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 MONTHS ENDED JUNE 30, 2018 UNDER IFRS (IASB)
(₹ in millions, except share and per share data, unless otherwise stated)
Particulars | Three months ended | Year ended | ||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | March 31, 2018 | |||||||||||||||
1 | Income from operations | |||||||||||||||||
a) Revenue | 139,777 | 137,686 | 136,261 | 544,871 | ||||||||||||||
b) Other operating income | 2,529 | — | — | — | ||||||||||||||
c) Foreign exchange gains, net | 771 | 557 | 353 | 1,488 | ||||||||||||||
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Total income from operations | 143,077 | 138,243 | 136,614 | 546,359 | ||||||||||||||
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2 | Expenses | |||||||||||||||||
a) Purchase ofstock-in-trade | 4,650 | 5,306 | 6,306 | 18,434 | ||||||||||||||
b) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process | (473 | ) | (639 | ) | 455 | 505 | ||||||||||||
c) Employee benefit expense | 72,042 | 69,760 | 67,442 | 272,223 | ||||||||||||||
d) Depreciation, amortisation and impairment | 4,337 | 5,702 | 4,943 | 21,124 | ||||||||||||||
e)Sub-contracting/ technical fees | 22,443 | 21,144 | 20,247 | 84,437 | ||||||||||||||
f) Facility expenses | 5,834 | 5,700 | 5,013 | 21,044 | ||||||||||||||
g) Travel | 4,445 | 4,078 | 4,366 | 17,399 | ||||||||||||||
h) Communication | 1,320 | 1,353 | 1,324 | 5,353 | ||||||||||||||
i) Legal and professional fees | 1,171 | 1,246 | 1,101 | 4,690 | ||||||||||||||
j) Marketing and brand building | 709 | 746 | 794 | 3,140 | ||||||||||||||
k) Other expenses | 3,293 | 4,462 | 2,530 | 13,716 | ||||||||||||||
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Total expenses | 119,771 | 118,858 | 114,521 | 462,065 | ||||||||||||||
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3 | Finance expenses | 1,649 | 1,564 | 1,601 | 5,830 | |||||||||||||
4 | Finance and Other Income | 5,197 | 4,803 | 6,327 | 23,999 | |||||||||||||
5 | Share of profits/(loss) of equity accounted investees | (53 | ) | (3 | ) | (1 | ) | 11 | ||||||||||
6 | Profit before tax[1-2-3+4+5] | 26,801 | 22,621 | 26,818 | 102,474 | |||||||||||||
7 | Tax expense | 5,865 | 4,615 | 5,994 | 22,390 | |||||||||||||
8 | Net profit for the period[6-7] | 20,936 | 18,006 | 20,824 | 80,084 | |||||||||||||
9 | Non Controlling Interest | (270 | ) | (22 | ) | 59 | 3 | |||||||||||
10 | Net profit after taxes and Non Controlling Interest[8-9] | 21,206 | 18,028 | 20,765 | 80,081 | |||||||||||||
11 | Paid up equity share capital (Face value₹2 per share) | 9,048 | 9,048 | 9,732 | 9,048 | |||||||||||||
12 | Reserves excluding revaluation reserves and Non Controlling Interest as per balance sheet of previous accounting period | 473,888 | ||||||||||||||||
13 | EARNINGS PER SHARE (EPS) (of₹2/- each) | |||||||||||||||||
(EPS for three months ended periods is not annualised) | ||||||||||||||||||
Basic (in₹) | 4.71 | 4.00 | 4.29 | 16.86 | ||||||||||||||
Diluted (in₹) | 4.70 | 4.00 | 4.28 | 16.83 |
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1. | The audited consolidated financial results of the Company for the three months ended June 30, 2018 have been approved by the Board of Directors of the Company at its meeting held on July 20, 2018. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued audit reports with unmodified opinion on the consolidated financial results. |
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”). |
3. | Adoption of IFRS 15 – Revenue from Contracts with Customers. |
On April 1, 2018, the company adopted IFRS 15, “Revenue from Contracts with Customers” using the cumulative catch-up transition method applied to contracts that were not completed as of April 1, 2018. Accordingly, the comparatives have not been retrospectively adjusted. The adoption of IFRS 15, did not have any material impact on the consolidated results for three months ended June 30, 2018
4. | List of subsidiaries and equity accounted investees as at June 30, 2018 are provided in the table below: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Wipro LLC | USA | |||||
Wipro Gallagher Solutions, LLC. | USA | |||||
Opus Capital Markets Consultants LLC | USA | |||||
Wipro Promax Analytics Solutions Americas LLC | USA | |||||
Infocrossing, LLC. | USA | |||||
Wipro Insurance Solutions LLC | USA | |||||
Wipro IT Services, LLC. | USA | |||||
HealthPlan Services Insurance Agency, LLC. | USA | |||||
HealthPlan Services, Inc. | USA | |||||
Appirio, Inc.(A) | USA | |||||
Cooper Software, LLC. | 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 (UK) Limited | U.K. | |||||
Wipro Digital Aps | Denmark | |||||
Designit A/S(A) | Denmark | |||||
Wipro Europe Limited | U.K. | |||||
Wipro UK Limited | U.K. | |||||
Wipro Financial Services UK Limited | U.K. | |||||
Wipro Information Technology Austria GmbH | Austria | |||||
Wipro Technologies Austria GmbH | Austria | |||||
NewLogic Technologies SARL | France | |||||
Wipro Cyprus Public Limited | Cyprus | |||||
Wipro Doha LLC # | Qatar | |||||
Wipro Technologies SA DE CV | Mexico |
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Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Wipro Philippines, Inc. | Philippines | |||||
Wipro Holdings Hungary | Hungary | |||||
Korlátolt Felelősségű Társaság | ||||||
Wipro Holdings Investment | Hungary | |||||
Korlátolt Felelősségű Társaság | ||||||
Wipro Technologies SA | Argentina | |||||
Wipro Information Technology | Egypt | |||||
Egypt SAE | ||||||
Wipro Arabia Co. Limited * | Saudi Arabia | |||||
Women’s Business Park | Saudi Arabia | |||||
Technologies Limited * | ||||||
Wipro Poland SP. Z.O.O | Poland | |||||
Wipro IT Services Poland | Poland | |||||
SP. Z.O.O | ||||||
Wipro Technologies Australia Pty Ltd | Australia | |||||
Wipro Corporate Technologies | Ghana | |||||
Ghana Limited | ||||||
Wipro Technologies South Africa | South Africa | |||||
(Proprietary) Limited | ||||||
Wipro Technologies Nigeria Limited | Nigeria | |||||
Wipro IT Service Ukraine LLC | Ukraine | |||||
Wipro Information Technology | Netherlands | |||||
Netherlands BV. | ||||||
Wipro Portugal S.A.(A) | Portugal | |||||
Limited Liability Company Wipro | Russia | |||||
Technologies Limited | ||||||
Wipro Technology Chile SPA | Chile | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Information Technology | Kazakhstan | |||||
Kazakhstan LLP | ||||||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro Technologies VZ, C.A. | Venezuela | |||||
Wipro Technologies Peru S.A.C | Peru | |||||
Wipro do Brasil Servicos de | Brazil | |||||
Tecnologia S.A. | ||||||
Wipro do Brasil Technologia Ltda (A) | 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 | |||||
Wipro Networks Pte Limited | Singapore | |||||
Wipro (Dalian) Limited | China |
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Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Wipro Technologies SDN BHD | Malaysia | |||||
Wipro Chengdu Limited | China | |||||
Appirio India Cloud Solutions Private Limited | India | |||||
Wipro IT Services Bangladesh Limited | Bangladesh |
* | 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 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. 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’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A) | Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Digital A/s, Cellent GmbH, and Appirio, Inc. are as follows: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Wipro Portugal S.A. | Portugal | |||||
Wipro Technologies Gmbh | Germany | |||||
Wipro do Brasil Technologia Ltda | Wipro Do Brasil Sistemetas De | Brazil | ||||
Informatica Ltd | Brazil | |||||
Designit A/S | Denmark | |||||
Designit Denmark A/S | Denmark | |||||
Designit Germany GmbH | Germany | |||||
Designit Oslo A/S | Norway | |||||
Designit Sweden AB | Sweden | |||||
Designit T.L.V Ltd. | Israel | |||||
Designit Tokyo Ltd. | Japan | |||||
Denextep Spain Digital, S.L | Spain | |||||
Designit Colombia S A S | Colombia | |||||
Designit Peru SAC | Peru | |||||
Cellent GmbH | Austria | |||||
Frontworx Informations | Austria | |||||
technologie GmbH | ||||||
Appirio, Inc. | USA | |||||
Appirio, K.K | Japan | |||||
Topcoder, LLC. | USA | |||||
Appirio Ltd | Ireland | |||||
Appirio GmbH | Germany | |||||
Appirio Ltd (UK) | U.K. Singapore | |||||
Appirio Singapore Pte Ltd |
As at June 30, 2018, the Company held 43.7% interest in Drivestream Inc, 33% interest in Demin Group Limited and 33.3% in Demin Group Management, LLC, accounted for using the equity method.
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The list of controlled trusts are:
Name of entity | Country of incorporation | |
Wipro Equity Reward Trust | India | |
Wipro Inc. Benefit Trust | India | |
Wipro Foundation | India |
5. | 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. Effective April 1, 2018, consequent to change in organization structure, the Company reorganized its industry verticals. The Manufacturing (MFG) and Technology Business unit (TECH) are split from the former Manufacturing & Technology (MNT) business unit.
The revised industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU) previously known as Health Care and Life Sciences Business unit (HLS), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). IT Services segment also includes Others which comprises dividend income relating to strategic investments, which are presented within “Financial and other Income” in the interim condensed consolidated 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.
Comparative information has been restated to give effect to the above changes.
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 June 30, 2018, June 30, 2017, March 31, 2018 and Year ended March 31, 2018 is as follows:
Particulars | Three months ended | Year ended | ||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | March 31, 2018 | |||||||||||||
Audited | Audited | Audited | Audited | |||||||||||||
Revenue | ||||||||||||||||
IT Services | ||||||||||||||||
BFSI | 41,054 | 39,013 | 34,934 | 148,062 | ||||||||||||
Health BU | 18,209 | 18,575 | 19,150 | 74,177 | ||||||||||||
CBU | 21,987 | 21,029 | 20,535 | 83,762 | ||||||||||||
ENU | 17,205 | 16,768 | 17,464 | 68,427 | ||||||||||||
TECH | 19,504 | 19,158 | 17,664 | 73,967 | ||||||||||||
MFG | 11,304 | 11,712 | 11,678 | 46,305 | ||||||||||||
COMM | 7,740 | 7,864 | 8,831 | 33,710 | ||||||||||||
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Total of IT Services | 137,003 | 134,119 | 130,256 | 528,410 | ||||||||||||
IT Products | 3,532 | 4,169 | 6,343 | 17,998 | ||||||||||||
Reconciling Items | 13 | (45 | ) | 15 | (49 | ) | ||||||||||
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Total Revenue | 140,548 | 138,243 | 136,614 | 546,359 | ||||||||||||
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Other operating Income | ||||||||||||||||
IT Services | 2,529 | — | — | — | ||||||||||||
IT Products | — | — | — | — | ||||||||||||
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Total Other Operating Income | 2,529 | — | — | — | ||||||||||||
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Segment Result | ||||||||||||||||
IT Services | ||||||||||||||||
BFSI | 7,149 | 6,298 | 5,441 | 24,626 | ||||||||||||
Health BU | 2,070 | 1,824 | 2,734 | 9,620 | ||||||||||||
CBU | 2,615 | 3,013 | 2,934 | 13,060 | ||||||||||||
ENU | 2,690 | 2,286 | 3,651 | 8,060 | ||||||||||||
TECH | 4,064 | 3,716 | 3,481 | 14,685 | ||||||||||||
MFG | 1,402 | 1,759 | 1,694 | 7,057 | ||||||||||||
COMM | 754 | (753 | ) | 1,449 | 3,158 | |||||||||||
Unallocated | 695 | 1,180 | 532 | 3,347 | ||||||||||||
Other Operating Income | 2,529 | — | — | — | ||||||||||||
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Total of IT Services | 23,968 | 19,323 | 21,916 | 83,613 | ||||||||||||
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IT Products | (740 | ) | 48 | 31 | 362 | |||||||||||
Reconciling Items | 78 | 14 | 146 | 319 | ||||||||||||
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Total | 23,306 | 19,385 | 22,093 | 84,294 | ||||||||||||
Finance Expense | (1,649 | ) | (1,564 | ) | (1,601 | ) | (5,830 | ) | ||||||||
Finance and Other Income | 5,197 | 4,803 | 6,327 | 23,999 | ||||||||||||
Share of profit/ (loss) of equity accounted investees | (53 | ) | (3 | ) | (1 | ) | 11 | |||||||||
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Profit before tax | 26,801 | 22,621 | 26,818 | 102,474 | ||||||||||||
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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 amounting to₹771,₹557 and₹1,488 for the three months June 30, 2018, March 31, 2018 and year ended March 31, 2018, respectively (₹353 for the three months ended June 30, 2017), which is reported as a part of “Other income” in the statement of profit and loss |
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) | Segment results for COMM industry vertical for three months ended March 31, 2018 and COMM and ENU industry verticals for year ended March 31, 2018 is after considering the impact of provision for impairment of receivables and deferred contract costs of₹1,437 and₹4,612, respectively, consequent to insolvency of two of our customers. |
g) | Net gain from sale of hosted data center services business and disposal of Wipro Airport IT Services Limited, amounting to₹2,529, is included as part of IT services segment result for three months ended June 30, 2018 (Refer Note 6). |
6. Other operating income
Sale of hosted data center service business: During the three months ended June 30, 2018, the Company has concluded the divestment of its hosted data center services business in United States, Germany, Singapore and United Kingdom.
The calculation of the gain on sale is shown below:
Particulars | Total | |||
Cash considerations (net of disposal costs₹660) | ₹ | 24,668 | ||
Less: Carrying amount of net assets disposed (including goodwill of Rs. 13,009) | (26,257 | ) | ||
Add: Reclassification of exchange difference on foreign currency translation | 4,131 | |||
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Gain on Sale | ₹ | 2,542 | ||
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In accordance with the sale agreement, the Company paid₹3,766 to subscribe for units issued by the buyer and received cash consideration of₹27,360. Units amounting to₹2,032 are callable by the buyer if certain business targets committed by the Company are not met over a period of three years. The fair value of these callable units is estimated to be insignificant as at the reporting date. Consequently, the sale consideration accounted represents cash proceeds of₹23,594 and units amounts to₹1,734 issued by the buyer.
The transfer of certain India data center assets and employees are conditional upon obtaining regulatory approval which is expected to be completed by September 30, 2018.
Loss of control in subsidiary: During the three months ended June 30, 2018, the Company has reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.
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7. Events after the reporting period
As part of a strategic partnership, on July 19, 2018, Wipro Limited entered into an agreement to acquire Alight HR Services India Private Limited, Alight’s captive operations in India. The consummation of the transaction is subject to receipt of regulatory approvals and customary closing conditions, and is expected to be completed by September 30, 2018.
By order of the Board, | For, Wipro Limited | |
Azim H Premji | ||
Place: Bangalore | Executive Chairman & | |
Date: July 20, 2018 | Managing Director |
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