Wipro Limited · NSE:WIPRO
Wipro — Q2 FY2019 Earnings Presentation
23 slides from Wipro's earnings presentation, Oct 24, 2018
Slide 1: Results for the Quarter ended September 30, 2018 under IFRS
FOR IMMEDIATE RELEASE Results for the Quarter ended September 30, 2018 under IFRS IT Services Segment Revenue1 up 10.4% YoY in INR terms Adjusted2 IT Services Margin expanded to 18.1% Bangalore, India and East Brunswick, New Jersey, USA – October 24, 2018 - Wipro Limited (NYSE: WIT, BSE: 507685, NSE
Slide 2: India reorganization, outlook and IT Services highlights
As part of our India business reorganization, we are carving out our India Public Sector Undertaking (PSU) and India Government business, given their distinct operating rhythm and need for differentiated execution rigor. The rest of our India strategy remains unchanged and will focus on enterprise c
Slide 3: Digital highlights and deal wins
Wipro has won a multi-year engagement from a leading Europe-based facility management company for transforming its IT operations. The program will help the client set up a futuristic, agile and scalable platform that will power digital initiatives through a next-gen delivery model, integrated plat
Slide 4: Analyst Accolades and Awards
Analyst Accolades and Awards Wipro was recognized as a Leader in IT Infrastructure Services Automation – Market Trends and Services PEAK Matrix™ Assessment 2018: Become AI Aware or Fall Behind Wipro was positioned in the Winner's Circle of HfS Blueprint on Software Product Engineering Services 2
Slide 5: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that are adjusted to
Slide 6: About Wipro Limited
About Wipro Limited Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper- automation, robotics, cloud, analytics and emerging technologies to help our client
Slide 7: Interim Condensed Consolidated Statement of Financial Position
WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (₹ in millions, except share and per share data, unless otherwise stated) As at March 31, As at September 30, 2018 2018 2018 Convenience translation into US dollar in millions (unaudited) Refer Footnote 3 o
Slide 8: Interim Condensed Consolidated Statement of Income
WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME (₹ in millions, except share and per share data, unless otherwise stated) Three months ended September 30, Six months ended September 30, 2017 2018 2018 2017 2018 2018 Convenience Convenience translation into US transl
Slide 9: Additional Information: Segment Revenue
Additional Information Three months ended September 30, Six months ended September 30, Segment Revenue 2017 2018 2018 2017 2018 2018 IT Services Business Units BFSI 36,349 44,105 608 71,283 85,159 1,174 HEALTH 17,989 18,364 253 37,139 36,573 504 CBU 20,989 23,532 324 41,524 45,519 628 ENU 17,769 18,
Slide 10: Reconciliation of Non-GAAP Constant Currency IT Services Revenue
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN) Three Months ended September 30, 2018 IT Services Revenue as per IFRS $ 2,041.2 Effect of Foreign currency exchange movement $ 18.7 Non-GAAP Constant Currency IT Services Revenue based on previo
Slide 11: Operating Metrics Pertaining to IT Services Segment
Wipro Limited Results for the Quarter ended September 30, 2018 Operating Metrics Pertaining to IT Services Segment A. IT Services FY 18-19 FY 17-18 Note 1 Q2 Q1 FY Q4 Q3 Q2 Q1 IT Services Revenues ($MN) 2,041.2 2,026.5 8,060.2 2,062.0 2,013.0 2,013.5 1,971.7 Revenue & 1.9%Note 1 OM % Sequential Grow
Slide 12: Currency Mix, Utilization and Attrition
FY 18-19 FY 17-18 Q2 Q1 FY Q4 Q3 Q2 Q1 % of Revenue USD 60% 60% 58% 58% 58% 58% 59% Currency Mix GBP 10% 11% 10% 11% 10% 10% 10% EUR 9% 8% 9% 9% 9% 9% 9% INR 6% 7% 8% 8% 8% 8% 8% AUD 5% 5% 5% 5% 5% 5% 4% CAD 3% 2% 2% 2% 2% 3% 3% Others 7% 7% 8% 7% 8% 7% 7% Closing Employee Count 175,346 164,659 163,
Slide 13: Performance for the Quarter ended September 30, 2018
Performance for the Quarter ended September 30, 2018 Jatin Dalal Chief Financial Officer Wipro Limited
Slide 14: Note
Note Wipro divested its hosted data center services business in Q1 FY19. All sequential and YoY revenue growth percentages are adjusted for it. #IT Services Margin for the quarter ended September 30, 2018 includes a loss of ₹5,141 million from the settlement with one of our key customers. Adjusted I
Slide 15: IT Services Revenue for the quarter
IT Services Revenue for the quarter $ 2041.2 Million (up 2.8% QoQ in CC terms; at top end of guidance) ₹ 143.8 Billion (up 6.2% QoQ) © 3
Slide 16: IT Services Margin for the quarter
IT Services Margin for the quarter adjusted Margin# ↑ 90 basis points 18.1% from Q1 FY19 reported margins reported Margin ↓ 260 basis points 14.6% from Q1 FY19 reported margins © 4
Slide 17: Net income for the quarter
Net income for the quarter ₹ 18.9 Billion Highlights: • EPS for the quarter was ₹4.19 per share. • The Effective Tax Rate for Q2’19 was 22.1%. © 5
Slide 18: Operating Cash flow for the quarter
Operating Cash flow for the quarter ₹ 18.6 Billion 98% of Net Income Net Cash: ₹21,358 crores Gross Cash: ₹32,863 crores © 6
Slide 19: Quarter highlights: Business Units, Geographies, Services
Quarter highlights Business Units Banking, Financial ↑ 4.4% QoQ Consumer ↑ 4.8% QoQ Services & Insurance in CC terms Business Unit in CC terms Communications ↑ 4.2% QoQ Energy, Natural ↑ 4.0% QoQ in CC terms Resources and in CC terms Utilities Geographies Services US ↑ 3.7% QoQ Digital Operations &
Slide 20: Other highlights
Other highlights 1. Digital grew 13.4% QoQ and is now at 31.4% of our revenue 2. Top 10 accounts grew 3.6% QoQ in constant currency terms 3. Added 1 account to $100MN+ revenue bucket 4. Added 7 accounts to $10MN+ revenue bucket 5. Localization in US now crossed 60% 6. Efforts savings on FPP projects
Slide 21: Outlook for quarter ending December 31, 2018
Outlook for quarter ending December 31, 2018 We expect Revenue from our IT Services Q3FY19 ^ business to be in the range of $2,028 1.0% to 3.0% million to $2,068 million*. Comparable revenue excluding India PSU and India Government business for the quarter ended September 30, 2018 was $2,007 million
Slide 22: Thank You
wipro'és Thank You
Slide 23: Reconciliation of Selected GAAP measures to Non-GAAP measures
Reconciliation of Selected GAAP measures to Non-GAAP measures Reconciliation of Gross Cash as of September 30, 2018 Wipro Limited and Subsidiaries (Amounts in ₹ crore) Computation of Gross cash position Cash and cash equivalents 7,982 Investments - Current 24,881 Total 32,863 Reconciliation of Non-G