132,144 | ) | (34,151 | ) | (166,295 | ) | (11,805 | ) | (7,446 | ) | (753 | ) | (186,299 | ) | ||||||||||||||
Selling and marketing expenses | (10,492 | ) | (1,275 | ) | (11,767 | ) | (6,492 | ) | (323 | ) | (27 | ) | (18,608 | ) | ||||||||||||||
General and administrative expenses | (12,446 | ) | (1,015 | ) | (13,461 | ) | (1,207 | ) | (210 | ) | 56 | (14,823 | ) | |||||||||||||||
Operating income of segment | 47,408 | 1,764 | 49,172 | 3,080 | (836 | ) | 95 | 51,511 | ||||||||||||||||||||
Opening capital employed | 115,089 | 18,782 | 5,638 | 64,763 | 204,272 | |||||||||||||||||||||||
Closing capital employed | 136,280 | 20,074 | 7,068 | 96,091 | 259,513 | |||||||||||||||||||||||
Average capital employed | 125,685 | 19,428 | 6,353 | 80,427 | 231,893 | |||||||||||||||||||||||
Return on capital employed | 39 | % | 16 | % | (13 | )% | 22 | % |
R K SWAMY/BBDO 2261
9. | Statement of assets and liabilities will be provided along with the audited financial results. | |
10. | Corresponding figures for previous periods presented have been regrouped, where ever necessary, to conform to the current period classification. |
Place: Bangalore Date: April 23,2010 | By order of the board Azim H Premji Chairman | WIPRO LIMITED Regd. Officer: Doddakannelli, Sarjapur Road, Bangalore — 560035. www.wipro.com |