Wipro declares its first quarter results of 2016-17; gross revenue grows by 11% YoY
Wipro Limited has announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2016.
Results Highlights:
- Gross Revenues were `136.0 billion ($2.0 billion1), an increase of 11% YoY.
- Net Income2 was `20.5 billion ($304 million1), a decrease of 6% YoY.
- IT Services Segment Revenue was $1,930.8 million, a sequential increase of 2.6% and YoY increase of 7.6%
- Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 2.0% sequentially and grew 9.5% YoY
- IT Services Segment Revenue in Rupee terms was `131.1 billion ($1.9 billion1), an increase of 13% YoY.
- IT Services Segment Profits3 was `23.3 billion ($345 million1), a decrease of 3% YoY.
- IT Services Margins4 was 17.8% for the quarter, as compared to 19.7% for the quarter ended March 31, 2016.
Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board, Wipro, state: “ We have delivered Revenues in line with our guidance. Our early investments in areas such as our Digital practice and cognitive intelligence, notably Wipro HOLMES is positioning as the partner of choice for customers in the CHANGE side of their business. We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory”
Jatin Dalal, Chief Financial Officer, said – “IT Services margins reflect the investments in rewarding our employees as well as the impact of consolidation of our acquisitions for the full quarter. We continue to expand the reach of our automation programs to harness efficiency gains.”
Sharing its outlook for the quarter ending September 30 this year, the company expect revenues from our IT Services business to be in the range of $ 1,931 million to $ 1,950 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.46, Euro/USD at 1.13, AUD/USD at 0.74, USD/INR at 67.12 and USD/CAD at 1.29
IT Services
- For the convenience of the reader, the amounts in Indian Rupees in this release have been translated into United States Dollars at the noon buying rate in New York City on June 30, 2016, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= `67.51. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30,
2016
was US$1= `67.89
- Net Income refers to ‘Profit for the period attributable to equity holders of the Company’
- Segment Profit refers to segment results. Effective April 1, 2016, the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same.
- Margins have been computed based on the change as listed in 3. above
The IT Services segment had a headcount of 173,863 as of June 30, 2016.
Recently Wipro has been able to garner many good deals with many big institutions from around the world.
A US-based Fortune 500 organization, specializing in food processing solutions, has awarded an IT infrastructure transformation and managed services contract to Wipro. The company will set up an IT service desk and enable data center infrastructure consolidation, operations management, end user services and enterprise security management as part of the project. The engagement will enable the client to improve the agility of its IT organisation and drive efficiencies by standardizing global processes, improving asset utilization and accelerating innovation in IT.
Wipro was awarded an IT infrastructure services deal by a Europe-based global dairy co-operative. The project, which leverages Wipro’s LiVE Workspace solution, will provide End User Computing, Helpdesk and Security services for nearly 17,000 of the company’s users in over 30 countries. Wipro will enable the customer’s digital workspace journey, drive greater automation and compliance, and enhance the user experience by providing secure, anywhere, anytime access to applications on devices of their choice.
A top 5 Australian bank has awarded a four-year application maintenance and support contract to Wipro. The company has been working with the bank to modernize its core banking platform and the new engagement will strengthen Wipro’s existing relationship with the customer.
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