Exhibit 99.5
WIPRO LIMITED
CIN: L32102KA1945PLC020800; Registered Office: Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore - 560035, India
Website: www.wipro.com; Email id – info@wipro.com; Tel:+91-80-2844 0011; Fax:+91-80-2844 0054
STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2017 UNDER IFRS (IASB)
(₹ in millions, except share and per share data, unless otherwise stated)
Particulars | Three months ended | Six months ended | Year ended | |||||||||||
September
| June 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | March 31, 2017 | |||||||||
1 | Income from operations | |||||||||||||
a) Net Sales/Income | 134,234 | 136,261 | 137,657 | 270,495 | 273,649 | 550,402 | ||||||||
b) Other operating income | - | - | - | - | - | 4,082 | ||||||||
c) Foreign exchange gains/(losses), net | 453 | 353 | 1,281 | 806 | 2,265 | 3,777 | ||||||||
Total income from operations | 134,687 | 136,614 | 138,938 | 271,301 | 275,914 | 558,261 | ||||||||
2 | Expenses | |||||||||||||
a) Purchase ofstock-in-trade | 2,939 | 6,306 | 6,206 | 9,245 | 13,786 | 25,560 | ||||||||
b) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process | (30) | 455 | 1,248 | 425 | 179 | 1,411 | ||||||||
c) Employee benefit expense | 67,612 | 67,442 | 67,105 | 135,054 | 133,282 | 268,081 | ||||||||
d) Depreciation,amortisation and impairment | 5,200 | 4,943 | 4,849 | 10,143 | 9,514 | 23,107 | ||||||||
e) Sub contracting/technical fees | 21,503 | 20,247 | 19,919 | 41,750 | 40,279 | 82,747 | ||||||||
f) Other expenses | 14,422 | 15,128 | 16,640 | 29,550 | 33,056 | 63,476 | ||||||||
Total expenses | 111,646 | 114,521 | 115,967 | 226,167 | 230,096 | 464,382 | ||||||||
3 | Finance expenses | 1,386 | 1,474 | 1,428 | 2,860 | 2,764 | 5,183 | |||||||
4 | Finance and Other Income | 6,661 | 6,200 | 5,105 | 12,861 | 10,305 | 21,660 | |||||||
5 | Share of profits/(loss) of equity accounted investees | 5 | (1) | - | 4 | - | - | |||||||
6 | Profit before tax[1-2-3+4+5] | 28,321 | 26,818 | 26,648 | 55,139 | 53,359 | 110,356 | |||||||
7 | Tax expense | 6,426 | 5,994 | 5,909 | 12,420 | 12,031 | 25,213 | |||||||
8 | Net profit for the period[6-7] | 21,895 | 20,824 | 20,739 | 42,719 | 41,328 | 85,143 | |||||||
9 | Non Controlling Interest | (22) | 59 | 67 | 37 | 138 | 248 | |||||||
10 | Net profit after taxes and Non Controlling Interest[8-9] | 21,917 | 20,765 | 20,672 | 42,682 | 41,190 | 84,895 | |||||||
11 | Paid up equity share capital | 9,733 | 9,732 | 4,861 | 9,733 | 4,861 | 4,861 | |||||||
(Face value₹ 2 per share) | ||||||||||||||
12 | Reserves excluding revaluation reserves and Non Controlling Interest as per balance sheet of previous accounting period | 515,443
| ||||||||||||
13 | EARNINGS PER SHARE (EPS) | |||||||||||||
(of₹2/- each) (not annualised) | ||||||||||||||
Before extraordinary items | ||||||||||||||
Basic (in₹) | 4.52 | 4.29 | 4.27 | 8.81 | 8.44 | 17.48 | ||||||||
Diluted (in₹)
| 4.52 | 4.28 | 4.26 | 8.80 | 8.42 | 17.43 |
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1. | The audited consolidated financial results of the Company for the three and six months ended September 30, 2017 have been approved by the Board of Directors of the Company at its meeting held on October 17, 2017. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued audit reports with unmodified opinion on the consolidated financial results. Amounts for the previous three and six months ended September 30, 2016 and year ended March 31, 2017 were audited by B S R & Co. LLP. |
2. | The above consolidated financial results have been prepared from the interim condensed consolidated 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”). Effective April 1,2016, the Company has early adopted IFRS 9,Financial Instruments. The comparative information has been adjusted to effect this change retrospectively. |
3. | List of subsidiaries and equity accounted investees as of September 30, 2017 are provided in the table below: |
Subsidiaries | Subsidiaries | Subsidiaries |
Country of Incorporation | |||
Wipro LLC | USA | |||||
Wipro Gallagher Solutions, Inc. | USA | |||||
Opus Capital Markets Consultants LLC | USA | |||||
Wipro Promax Analytics Solutions LLC | USA | |||||
Infocrossing, Inc. | USA | |||||
Wipro Insurance Solutions LLC Wipro Data Centre and Cloud Services, Inc. Wipro IT Services, Inc. | USA USA
USA | |||||
HPH Holdings Corp.(A) Appirio, Inc. (A) | USA USA | |||||
Wipro Overseas IT Services Pvt. Ltd | India | |||||
Wipro Japan KK | Japan | |||||
Wipro Shanghai Limited | China | |||||
Wipro Trademarks Holding Limited | India | |||||
Wipro Travel Services Limited | India | |||||
Wipro Holdings (Mauritius) Limited | Mauritius | |||||
Wipro Holdings UK Limited | U.K. | |||||
Wipro Information Technology Austria GmbH | Austria | |||||
Wipro Technologies Austria GmbH | Austria | |||||
New Logic Technologies SARL | France | |||||
Wipro Digital Aps | Denmark | |||||
Designit A/S | Denmark | |||||
Wipro Europe Limited | U.K. | |||||
Wipro UK Limited | U.K. | |||||
Wipro Financial Services UK Limited | U.K. |
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Subsidiaries | Subsidiaries | Subsidiaries |
Country of Incorporation | |||
Wipro Cyprus Private Limited | Cyprus | |||||
Wipro Doha LLC # | Qatar | |||||
Wipro Technologies S.A DE C.V | Mexico | |||||
Wipro BPO Philippines LTD. Inc. | Philippines | |||||
Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Holdings Investment Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Technologies SA | Argentina | |||||
Wipro Information Technology Egypt SAE | Egypt | |||||
Wipro Arabia Co. Limited * | Saudi Arabia | |||||
Wipro Poland Sp. Z.o.o | Poland | |||||
Wipro IT Services Poland Sp.zo.o | Poland | |||||
Wipro Technologies Australia Pty Ltd | Australia | |||||
Wipro Corporate Technologies Ghana Limited Wipro Technologies South Africa (Proprietary) Limited | Ghana
South Africa | |||||
Wipro Technologies Nigeria Limited | Nigeria | |||||
Wipro IT Service Ukraine LLC Wipro Information Technology Netherlands BV. | Ukraine Netherlands | |||||
Wipro Portugal S.A.(A) | Portugal | |||||
Wipro Technologies Limited, Russia | Russia | |||||
Wipro Technology Chile SPA | Chile | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Information Technology Kazakhstan LLP | Kazakhstan | |||||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro Technologies Norway AS | Norway | |||||
Wipro Technologies VZ, C.A. | Venezuela | |||||
Wipro Technologies Peru S.A.C InfoSERVER S.A. | Peru Brazil | |||||
Wipro Technologies SRL | Romania | |||||
PT WT Indonesia | Indonesia | |||||
Wipro (Thailand) Co Limited | Thailand | |||||
Wipro Bahrain Limited WLL | Bahrain | |||||
Wipro Gulf LLC | Sultanate of Oman | |||||
Rainbow Software LLC | Iraq | |||||
Cellent GmbH | Germany | |||||
Cellent Mittelstandsberatung GmbH | Germany | |||||
Cellent Gmbh(A) | Austria |
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Subsidiaries | Subsidiaries | Subsidiaries |
Country of Incorporation | |||
Wipro Networks Pte Limited | Singapore | |||||
Wipro (Dalian) Limited Wipro Technologies SDN BHD | China Malaysia | |||||
Wipro Chengdu Limited | China | |||||
Wipro Airport IT Services Limited * | India | |||||
Appirio India Cloud Solutions Private Limited | India |
* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Co. Limited and 74% of the equity securities of Wipro Airport IT Services Limited. |
# | 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the Company. |
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’ and ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A) | Step Subsidiary details of Wipro Portugal S.A, Digital A/s, Cellent GmbH, HPH Holdings Corp. and Appirio, Inc. are as follows: |
Subsidiaries | Subsidiaries | Subsidiaries |
Country of Incorporation | |||
Wipro Portugal S.A. | Portugal | |||||
Wipro Retail UK Limited | U.K. | |||||
Wipro do Brasil Technologia Ltda | Brazil | |||||
Wipro Technologies Gmbh | Germany | |||||
Wipro Do Brasil Sistemetas DeInformatica Ltd | Brazil | |||||
Designit A/S | Denmark | |||||
Designit Denmark A/S | Denmark | |||||
Designit Munich GmbH | Germany | |||||
Designit Oslo A/S | Norway | |||||
Designit Sweden AB | Sweden | |||||
Designit T.L.V Ltd. | Israel | |||||
Designit Tokyo Lt.d | Japan | |||||
Denextep Spain Digital, S.L | Spain | |||||
Designit Colombia S A S | Colombia | |||||
Designit Peru SAC | Peru | |||||
Cellent GmbH |
Frontworx Informations technologie GmbH
| Austria Austria | ||||
HPH Holdings Corp. |
HealthPlan Services Insurance Agency, Inc. | USA USA | ||||
HealthPlan Services, Inc. | USA |
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Subsidiaries | Subsidiaries | Subsidiaries |
Country of Incorporation | |||
Appirio, Inc. |
Appirio, K.K Topcoder, Inc. Appirio Ltd | Appirio GmbH Apprio Ltd (UK) Saaspoint, Inc.
| USA Japan USA Ireland Germany U.K. USA
| |||
Appirio Singapore Pte Ltd
| Singapore |
As of September 30, 2017, the Company held 26% interest in Drivestream Inc., accounted for using the equity method.
4. | Segment Information |
The Company is organized by the following operating segments; IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Lifesciences (HLS), Consumer Business Unit (CBU), Energy, Natural Resources and Utilities (ENU), Manufacturing and Technology (MNT) and Communications (COMM). IT Services segment also includes Others which comprises dividend income relating to strategic investments, which are presented within “Finance and other Income” in the statement of Income. Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.
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.
The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.
Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
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Information on reportable segment for the three months ended September 30, 2017, June 30, 2017 and September 30, 2016, six months ended September 30, 2017 and September 30, 2016 and year ended March 31, 2017 is as follows:
Particulars | Three months ended | Six months ended | Year ended | |||||||||
September 30, 2017
| June 30,2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | March 31, 2017 | |||||||
Audited
| Audited | Audited | Audited | Audited | Audited | |||||||
Revenue | ||||||||||||
IT Services | ||||||||||||
BFSI | 36,349 | 34,934 | 33,583 | 71,283 | 67,213 | 135,967 | ||||||
HLS | 17,989 | 19,150 | 20,883 | 37,139 | 40,814 | 82,242 | ||||||
CBU | 20,989 | 20,535 | 20,708 | 41,524 | 41,433 | 83,417 | ||||||
ENU | 17,769 | 17,464 | 16,881 | 35,233 | 34,237 | 68,883 | ||||||
MNT | 30,010 | 29,342 | 29,463 | 59,352 | 59,001 | 119,175 | ||||||
COMM | 8,583 | 8,831 | 9,848 | 17,414 | 19,760 | 38,756 | ||||||
Total of IT Services | 131,689 | 130,256 | 131,366 | 261,945 | 262,458 | 528,440 | ||||||
IT Products | 2,988 | 6,343 | 7,666 | 9,331 | 13,596 | 25,922 | ||||||
Reconciling Items | 10 | 15 | (94) | 25 | (140) | (183) | ||||||
Total Revenue | 134,687 | 136,614 | 138,938 | 271,301 | 275,914 | 554,179 | ||||||
Other operating Income | ||||||||||||
IT Services | - | - | - | - | - | 4,082 | ||||||
IT Products | - | - | - | - | - | - | ||||||
Total Other Operating Income | - | - | - | - | - | 4,082 | ||||||
Segment Result | ||||||||||||
IT Services | ||||||||||||
BFSI | 6,055 | 5,441 | 6,379 | 11,496 | 13,373 | 24,939 | ||||||
HLS | 2,698 | 2,734 | 3,234 | 5,432 | 6,090 | 9,479 | ||||||
CBU | 3,244 | 2,934 | 3,584 | 6,178 | 7,359 | 14,493 | ||||||
ENU | 3,435 | 3,651 | 3,443 | 7,086 | 6,468 | 14,421 | ||||||
MNT | 5,400 | 5,175 | 6,175 | 10,575 | 12,129 | 23,453 | ||||||
COMM | 1,147 | 1,449 | 1,594 | 2,596 | 3,096 | 6,149 | ||||||
Unallocated | 805 | 532 | (1,037) | 1337 | (1,874) | (951) | ||||||
Other Operating Income | - | - | - | 4,082 | ||||||||
Total of IT Services | 22,784 | 21,916 | 23,372 | 44,700 | 46,641 | 96,065 | ||||||
IT Products | 88 | 31 | (298) | 119 | (666) | (1,680) | ||||||
Reconciling Items | 169 | 146 | (103) | 315 | (157) | (506) | ||||||
Total | 23,041 | 22,093 | 22,971 | 45,134 | 45,818 | 93,879 | ||||||
Finance Expense | (1,386) | (1,474) | (1,428) | (2,860) | (2,764) | (5,183) | ||||||
Finance and Other Income | 6,661 | 6,200 | 5,105 | 12,861 | 10,305 | 21,660 | ||||||
Share of profit/ (loss) of equity accounted investee | 5 | (1) | - | 4 | - | - | ||||||
Profit before tax | 28,321 | 26,818 | 26,648 | 55,139 | 53,359 | 110,356 |
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Notes:
a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate activities. |
b) | Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues. |
c) | For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues (which is reported as a part of operating profit in the statement of income). |
d) | For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items. |
e) | 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. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items. |
f) | Net gain from sale of Eco Energy division for the period ended March 31,2017 is included as part of IT Services segment result. |
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5. Statement of Assets and Liabilities
As at September 31, | As at March 31 | |||||||
|
| |||||||
2017 | 2017 | |||||||
ASSETS | ||||||||
Goodwill | 128,839 | 125,796 | ||||||
Intangible assets | 20,571 | 15,922 | ||||||
Property, plant and equipment | 71,803 | 69,794 | ||||||
Derivative assets | 493 | 106 | ||||||
Investments | 9,844 | 7,103 | ||||||
Investment in equity accounted investee | 407 | - | ||||||
Trade receivables | 4,179 | 3,998 | ||||||
Non-current tax assets | 15,037 | 12,008 | ||||||
Deferred tax assets | 3,088 | 3,098 | ||||||
Othernon-current assets | 15,755 | 16,793 | ||||||
|
|
|
| |||||
Totalnon-current assets | 270,016 | 254,618 | ||||||
|
|
|
| |||||
Inventories | 3,456 | 3,915 | ||||||
Trade receivables | 99,887 | 94,846 | ||||||
Other current assets | 31,484 | 30,751 | ||||||
Unbilled revenues | 45,435 | 45,095 | ||||||
Investments | 333,056 | 292,030 | ||||||
Current tax assets | 6,132 | 9,804 | ||||||
Derivative assets | 2,352 | 9,747 | ||||||
Cash and cash equivalents | 51,412 | 52,710 | ||||||
|
|
|
| |||||
Total current assets | 573,214 | 538,898 | ||||||
|
|
|
| |||||
TOTAL ASSETS | 843,230 | 793,516 | ||||||
|
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| |||||
EQUITY | ||||||||
Share capital | 9,733 | 4,861 | ||||||
Share premium | 2,231 | 469 | ||||||
Retained earnings | 529,496 | 490,930 | ||||||
Share based payment reserve | 1,593 | 3,555 | ||||||
Other components of equity | 19,397 | 20,489 | ||||||
|
|
|
| |||||
Equity attributable to the equity holders of the company | 562,450 | 520,304 | ||||||
Non-controlling interest | 2,445 | 2,391 | ||||||
|
|
|
| |||||
Total equity | 564,895 | 522,695 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Long - term loans and borrowings | 31,152 | 19,611 | ||||||
Deferred tax liabilities | 7,464 | 6,614 | ||||||
Derivative liabilities | - | 2 | ||||||
Non-current tax liability | 8,607 | 9,547 | ||||||
Othernon-current liabilities | 4,605 | 5,500 | ||||||
Provisions | 3 | 4 | ||||||
|
|
|
| |||||
Totalnon-current liabilities | 51,831 | 41,278 | ||||||
|
|
|
| |||||
Loans and borrowings and bank overdrafts | 114,210 | 122,801 | ||||||
Trade payables and accrued expenses | 69,640 | 65,486 | ||||||
Unearned revenues | 16,040 | 16,150 | ||||||
Current tax liabilities | 7,420 | 8,101 | ||||||
Derivative liabilities | 3,530 | 2,708 | ||||||
Other current liabilities | 14,642 | 13,027 | ||||||
Provisions | 1,022 | 1,270 | ||||||
|
|
|
| |||||
Total current liabilities | 226,504 | 229,543 | ||||||
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| |||||
TOTAL LIABILITIES | 278,335 | 270,821 | ||||||
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| |||||
TOTAL EQUITY AND LIABILITIES | 843,230 | 793,516 | ||||||
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6. Buyback of equity shares:
On July 20, 2017, the Board of Directors approved a buyback proposal for purchase by the Company of up to 343.75 million shares of₹ 2 each (representing 7.06% of totalpaid-up equity capital) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of₹ 320 per equity share for an aggregate amount not exceeding₹ 110,000 million in accordance with the provisions of the Companies Act, 2013 and the SEBI (Buy Back of Securities) Regulations, 1998. The buyback proposal was also approved by the shareholders through postal ballot, the results of which were declared on August 30, 2017. Buy back offer period will commence on completion of regulatory requirements.
By order of the Board, | For, Wipro Limited | |||
Azim H Premji | ||||
Place: Bangalore | Executive Chairman & | |||
Date: October 17, 2017 | Managing Director |
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