Exhibit 99.4
WIPRO LIMITED
CIN: L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakannelli, Sarjapur Road, Bengaluru - 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, 2023
UNDER IFRS (IASB)
(₹ in millions, except share and per share data, unless otherwise stated)
Particulars | Three months ended | Six months ended | Year ended | |||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | March 31, 2023 | |||||||||||||||||||||
Income | ||||||||||||||||||||||||||
a) Revenue from operations | 225,159 | 228,310 | 225,397 | 453,469 | 440,683 | 904,876 | ||||||||||||||||||||
b) Foreign exchange gains/(losses), net | 268 | (62 | ) | 1,057 | 206 | 2,091 | 4,472 | |||||||||||||||||||
I | Total income | 225,427 | 228,248 | 226,454 | 453,675 | 442,774 | 909,348 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
a) Purchases of stock-in-trade | 576 | 978 | 1,678 | 1,554 | 4,165 | 6,494 | ||||||||||||||||||||
b) Changes in inventories of finished goods and stock-in-trade | 920 | (182 | ) | (333 | ) | 738 | (679 | ) | 150 | |||||||||||||||||
c) Employee benefits expense | 138,536 | 140,276 | 137,261 | 278,812 | 263,395 | 537,644 | ||||||||||||||||||||
d) Depreciation, amortization and impairment expense | 8,970 | 7,380 | 7,969 | 16,350 | 15,707 | 33,402 | ||||||||||||||||||||
e) Sub-contracting and technical fees | 26,547 | 26,385 | 29,131 | 52,932 | 58,585 | 115,247 | ||||||||||||||||||||
f) Facility expenses | 3,815 | 3,452 | 3,300 | 7,267 | 6,599 | 13,492 | ||||||||||||||||||||
g) Travel | 4,049 | 4,175 | 3,037 | 8,224 | 6,107 | 14,445 | ||||||||||||||||||||
h) Communication | 1,360 | 1,249 | 1,496 | 2,609 | 3,039 | 5,911 | ||||||||||||||||||||
i) Legal and professional fees | 2,507 | 2,251 | 3,378 | 4,758 | 7,271 | 13,288 | ||||||||||||||||||||
j) Software license expense for internal use | 4,701 | 4,607 | 4,878 | 9,308 | 9,455 | 18,717 | ||||||||||||||||||||
k) Marketing and brand building | 880 | 977 | 644 | 1,857 | 1,544 | 2,951 | ||||||||||||||||||||
l) Lifetime expected credit loss/ (write-back) | 139 | 300 | (79 | ) | 439 | (101 | ) | (604 | ) | |||||||||||||||||
m) (Gain)/loss on sale of property, plant and equipment, net | (2,320 | ) | 78 | (26 | ) | (2,242 | ) | (148 | ) | (89 | ) | |||||||||||||||
n) Other expenses | 1,402 | 1,806 | 1,617 | 3,208 | 3,442 | 8,694 | ||||||||||||||||||||
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II | Total expenses | 192,082 | 193,732 | 193,951 | 385,814 | 378,381 | 769,742 | |||||||||||||||||||
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III | Finance expenses | 3,033 | 3,086 | 2,270 | 6,119 | 4,315 | 10,077 | |||||||||||||||||||
IV | Finance and other Income | 4,810 | 6,542 | 4,040 | 11,352 | 7,730 | 18,185 | |||||||||||||||||||
V | Share of net profit/ (loss) of associates accounted for using the equity method | (30 | ) | 3 | (72 | ) | (27 | ) | (87 | ) | (57 | ) | ||||||||||||||
VI | Profit before tax [I-II-III+IV+V] | 35,092 | 37,975 | 34,201 | 73,067 | 67,721 | 147,657 | |||||||||||||||||||
VII | Tax expense | 8,419 | 9,115 | 7,710 | 17,534 | 15,641 | 33,992 | |||||||||||||||||||
VIII | Profit for the period [VI-VII] | 26,673 | 28,860 | 26,491 | 55,533 | 52,080 | 113,665 | |||||||||||||||||||
Other comprehensive income (OCI) for the period | ||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss in subsequent periods | ||||||||||||||||||||||||||
Remeasurements of the defined benefit plans, net | 51 | (45 | ) | 295 | 6 | 607 | (50 | ) | ||||||||||||||||||
Net change in fair value of investment in equity instruments measured at fair value through OCI | (124 | ) | 16 | 180 | (108 | ) | 1,513 | 705 | ||||||||||||||||||
Items that will be reclassified to profit or loss in subsequent periods | ||||||||||||||||||||||||||
Foreign currency translation differences | 1,824 | (362 | ) | 3,027 | 1,462 | 8,658 | 16,590 | |||||||||||||||||||
Reclassification of foreign currency translation differences on liquidation of subsidiaries to statement of income | (183 | ) | 2 | (23 | ) | (181 | ) | (23 | ) | (133 | ) | |||||||||||||||
Net change in time value of option contracts designated as cash flow hedges | 211 | 40 | (55 | ) | 251 | (301 | ) | (180 | ) | |||||||||||||||||
Net change in intrinsic value of option contracts designated as cash flow hedges | (311 | ) | 512 | (121 | ) | 201 | (327 | ) | (212 | ) | ||||||||||||||||
Net change in fair value of forward contracts designated as cash flow hedges | (62 | ) | 1,648 | (517 | ) | 1,586 | (1,500 | ) | (2,488 | ) |
1
Net change in fair value of investment in debt instruments measured at fair value through OCI | 297 | 1,039 | 148 | 1,336 | (3,954 | ) | (3,137 | ) | ||||||||||||||||||
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IX | Total other comprehensive income for the period, net of taxes | 1,703 | 2,850 | 2,934 | 4,553 | 4,673 | 11,095 | |||||||||||||||||||
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Total comprehensive income for the period [VIII+IX] | 28,376 | 31,710 | 29,425 | 60,086 | 56,753 | 124,760 | ||||||||||||||||||||
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X | Profit for the period attributable to: | |||||||||||||||||||||||||
Equity holders of the Company | 26,463 | 28,701 | 26,590 | 55,164 | 52,226 | 113,500 | ||||||||||||||||||||
Non-controlling interests | 210 | 159 | (99 | ) | 369 | (146 | ) | 165 | ||||||||||||||||||
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26,673 | 28,860 | 26,491 | 55,533 | 52,080 | 113,665 | |||||||||||||||||||||
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Total comprehensive income for the period attributable to: | ||||||||||||||||||||||||||
Equity holders of the Company | 28,169 | 31,640 | 29,512 | 59,809 | 56,863 | 124,543 | ||||||||||||||||||||
Non-controlling interests | 207 | 70 | (87 | ) | 277 | (110 | ) | 217 | ||||||||||||||||||
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28,376 | 31,710 | 29,425 | 60,086 | 56,753 | 124,760 | |||||||||||||||||||||
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XI | Paid up equity share capital (Par value ₹ 2 per share) | 10,444 | 10,978 | 10,971 | 10,444 | 10,971 | 10,976 | |||||||||||||||||||
XII | Reserves excluding revaluation reserves and Non-controlling interests as per balance sheet | 770,188 | ||||||||||||||||||||||||
XIII | Earnings per share (EPS) | |||||||||||||||||||||||||
(Equity shares of par value of ₹ 2/- each) | ||||||||||||||||||||||||||
(EPS for the three and six months ended periods is not annualized) | ||||||||||||||||||||||||||
Basic (in ₹) | 5.06 | 5.23 | 4.86 | 10.30 | 9.55 | 20.73 | ||||||||||||||||||||
Diluted (in ₹) | 5.04 | 5.12 | 4.85 | 10.27 | 9.52 | 20.68 |
1. | The audited consolidated financial results of the Company for the three and six months ended September 30, 2023, have been approved by the Board of Directors of the Company at its meeting held on October 18, 2023. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued an audit report with unmodified opinion on the consolidated financial results. |
2. | The above consolidated financial results have been prepared on the basis of the audited 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”). All amounts included in the consolidated financial results (including notes) are reported in millions of Indian rupees (₹ in millions) except share and per share data, unless otherwise stated. |
3. | Software license expense for internal use has been reclassified from Facility expenses to a separate nature of expense for the three and six months ended September 30, 2022. Staff recruitment expense has been reclassified from Miscellaneous expenses to Legal and Professional fees for the three and six months ended September 30, 2022. |
4. | (Gain)/loss on sale of property, plant and equipment, net has been reclassified from Other expenses and is presented separately for the three months ended September 30, 2023, June 30, 2023 and six months ended September 30, 2023. Previous period figures have been reclassified accordingly. (Gain)/loss on sale of property, plant and equipment, net for the three and six months ended September 30, 2023, includes gain on sale of immovable properties of ₹ (2,368). |
5. | List of subsidiaries and investments accounted for using equity method as at September 30, 2023 are provided in the table below: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Attune Consulting India Private Limited | India | |||||
Capco Technologies Private Limited | India | |||||
Wipro Technology Product Services Private Limited (formerly known as Encore Theme Technologies Private Limited) | India | |||||
Wipro Chengdu Limited | China |
2
Wipro Holdings (UK) Limited | U.K. | |||||
Designit A/S | Denmark | |||||
Designit Denmark A/S | Denmark | |||||
Designit Germany GmbH | Germany | |||||
Designit Oslo A/S | Norway | |||||
Designit Spain Digital, S.L.U | Spain | |||||
Designit Sweden AB | Sweden | |||||
Designit T.L.V Ltd. | Israel | |||||
Wipro Bahrain Limited Co. W.L.L | Bahrain | |||||
Wipro Financial Outsourcing Services Limited | U.K. | |||||
Wipro UK Limited | U.K. | |||||
Wipro Gulf LLC | Sultanate of Oman | |||||
Wipro IT Services S.R.L. | Romania | |||||
Wipro HR Services India Private Limited | India | |||||
Wipro IT Services Bangladesh Limited | Bangladesh | |||||
Wipro IT Services UK Societas | U.K. | |||||
Wipro 4C NV | Belgium | |||||
Wipro 4C Consulting France SAS | France | |||||
Wipro 4C Danmark ApS | Denmark | |||||
Wipro 4C Nederland B.V | Netherlands | |||||
Wipro Weare4C UK Limited (1) | U.K. | |||||
Grove Holdings 2 S.á.r.l | Luxembourg | |||||
Capco Solution Services GmbH | Germany | |||||
The Capital Markets Company Italy Srl | Italy | |||||
Capco Brasil Serviços E Consultoria Ltda (formerly known as Capco Brasil Serviços E Consultoria Em Informática Ltda) | Brazil | |||||
The Capital Markets Company BV (1) | Belgium | |||||
PT. WT Indonesia | Indonesia | |||||
Rainbow Software LLC | Iraq | |||||
Wipro Arabia Limited (2) | Saudi Arabia | |||||
Women’s Business Park Technologies Limited (2) | Saudi Arabia | |||||
Wipro Doha LLC | Qatar | |||||
Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Holdings Investment Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Information Technology Netherlands BV. | Netherlands | |||||
Wipro do Brasil Technologia Ltda (1) | Brazil | |||||
Wipro Information Technology Kazakhstan LLP | Kazakhstan | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro Portugal S.A. (1) | Portugal | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Technologies Limited | Russia | |||||
Wipro Technologies Peru SAC | Peru | |||||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Technology Chile SPA | Chile | |||||
Wipro IT Service Ukraine, LLC | Ukaine | |||||
Wipro IT Services Poland SP Z.O.O | Poland | |||||
Wipro Technologies Australia Pty Ltd | Australia | |||||
Wipro Ampion Holdings Pty Ltd (1) | Australia | |||||
Wipro Technologies SA | Argentina | |||||
Wipro Technologies SA DE CV | Mexico | |||||
Wipro Technologies South Africa (Proprietary) Limited | South Africa | |||||
Wipro Technologies Nigeria Limited | Nigeria | |||||
Wipro Technologies SRL | Romania | |||||
Wipro (Thailand) Co. Limited | Thailand | |||||
Wipro Japan KK | Japan | |||||
Designit Tokyo Co., Ltd. | Japan | |||||
Wipro Networks Pte Limited | Singapore | |||||
Wipro (Dalian) Limited | China | |||||
Wipro Technologies SDN BHD | Malaysia |
3
Wipro Overseas IT Services Private Limited | India | |||||
Wipro Philippines, Inc. | Philippines | |||||
Wipro Shanghai Limited | China | |||||
Wipro Trademarks Holding Limited | India | |||||
Wipro Travel Services Limited | India | |||||
Wipro VLSI Design Services India Private Limited | India | |||||
Wipro, LLC | USA | |||||
Wipro Gallagher Solutions, LLC | USA | |||||
Wipro Insurance Solutions, LLC | USA | |||||
Wipro IT Services, LLC | USA | |||||
Cardinal US Holdings, Inc.(1) | USA | |||||
Convergence Acceleration Solutions, LLC | USA | |||||
Designit North America, Inc. | USA | |||||
Edgile, LLC | USA | |||||
HealthPlan Services, Inc. (1) | USA | |||||
Infocrossing, LLC | USA | |||||
International TechneGroup Incorporated (1) | USA | |||||
LeanSwift Solutions, Inc.(1) | USA | |||||
Rizing Intermediate Holdings, Inc. (1) | USA | |||||
Wipro Appirio, Inc. (1) | USA | |||||
Wipro Designit Services, Inc. (1) | USA | |||||
Wipro VLSI Design Services, LLC | USA |
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 and Wipro Foundation in India.
(2) | 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 Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Limited. |
(1) | Step Subsidiary details of Cardinal US Holdings, Inc., HealthPlan Services, Inc., International TechneGroup Incorporated, LeanSwift Solutions, Inc., Rizing Intermediate Holdings, Inc., The Capital Markets Company BV, Wipro Ampion Holdings Pty Ltd, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro do Brasil Technologia Ltda, Wipro Portugal S.A. and Wipro Weare4C UK Limited are as follows: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of | |||
Cardinal US Holdings, Inc. | USA | |||||
ATOM Solutions LLC | USA | |||||
Capco Consulting Services LLC | USA | |||||
Capco RISC Consulting LLC | USA | |||||
The Capital Markets Company LLC | USA | |||||
HealthPlan Services, Inc. | USA | |||||
HealthPlan Services Insurance Agency, LLC | USA | |||||
International TechneGroup Incorporated | USA | |||||
International TechneGroup Ltd. | U.K. | |||||
ITI Proficiency Ltd | Israel | |||||
MechWorks S.R.L. | Italy | |||||
LeanSwift Solutions, Inc. | USA | |||||
LeanSwift AB | Sweden | |||||
Rizing Intermediate Holdings, Inc. | USA | |||||
Rizing Lanka (Private) Ltd | Sri Lanka | |||||
Attune Netherlands B.V. (3) | Netherlands | |||||
Rizing Solutions Canada Inc. | Canada | |||||
Rizing LLC | USA | |||||
Aasonn Philippines Inc. | Philippines | |||||
Rizing B.V. | Netherlands | |||||
Rizing Consulting Ireland Limited | Ireland | |||||
Rizing Consulting Pty Ltd. | Australia | |||||
Rizing Geospatial LLC | USA | |||||
Rizing GmbH | Germany | |||||
Rizing Limited | U.K. | |||||
Rizing Middle East DMCC | United Arab Emirates | |||||
Rizing Pte Ltd. (3) | Singapore |
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The Capital Markets Company BV | Belgium | |||||
CapAfric Consulting (Pty) Ltd | South Africa | |||||
Capco Belgium BV | Belgium | |||||
Capco Consultancy (Malaysia) Sdn. Bhd | Malaysia | |||||
Capco Consultancy (Thailand) Ltd | Thailand | |||||
Capco Consulting Singapore Pte. Ltd | Singapore | |||||
Capco Greece Single Member P.C | Greece | |||||
Capco Poland sp. z.o.o | Poland | |||||
The Capital Markets Company (UK) Ltd | U.K. | |||||
Capco (UK) 1, Limited | U.K. | |||||
The Capital Markets Company BV | Netherlands | |||||
The Capital Markets Company GmbH | Germany | |||||
Capco Austria GmbH | Austria | |||||
The Capital Markets Company Limited | Hong Kong | |||||
Capco Consulting Services (Guangzhou) Company Limited | China | |||||
The Capital Markets Company Limited | Canada | |||||
The Capital Markets Company S.á.r.l | Switzerland | |||||
Andrion AG | Switzerland | |||||
The Capital Markets Company S.A.S | France | |||||
The Capital Markets Company s.r.o | Slovakia | |||||
Wipro Ampion Holdings Pty Ltd | Australia | |||||
Wipro Ampion Pty Ltd | Australia | |||||
Wipro Iris Holdco Pty Ltd (3) | Australia | |||||
Wipro Revolution IT Pty Ltd | Australia | |||||
Crowdsprint Pty Ltd | Australia | |||||
Wipro Shelde Australia Pty Ltd | Australia | |||||
Wipro Appirio, Inc. | USA | |||||
Wipro Appirio (Ireland) Limited | Ireland | |||||
Wipro Appirio UK Limited | U.K. | |||||
Topcoder, LLC. | USA | |||||
Wipro Designit Services, Inc. | USA | |||||
Wipro Designit Services Limited | Ireland | |||||
Wipro do Brasil Technologia Ltda | Brazil | |||||
Wipro do Brasil Servicos Ltda | Brazil | |||||
Wipro Do Brasil Sistemas De Informatica Ltda | Brazil | |||||
Wipro Portugal S.A. | Portugal | |||||
Wipro Technologies GmbH | Germany | |||||
Wipro Business Solutions GmbH (3) | Germany | |||||
Wipro IT Services Austria GmbH | Austria | |||||
Wipro Weare4C UK Limited | U.K. | |||||
CloudSocius DMCC | United Arab Emirates |
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(3) | Step Subsidiary details of Attune Netherlands B.V., Rizing Pte Ltd., Wipro Business Solutions GmbH and Wipro Iris Holdco Pty Ltd are as follows: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of Incorporation | |||
Attune Netherlands B.V. | Netherlands | |||||
Attune Australia Pty Ltd | Australia | |||||
Rizing Consulting USA, Inc. | USA | |||||
Rizing Germany GmbH | Germany | |||||
Attune Italia S.R.L | Italy | |||||
Rizing Management LLC | USA | |||||
Attune UK Ltd. | U.K. | |||||
Rizing Pte Ltd. | Singapore | |||||
Rizing New Zealand Ltd. | New Zealand | |||||
Rizing Philippines Inc. | Philippines | |||||
Rizing SDN BHD | Malaysia | |||||
Rizing Solutions Pty Ltd | Australia | |||||
Synchrony Global SDN BHD | Malaysia | |||||
Wipro Business Solutions GmbH | Germany | |||||
Wipro Technology Solutions S.R.L | Romania | |||||
Wipro Iris Holdco Pty Ltd | Australia | |||||
Wipro Iris Bidco Pty Ltd | Australia |
As at September 30, 2023, the Company held 43.7% interest in Drivestream Inc., accounted for using the equity method.
The list of controlled trusts and firms are:
Name of the entity | Country of incorporation | |||||
Wipro Equity Reward Trust | India | |||||
Wipro Foundation | India |
6. | Segment Information |
Effective April 1, 2023, the Company has reorganized its segments by merging India State Run Enterprises (“ISRE”) segment as part of its APMEA SMU within IT Services segment. Comparative period segment information has been restated to give effect to this change.
The Company is now organized into the following operating segments: IT Services and IT Products.
IT Services: The IT services segment primarily consists of IT services offerings to customers organized by four Strategic Market Units (“SMUs”)—Americas 1, Americas 2, Europe and Asia Pacific Middle East and Africa (“APMEA”). Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America: healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms. Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: banking, financial services and insurance, manufacturing, hi-tech, energy and utilities. Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Benelux, the Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.
Revenue from each customer is attributed to the respective SMUs based on the location of the customer’s primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customer’s buying centers, but the total revenue related to these strategic global customers are attributed to a single SMU based on the geographical location of key decision makers.
Our IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design.
IT Products: The Company is a value-added reseller of security, packaged and SaaS 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 these items is reported as revenue from the sale of IT Products.
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The Chief Executive Officer (“CEO”) and Managing Director of the Company has been identified as the Chief Operating Decision Maker as defined by IFRS 8, “Operating Segments”. The CEO 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.
Information on reportable segments for the three months ended September 30, 2023, June 30, 2023, September 30, 2022, six months ended September 30, 2023, September 30, 2022 and year ended March 31, 2023 are as follows:
Particulars | Three months ended | Six months ended | Year ended | |||||||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | March 31, 2023 | |||||||||||||||||||
Audited | Audited | Audited | Audited | Audited | Audited | |||||||||||||||||||
Segment revenue | ||||||||||||||||||||||||
IT Services | ||||||||||||||||||||||||
Americas 1 | 66,813 | 65,607 | 65,350 | 132,420 | 127,052 | 261,270 | ||||||||||||||||||
Americas 2 | 66,914 | 68,303 | 70,030 | 135,217 | 136,643 | 278,374 | ||||||||||||||||||
Europe | 63,976 | 67,134 | 62,684 | 131,110 | 122,960 | 256,845 | ||||||||||||||||||
APMEA | 26,255 | 26,510 | 27,141 | 52,765 | 52,924 | 106,812 | ||||||||||||||||||
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Total of IT Services | 223,958 | 227,554 | 225,205 | 451,512 | 439,579 | 903,301 | ||||||||||||||||||
IT Products | 1,469 | 694 | 1,249 | 2,163 | 3,195 | 6,047 | ||||||||||||||||||
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Total segment revenue | 225,427 | 228,248 | 226,454 | 453,675 | 442,774 | 909,348 | ||||||||||||||||||
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Segment result | ||||||||||||||||||||||||
IT Services | ||||||||||||||||||||||||
Americas 1 | 15,287 | 13,537 | 12,954 | 28,824 | 24,524 | 51,555 | ||||||||||||||||||
Americas 2 | 14,023 | 14,169 | 14,959 | 28,192 | 28,183 | 59,689 | ||||||||||||||||||
Europe | 7,547 | 9,968 | 8,454 | 17,515 | 16,440 | 37,667 | ||||||||||||||||||
APMEA | 2,985 | 2,800 | 2,670 | 5,785 | 4,739 | 10,681 | ||||||||||||||||||
Unallocated | (3,784 | ) | (3,957 | ) | (5,090 | ) | (7,741 | ) | (7,934 | ) | (18,368 | ) | ||||||||||||
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Total of IT Services | 36,058 | 36,517 | 33,947 | 72,575 | 65,952 | 141,224 | ||||||||||||||||||
IT Products | (467 | ) | (161 | ) | (103 | ) | (628 | ) | (158 | ) | (176 | ) | ||||||||||||
Reconciling Items | (2,246 | ) | (1,840 | ) | (1,341 | ) | (4,086 | ) | (1,401 | ) | (1,442 | ) | ||||||||||||
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Total segment result | 33,345 | 34,516 | 32,503 | 67,861 | 64,393 | 139,606 | ||||||||||||||||||
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Finance expenses | (3,033 | ) | (3,086 | ) | (2,270 | ) | (6,119 | ) | (4,315 | ) | (10,077 | ) | ||||||||||||
Finance and other Income | 4,810 | 6,542 | 4,040 | 11,352 | 7,730 | 18,185 | ||||||||||||||||||
Share of net profit/ (loss) of associates accounted for using the equity method | (30 | ) | 3 | (72 | ) | (27 | ) | (87 | ) | (57 | ) | |||||||||||||
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Profit before tax | 35,092 | 37,975 | 34,201 | 73,067 | 67,721 | 147,657 | ||||||||||||||||||
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Notes:
a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate activities. |
b) | Revenue from sale of Company owned intellectual properties is reported as part of IT Services revenues. |
c) | For the purpose of segment reporting, the Company has included the net impact of foreign exchange in revenues amounting to ₹ 268, ₹ (62) and ₹ 1,057 for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022 respectively, ₹ 206 and ₹ 2,091 for the six months ended September 30, 2023, September 30, 2022, and ₹ 4,472 for the year ended March 31, 2023, which is reported under foreign exchange gains/(losses), net in the consolidated financial results. |
d) | Restructuring cost of ₹ 2,249, ₹ 1,887 and ₹ 1,360 is included under Reconciling items for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, ₹ 4,136 and ₹ 1,360 for the six months ended September 30, 2023, September 30, 2022, and ₹ 1,355 for the year ended March 31, 2023 respectively. |
e) | Effective April 1, 2023, amortization and impairment of intangibles assets arising from business combination and change in fair value of contingent consideration is included under “Unallocated” within IT Services segment. Comparative period has been restated to give effect to these changes. |
Segment results of IT Services segment for the three and six months ended September 30, 2023 are after considering additional amortization due to change in estimate of useful life of the customer-related intangibles in an earlier Business combination.
Accordingly, for the three months ended September 30, 2023, June 30, 2023, September 30, 2022, six months ended September 30, 2023, September 30, 2022 and year ended March 31, 2023, ₹ 3,484, ₹ 1,810, ₹ 2,126, ₹ 5,294, ₹ 4,019 and ₹ 9,954 towards amortization and impairment of intangible assets, respectively, and for the three months ended September 30, 2023, June 30, 2023, September 30, 2022, six months ended September 30, 2023, September 30, 2022 and year ended March 31, 2023, ₹ (490), ₹ (16), ₹ (185), ₹ (506), ₹ (271) and ₹ (1,671) towards change in fair value of contingent consideration, respectively, is included under “Unallocated” within IT Services segment.
7
f) | Segment results of IT Services segment are after recognition of (gain)/loss on sale of property, plant and equipment of ₹ (2,320), ₹ 78 and ₹ (26) for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively and ₹ (2,242) and ₹ (148) for the six months ended September 30, 2023, September 30, 2022, and ₹ (89) for the year ended March 31, 2023 respectively. (Refer to Note 4) |
g) | Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 1,563, ₹ 1,544 and ₹ 1,122 for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, ₹ 3,107 and ₹ 2,567 for the six months ended September 30, 2023, September 30, 2022, and ₹ 3,958 for the year ended March 31, 2023 respectively. |
7. | Buyback of equity shares |
During the six months ended September 30, 2023, the Company concluded the buyback of 269,662,921 equity shares (at a price of ₹ 445 per equity share) as approved by the Board of Directors on April 27, 2023. This has resulted in a total cash outflow of ₹ 145,173 (including tax on buyback of ₹ 24,783 and transaction costs related to buyback of ₹ 390). In line with the requirement of the Companies Act, 2013, an amount of ₹ 3,768 and ₹ 141,405 has been utilized from share premium and retained earnings respectively. Further, capital redemption reserve (included in other reserves) of ₹ 539 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buyback, the paid-up equity share capital has reduced by ₹ 539.
8. | Earnings per share for each of the three months ended September 30, 2023 and June 30, 2023 will not add up to earnings per share for the six months ended September 30, 2023, on account of buyback of equity shares. |
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9. | Audited Consolidated Balance Sheet |
As at March 31, 2023 | As at September 30, 2023 | |||||||
ASSETS | ||||||||
Goodwill | 307,970 | 309,732 | ||||||
Intangible assets | 43,045 | 38,109 | ||||||
Property, plant and equipment | 88,659 | 83,086 | ||||||
Right-of-Use assets | 18,702 | 17,043 | ||||||
Financial assets | ||||||||
Derivative assets | 29 | 151 | ||||||
Investments | 20,720 | 21,629 | ||||||
Trade receivables | 863 | 872 | ||||||
Other financial assets | 6,330 | 5,973 | ||||||
Investments accounted for using the equity method | 780 | 761 | ||||||
Deferred tax assets | 2,100 | 2,219 | ||||||
Non-current tax assets | 11,922 | 10,878 | ||||||
Other non-current assets | 13,606 | 10,834 | ||||||
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Total non-current assets | 514,726 | 501,287 | ||||||
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Inventories | 1,188 | 1,281 | ||||||
Financial assets | ||||||||
Derivative assets | 1,844 | 1,999 | ||||||
Investments | 309,232 | 239,847 | ||||||
Cash and cash equivalents | 91,880 | 97,896 | ||||||
Trade receivables | 126,350 | 108,146 | ||||||
Unbilled receivables | 60,515 | 65,292 | ||||||
Other financial assets | 9,096 | 9,155 | ||||||
Contract assets | 23,001 | 24,464 | ||||||
Current tax assets | 5,091 | 5,017 | ||||||
Other current assets | 32,899 | 31,946 | ||||||
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Total current assets | 661,096 | 585,043 | ||||||
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TOTAL ASSETS | 1,175,822 | 1,086,330 | ||||||
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EQUITY | ||||||||
Share capital | 10,976 | 10,444 | ||||||
Share premium | 3,689 | 1,732 | ||||||
Retained earnings | 660,964 | 577,487 | ||||||
Share-based payment reserve | 5,632 | 6,023 | ||||||
Special Economic Zone Re-investment reserve | 46,803 | 44,941 | ||||||
Other components of equity | 53,100 | 58,284 | ||||||
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Equity attributable to the equity holders of the Company | 781,164 | 698,911 | ||||||
Non-controlling interests | 589 | 823 | ||||||
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TOTAL EQUITY | 781,753 | 699,734 | ||||||
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LIABILITIES | ||||||||
Financial liabilities | ||||||||
Loans and borrowings | 61,272 | 61,971 | ||||||
Lease liabilities | 15,953 | 14,796 | ||||||
Derivative liabilities | 179 | 40 | ||||||
Other financial liabilities | 2,649 | 1,609 | ||||||
Deferred tax liabilities | 15,153 | 15,315 | ||||||
Non-current tax liabilities | 21,777 | 26,048 | ||||||
Other non-current liabilities | 9,333 | 11,025 | ||||||
Provisions | ^ | — | ||||||
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Total non-current liabilities | 126,316 | 130,804 | ||||||
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Financial liabilities | ||||||||
Loans, borrowings and bank overdrafts | 88,821 | 94,060 | ||||||
Lease liabilities | 8,620 | 8,348 | ||||||
Derivative liabilities | 2,825 | 1,582 | ||||||
Trade payables and accrued expenses | 89,054 | 78,857 | ||||||
Other financial liabilities | 4,141 | 2,712 | ||||||
Contract liabilities | 22,682 | 16,738 | ||||||
Current tax liabilities | 18,846 | 21,372 | ||||||
Other current liabilities | 30,215 | 29,873 | ||||||
Provisions | 2,549 | 2,250 | ||||||
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Total current liabilities | 267,753 | 255,792 | ||||||
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TOTAL LIABILITIES | 394,069 | 386,596 | ||||||
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TOTAL EQUITY AND LIABILITIES | 1,175,822 | 1,086,330 | ||||||
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^ | Value is less than 1 |
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10. | Audited Consolidated Statement of Cash flows |
Six months ended September 30, | ||||||||
2022 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Profit for the period | 52,080 | 55,533 | ||||||
Adjustments to reconcile profit for the period to net cash generated from operating activities: | ||||||||
Gain on sale of property, plant and equipment, net | (148 | ) | (2,242 | ) | ||||
Depreciation, amortization and impairment expense | 15,707 | 16,350 | ||||||
Unrealized exchange (gain)/loss, net and exchange (gain)/loss on borrowings | 1,406 | 836 | ||||||
Share-based compensation expense | 2,574 | 3,099 | ||||||
Share of net loss of associates accounted for using equity method | 87 | 27 | ||||||
Income tax expense | 15,641 | 17,534 | ||||||
Finance and other income, net of finance expenses | (3,415 | ) | (5,233 | ) | ||||
Gain on derecognition of contingent consideration payable | (271 | ) | (506 | ) | ||||
Changes in operating assets and liabilities, net of effects from acquisitions | ||||||||
Trade receivables | (4,971 | ) | 18,352 | |||||
Unbilled receivables and contract assets | (3,861 | ) | (5,937 | ) | ||||
Inventories | (664 | ) | (92 | ) | ||||
Other assets | (3,242 | ) | 6,498 | |||||
Trade payables, accrued expenses, other liabilities and provisions | (2,783 | ) | (11,260 | ) | ||||
Contract liabilities | (2,929 | ) | (5,928 | ) | ||||
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Cash generated from operating activities before taxes | 65,211 | 87,031 | ||||||
Income taxes paid, net | (15,418 | ) | (10,885 | ) | ||||
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Net cash generated from operating activities | 49,793 | 76,146 | ||||||
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Cash flows from investing activities: | ||||||||
Payment for purchase of property, plant and equipment | (8,737 | ) | (4,184 | ) | ||||
Proceeds from disposal of property, plant and equipment | 181 | 4,223 | ||||||
Payment for purchase of investments | (382,779 | ) | (465,185 | ) | ||||
Proceeds from sale of investments | 347,617 | 535,473 | ||||||
Proceeds from restricted interim dividend account | 27,410 | — | ||||||
Payment for business acquisitions including deposits and escrow, net of cash acquired | (46,341 | ) | — | |||||
Interest received | 6,151 | 11,274 | ||||||
Dividend received | 2 | 2 | ||||||
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Net cash generated from/(used in) investing activities | (56,496 | ) | 81,603 | |||||
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Cash flows from financing activities: | ||||||||
Proceeds from issuance of equity shares and shares pending allotment | 7 | 7 | ||||||
Repayment of loans and borrowings | (79,298 | ) | (43,750 | ) | ||||
Proceeds from loans and borrowings | 91,617 | 48,750 | ||||||
Payment of lease liabilities | (4,927 | ) | (5,172 | ) | ||||
Payment for deferred contingent consideration | (1,169 | ) | (1,289 | ) | ||||
Interest and finance expenses paid | (3,458 | ) | (4,850 | ) | ||||
Payment of dividend | (27,337 | ) | — | |||||
Payment for buyback of equity shares, including tax and transaction cost | — | (145,173 | ) | |||||
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Net cash used in financing activities | (24,565 | ) | (151,477 | ) | ||||
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Net increase/(decrease) in cash and cash equivalents during the period | (31,268 | ) | 6,272 | |||||
Effect of exchange rate changes on cash and cash equivalents | 456 | (259 | ) | |||||
Cash and cash equivalents at the beginning of the period | 103,833 | 91,861 | ||||||
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Cash and cash equivalents at the end of the period | 73,021 | 97,874 | ||||||
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By order of the Board, | For, Wipro Limited | |
Place: Bengaluru Date: October 18, 2023 | Rishad A. Premji Chairman |
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