Wipro Ltd 6-K, filed Jan 14, 2022
Wipro Ltd (WIT)
About this 6-K
Wipro Ltd filed this 6-K on January 14, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report ofForeign Private Issuer
Pursuant to Rule 13a-16 or15d-16
under the Securities Exchange Act of 1934
For the month of January 2022
Commission File Number 001-16139
Wipro Limited
(Exactname of Registrant as specified in its charter)
NotApplicable
(Translation of Registrant’s name into English)
Karnataka, India
(Jurisdiction of incorporation or organization)
Doddakannelli
SarjapurRoad
Bangalore, Karnataka 560035, India+91-80-2844-0011
(Address of principal executiveoffices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
We hereby furnish the Commission with copies of the following information concerning our public disclosures regarding our results of operations for the quarter ended December 31, 2021. The following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On January 12, 2022, we announced our results of operations for the quarter ended December 31, 2021. We issued a press release announcing our results under IFRS, a copy of which is attached to this Form 6-K as Item 99.1.
On January 12, 2022, we held a virtual press conference to announce our results. The presentation made by the registrant at the press conference is attached to this Form 6-K as Item 99.2.
We placed advertisements in certain Indian newspapers concerning our results of operations for the quarter ended December 31, 2021 under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Item 99.3.
We made available on our website the Condensed Consolidated Interim Financial Statements as of and for the three months ended December 31, 2021 under IFRS. A copy of such financial statements is attached to this Form 6-K as Item 99.4.
We filed with stock exchanges in India a statement of statutorily audited consolidated financial results for the three months ended December 31, 2021 under IFRS. A copy of such financial statements is attached to this Form 6-K as Item 99.5.
We filed with stock exchanges in India a datasheet containing operating metrics for the quarter ended December 31, 2021. A copy of such data sheet is attached to this Form 6-K as Item 99.6.
INDEX TO EXHIBITS
| Item | |
|---|---|
| 99.1 | IFRS Press Release |
| 99.2 | Presentation referred by the Company at the Press Conference on January 12, 2022 |
| 99.3 | Form of Advertisement Placed in Indian Newspapers |
| 99.4 | Consolidated Interim Financial Statements under IFRS |
| 99.5 | Statutorily Audited Consolidated Financial Results filed with stock exchanges in India |
| 99.6 | Data sheet containing operating metrics filed with stock exchanges in India |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.
| WIPRO LIMITED |
|---|
| /s/ Jatin Pravinchandra Dalal |
| Jatin Pravinchandra Dalal |
| Chief Financial Officer |
Dated: January 13, 2022
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
Results for the Quarter ended December 31, 2021 under IFRS
IT Services delivers strong revenue growth for the quarter at 27.5% YoY,
IT Services Segment Margins at 17.6%
Bangalore, India and New Jersey, USA – January 12, 2022 - Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended December 31, 2021.
Highlights of the Results
Results for the Quarter ended December 31, 2021:
| • | Gross Revenue was<br>₹203.1 billion ($2.7 billion^1^), an increase of 3.3% QoQ and 29.6% YoY |
|---|---|
| • | IT Services Segment Revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY<br> |
| --- | --- |
| • | Non-GAAP^2^ constant<br>currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY |
| --- | --- |
| • | IT Services Operating Margin^3^for the quarter was at 17.6%,<br>a decrease of 19 bps QoQ |
| --- | --- |
| • | Net Income for the quarter was<br>₹29.7 billion ($399.1 million^1^), increase of 1.3% QoQ |
| --- | --- |
| • | Earnings Per Share for the quarter was at<br>₹5.43 ($0.07^1^), an increase of 4.2% YoY |
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| • | Operating Cash Flow was at<br>₹30.1 billion ($404.2 million^1^), which is 101.3% of Net Income |
| --- | --- |
| • | Our closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis<br>YoY. We added 10,306 employees during the quarter |
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| • | Wipro declared an interim dividend of<br>₹1 ($0.013^1^) per equity share/ADS |
| --- | --- |
Performance for the quarter ended December 31, 2021
Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly.”
Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of ₹1 per equity share.”
Outlook for the quarter ending March 31, 2022
We expect Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million*. This translates to a sequential growth of 2.0% to 4.0%.
| * | Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR<br>at 75.73 and CAD/USD at 0.79 |
|---|---|
| 1. | For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into<br>United States Dollars at the certified foreign exchange rate of US$1 = ₹ 74.39, as published by the Federal Reserve Board of Governors on December 31, 2021.<br>However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2021 was US$1= ₹ 76.12 |
| --- | --- |
| 2. | Constant currency revenue for a period is the product of volumes in that period times the average actual<br>exchange rate of the corresponding comparative period |
| --- | --- |
| 3. | IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials<br> |
| --- | --- |
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
| • | A US-based healthcare company has awarded Wipro a business process and<br>platform services contract spanning claims processing and setting up a customer service center using Wipro’s proprietary healthcare platform. Wipro will enable the client to expand its product offerings and go-to-market strategies and grow in this business segment. |
|---|---|
| • | A leading US-based student-aid<br>organization has awarded Wipro a multi-million dollar engagement to manage and streamline their mainframe operations to support their mission critical platform and help enhance end-user experience.<br> |
| --- | --- |
| • | Wipro has won a multi-million dollar engagement with a US-based<br>industrial manufacturing company to drive workplace transformation that delivers best-in-class end-user experience with an<br>effective approach for mergers and acquisitions integrations. |
| --- | --- |
| • | Wipro has won an engagement with a leading US-based retail brokerage for<br>a large integration program that includes modernizing and scaling applications across its multiple lines of business. |
| --- | --- |
| • | A technology-driven travel marketplace has selected Wipro as its strategic partner to modernize its core travel<br>platform and help set up a capability hub in Mexico. The modernized platform will significantly enhance customer experience and help generate new revenue streams for the customer. |
| --- | --- |
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
| • | A large, Brazil-based water and waste management company has awarded<br>Wipro a strategic engagement to transform their internal processes, improve operational efficiency, and enhance competitiveness leveraging Wipro FullStride Cloud Services. |
|---|---|
| • | A leading US-based Cloud Security and Identity Governance solutions<br>provider has selected Wipro to develop demanding functionalities and enhancements to support their core Product Development function. Wipro will help the customer meet growing demands, enable a quicker time to market and scale their software<br>business globally. |
| --- | --- |
| • | A leading US-based financial advice firm has selected Wipro and Capco as<br>strategic partners to deliver multiple digital transformation programs. Together with Capco, Wipro will lead an innovation program to facilitate greater adoption of new technologies to accelerate the company’s digital transformation journey.<br> |
| --- | --- |
| • | Wipro has won an engagement with a US-based multi-state healthcare<br>organization to deliver modernized member services. Wipro will leverage a new cloud-based, globalized contact center service delivery model to digitally transform and optimize stakeholder experience and ensure cost savings, quality, compliance and<br>growth for the customer. |
| --- | --- |
2
Analyst Recognition
| • | Wipro has been recognized as a Leader for the second consecutive time in the 2021 Gartner^®^ Magic Quadrant^™^ for Managed Network Services (Ted Corbett et al., 10 Nov 2021) |
|---|---|
| • | Wipro positioned as a Leader in The Forrester Wave^™^:<br>Data Management Service Providers, Q4 2021 |
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| • | Wipro was featured in the Top 3 players in HFS Top 10: Life Sciences Service Providers 2021<br> |
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| • | Wipro was featured in the Top 4 players in HFS Top 10: Energy Services 2021 |
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| • | Wipro was rated as a Leader in Avasant High-Tech Industry Digital Services 2021–2022 RadarView<br> |
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| • | Wipro was positioned as a Leader in IDC MarketScape: Worldwide Salesforce Implementation Services 2021 Vendor<br>Assessment (Doc # US47073921, Nov 2021) |
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| • | Wipro was rated as a Leader and Star Performer in Everest Group’s Enterprise Quality Assurance (QA) Services<br>PEAK Matrix^®^ Assessment 2022 |
| --- | --- |
| • | Wipro was recognized as a Leader in Everest Group’s Cloud Services PEAK Matrix^®^ Assessment 2022 – Europe, North America |
| --- | --- |
| • | Wipro was recognized as a Leader in Everest Group’s Advanced Analytics and Insights (AA&I) Services PEAK<br>Matrix^®^ Assessment 2022 |
| --- | --- |
| • | Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in<br>Whitelane & Navisco Germany IT Outsourcing Study 2021 |
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| • | Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane<br>French IT Outsourcing Study 2021 |
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| • | Wipro was recognized as a Leader in Everest Group’s Intelligent Automation in Healthcare – Solutions<br>PEAK Matrix^®^ Assessment 2022 |
| --- | --- |
Disclaimer: Gartner does not endorse anyvendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions ofGartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particularpurpose.
IT Products
| • | IT Products Segment Revenue for the quarter was<br>₹1.8 billion ($23.8 million^1^) |
|---|---|
| • | IT Products Segment Results for the quarter was a profit of ₹0.1 billion ($1.3 million^1^) |
| --- | --- |
India business from State Run Enterprises (ISRE)
| • | India SRE Segment Revenue for the quarter was<br>₹1.6 billion ($21.8 million^1^) |
|---|---|
| • | India SRE Segment Results for the quarter was a profit of ₹0.1 billion ($1.8 million^1^) |
| --- | --- |
3
Please refer to the table on page 9 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.
About Non-GAAPFinancial 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 exclude or include amounts that are excluded or included, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.
The table on page 9 provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial measure that is calculated by translating IT Services Revenue from the current reporting period into U.S. dollars based on the currency conversion rate in effect for the prior reporting period. We refer to growth rates in constant currency so that business results may be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.
This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS and may be different from non-GAAP measures used by other companies. In addition to this non-GAAP measure, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.
Results for the quarter endedDecember 31, 2021, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com
Quarterly Conference Call
We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (08:45 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a web-cast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP20220112
An audio recording of the management discussions and the question-and-answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com
About WiproLimited
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 clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 220,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.
| Contact for Investor Relations | Contact for Media & Press | |
|---|---|---|
| Aparna Iyer | Abhishek Kumar Jain | Vipin Nair |
| Phone: +91-80-6142 7139 | Phone: +91-80-6142 6143 | Phone: +91-80-6142 6450 |
| iyer.aparna@wipro.com | abhishekkumar.jain@wipro.com | vipin.nair1@wipro.com |
4
Forward-Looking Statements
The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, complete proposed corporate actions, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our business and industry.
Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.
#
(Tables to follow)
5
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(₹inmillions, except share and per share data, unless otherwise stated)
| As at March 31, 2021 | As at December 31, 2021 | |||||
|---|---|---|---|---|---|---|
| Convenience translation intoUS dollar in millions<br>Refer footnote in page 1 | ||||||
| ASSETS | ||||||
| Goodwill | 139,127 | 242,945 | 3,266 | |||
| Intangible assets | 13,085 | 44,320 | 596 | |||
| Property, plant and equipment | 85,192 | 90,248 | 1,213 | |||
| Right-of-Use<br>assets | 16,420 | 18,445 | 248 | |||
| Financial assets | ||||||
| Derivative assets | 16 | 35 | ^ | |||
| Investments | 10,576 | 17,543 | 236 | |||
| Trade receivables | 4,358 | 1,301 | 17 | |||
| Other financial assets | 6,088 | 6,052 | 81 | |||
| Investments accounted for using the equity method | 1,464 | 775 | 10 | |||
| Deferred tax assets | 1,664 | 2,357 | 32 | |||
| Non-current tax assets | 14,323 | 10,222 | 137 | |||
| Other non-current assets | 15,935 | 12,377 | 166 | |||
| Total non-current assets | **** | 308,248 | **** | 446,620 | **** | 6,002 |
| Inventories | 1,064 | 1,025 | 14 | |||
| Financial assets | ||||||
| Derivative assets | 4,064 | 5,277 | 71 | |||
| Investments | 175,707 | 235,740 | 3,169 | |||
| Cash and cash equivalents | 169,793 | 107,458 | 1,445 | |||
| Trade receivables | 94,298 | 122,365 | 1,645 | |||
| Unbilled receivables | 27,124 | 38,908 | 523 | |||
| Other financial assets | 7,245 | 9,608 | 129 | |||
| Contract assets | 16,507 | 16,680 | 224 | |||
| Current tax assets | 2,461 | 4,185 | 56 | |||
| Other current assets | 24,923 | 29,504 | 397 | |||
| Total current assets | **** | 523,186 | **** | 570,750 | **** | 7,673 |
| TOTAL ASSETS | **** | 831,434 | **** | 1,017,370 | **** | 13,675 |
| EQUITY | ||||||
| Share capital | 10,958 | 10,962 | 147 | |||
| Share premium | 714 | 1,304 | 18 | |||
| Retained earnings | 466,692 | 555,789 | 7,471 | |||
| Share-based payment reserve | 3,071 | 4,094 | 55 | |||
| SEZ Re-investment reserve | 41,154 | 44,167 | 594 | |||
| Other components of equity | 30,506 | 37,609 | 506 | |||
| Equity attributable to the equity holders of the Company | **** | 553,095 | **** | 653,925 | **** | 8,791 |
| Non-controlling interests | 1,498 | 446 | 6 | |||
| TOTAL EQUITY | **** | 554,593 | **** | 654,371 | **** | 8,797 |
| LIABILITIES | ||||||
| Financial liabilities | ||||||
| Loans and borrowings | 7,458 | 55,417 | 745 | |||
| Derivative liabilities | — | 1 | ^ | |||
| Lease liabilities | 13,513 | 15,056 | 202 | |||
| Other financial liabilities | 2,291 | 3,676 | 49 | |||
| Deferred tax liabilities | 4,633 | 14,989 | 201 | |||
| Non-current tax liabilities | 11,069 | 14,520 | 195 | |||
| Other non-current liabilities | 7,835 | 8,238 | 111 | |||
| Provisions | 2 | 6 | ^ | |||
| Total non-current liabilities | **** | 46,801 | **** | 111,903 | **** | 1,503 |
| Financial liabilities | ||||||
| Loans, borrowings and bank overdrafts | 75,874 | 78,501 | 1,055 | |||
| Derivative liabilities | 1,070 | 340 | 5 | |||
| Trade payables and accrued expenses | 78,870 | 87,506 | 1,175 | |||
| Lease liabilities | 7,669 | 8,647 | 116 | |||
| Other financial liabilities | 1,470 | 3,906 | 53 | |||
| Contract liabilities | 22,535 | 28,161 | 379 | |||
| Current tax liabilities | 17,324 | 18,992 | 255 | |||
| Other current liabilities | 24,552 | 24,238 | 326 | |||
| Provisions | 676 | 805 | 11 | |||
| Total current liabilities | **** | 230,040 | **** | 251,096 | **** | 3,375 |
| TOTAL LIABILITIES | **** | 276,841 | **** | 362,999 | **** | 4,878 |
| TOTAL EQUITY AND LIABILITIES | **** | 831,434 | **** | 1,017,370 | **** | 13,675 |
| ^ Value is less than 1 | ||||||
| --- |
6
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(₹inmillions, except share and per share data, unless otherwise stated)
| Three months ended December 31, | Nine months ended December 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||
| Conveniencetranslation intoUS dollar inmillions<br>Refer footnote inpage 1 | Conveniencetranslation intoUS dollar inmillions<br>Refer footnote inpage 1 | |||||||||||||||||
| Revenues | 156,700 | 203,136 | 2,731 | 456,976 | 582,334 | 7,828 | ||||||||||||
| Cost of revenues | (104,313 | ) | (142,778 | ) | (1,919 | ) | (313,400 | ) | (407,907 | ) | (5,483 | ) | ||||||
| Gross profit | **** | 52,387 | **** | 60,358 | **** | 812 | **** | 143,576 | **** | 174,427 | **** | 2,345 | ||||||
| Selling and marketing expenses | (11,326 | ) | (13,988 | ) | (189 | ) | (30,721 | ) | (40,857 | ) | (549 | ) | ||||||
| General and administrative expenses | (7,814 | ) | (12,036 | ) | (162 | ) | (25,997 | ) | (33,854 | ) | (455 | ) | ||||||
| Foreign exchange gains/(losses), net | 566 | 1,187 | 16 | 2,109 | 3,280 | 44 | ||||||||||||
| Other operating income/(loss), net | — | 14 | ^ | (81 | ) | 2,179 | 29 | |||||||||||
| Results from operating activities | **** | 33,813 | **** | 35,535 | **** | 477 | **** | 88,886 | **** | 105,175 | **** | 1,414 | ||||||
| Finance expenses | (1,400 | ) | (1,403 | ) | (19 | ) | (3,966 | ) | (3,608 | ) | (49 | ) | ||||||
| Finance and other income | 5,975 | 3,578 | 48 | 16,465 | 12,311 | 165 | ||||||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 101 | 76 | 1 | 126 | 73 | 1 | ||||||||||||
| Profit before tax | **** | 38,489 | **** | 37,786 | **** | 507 | **** | 101,511 | **** | 113,951 | **** | 1,531 | ||||||
| Income tax expense | (8,524 | ) | (8,063 | ) | (108 | ) | (22,590 | ) | (22,547 | ) | (303 | ) | ||||||
| Profit for the period | **** | 29,965 | **** | 29,723 | **** | 399 | **** | 78,921 | **** | 91,404 | **** | 1,228 | ||||||
| Profit attributable to: | ||||||||||||||||||
| Equity holders of the Company | 29,667 | 29,690 | 399 | 78,225 | 91,318 | 1,227 | ||||||||||||
| Non-controlling interests | 298 | 33 | ^ | 696 | 86 | 1 | ||||||||||||
| Profit for the period | **** | 29,965 | **** | 29,723 | **** | 399 | **** | 78,921 | **** | 91,404 | **** | 1,228 | ||||||
| Earnings per equity share: | ||||||||||||||||||
| Attributable to equity holders of the Company | ||||||||||||||||||
| Basic | 5.21 | 5.43 | 0.07 | 13.74 | 16.71 | 0.22 | ||||||||||||
| Diluted | 5.17 | 5.42 | 0.07 | 13.46 | 16.67 | 0.22 | ||||||||||||
| Weighted average number of equity shares used in computing earnings per equityshare | ||||||||||||||||||
| Basic | 5,696,798,493 | 5,467,954,878 | 5,467,954,878 | 5,694,731,405 | 5,465,359,077 | 5,465,359,077 | ||||||||||||
| Diluted | 5,741,070,466 | 5,481,204,821 | 5,481,204,821 | 5,812,779,105 | 5,478,766,612 | 5,478,766,612 | ||||||||||||
| ^ | Value is less than 1 | |||||||||||||||||
| --- | --- |
7
Additional Information:
| Particulars | Three months ended | Nine months ended | Year ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,2021 | September 30,2021 | December 31,2020 | December 31,2021 | December 31,2020 | March 31,2021 | |||||||||||||
| Audited | Audited | Audited | Audited | Audited | Audited | |||||||||||||
| Revenue | ||||||||||||||||||
| IT Services | ||||||||||||||||||
| Americas 1 | 56,644 | 53,205 | 45,015 | 159,532 | 131,581 | 178,091 | ||||||||||||
| Americas 2 | 61,076 | 59,260 | 44,702 | 175,441 | 133,346 | 179,821 | ||||||||||||
| Europe | 59,620 | 58,619 | 42,880 | 172,700 | 120,334 | 165,441 | ||||||||||||
| APMEA | 23,596 | 22,715 | 20,717 | 67,543 | 61,637 | 82,462 | ||||||||||||
| Total of IT Services | **** | 200,936 | **** | 193,799 | **** | 153,314 | **** | 575,216 | **** | 446,898 | **** | 605,815 | ||||||
| IT Products | 1,767 | 1,894 | 1,563 | 4,972 | 5,568 | 7,685 | ||||||||||||
| ISRE | 1,623 | 1,867 | 2,388 | 5,427 | 6,610 | 8,912 | ||||||||||||
| Reconciling Items | (3 | ) | 47 | 1 | (1 | ) | 9 | 13 | ||||||||||
| Total Revenue | **** | 204,323 | **** | 197,607 | **** | 157,266 | **** | 585,614 | **** | 459,085 | **** | 622,425 | ||||||
| Other operating income/(loss), net | ||||||||||||||||||
| IT Services | 14 | 15 | — | 2,179 | (81 | ) | (81 | ) | ||||||||||
| Total Other operating income/(loss), net | **** | 14 | **** | 15 | **** | — | **** | 2,179 | **** | (81 | ) | **** | (81 | ) | ||||
| Segment Result | ||||||||||||||||||
| IT Services | ||||||||||||||||||
| Americas 1 | 11,390 | 10,521 | 8,075 | 31,290 | 23,177 | 33,040 | ||||||||||||
| Americas 2 | 12,057 | 11,819 | 10,190 | 35,226 | 31,089 | 41,589 | ||||||||||||
| Europe | 9,172 | 9,186 | 9,283 | 26,683 | 22,969 | 31,673 | ||||||||||||
| APMEA | 2,483 | 3,028 | 2,778 | 8,577 | 8,402 | 11,476 | ||||||||||||
| Unallocated | 173 | (156 | ) | 2,945 | 73 | 3,896 | 5,153 | |||||||||||
| Other operating income/(loss), net | 14 | 15 | — | 2,179 | (81 | ) | (81 | ) | ||||||||||
| Total of IT Services | **** | 35,289 | **** | 34,413 | **** | 33,271 | **** | 104,028 | **** | 89,452 | **** | 122,850 | ||||||
| IT Products | 96 | 94 | 78 | 137 | (100 | ) | 45 | |||||||||||
| ISRE | 134 | 393 | 471 | 1,002 | 474 | 1,061 | ||||||||||||
| Reconciling Items | 16 | 20 | (7 | ) | 8 | (940 | ) | (903 | ) | |||||||||
| Total | **** | 35,535 | **** | 34,920 | **** | 33,813 | **** | 105,175 | **** | 88,886 | **** | 123,053 | ||||||
| Finance expenses | (1,403 | ) | (1,459 | ) | (1,400 | ) | (3,608 | ) | (3,966 | ) | (5,088 | ) | ||||||
| Finance and Other Income | 3,578 | 4,114 | 5,975 | 12,311 | 16,465 | 20,912 | ||||||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 76 | (10 | ) | 101 | 73 | 126 | 130 | |||||||||||
| Profit before tax | **** | 37,786 | **** | 37,565 | **** | 38,489 | **** | 113,951 | **** | 101,511 | **** | 139,007 |
8
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).
IT Services: As announced on November 12, 2020, effective January 1, 2021, the Company re-organized IT Services segment.to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).
Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM”). Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada. Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.
ITProducts: 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.
India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by the Government of India and/ or any State Governments.
Reconciliation of Non-GAAP Constant Currency IT ServicesRevenue to IT Services Revenue as per IFRS ($Mn)
| Three Months ended December 31, 2021 | ||
|---|---|---|
| IT Services Revenue as per IFRS | $ | 2,639.7 |
| Effect of Foreign currency exchange movement | $ | 17.2 |
| Non-GAAP Constant Currency IT Services Revenue based on<br>previous quarter exchange rates | $ | 2,656.9 |
| Three Months ended December 31, 2021 | ||
| --- | --- | --- |
| IT Services Revenue as per IFRS | $ | 2,639.7 |
| Effect of Foreign currency exchange movement | $ | 21.2 |
| Non-GAAP Constant Currency IT Services Revenue based on<br>exchange rates of comparable period in previous year | $ | 2,660.9 |
9
EX-99.2
Financial Performance for the Quarter ended December 31, 2021 Jatin Dalal Chief Financial Officer Wipro Limited Exhibit 99.2
Revenue for the Quarter $ 2.64 Bn IT services Growth on Constant Currency Basis: QoQ: 3.0% YoY: 28.5% ₹ 203.1 Bn IT Services Revenue | USD Gross Revenue | INR $ Mn INR Mn
Operating Margin for the Quarter 17.6 % Operating Profit growth (Wipro Ltd.) QoQ: 1.8% YoY: 5.1% ₹35.5 Bn IT Services Operating Margin Operating Profit (Wipro Ltd.) in INR IT Services Operating Margin refers to our segment results INR Mn
Net Income for the Quarter YoY growth Net Income: 0.1% EPS: 4.2% Net income refers to the profit attributable to equity share holders of the company ₹ 29.7 Bn ₹ 5.43 Net Income | INR Earnings Per Share | INR INR Mn INR
Other highlights Customer count in >$100 Mn account moved from 10 to 17, >$75 Mn moved from 24 to 29 and > $50Mn account moved from 38 to 47 YoY in Q3’22 Order book in ACV terms grew 27% on year-to-date basis Closed 11 large deals resulting in a TCV of over $600 million Closed acquisition of Edgile, and Leanswift Solutions during the quarter Net headcount add of 41,363 employees YoY in Q3’22 Operating cash flow to Net income for Q3’22 was at 101.3% Declared an interim dividend of ₹1 ($0.0131) per equity/share ADS Notes: For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = ₹74.39, as published by the Federal Reserve Board of Governors on December 31, 2021.
QoQ growth 2.0% to 4.0% We expect the revenue from our IT Services business to be in the range of $2,692 million to $2,745 million* Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79
Thank You
Reconciliation of selected GAAP measures to Non-GAAP measures (1/2) Reconciliation of Gross Cash and Net Cash as of December 31, 2021 Reconciliation of Free Cash Flow for three months and nine months ended December 31, 2021 Notes: For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = ₹74.39, as published by the Federal Reserve Board of Governors on December 31, 2021.
Reconciliation of selected GAAP measures to Non-GAAP measures (2/2) Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn): Three Months ended December 31, 2021 IT Services Revenue as per IFRS $2,639.7 Effect of Foreign currency exchange movement $ 17.2 Non-GAAP Constant Currency IT Services Revenue based on $2,656.9 previous quarter exchange rates Three Months ended December 31, 2021 IT Services Revenue as per IFRS $2,639.7 Effect of Foreign currency exchange movement $ 21.2 Non-GAAP Constant Currency IT Services Revenue based on $2,660.9 exchange rates of comparable period in previous year
Segment Information As announced on November 12, 2020, in order to broad base our growth, effective January 1, 2021, the Company re-organized IT Services segment to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”). Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries. Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM") Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa The two Global Business Lines: iDEAS (Integrated Digital, Engineering & Application Services) will include the following Service Lines - Domain and Consulting, Applications & Data, Engineering and R&D and Wipro Digital iCORE (Cloud Infrastructure, Digital Operations, Risk & Enterprise Cyber Security Services) will include Integrated Cloud Infrastructure (CIS),Digital Operations (DOP) and Risk and Enterprise Cybersecurity Services (CRS)
EX-99.3
Exhibit 99.3
Wipro Limited
Extract of auditedfinancial results of Wipro Limited and its subsidiaries for the quarter ended December 31, 2021
Consolidated Audited Financial Results ofWipro Limited under IFRS
(₹ in millions, except per share data, unless otherwise stated)
| Particulars | Nine months ended<br>December 31, 2021 | Quarter ended<br>December 31, 2020 | |||
|---|---|---|---|---|---|
| Total income from operations (net) | 204,337 | **** | 587,793 | **** | 157,266 |
| Net Profit / (Loss) before tax and exceptional items | 37,786 | **** | 113,951 | **** | 38,489 |
| Net Profit / (Loss) before tax but after exceptional items | 37,786 | **** | 113,951 | **** | 38,489 |
| Net Profit / (Loss) after tax and exceptional items | 29,723 | **** | 91,404 | **** | 29,965 |
| Total Comprehensive Income after tax | 31,495 | **** | 98,533 | **** | 31,589 |
| Equity Share Capital | 10,962 | **** | 10,962 | **** | 11,431 |
| Reserves (excluding Revaluation Reserve)1<br>as shown in the Audited Statement of Financial Position | 542,137 | **** | 542,137 | **** | 546,031 |
| Earnings Per Share (of<br> 2/- each) | |||||
| Basic: | 5.43 | **** | 16.71 | **** | 5.21 |
| Diluted: | 5.42 | **** | 16.67 | **** | 5.17 |
All values are in Indian Rupees.
| ^1^ | Balance for the quarter ended December 31, 2021 and nine months ended December 31, 2021 represent<br>balances as per the audited Statement of Financial Position for the year ended March 31, 2021 and balance for the quarter ended December 31, 2020 represent balances as per the audited Statement of Financial Position for the year ended<br>March 31, 2020, as required by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. |
|---|
The audited interim consolidated financial results of the Company for the three and nine months ended December 31, 2021 have been approved by the Board of Directors of the Company at its meeting held on January 12, 2022. The statutory auditors have expressed an unmodified audit opinion.
Financial Results of Wipro Limited under Ind AS
The interim condensed financial results are prepared in accordance with Indian Accounting Standards (“Ind AS”), the provisions of the Companies Act, 2013 (“the Companies Act”), as applicable and guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendment rules issued thereafter.
Consolidated Audited Financial Results of Wipro Limitedunder Ind AS
| Particulars | Nine months ended<br>December 31, 2021 | Quarter ended<br>December 31, 2020 | |||
|---|---|---|---|---|---|
| Total income from operations (net) | 203,150 | **** | 584,513 | **** | 156,700 |
| Net Profit / (Loss) before tax and exceptional items | 37,786 | **** | 114,084 | **** | 38,504 |
| Net Profit / (Loss) before tax but after exceptional items | 37,786 | **** | 114,084 | **** | 38,504 |
| Net Profit / (Loss) after tax and exceptional items | 29,723 | **** | 91,509 | **** | 29,978 |
| Total Comprehensive Income after tax | 31,489 | **** | 98,569 | **** | 31,643 |
| Equity Share Capital | 10,962 | **** | 10,962 | **** | 11,431 |
| Reserves (excluding Revaluation Reserve)1<br>as shown in the Audited Balance Sheet | 538,052 | **** | 538,052 | **** | 541,790 |
| Earnings Per Share (of<br> 2/- each) | |||||
| Basic: | 5.43 | **** | 16.73 | **** | 5.21 |
| Diluted: | 5.42 | **** | 16.69 | **** | 5.17 |
All values are in Indian Rupees.
| ^1^ | Balance for the quarter ended December 31, 2021 and nine months ended December 31, 2021 represent<br>balances as per the audited Balance sheet for the year ended March 31, 2021 and balance for the quarter ended December 31, 2020 represent balances as per the audited Balance sheet for the year ended March 31, 2020, as required by the<br>SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. |
|---|
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
The audited interim consolidated financial results (under Ind AS) of the Company for the three and nine months ended December 31, 2021 have been approved by the Board of Directors of the Company at its meeting held on January 12, 2022. The statutory auditors have expressed an unmodified audit opinion.
Standalone Audited Financial Results of Wipro Limited under Ind AS
| Particulars | Quarter ended<br>December 31, 2021 | Nine months ended<br>December 31, 2021 | Quarter ended<br>December 31, 2020 | |||
|---|---|---|---|---|---|---|
| Total income from operations (net) | **** | 152,787 | **** | 439,888 | **** | 125,961 |
| Net Profit / (Loss) before tax and exceptional items | **** | 31,326 | **** | 91,747 | **** | 33,515 |
| Net Profit / (Loss) before tax but after exceptional items | **** | 31,326 | **** | 91,747 | **** | 33,515 |
| Net Profit / (Loss) after tax and exceptional items | **** | 24,650 | **** | 66,565 | **** | 26,113 |
| Total Comprehensive Income after tax | **** | 24,198 | **** | 65,790 | **** | 26,497 |
The audited interim standalone financial results (under Ind AS) of the Company for the three and nine months ended December 31, 2021 have been approved by the Board of Directors of the Company at its meeting held on January 12, 2022. The statutory auditors have expressed an unmodified audit opinion.
Note:
| 1. | The above is an extract of the detailed format of Quarterly Financial Results filed with the Stock Exchanges<br>under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results are available on the Bombay Stock Exchange website (URL: www.bseindia.com), the National Stock Exchange<br>website (URL: www.nseindia.com) and on the Company’s website (URL: www.wipro.com). |
|---|---|
| 2. | The Board of Directors in their meeting held on January 12, 2022, declared an interim dividend of ₹ 1/- (USD 0.01) per equity share and ADR (50% on an equity share of par value of<br>₹ 2/-). |
| --- | --- |
| By Order of the Board, | |
| --- | --- |
| For Wipro Limited | |
| Place: Bengaluru | Rishad A. Premji |
| Date: January 12, 2022 | Chairman |
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
EX-99.4
Exhibit 99.4
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNDER IFRS
AS AT AND FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2021
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(₹inmillions, except share and per share data, unless otherwise stated)
| Notes | As at March 31, 2021 | As at December 31, 2021 | |||||
|---|---|---|---|---|---|---|---|
| Convenience translation into USdollar in millions (unaudited)Refer to Note 2(iii) | |||||||
| ASSETS | |||||||
| Goodwill | 6 | 139,127 | 242,945 | 3,266 | |||
| Intangible assets | 6 | 13,085 | 44,320 | 596 | |||
| Property, plant and equipment | 4 | 85,192 | 90,248 | 1,213 | |||
| Right-of-Use<br>assets | 5 | 16,420 | 18,445 | 248 | |||
| Financial assets | |||||||
| Derivative assets | 17 | 16 | 35 | ^ | |||
| Investments | 8 | 10,576 | 17,543 | 236 | |||
| Trade receivables | 4,358 | 1,301 | 17 | ||||
| Other financial assets | 11 | 6,088 | 6,052 | 81 | |||
| Investments accounted for using the equity method | 1,464 | 775 | 10 | ||||
| Deferred tax assets | 1,664 | 2,357 | 32 | ||||
| Non-current tax assets | 14,323 | 10,222 | 137 | ||||
| Other non-current assets | 12 | 15,935 | 12,377 | 166 | |||
| Total non-current assets | **** | 308,248 | **** | 446,620 | **** | 6,002 | |
| Inventories | 9 | 1,064 | 1,025 | 14 | |||
| Financial assets | |||||||
| Derivative assets | 17 | 4,064 | 5,277 | 71 | |||
| Investments | 8 | 175,707 | 235,740 | 3,169 | |||
| Cash and cash equivalents | 10 | 169,793 | 107,458 | 1,445 | |||
| Trade receivables | 94,298 | 122,365 | 1,645 | ||||
| Unbilled receivables | 27,124 | 38,908 | 523 | ||||
| Other financial assets | 11 | 7,245 | 9,608 | 129 | |||
| Contract assets | 16,507 | 16,680 | 224 | ||||
| Current tax assets | 2,461 | 4,185 | 56 | ||||
| Other current assets | 12 | 24,923 | 29,504 | 397 | |||
| Total current assets | **** | 523,186 | **** | 570,750 | **** | 7,673 | |
| TOTAL ASSETS | **** | 831,434 | **** | 1,017,370 | **** | 13,675 | |
| EQUITY | |||||||
| Share capital | 10,958 | 10,962 | 147 | ||||
| Share premium | 714 | 1,304 | 18 | ||||
| Retained earnings | 466,692 | 555,789 | 7,471 | ||||
| Share-based payment reserve | 3,071 | 4,094 | 55 | ||||
| SEZ Re-investment reserve | 41,154 | 44,167 | 594 | ||||
| Other components of equity | 30,506 | 37,609 | 506 | ||||
| Equity attributable to the equity holders of the Company | **** | 553,095 | **** | 653,925 | **** | 8,791 | |
| Non-controlling interests | 1,498 | 446 | 6 | ||||
| TOTAL EQUITY | **** | 554,593 | **** | 654,371 | **** | 8,797 | |
| LIABILITIES | |||||||
| Financial liabilities | |||||||
| Loans and borrowings | 13 | 7,458 | 55,417 | 745 | |||
| Derivative liabilities | 17 | — | 1 | ^ | |||
| Lease liabilities | 13,513 | 15,056 | 202 | ||||
| Other financial liabilities | 14 | 2,291 | 3,676 | 49 | |||
| Deferred tax liabilities | 4,633 | 14,989 | 201 | ||||
| Non-current tax liabilities | 11,069 | 14,520 | 195 | ||||
| Other non-current liabilities | 15 | 7,835 | 8,238 | 111 | |||
| Provisions | 16 | 2 | 6 | ^ | |||
| Total non-current liabilities | **** | 46,801 | **** | 111,903 | **** | 1,503 | |
| Financial liabilities | |||||||
| Loans, borrowings and bank overdrafts | 13 | 75,874 | 78,501 | 1,055 | |||
| Derivative liabilities | 17 | 1,070 | 340 | 5 | |||
| Trade payables and accrued expenses | 78,870 | 87,506 | 1,175 | ||||
| Lease liabilities | 7,669 | 8,647 | 116 | ||||
| Other financial liabilities | 14 | 1,470 | 3,906 | 53 | |||
| Contract liabilities | 22,535 | 28,161 | 379 | ||||
| Current tax liabilities | 17,324 | 18,992 | 255 | ||||
| Other current liabilities | 15 | 24,552 | 24,238 | 326 | |||
| Provisions | 16 | 676 | 805 | 11 | |||
| Total current liabilities | **** | 230,040 | **** | 251,096 | **** | 3,375 | |
| TOTAL LIABILITIES | **** | 276,841 | **** | 362,999 | **** | 4,878 | |
| TOTAL EQUITY AND LIABILITIES | **** | 831,434 | **** | 1,017,370 | **** | 13,675 | |
| ^ Value is less than 1 | |||||||
| --- |
The accompanying notes form an integral part of these interim condensed consolidated financial statements
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
1
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(₹inmillions, except share and per share data, unless otherwise stated)
| Three months ended December 31, | Nine months ended December 31, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes | 2020 | 2021 | 2021 | 2020 | 2021 | 2021 | ||||||||||||||
| Conveniencetranslation intoUS dollar inmillions(unaudited) Refer<br>to Note 2(iii) | Conveniencetranslation intoUS dollar inmillions(unaudited) Referto Note 2(iii) | |||||||||||||||||||
| Revenues | 20 | 156,700 | 203,136 | 2,731 | 456,976 | 582,334 | 7,828 | |||||||||||||
| Cost of revenues | 21 | (104,313 | ) | (142,778 | ) | (1,919 | ) | (313,400 | ) | (407,907 | ) | (5,483 | ) | |||||||
| Gross profit | **** | 52,387 | **** | 60,358 | **** | 812 | **** | 143,576 | **** | 174,427 | **** | 2,345 | ||||||||
| Selling and marketing expenses | 21 | (11,326 | ) | (13,988 | ) | (189 | ) | (30,721 | ) | (40,857 | ) | (549 | ) | |||||||
| General and administrative expenses | 21 | (7,814 | ) | (12,036 | ) | (162 | ) | (25,997 | ) | (33,854 | ) | (455 | ) | |||||||
| Foreign exchange gains/(losses), net | 23 | 566 | 1,187 | 16 | 2,109 | 3,280 | 44 | |||||||||||||
| Other operating income/(loss), net | 26 | — | 14 | ^ | (81 | ) | 2,179 | 29 | ||||||||||||
| Results from operating activities | **** | 33,813 | **** | 35,535 | **** | 477 | **** | 88,886 | **** | 105,175 | **** | 1,414 | ||||||||
| Finance expenses | 22 | (1,400 | ) | (1,403 | ) | (19 | ) | (3,966 | ) | (3,608 | ) | (49 | ) | |||||||
| Finance and other income | 23 | 5,975 | 3,578 | 48 | 16,465 | 12,311 | 165 | |||||||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 101 | 76 | 1 | 126 | 73 | 1 | ||||||||||||||
| Profit before tax | **** | 38,489 | **** | 37,786 | **** | 507 | **** | 101,511 | **** | 113,951 | **** | 1,531 | ||||||||
| Income tax expense | 19 | (8,524 | ) | (8,063 | ) | (108 | ) | (22,590 | ) | (22,547 | ) | (303 | ) | |||||||
| Profit for the period | **** | 29,965 | **** | 29,723 | **** | 399 | **** | 78,921 | **** | 91,404 | **** | 1,228 | ||||||||
| Profit attributable to: | ||||||||||||||||||||
| Equity holders of the Company | 29,667 | 29,690 | 399 | 78,225 | 91,318 | 1,227 | ||||||||||||||
| Non-controlling interests | 298 | 33 | ^ | 696 | 86 | 1 | ||||||||||||||
| Profit for the period | **** | 29,965 | **** | 29,723 | **** | 399 | **** | 78,921 | **** | 91,404 | **** | 1,228 | ||||||||
| Earnings per equity share: | 24 | |||||||||||||||||||
| Attributable to equity holders of the Company | ||||||||||||||||||||
| Basic | 5.21 | 5.43 | 0.07 | 13.74 | 16.71 | 0.22 | ||||||||||||||
| Diluted | 5.17 | 5.42 | 0.07 | 13.46 | 16.67 | 0.22 | ||||||||||||||
| Weighted average number of equity shares used in computing earnings per equityshare | ||||||||||||||||||||
| Basic | 5,696,798,493 | 5,467,954,878 | 5,467,954,878 | 5,694,731,405 | 5,465,359,077 | 5,465,359,077 | ||||||||||||||
| Diluted | 5,741,070,466 | 5,481,204,821 | 5,481,204,821 | 5,812,779,105 | 5,478,766,612 | 5,478,766,612 | ||||||||||||||
| ^ Value is less than 1 | ||||||||||||||||||||
| --- |
The accompanying notes form an integral part of these interim condensed consolidated financial statements
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
2
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(₹inmillions, except share and per share data, unless otherwise stated)
| Three months ended December 31, | Nine months ended December 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||
| Conveniencetranslation intoUS dollar inmillions(unaudited) Referto Note 2(iii) | Conveniencetranslation intoUS dollar inmillions(unaudited) Referto Note 2(iii) | |||||||||||||||||
| Profit for the period | **** | 29,965 | **** | 29,723 | **** | 400 | **** | 78,921 | **** | 91,404 | **** | 1,228 | ||||||
| Other comprehensive income (OCI) | ||||||||||||||||||
| Items that will not be reclassified to profit or loss in subsequent periods | ||||||||||||||||||
| Remeasurements of the defined benefit plans, net | (57 | ) | 104 | 1 | (213 | ) | (675 | ) | (9 | ) | ||||||||
| Net change in fair value of investment in equity instruments measured at fair value through<br>OCI | 273 | 2,643 | 36 | 465 | 8,248 | 111 | ||||||||||||
| **** | 216 | **** | 2,747 | **** | 37 | **** | 252 | **** | 7,573 | **** | 102 | |||||||
| Items that will be reclassified to profit or loss in subsequent periods | ||||||||||||||||||
| Foreign currency translation differences | 1,009 | (303 | ) | (4 | ) | 798 | (163 | ) | (2 | ) | ||||||||
| Reclassification of foreign currency translation differences on sale of investment in associates<br>and liquidation of subsidiaries to statement of income | — | (116 | ) | (2 | ) | — | (151 | ) | (2 | ) | ||||||||
| Net change in time value of option contracts designated as cash flow hedges | (111 | ) | 107 | 1 | 43 | 165 | 2 | |||||||||||
| Net change in intrinsic value of option contracts designated as cash flow hedges | 20 | 13 | ^ | 1,068 | (77 | ) | (1 | ) | ||||||||||
| Net change in fair value of forward contracts designated as cash flow hedges | 233 | 126 | 2 | 2,266 | 777 | 10 | ||||||||||||
| Net change in fair value of investment in debt instruments measured at fair value through<br>OCI | 257 | (802 | ) | (11 | ) | 2,868 | (995 | ) | (13 | ) | ||||||||
| **** | 1,408 | **** | (975 | ) | **** | (14 | ) | **** | 7,043 | **** | (444 | ) | **** | (6 | ) | |||
| Total other comprehensive income, net of taxes | 1,624 | 1,772 | 23 | 7,295 | 7,129 | 96 | ||||||||||||
| Total comprehensive income for the period | **** | 31,589 | **** | 31,495 | **** | 423 | **** | 86,216 | **** | 98,533 | **** | 1,324 | ||||||
| Total comprehensive income attributable to: | ||||||||||||||||||
| Equity holders of the Company | 31,306 | 31,459 | 423 | 85,573 | 98,421 | 1,322 | ||||||||||||
| Non-controlling interests | 283 | 36 | ^ | 643 | 112 | 2 | ||||||||||||
| **** | 31,589 | **** | 31,495 | **** | 423 | **** | 86,216 | **** | 98,533 | **** | 1,324 | |||||||
| ^ Value is less than 1 | ||||||||||||||||||
| --- |
The accompanying notes form an integral part of these interim condensed consolidated financial statements
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
3
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(₹inmillions, except share and per share data, unless otherwise stated)
| Other components of equity | Non-<br>controllinginterests | Total equity | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Number ofshares* | Sharecapital,<br>fully paid-<br>up | Sharepremium | Retainedearnings | Share-basedpaymentreserve | SEZRe-investmentreserve | Foreigncurrencytranslationreserve ** | Cashflowhedgingreserve | Otherreserves^**^ | Equityattributable tothe equity<br>holders of<br>the Company | ||||||||||||||||||||
| As at April 1, 2020 | 5,713,357,390 | 11,427 | 1,275 | 476,103 | 1,550 | 43,804 | 23,539 | (2,315 | ) | 2,075 | **** | 557,458 | 1,875 | **** | 559,333 | |||||||||||||||
| Comprehensive income for the period | ||||||||||||||||||||||||||||||
| Profit for the period | — | — | — | 78,225 | — | — | — | — | — | **** | 78,225 | 696 | **** | 78,921 | ||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | 851 | 3,377 | 3,120 | **** | 7,348 | (53 | ) | **** | 7,295 | |||||||||||||||
| Total comprehensive income for the period | **** | — | **** | — | **** | — | **** | 78,225 | **** | — | **** | — | **** | 851 | **** | 3,377 | **** | 3,120 | **** | 85,573 | **** | 643 | **** | 86,216 | ||||||
| Issue of equity shares on exercise of options* | 1,980,699 | 4 | 540 | — | (540 | ) | — | — | — | — | **** | 4 | — | **** | 4 | |||||||||||||||
| Liability for Buyback of equity shares, including tax thereon (Refer to Note 31) | — | — | — | (117,021 | ) | — | — | — | — | — | **** | (117,021 | ) | — | **** | (117,021 | ) | |||||||||||||
| Transaction cost related to proposed Buyback | — | — | — | (92 | ) | — | — | — | — | — | **** | (92 | ) | — | **** | (92 | ) | |||||||||||||
| Issue of shares by controlled trust on exercise of options | — | — | — | 468 | (468 | ) | — | — | — | — | **** | — | — | **** | — | |||||||||||||||
| Compensation cost related to employee share-based payment | — | — | — | 5 | 1,223 | — | — | — | — | **** | 1,228 | — | **** | 1,228 | ||||||||||||||||
| Transferred to Special economic zone re-investment<br>reserve | — | — | — | (13,413 | ) | — | 13,413 | — | — | — | **** | — | — | **** | — | |||||||||||||||
| Cash dividend paid | — | — | — | — | — | — | — | — | — | **** | — | (960 | ) | **** | (960 | ) | ||||||||||||||
| Others | — | — | — | — | — | — | — | — | — | **** | — | (69 | ) | **** | (69 | ) | ||||||||||||||
| Other transactions for the period | **** | 1,980,699 | **** | 4 | **** | 540 | **** | (130,053 | ) | **** | 215 | **** | 13,413 | **** | — | **** | — | **** | — | **** | (115,881 | ) | **** | (1,029 | ) | **** | (116,910 | ) | ||
| As at December 31, 2020 | **** | 5,715,338,089 | **** | 11,431 | **** | 1,815 | **** | 424,275 | **** | 1,765 | **** | 57,217 | **** | 24,390 | **** | 1,062 | **** | 5,195 | **** | 527,150 | **** | 1,489 | **** | 528,639 | ||||||
| * | Includes 20,469,844 treasury shares held as at December 31, 2020 by a controlled trust. 2,276,237 shares<br>have been transferred by the controlled trust to eligible employees on exercise of options during the nine months ended December 31, 2020. | |||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||
| ** | Refer to Note 18 | |||||||||||||||||||||||||||||
| --- | --- |
4
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(₹inmillions, except share and per share data, unless otherwise stated)
| Other components of equity | Non-<br>controllinginterests | Total equity | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Number ofshares* | Sharecapital,fully paid-<br>up | Sharepremium | Retainedearnings | Share-basedpaymentreserve | SEZRe-investmentreserve | Foreigncurrencytranslationreserve ** | Cashflowhedgingreserve | Otherreserves^**^ | Equityattributableto the equityholders of theCompany | |||||||||||||||||||
| As at April 1, 2021 | **** | 5,479,138,555 | **** | 10,958 | **** | 714 | **** | 466,692 | **** | 3,071 | **** | 41,154 | **** | 22,936 | **** | 1,730 | **** | 5,840 | **** | 553,095 | **** | 1,498 | **** | 554,593 | |||||
| Comprehensive income for the period | |||||||||||||||||||||||||||||
| Profit for the period | — | — | — | 91,318 | — | — | — | — | — | **** | 91,318 | 86 | **** | 91,404 | |||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | (340 | ) | 865 | 6,578 | **** | 7,103 | 26 | **** | 7,129 | ||||||||||||||
| Total comprehensive income for the period | **** | — | **** | — | **** | — | **** | 91,318 | **** | — | **** | — | **** | (340 | ) | **** | 865 | **** | 6,578 | **** | 98,421 | **** | 112 | **** | 98,533 | ||||
| Issue of equity shares on exercise of options | 2,144,656 | 4 | 590 | — | (590 | ) | — | — | — | — | **** | 4 | — | **** | 4 | ||||||||||||||
| Issue of shares by controlled trust on exercise of options * | — | — | — | 785 | (785 | ) | — | — | — | — | **** | — | — | **** | — | ||||||||||||||
| Compensation cost related to employee share-based payment | — | — | — | 7 | 2,398 | — | — | — | — | **** | 2,405 | — | **** | 2,405 | |||||||||||||||
| Transferred to Special economic zone re-investment<br>reserve | — | — | — | (3,013 | ) | — | 3,013 | — | — | — | **** | — | — | **** | — | ||||||||||||||
| Cash dividend paid | — | — | — | — | — | — | — | — | — | **** | — | (1,135 | ) | **** | (1,135 | ) | |||||||||||||
| Others | — | — | — | — | — | — | — | — | — | **** | — | (29 | ) | **** | (29 | ) | |||||||||||||
| Other transactions for the period | **** | 2,144,656 | **** | 4 | **** | 590 | **** | (2,221 | ) | **** | 1,023 | **** | 3,013 | **** | — | **** | — | **** | — | **** | 2,409 | **** | (1,164 | ) | **** | 1,245 | |||
| As at December 31, 2021 | **** | 5,481,283,211 | **** | 10,962 | **** | 1,304 | **** | 555,789 | **** | 4,094 | **** | 44,167 | **** | 22,596 | **** | 2,595 | **** | 12,418 | **** | 653,925 | **** | 446 | **** | 654,371 | |||||
| Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii) | **** | 147 | **** | 18 | **** | 7,471 | **** | 55 | **** | 594 | **** | 304 | **** | 35 | **** | 167 | **** | 8,791 | **** | 6 | **** | 8,797 | |||||||
| ^ | Value is less than ₹ 1<br> | ||||||||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||||||||
| * | Includes 15,752,068 treasury shares held as at December 31, 2021 by a controlled trust. 3,649,147 shares<br>have been transferred by the controlled trust to eligible employees on exercise of options during the nine months ended December 31, 2021. | ||||||||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||||||||
| ** | Refer to Note 18 | ||||||||||||||||||||||||||||
| --- | --- |
The accompanying notes form an integral part of these interim condensed consolidated financial statements
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
5
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(₹inmillions, except share and per share data, unless otherwise stated)
| Nine months ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2021 | |||||||
| Convenience translationinto US dollar in millions(unaudited) Refer to<br>Note 2(iii) | |||||||||
| Cash flows from operating activities: | |||||||||
| Profit for the period | 78,921 | 91,404 | 1,228 | ||||||
| Adjustments to reconcile profit for the period to net cash generated from operatingactivities: | |||||||||
| Gain on sale of property, plant and equipment, net | (494 | ) | (421 | ) | (6 | ) | |||
| Depreciation, amortization and impairment expense | 20,661 | 23,566 | 317 | ||||||
| Unrealized exchange gain, net and exchange gain on borrowings | (1,742 | ) | (1,994 | ) | (27 | ) | |||
| Share-based compensation expense | 1,806 | 2,398 | 32 | ||||||
| Share of net profit of associates accounted for using equity method | (126 | ) | (73 | ) | (1 | ) | |||
| Income tax expense | 22,590 | 22,547 | 303 | ||||||
| Finance and other income, net of finance expenses | (13,150 | ) | (7,218 | ) | (97 | ) | |||
| (Gain)/loss from sale of business and investment accounted for using the equity method | 81 | (2,179 | ) | (29 | ) | ||||
| Changes in operating assets and liabilities, net of effects from acquisitions | |||||||||
| Trade receivables | 14,896 | (16,660 | ) | (224 | ) | ||||
| Unbilled receivables and contract assets | 4,535 | (6,141 | ) | (83 | ) | ||||
| Inventories | 666 | 43 | 1 | ||||||
| Other assets | 6,796 | (2,146 | ) | (29 | ) | ||||
| Trade payables, accrued expenses, other liabilities and provisions | 8,065 | (3,685 | ) | (50 | ) | ||||
| Contract liabilities | 3,217 | 4,289 | 58 | ||||||
| Cash generated from operating activities before taxes | **** | 146,722 | **** | 103,730 | **** | 1,393 | |||
| Income taxes paid, net | (16,455 | ) | (16,248 | ) | (218 | ) | |||
| Net cash generated from operating activities | **** | 130,267 | **** | 87,482 | **** | 1,175 | |||
| Cash flows from investing activities: | |||||||||
| Purchase of property, plant and equipment | (13,466 | ) | (15,965 | ) | (215 | ) | |||
| Proceeds from sale of property, plant and equipment | 612 | 704 | 9 | ||||||
| Purchase of investments | (849,658 | ) | (771,180 | ) | (10,367 | ) | |||
| Proceeds from sale of investments | 742,959 | 715,040 | 9,612 | ||||||
| Payment for business acquisitions including deposits and escrow, net of cash acquired | (6,095 | ) | (129,760 | ) | (1,744 | ) | |||
| Proceeds from sale of investment accounted for using the equity method | — | 1,636 | 22 | ||||||
| Escrow and term deposits pertaining to proposed buyback | (10,600 | ) | — | — | |||||
| Interest received | 14,042 | 10,240 | 138 | ||||||
| Dividend received | 1 | 2 | ^ | ||||||
| Net cash used in investing activities | **** | (122,205 | ) | **** | (189,283 | ) | **** | (2,545 | ) |
| Cash flows from financing activities: | |||||||||
| Proceeds from issuance of equity shares and shares pending allotment | 4 | 4 | ^ | ||||||
| Repayment of loans and borrowings | (60,991 | ) | (149,830 | ) | (2,014 | ) | |||
| Proceeds from loans and borrowings | 58,607 | 201,877 | 2,714 | ||||||
| Payment of lease liabilities | (6,602 | ) | (7,414 | ) | (100 | ) | |||
| Payment for transaction cost against proposed buyback | (87 | ) | — | — | |||||
| Payment for deferred contingent consideration | — | (117 | ) | (2 | ) | ||||
| Interest and finance expenses paid | (2,639 | ) | (3,976 | ) | (53 | ) | |||
| Payment of cash dividend to Non-controlling interests<br>holders | (960 | ) | (1,135 | ) | (15 | ) | |||
| Net cash (used in)/ generated from financing activities | **** | (12,668 | ) | **** | 39,409 | **** | 530 | ||
| Net decrease in cash and cash equivalents during the period | (4,606 | ) | (62,392 | ) | (840 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (112 | ) | 173 | 2 | |||||
| Cash and cash equivalents at the beginning of the period | 144,104 | 169,663 | 2,281 | ||||||
| Cash and cash equivalents at the end of the period (Note 10) | **** | 139,386 | **** | 107,444 | **** | 1,443 |
^ Value is less than 1
The accompanying notes form an integral part of these interim condensed consolidated financial statements
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
6
WIPRO LIMITED AND SUBSIDIARIES
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(₹inmillions, except share and per share data, unless otherwise stated)
1. The Company overview
Wipro Limited (“Wipro” or the “Parent Company”), together with its subsidiaries and controlled trusts (collectively, “we”, “us”, “our”, “the Company” or the “Group”) is a global information technology (“IT”), consulting and business process services (“BPS”) company.
Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bengaluru – 560 035, Karnataka, India. The Company has its primary listing with BSE Ltd. and National Stock Exchange of India Ltd. The Company’s American Depository Shares (“ADS”) representing equity shares are also listed on the New York Stock Exchange.
The Company’s Board of Directors authorized these interim condensed consolidated financial statements for issue on January 12, 2022.
2. Basis of preparation of interim condensed consolidated financial statements
(i) Statement of compliance and basis of preparation
These interim condensed consolidated financial statements have been prepared in compliance with IAS 34, “Interim Financial Reporting”, as issued by the International Accounting Standards Board (“IASB”). Selected explanatory notes are included to explain events and transactions that are significant to understand the changes in financial position and performance of the Company since the last annual consolidated financial statements as at and for the year ended March 31, 2021. These interim condensed consolidated financial statements do not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”).
The interim condensed consolidated financial statements correspond to the classification provisions contained in IAS 1 (revised), “Presentation of Financial Statements”. For clarity, various items are aggregated in the statements of income and statements of financial position. These items are disaggregated separately in the notes to the financial statement, where applicable. The accounting policies have been consistently applied to all periods presented in these interim condensed consolidated financial statements except for the adoption of new accounting standards, amendments and interpretations effective from April 1, 2021.
All amounts included in the interim condensed consolidated financial statements are reported in millions of Indian rupees (₹ in millions) except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
(ii) Basis of measurement
The interim condensed consolidated financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which have been measured at fair value as required by relevant IFRS:
| a. | Derivative financial instruments; |
|---|---|
| b. | Financial instruments classified as fair value through other comprehensive income or fair value through profit<br>or loss; |
| --- | --- |
| c. | The defined benefit liability/(asset) recognized as the present value of defined benefit obligation less fair<br>value of plan assets; and |
| --- | --- |
| d. | Contingent consideration. |
| --- | --- |
(iii) Convenience translation (unaudited)
The accompanying interim condensed consolidated financial statements have been prepared and reported in Indian rupees, the functional currency of the Parent Company. Solely for the convenience of the readers, the interim condensed consolidated financial statements as at and for the three and nine months ended December 31, 2021, have been translated into United States dollars at the certified foreign exchange rate of US$1 = ₹ 74.39 as published by Federal Reserve Board of Governors on December 31, 2021. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollars at such a rate or any other rate. Due to rounding off, the translated numbers presented throughout the document may not add up precisely to the totals.
(iv) Use of estimates and judgment
The preparation of the interim condensed consolidated financial statements in conformity with IFRS requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the interim condensed consolidated financial statements are included in the following notes:
| a) | Revenue recognition: The Company applies judgement to determine whether each product or service promised<br>to a customer is capable of being distinct, and is distinct in the context of the contract, if not, the promised product or service is combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to<br>separately identifiable performance obligation deliverables based on their relative stand-alone selling price. In cases where the Company is unable to determine the stand-alone selling price, the Company uses expected cost-plus margin approach in<br>estimating the stand-alone selling |
|---|
7
| price. The Company uses the percentage of completion method using the input (cost expended) method to measure progress towards completion in respect of fixed price contracts. Percentage of<br>completion method accounting relies on estimates of total expected contract revenue and costs. This method is followed when reasonably dependable estimates of the revenues and costs applicable to various elements of the contract can be made. Key<br>factors that are reviewed in estimating the future costs to complete include estimates of future labor costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during<br>the term of these contracts, revenue recognized, profit and timing of revenue for remaining performance obligations are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is<br>provided for in the period in which the loss becomes probable. Volume discounts are recorded as a reduction of revenue. When the amount of discount varies with the levels of revenue, volume discount is recorded based on estimate of future revenue<br>from the customer. | |
|---|---|
| b) | Impairment testing: Goodwill and intangible assets with indefinite useful life recognized on business<br>combination are tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of an asset or a cash generating unit to which an asset pertains is less than the carrying value. The<br>Company assesses acquired intangible assets with finite useful life for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount of an asset or a cash generating unit is<br>higher of value-in-use and fair value less cost of disposal. The calculation of value in use of an asset or a cash generating unit involves use of significant estimates<br>and assumptions which include turnover, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions. |
| --- | --- |
| c) | Income taxes: **** The major tax jurisdictions for the Company are India and the United States of<br>America. Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be<br>resolved over extended time periods. |
| --- | --- |
| d) | Deferred taxes: Deferred tax is recorded on temporary differences between the tax bases of assets and<br>liabilities and their carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the periods<br>in which those temporary differences and tax loss carry-forwards become deductible. The Company considers expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. The amount of deferred tax assets<br>considered realizable, however, could reduce in the near term if estimates of future taxable income during the carry-forward period are reduced. |
| --- | --- |
| e) | Business combinations: In accounting for business combinations, judgment is required in identifying<br>whether an identifiable intangible asset is to be recorded separately from goodwill. Additionally, estimating the acquisition date fair value of the identifiable assets acquired (including useful life estimates), liabilities assumed, and contingent<br>consideration assumed involves management judgment. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management. Changes in these<br>judgments, estimates, and assumptions can materially affect the results of operations. |
| --- | --- |
| f) | Defined benefit plans and compensated absences: The cost of the defined benefit plans, compensated<br>absences and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the<br>future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in<br>these assumptions. All assumptions are reviewed at each reporting date. |
| --- | --- |
| g) | Expected credit losses on financial assets: The impairment provisions of financial assets are based on<br>assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the expected credit loss calculation based on the Company’s history of collections,<br>customer’s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period. |
| --- | --- |
| h) | **Measurement of fair value of non-marketable equity investments:**These instruments are initially recorded at cost and subsequently measured at fair value. Fair value of investments is determined using the market and income approaches. The market approach includes the use of financial metrics and ratios of<br>comparable companies, such as revenue, earnings, comparable performance multiples, recent financial rounds and the level of marketability of the investments. The selection of comparable companies requires management judgment and is based on a number<br>of factors, including comparable company sizes, growth rates, and development stages. The income approach includes the use of discounted cash flow model, which requires significant estimates regarding the investees’ revenue, costs, and discount<br>rates based on the risk profile of comparable companies. Estimates of revenue and costs are developed using available historical and forecast data. |
| --- | --- |
| i) | Useful lives of property, plant and equipment: The Company depreciates property, plant and equipment on<br>a straight-line basis over estimated useful lives of the assets. The charge in respect of periodic depreciation is derived based on an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The lives<br>are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The estimated useful life is reviewed at least annually. |
| --- | --- |
| j) | Useful lives of intangible assets: The Company amortizes intangible assets on a straight-line basis over<br>estimated useful lives of the assets. The useful life is estimated based on a number of factors including the effects of obsolescence, demand, competition and other economic factors such as the stability of the industry and known technological<br>advances and the level of maintenance expenditures required to obtain the expected future cash flows from the assets. The estimated useful life is reviewed at least annually. |
| --- | --- |
8
| k) | Leases: IFRS 16 defines a lease term as the non-cancellable<br>period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and<br>circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend lease is included in the lease term, if it is reasonably certain that the lessee will exercise the option.<br>The Company reassesses the option upon occurrence of either a significant event or change in circumstances that are within the control of the lessee. |
|---|---|
| l) | Provisions and contingent liabilities: The Company estimates the provisions that have present<br>obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting date and are adjusted to reflect the current best estimates.<br> |
| --- | --- |
The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.
| m) | Other estimates: The share-based compensation expense is determined based on the Company’s estimate<br>of equity instruments that will eventually vest. Fair valuation of derivative hedging instruments designated as cash flow hedges involves significant estimates relating to the occurrence of forecasted transactions. |
|---|---|
| n) | Uncertainty relating to the global health pandemic on COVID-19:In assessing the recoverability of receivables including unbilled receivables, contract assets and contract costs, goodwill, intangible assets, and certain investments, the Company has considered internal and external information up to<br>the date of approval of these interim condensed consolidated financial statements including credit reports and economic forecasts. The Company has performed sensitivity analysis on the assumptions used herein. Based on the current indicators of<br>future economic conditions, the Company expects to recover the carrying amount of these assets. |
| --- | --- |
The Company bases its assessment on the belief that the probability of occurrence of forecasted transactions is not impacted by COVID-19. The Company has considered the effect of changes, if any, in both counterparty credit risk and its own credit risk while assessing hedge effectiveness and measuring hedge ineffectiveness and continues to believe that COVID-19 has no impact on effectiveness of its hedges.
The impact of COVID-19 remains uncertain and may be different from what we have estimated as of the date of approval of these interim condensed consolidated financial statements and the Company will continue to closely monitor any material changes to future economic conditions.
3. Significant accounting policies
Please refer to the Company’s Annual report for the year ended March 31, 2021, for a discussion of the Company’s other critical accounting policies except for the adoption of new accounting standards, amendments and interpretations effective on or after April 1, 2021.
New Accounting standards, amendments and interpretations adopted by the Company effective from April 1, 2021:
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform (Phase 2)
The IASB issued Interest Rate Benchmark Reform (Phase 2), which amends IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. The amendments in this final phase relate to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements, and disclosure requirements applying IFRS 7 to accompany the amendments regarding modifications and hedge accounting. The adoption of the amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 did not have any material impact on the interim condensed consolidated financial statements.
New amendments notyet adopted:
Certain new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2021 and have not been applied in preparing these interim condensed consolidated financial statements. New standards, amendments to standards and interpretations that could have potential impact on the interim condensed consolidated financial statements of the Company are:
Amendment to IAS 1 – Presentation of Financial Statements
On January 23, 2020, the IASB issued “Classification of liabilities as Current or Non-Current (Amendments to IAS 1)” providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangement in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies to determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments also clarified the classification requirements for debt a company might settle by converting it into equity. These amendments are effective for annual reporting periods beginning on or after January 1, 2024 and are to be applied retrospectively, with earlier application permitted. The adoption of amendments to IAS 1 is not expected to have any material impact on the consolidated financial statements.
9
Amendment to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract
On May 14, 2020, the IASB issued “Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37)”, amending the standard regarding costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendment specifies that the “cost of fulfilling” a contract comprises the “costs that relate directly to the contract”. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. These amendments are effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 37 on the consolidated financial statements.
IFRS 9 – Annual Improvements to IFRS Standards - 2018-2020
On May 14, 2020, IASB amended IFRS 9 as part of its Annual Improvements to IFRS Standards 2018-2020. The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognize a financial liability. This amendment is effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The Company is currently evaluating the impact of amendment to IFRS 9 on the consolidated financial statements.
Amendment to IAS 1 – Presentation of Financial Statements
On February 12, 2021, the IASB amended IAS 1 “Presentation of Financial Statements”. The amendments require companies to disclose their material accounting policy information rather than their significant accounting policies. The amendments clarify that accounting policy information may be material because of its nature, even if the related amounts are immaterial. The amendments also clarified that accounting policy information is material if users of an entity’s financial statements would need it to understand other material information in the financial statements; and the amendments clarify that if an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 1 on the consolidated financial statements.
Amendment to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
On February 12, 2021, the IASB amended IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 8 on the consolidated financial statements.
Amendments to IAS 12 – “Income Taxes”
On May 7, 2021, the IASB amended IAS 12 “Income Taxes” and published ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)’ that clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets or liabilities for the first time. The amendments clarify that this exemption does not apply to transactions such as leases and decommissioning obligations and companies are required to recognize deferred tax on such transactions. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 12 on the consolidated financial statements.
10
4. Property, plant and equipment
| Land | Buildings | Plant andequipment * | Furniturefixtures andequipment | Vehicles | Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross carrying value: | ||||||||||||||||||
| As at April 1, 2020 | ₹ | 3,761 | ₹ | 36,510 | ₹ | 100,695 | ₹ | 19,870 | ₹ | 808 | ₹ | 161,644 | ||||||
| Additions | — | 2,724 | 10,197 | 1,457 | 2 | 14,380 | ||||||||||||
| Additions through Business combinations | — | — | 14 | 52 | — | 66 | ||||||||||||
| Disposals | (58 | ) | (546 | ) | (2,497 | ) | (648 | ) | (121 | ) | (3,870 | ) | ||||||
| Translation adjustment | 13 | 166 | 928 | 79 | 1 | 1,187 | ||||||||||||
| As at December 31, 2020 | ₹ | 3,716 | **** | ₹ | 38,854 | **** | ₹ | 109,337 | **** | ₹ | 20,810 | **** | ₹ | 690 | **** | ₹ | 173,407 | **** |
| Accumulated depreciation/ impairment: | ||||||||||||||||||
| As at April 1, 2020 | ₹ | — | ₹ | 7,948 | ₹ | 78,056 | ₹ | 14,141 | ₹ | 727 | ₹ | 100,872 | ||||||
| Depreciation and impairment ** | — | 1,129 | 8,121 | 1,368 | 56 | 10,674 | ||||||||||||
| Disposals | — | (486 | ) | (2,195 | ) | (321 | ) | (116 | ) | (3,118 | ) | |||||||
| Translation adjustment | — | 65 | 461 | 51 | 1 | 578 | ||||||||||||
| As at December 31, 2020 | ₹ | — | **** | ₹ | 8,656 | **** | ₹ | 84,443 | **** | ₹ | 15,239 | **** | ₹ | 668 | **** | ₹ | 109,006 | **** |
| Capital work-in-progress | ₹ | 18,971 | ||||||||||||||||
| Net carrying value including Capital work-in-progress as at December 31,2020 | **** | ₹ | 83,372 | **** | ||||||||||||||
| Gross carrying value: | ||||||||||||||||||
| As at April 1, 2020 | ₹ | 3,761 | ₹ | 36,510 | ₹ | 100,695 | ₹ | 19,870 | ₹ | 808 | ₹ | 161,644 | ||||||
| Additions | 107 | 3,569 | 14,362 | 1,958 | 9 | 20,005 | ||||||||||||
| Additions through Business combinations | — | — | 27 | 57 | — | 84 | ||||||||||||
| Disposals | (58 | ) | (765 | ) | (4,532 | ) | (1,218 | ) | (398 | ) | (6,971 | ) | ||||||
| Translation adjustment | 5 | 100 | 303 | 25 | (1 | ) | 432 | |||||||||||
| As at March 31, 2021 | ₹ | 3,815 | **** | ₹ | 39,414 | **** | ₹ | 110,855 | **** | ₹ | 20,692 | **** | ₹ | 418 | **** | ₹ | 175,194 | **** |
| Accumulated depreciation/ impairment: | ||||||||||||||||||
| As at April 1, 2020 | ₹ | — | ₹ | 7,948 | ₹ | 78,056 | ₹ | 14,141 | ₹ | 727 | ₹ | 100,872 | ||||||
| Depreciation and impairment ** | — | 1,500 | 11,123 | 1,845 | 61 | 14,529 | ||||||||||||
| Disposals | — | (695 | ) | (4,313 | ) | (908 | ) | (391 | ) | (6,307 | ) | |||||||
| Translation adjustment | — | 32 | 174 | 11 | — | 217 | ||||||||||||
| As at March 31, 2021 | ₹ | — | **** | ₹ | 8,785 | **** | ₹ | 85,040 | **** | ₹ | 15,089 | **** | ₹ | 397 | **** | ₹ | 109,311 | **** |
| Capital work-in-progress | ₹ | 19,309 | ||||||||||||||||
| Net carrying value including Capital work-in-progress as at March 31,2021 | **** | ₹ | 85,192 | **** | ||||||||||||||
| Gross carrying value: | ||||||||||||||||||
| As at April 1, 2021 | ₹ | 3,815 | ₹ | 39,414 | ₹ | 110,855 | ₹ | 20,692 | ₹ | 418 | ₹ | 175,194 | ||||||
| Additions | 961 | 494 | 11,333 | 1,485 | 3 | 14,276 | ||||||||||||
| Additions through Business combinations | — | — | 372 | 337 | 3 | 712 | ||||||||||||
| Disposals | (30 | ) | (240 | ) | (3,572 | ) | (632 | ) | (112 | ) | (4,586 | ) | ||||||
| Translation adjustment | (3 | ) | (1 | ) | 89 | 7 | 1 | 93 | ||||||||||
| As at December 31, 2021 | ₹ | 4,743 | **** | ₹ | 39,667 | **** | ₹ | 119,077 | **** | ₹ | 21,889 | **** | ₹ | 313 | **** | ₹ | 185,689 | **** |
| Accumulated depreciation/ impairment: | ||||||||||||||||||
| As at April 1, 2021 | ₹ | — | ₹ | 8,785 | ₹ | 85,040 | ₹ | 15,089 | ₹ | 397 | ₹ | 109,311 | ||||||
| Depreciation and impairment | — | 1,190 | 9,062 | 1,592 | 7 | 11,851 | ||||||||||||
| Disposals | — | (239 | ) | (3,195 | ) | (564 | ) | (109 | ) | (4,107 | ) | |||||||
| Translation adjustment | — | 1 | 97 | 12 | 1 | 111 | ||||||||||||
| As at December 31, 2021 | ₹ | — | **** | ₹ | 9,737 | **** | ₹ | 91,004 | **** | ₹ | 16,129 | **** | ₹ | 296 | **** | ₹ | 117,166 | **** |
| Capital work-in-progress | ₹ | 21,725 | ||||||||||||||||
| Net carrying value including Capital work-in-progress as at December 31,2021 | **** | ₹ | 90,248 | **** | ||||||||||||||
| * | Includes computer equipment and software. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| ** | Includes impairment charge on certain software platforms amounting to ₹ 45 and ₹ 283 for the three months and nine months ended December 31, 2020, respectively, and ₹ 285 for the year ended March 31, 2021. | |||||||||||||||||
| --- | --- |
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5. Right-of-Use assets
| Category of Right-of-Use asset | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings | Plant andequipment * | Vehicles | Total | |||||||||||
| Gross carrying value: | |||||||||||||||
| As at April 1, 2020 | ₹ | 2,003 | ₹ | 15,624 | ₹ | 4,236 | ₹ | 826 | ₹ | 22,689 | |||||
| Additions | — | 2,830 | 682 | 34 | 3,546 | ||||||||||
| Additions through Business combinations | — | 185 | — | 84 | 269 | ||||||||||
| Disposals | — | (1,774 | ) | (224 | ) | (80 | ) | (2,078 | ) | ||||||
| Translation adjustment | — | 223 | 96 | 26 | 345 | ||||||||||
| As at December 31, 2020 | ₹ | 2,003 | ₹ | 17,088 | ₹ | 4,790 | ₹ | 890 | ₹ | 24,771 | |||||
| Accumulated depreciation: | |||||||||||||||
| As at April 1, 2020 | ₹ | 27 | ₹ | 3,928 | ₹ | 1,721 | ₹ | 265 | ₹ | 5,941 | |||||
| Depreciation | 21 | 3,339 | 1,170 | 210 | 4,740 | ||||||||||
| Disposals | — | (1,245 | ) | (144 | ) | (52 | ) | (1,441 | ) | ||||||
| Translation adjustment | — | 60 | 32 | 12 | 104 | ||||||||||
| As at December 31, 2020 | ₹ | 48 | ₹ | 6,082 | ₹ | 2,779 | ₹ | 435 | ₹ | 9,344 | |||||
| Net carrying value as at December 31, 2020 | ₹ | 15,427 | |||||||||||||
| Gross carrying value: | |||||||||||||||
| As at April 1, 2020 | ₹ | 2,003 | ₹ | 15,624 | ₹ | 4,236 | ₹ | 826 | ₹ | 22,689 | |||||
| Additions | 79 | 5,323 | 770 | 162 | 6,334 | ||||||||||
| Additions through Business combinations | — | 352 | — | 84 | 436 | ||||||||||
| Disposals | — | (2,503 | ) | (1,103 | ) | (154 | ) | (3,760 | ) | ||||||
| Translation adjustment | — | 48 | 15 | 8 | 71 | ||||||||||
| As at March 31, 2021 | ₹ | 2,082 | ₹ | 18,844 | ₹ | 3,918 | ₹ | 926 | ₹ | 25,770 | |||||
| Accumulated depreciation: | |||||||||||||||
| As at April 1, 2020 | ₹ | 27 | ₹ | 3,928 | ₹ | 1,721 | ₹ | 265 | ₹ | 5,941 | |||||
| Depreciation | 28 | 4,487 | 1,465 | 285 | 6,265 | ||||||||||
| Disposals | — | (1,703 | ) | (1,023 | ) | (119 | ) | (2,845 | ) | ||||||
| Translation adjustment | — | (9 | ) | (6 | ) | 4 | (11 | ) | |||||||
| As at March 31, 2021 | ₹ | 55 | ₹ | 6,703 | ₹ | 2,157 | ₹ | 435 | ₹ | 9,350 | |||||
| Net carrying value as at March 31, 2021 | ₹ | 16,420 | |||||||||||||
| Gross carrying value: | |||||||||||||||
| As at April 1, 2021 | ₹ | 2,082 | ₹ | 18,844 | ₹ | 3,918 | ₹ | 926 | ₹ | 25,770 | |||||
| Additions | 15 | 5,352 | 432 | 92 | 5,891 | ||||||||||
| Additions through Business combinations | — | 2,922 | — | 36 | 2,958 | ||||||||||
| Disposals | (801 | ) | (2,385 | ) | (1,091 | ) | (136 | ) | (4,413 | ) | |||||
| Translation adjustment | — | (126 | ) | 10 | (13 | ) | (129 | ) | |||||||
| As at December 31, 2021 | ₹ | 1,296 | ₹ | 24,607 | ₹ | 3,269 | ₹ | 905 | ₹ | 30,077 | |||||
| Accumulated depreciation: | |||||||||||||||
| As at April 1, 2021 | ₹ | 55 | ₹ | 6,703 | ₹ | 2,157 | ₹ | 435 | ₹ | 9,350 | |||||
| Depreciation | 19 | 4,208 | 709 | 206 | 5,142 | ||||||||||
| Disposals | (20 | ) | (1,967 | ) | (746 | ) | (109 | ) | (2,842 | ) | |||||
| Translation adjustment | — | (23 | ) | 12 | (7 | ) | (18 | ) | |||||||
| As at December 31, 2021 | ₹ | 54 | ₹ | 8,921 | ₹ | 2,132 | ₹ | 525 | ₹ | 11,632 | |||||
| Net carrying value as at December 31, 2021 | ₹ | 18,445 | |||||||||||||
| * | Includes computer equipment. | ||||||||||||||
| --- | --- |
6. Goodwill and intangible assets
The movement in goodwill balance is given below:
| For the period ended | |||||
|---|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | ||||
| Balance at the beginning of the period | ₹ | 131,012 | ₹ | 139,127 | |
| Acquisition through business combinations* (Refer to Note 7) | 9,472 | 102,804 | |||
| Translation adjustment | (1,357 | ) | 1,014 | ||
| Balance at the end of the period | ₹ | 139,127 | **** | ₹ | 242,945 |
| * | Acquisition through business combinations for the year ended March 31, 2021 and nine months ended December 31,<br>2021 is after considering the impact of ₹(72) and ₹80 towards changes in purchase<br>price allocation of acquisitions made during the year ended March 31, 2020 and 2021, respectively. | ||||
| --- | --- |
12
The movement in intangible assets is given below:
| Intangible assets | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Customer-related | Marketing-related | Total | |||||||
| Gross carrying value: | |||||||||
| As at April 1, 2020 | ₹ | 32,490 | ₹ | 6,698 | ₹ | 39,188 | |||
| Acquisition through business combinations | 981 | 566 | 1,547 | ||||||
| Translation adjustment | 38 | (134 | ) | (96 | ) | ||||
| As at December 31, 2020 | ₹ | 33,509 | ₹ | 7,130 | ₹ | 40,639 | |||
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2020 | ₹ | 17,898 | ₹ | 4,928 | ₹ | 22,826 | |||
| Amortization and impairment * | (122 | ) | (114 | ) | (236 | ) | |||
| Translation adjustment | 3,538 | 1,455 | 4,993 | ||||||
| As at December 31, 2020 | ₹ | 21,314 | ₹ | 6,269 | ₹ | 27,583 | |||
| Net carrying value as at December 31, 2020 | ₹ | 12,195 | ₹ | 861 | ₹ | 13,056 | |||
| Gross carrying value: | |||||||||
| As at April 1, 2020 | ₹ | 32,490 | ₹ | 6,698 | ₹ | 39,188 | |||
| Acquisition through business combinations | 2,460 | 828 | 3,288 | ||||||
| Deductions/Adjustments | (8,568 | ) | (5,756 | ) | (14,324 | ) | |||
| Translation adjustment | (56 | ) | (159 | ) | (215 | ) | |||
| As at March 31, 2021 | ₹ | 26,326 | ₹ | 1,611 | ₹ | 27,937 | |||
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2020 | ₹ | 17,898 | ₹ | 4,928 | ₹ | 22,826 | |||
| Amortization and impairment * | 5,060 | 1,548 | 6,608 | ||||||
| Deductions/Adjustments | (8,568 | ) | (5,756 | ) | (14,324 | ) | |||
| Translation adjustment | (142 | ) | (116 | ) | (258 | ) | |||
| As at March 31, 2021 | ₹ | 14,248 | ₹ | 604 | ₹ | 14,852 | |||
| Net carrying value as at March 31, 2021 | ₹ | 12,078 | ₹ | 1,007 | ₹ | 13,085 | |||
| Gross carrying value: | |||||||||
| As at April 1, 2021 | ₹ | 26,326 | ₹ | 1,611 | ₹ | 27,937 | |||
| Acquisition through business combinations (Refer to Note 7) | 27,857 | 9,822 | 37,679 | ||||||
| Deductions/Adjustments | (11,695 | ) | (215 | ) | (11,910 | ) | |||
| Translation adjustment | 322 | (3 | ) | 319 | |||||
| As at December 31, 2021 | ₹ | 42,810 | ₹ | 11,215 | ₹ | 54,025 | |||
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2021 | ₹ | 14,248 | ₹ | 604 | ₹ | 14,852 | |||
| Amortization and impairment | 5,636 | 937 | 6,573 | ||||||
| Deductions/Adjustments | (11,695 | ) | (215 | ) | (11,910 | ) | |||
| Translation adjustment | 189 | 1 | 190 | ||||||
| As at December 31, 2021 | ₹ | 8,378 | ₹ | 1,327 | ₹ | 9,705 | |||
| Net carrying value as at As at December 31, 2021 | ₹ | 34,432 | ₹ | 9,888 | ₹ | 44,320 | |||
| ^*^ | During the year ended March 31, 2021, change in business strategy of a customer led to a significant<br>decline in the revenue and earnings estimates, resulting in revision of recoverable value of customer-relationship intangible assets recognized on business combination. Further, the Company integrated certain brands acquired as part of a business<br>combination, resulting in discontinuance of the acquired brands. Consequently, the Company has recognized impairment charge of ₹ 1,628 and ₹ 1,890 for the three and nine months ended December 31, 2020 and ₹ 1,879<br>for the year ended March 31, 2021, as part of amortization and impairment. | ||||||||
| --- | --- | ||||||||
| ^*^ | Due to change in our estimate of useful life of customer-related intangibles in an earlier business<br>combination, the Company has recognized additional amortization charge of ₹ 795 for the year ended March 31, 2021, as part of amortization and impairment.<br> | ||||||||
| --- | --- |
Amortization expense on intangible assets is included in selling and marketing expenses in the interim condensed consolidated statement of income.
13
7. Business combinations
Summary of acquisitions during the nine months ended December 31, 2021 is given below:
Capco and its subsidiaries (“Capco”)
On March 4, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Capco, a global management and technology consultancy company providing digital, consulting and technology services to financial institutions in the Americas, Europe and Asia Pacific, and its subsidiaries. The acquisition was consummated on April 29, 2021 and total cash consideration paid was ₹ 109,530. The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 4,379 | ₹ | — | ₹ | 4,379 | ||
| Customer-related intangibles | — | 24,273 | 24,273 | |||||
| Marketing-related intangibles | — | 8,083 | 8,083 | |||||
| Deferred tax liabilities on intangible assets | — | (9,383 | ) | (9,383 | ) | |||
| Total | ₹ | 4,379 | ₹ | 22,973 | ₹ | 27,352 | ||
| Goodwill | 82,178 | |||||||
| Total purchase price | ₹ | 109,530 |
The goodwill of ₹ 82,178 comprises value of acquired workforce and expected synergies arising from the business combination. This acquisition will make the Company one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry. By combining our capabilities in strategic design, digital transformation, cloud, cybersecurity, IT and operations services with Capco’s domain and consulting strength, our market units (SMUs) will be able to provide our clients the access to a partner who can deliver integrated, bespoke solutions to help fuel growth and achieve their transformation objectives.
The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.
Net assets acquired include ₹ 4,278 of cash and cash equivalents.
The fair value of acquired trade receivables is ₹ 6,167. The gross contractual amount for trade receivables due is ₹ 6,181, with an allowance for lifetime expected credit loss of ₹ 14.
Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.
The transaction costs of ₹ 358 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.
The acquired business contributed revenues of ₹ 46,935 and profit after taxes of ₹ 2,870 for the Company during the nine months ended December 31, 2021.
If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 587,463 and the profit after taxes would have been ₹ 91,552 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.
Ampion Holdings Pty Ltd and its subsidiaries (“Ampion”)
On April 1, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Ampion, an Australia-based provider of cyber security, DevOps and quality engineering services. The acquisition was consummated on August 6, 2021 and total cash consideration paid was ₹ 9,102. The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 1,158 | ₹ | — | ₹ | 1,158 | ||
| Customer-related intangibles | — | 1,748 | 1,748 | |||||
| Marketing-related intangibles | — | 460 | 460 | |||||
| Deferred tax liabilities on intangible assets | — | (663 | ) | (663 | ) | |||
| Total | ₹ | 1,158 | ₹ | 1,545 | ₹ | 2,703 | ||
| Goodwill | 6,399 | |||||||
| Total purchase price | ₹ | 9,102 |
The goodwill of ₹ 6,399 comprises value of acquired workforce and expected synergies arising from the business combination. Our new operating model emphasizes strategic investments in focus geographies, proximity to customers, agility, scale and localization. The acquisition of Ampion is an important step in this direction and reinstates the commitment towards clients and stakeholders in Australia and New Zealand (ANZ), under APMEA SMU. Further, our and Ampion’s combined offerings, powered by engineering transformation, DevOps and security consulting services will bring scale and market agility to respond to the growing demands of customers.
14
The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.
Net assets acquired include ₹ 855 of cash and cash equivalents.
The fair value of acquired trade receivables is ₹ 1,074. The gross contractual amount for trade receivables due is ₹ 1,074, with an allowance for lifetime expected credit loss of ₹ Nil.
Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.
The transaction costs of ₹ 49 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.
The acquired business contributed revenues of ₹ 2,923 and profit after taxes of ₹ 74 for the Company during the nine months ended December 31, 2021.
If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 584,862 and the profit after taxes would have been ₹ 91,598 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.
Edgile, LLC (“Edgile”)
On December 19, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Edgile, a USA based transformational cybersecurity consulting provider that focuses on risk and compliance, information and cloud security, and digital identity. The acquisition was consummated on December 31, 2021 for total consideration (upfront cash payout to acquire control and contingent consideration) of ₹ 17,117.
The total consideration for Edgile includes a contingent consideration linked to achievement of revenues and earnings over a period of 2 years ending December 31, 2023, and range of contingent consideration payable is between ₹ Nil and ₹ 2,230. The fair value of the contingent consideration is estimated by applying the discounted cash-flow approach considering discount rate of 2.9% and probability adjusted revenue and earnings estimates. The undiscounted fair value of contingent consideration is ₹ 1,516 as of the date of acquisition. The discounted fair value of contingent consideration of ₹ 1,448 is recorded as part of provisional purchase price allocation.
The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||
|---|---|---|---|---|---|---|
| Net assets | ₹ | 1,309 | ₹ | — | ₹ | 1,309 |
| Customer-related intangibles | — | 1,747 | 1,747 | |||
| Marketing-related intangibles | — | 1,160 | 1,160 | |||
| Total | ₹ | 1,309 | ₹ | 2,907 | ₹ | 4,216 |
| Goodwill | 12,901 | |||||
| Total purchase price | ₹ | 17,117 |
The goodwill of ₹ 12,901 comprises value of acquired workforce and expected synergies arising from the business combination. The acquisition will address the fast-growing demand for transformational cybersecurity consulting among Global 2000 enterprises. Together, Wipro and Edgile will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security in action. In collaboration with an extensive roster of alliance partners from Wipro and Edgile, we will enable organizations to accelerate their digital transformation and operate in virtual and digital supply chains.
The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.
Net assets acquired include ₹ 907 of cash and cash equivalents.
The fair value of acquired trade receivables is ₹ 818. The gross contractual amount for trade receivables due is ₹ 818, with an allowance for lifetime expected credit loss of ₹ Nil.
Goodwill is allocated to IT Services segment and is deductible for income tax purposes.
The transaction costs of ₹ 152 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.
If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 585,459 and the profit after taxes would have been ₹ 91,552 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.
15
LeanSwift Solutions Inc. and its subsidiaries (“LeanSwift”)
On December 14, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in LeanSwift, a system integrator of Infor products for customers across the Americas and Europe. The acquisition was consummated on December 31, 2021 and total cash consideration paid was ₹ 1,606.
The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 210 | ₹ | — | ₹ | 210 | ||
| Customer-related intangibles | — | 89 | 89 | |||||
| Marketing-related intangibles | — | 119 | 119 | |||||
| Deferred tax liabilities on intangible assets | (58 | ) | (58 | ) | ||||
| Total | ₹ | 210 | ₹ | 50 | ₹ | 360 | ||
| Goodwill | 1,246 | |||||||
| Total purchase price | ₹ | 1,606 |
The goodwill of ₹ 1,246 comprises value of acquired workforce and expected synergies arising from the business combination. This acquisition aligns with our strategic investments in cloud transformation. The combined entity will provide Wipro an edge in key transformation deals, especially in the manufacturing and distribution sectors, by combining LeanSwift’s expertise in the Infor CloudSuites with our broader cloud-native digital capabilities.
The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.
Net assets acquired include ₹ 141 of cash and cash equivalents.
The fair value of acquired trade receivables is ₹ 205. The gross contractual amount for trade receivables due is ₹ 221, with an allowance for lifetime expected credit loss of ₹ 16.
Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.
8. Investments
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Financial instruments at FVTPL | ||||
| Equity instruments | ₹ | — | ₹ | 1,252 |
| Fixed maturity plan mutual funds | — | 509 | ||
| Financial instruments at FVTOCI | ||||
| Equity instruments | 10,572 | 14,146 | ||
| Financial instruments at amortized cost | ||||
| Inter corporate and term deposits * | 4 | 1,636 | ||
| ₹ | 10,576 | ₹ | 17,543 | |
| Current | ||||
| Financial instruments at FVTPL | ||||
| Short-term mutual funds | ₹ | 23,502 | ₹ | 24,485 |
| Financial instruments at FVTOCI | ||||
| Non-convertible debentures, government securities,<br>commercial papers and bonds | 131,382 | 194,630 | ||
| Financial instruments at amortized cost | ||||
| Inter corporate and term deposits * | 20,823 | 16,625 | ||
| ₹ | 175,707 | ₹ | 235,740 | |
| ₹ | 186,283 | ₹ | 253,283 | |
| * | These deposits earn a fixed rate of interest. Term deposits include<br>non-current and current deposits in lien with banks primarily on account of term deposits held as margin money deposits against guarantees amounting to ₹ Nil and ₹ 645, respectively (March 31, 2021: Term deposits<br>non-current of ₹ 4 and Term deposits current of<br>₹ 615). | |||
| --- | --- |
16
9. Inventories
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Stores and spare parts | ₹ | 127 | ₹ | 19 |
| Finished and traded goods | 937 | 1,006 | ||
| ₹ | 1,064 | ₹ | 1,025 |
10. Cash and cash equivalents
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Cash and bank balances | ₹ | 68,842 | ₹ | 55,108 |
| Demand deposits with banks * | 100,951 | 52,350 | ||
| ₹ | 169,793 | ₹ | 107,458 | |
| * | These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the<br>principal. | |||
| --- | --- |
Cash and cash equivalents consist of the following for the purpose of the statement of cash flows:
| As at | ||||||
|---|---|---|---|---|---|---|
| December 31, 2020 | December 31, 2021 | |||||
| Cash and cash equivalents | ₹ | 139,435 | ₹ | 107,458 | ||
| Bank overdrafts | (49 | ) | (14 | ) | ||
| ₹ | 139,386 | ₹ | 107,444 |
11. Other financial assets
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Security deposits | ₹ | 1,477 | ₹ | 1,391 |
| Interest receivables | 1,139 | — | ||
| Finance lease receivables | 3,144 | 4,256 | ||
| Others | 328 | 405 | ||
| ₹ | 6,088 | ₹ | 6,052 | |
| Current | ||||
| Security deposits | ₹ | 1,149 | ₹ | 1,623 |
| Dues from officers and employees | 411 | 1,298 | ||
| Interest receivables | 1,628 | 1,844 | ||
| Finance lease receivables | 3,438 | 4,343 | ||
| Others | 619 | 500 | ||
| ₹ | 7,245 | ₹ | 9,608 | |
| ₹ | 13,333 | ₹ | 15,660 |
12. Other assets
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Prepaid expenses | ₹ | 3,417 | ₹ | 4,654 |
| Costs to obtain contract* | 3,413 | 3,200 | ||
| Costs to fulfil contract** | 337 | 303 | ||
| Others (Refer to Note 32) | 8,768 | 4,220 | ||
| ₹ | 15,935 | ₹ | 12,377 | |
| Current | ||||
| Prepaid expenses | ₹ | 12,121 | ₹ | 16,337 |
| Dues from officers and employees | 105 | 264 | ||
| Advance to suppliers | 3,199 | 4,085 | ||
| Balance with GST and other authorities | 7,903 | 7,451 | ||
| Costs to obtain contract* | 759 | 831 | ||
| Costs to fulfil contract** | 53 | 53 | ||
| Others | 783 | 483 | ||
| ₹ | 24,923 | ₹ | 29,504 | |
| ₹ | 40,858 | ₹ | 41,881 | |
| * | Costs to obtain contract amortization of<br>₹ 317 and ₹ 222 during the three months ended December 31, 2020 and<br>2021 respectively, ₹ 1,031 and ₹ 674 during the nine months ended<br>December 31, 2020 and 2021 respectively. | |||
| --- | --- | |||
| ** | Costs to fulfil contract amortization of<br>₹ Nil and ₹ 14 during the three months ended December 31, 2020 and<br>2021 respectively, ₹ Nil and ₹ 40 during the nine months ended<br>December 31, 2020 and 2021 respectively. | |||
| --- | --- |
17
13. Loans, borrowings and bank overdrafts
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Borrowings from banks | ₹ | 82,895 | ₹ | 78,447 |
| Unsecured Notes 2026 | — | 55,300 | ||
| Loans from institutions other than banks | 307 | 157 | ||
| Bank overdrafts | 130 | 14 | ||
| ₹ | 83,332 | ₹ | 133,918 | |
| Non-current | 7,458 | 55,417 | ||
| Current | 75,874 | 78,501 |
On June 23, 2021, Wipro IT Services LLC, a wholly owned step-down subsidiary of Wipro Limited, issued ₹ 55,748 (US$ 750 million) in unsecured notes 2026 (the “Notes”). The Notes bear interest at a rate of 1.50% per annum and will mature on June 23, 2026. The notes were issued at the discounted price of 99.636% against par value and have an effective interest rate of 1.6939% after considering the issue expenses and discount of ₹ 501 (US$6.7 million). Interest on the Notes is payable semi-annually on June 23 and December 23 of each year, commencing from December 23, 2021. The Notes are listed on Singapore Exchange Securities Trading Limited (SGX-ST)
14.Other financial liabilities
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Contingent consideration | ₹ | 2,158 | ₹ | 3,051 |
| Advance from customers | 123 | — | ||
| Cash Settled ADS RSUs | 7 | 3 | ||
| Deposits and others | 3 | 622 | ||
| ₹ | 2,291 | ₹ | 3,676 | |
| Current | ||||
| Contingent consideration | ₹ | 135 | ₹ | 1,371 |
| Advance from customers | 496 | 1,062 | ||
| Cash Settled ADS RSUs | 24 | 25 | ||
| Deposits and others | 815 | 1,448 | ||
| ₹ | 1,470 | ₹ | 3,906 | |
| ₹ | 3,761 | ₹ | 7,582 |
15. Other liabilities
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Employee benefits obligations | ₹ | 3,055 | ₹ | 3,640 |
| Others | 4,780 | 4,598 | ||
| ₹ | 7,835 | ₹ | 8,238 | |
| Current | ||||
| Statutory and other liabilities | ₹ | 9,266 | ₹ | 9,641 |
| Employee benefits obligations | 14,401 | 13,897 | ||
| Advance from customers | 362 | 134 | ||
| Others | 523 | 566 | ||
| ₹ | 24,552 | ₹ | 24,238 | |
| ₹ | 32,387 | ₹ | 32,476 |
16. Provisions
| As at | ||||
|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||
| Non-current | ||||
| Provision for warranty | ₹ | 2 | ₹ | 6 |
| ₹ | 2 | ₹ | 6 | |
| Current | ||||
| Provision for warranty | ₹ | 213 | ₹ | 288 |
| Others | 463 | 517 | ||
| ₹ | 676 | ₹ | 805 | |
| ₹ | 678 | ₹ | 811 |
18
Provision for warranty represents cost associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 to 2 years. Other provisions primarily include provisions for compliance related contingencies. The timing of cash outflows in respect of such provision cannot be reasonably determined.
17. Financial instruments:
Derivative assets and liabilities:
The Company is exposed to currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks of non-performance by the counterparty as non-material.
The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:
(in millions)
| As at | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | December 31, 2021 | |||||||||||
| Notional | Fair value | Notional | Fair value | |||||||||
| Designated derivative instruments | ||||||||||||
| Sell: Forward contracts | USD | 1,577 | ₹ | 2,293 | USD | 1,411 | ₹ | 1,740 | ||||
| € | 109 | ₹ | 114 | € | 196 | ₹ | 663 | |||||
| £ | 96 | ₹ | (254 | ) | £ | 171 | ₹ | 403 | ||||
| AUD | 103 | ₹ | (246 | ) | AUD | 170 | ₹ | 226 | ||||
| Range forward option contracts | USD | 138 | ₹ | 385 | USD | 431 | ₹ | 313 | ||||
| € | 20 | ₹ | 24 | € | 6 | ₹ | (2 | ) | ||||
| £ | 55 | ₹ | (116 | ) | £ | 35 | ₹ | 82 | ||||
| AUD | 34 | ₹ | (18 | ) | AUD | 11 | ₹ | 11 | ||||
| Non-designated derivative instruments | ||||||||||||
| Sell: Forward contracts * | USD | 1,638 | ₹ | 480 | USD | 1,641 | ₹ | 1,428 | ||||
| € | 99 | ₹ | 202 | € | 94 | ₹ | 1 | |||||
| £ | 104 | ₹ | 98 | £ | 152 | ₹ | (9 | ) | ||||
| AUD | 29 | ₹ | 11 | AUD | 39 | ₹ | 44 | |||||
| SGD | 9 | ₹ | 5 | SGD | 4 | ₹ | (1 | ) | ||||
| ZAR | 22 | ₹ | (1 | ) | ZAR | 8 | ₹ | ^ | ||||
| CAD | 30 | ₹ | 3 | CAD | 38 | ₹ | 22 | |||||
| SAR | 137 | ₹ | (1 | ) | SAR | 125 | ₹ | ^ | ||||
| PLN | 8 | ₹ | 2 | PLN | 14 | ₹ | ^ | |||||
| CHF | 10 | ₹ | 13 | CHF | 10 | ₹ | (6 | ) | ||||
| QAR | 15 | ₹ | (6 | ) | QAR | 11 | ₹ | (4 | ) | |||
| TRY | 47 | ₹ | 42 | TRY | 30 | ₹ | 60 | |||||
| NOK | 4 | ₹ | ^ | NOK | 13 | ₹ | 3 | |||||
| OMR | 2 | ₹ | (1 | ) | OMR | 2 | ₹ | (1 | ) | |||
| SEK | 42 | ₹ | 10 | SEK | 17 | ₹ | (1 | ) | ||||
| JPY | 370 | ₹ | 6 | JPY | 513 | ₹ | 3 | |||||
| DKK | — | ₹ | — | DKK | 2 | ₹ | 1 | |||||
| AED | — | ₹ | — | AED | 9 | ₹ | ^ | |||||
| Buy: Forward contracts | SEK | 37 | ₹ | (15 | ) | SEK | 22 | ₹ | (3 | ) | ||
| DKK | 45 | ₹ | (12 | ) | DKK | 16 | ₹ | (2 | ) | |||
| CHF | 2 | ₹ | (6 | ) | CHF | 2 | ₹ | 2 | ||||
| RMB | 30 | ₹ | (2 | ) | RMB | — | ₹ | — | ||||
| AED | 9 | ₹ | ^ | AED | 35 | ₹ | ^ | |||||
| JPY | — | ₹ | — | JPY | 944 | ₹ | (3 | ) | ||||
| CNH | — | ₹ | — | CNH | 11 | ₹ | 1 | |||||
| NOK | — | ₹ | — | NOK | 12 | ₹ | ^ | |||||
| ₹ | 3,010 | ₹ | 4,971 | |||||||||
| ^ | Value is less than ₹ 1.<br> | |||||||||||
| --- | --- | |||||||||||
| * | USD 1,638 and USD 1,641 includes USD/PHP sell forward of USD 244 and USD 278 as at March 31, 2021 and<br>December 31, 2021, respectively. | |||||||||||
| --- | --- |
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.
19
The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:
| Nine months ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2021 | |||||
| Balance as at the beginning of the period | ₹ | (2,876 | ) | ₹ | 2,182 | |
| Changes in fair value of effective portion of derivatives | 3,082 | 4,128 | ||||
| Net (gain)/loss reclassified to statement of income on occurrence of hedged transactions<br>* | 1,149 | (2,874 | ) | |||
| Gain/(loss) on cash flow hedging derivatives, net | ₹ | 4,231 | ₹ | 1,254 | ||
| Balance as at the end of the period | ₹ | 1,355 | **** | ₹ | 3,436 | **** |
| Deferred tax thereon | (293 | ) | (841 | ) | ||
| Balance as at the end of the period, net of deferred tax | ₹ | 1,062 | **** | ₹ | 2,595 | **** |
| * | Includes net (gain)/loss reclassified to revenue of<br>₹ 1,248 and ₹ (3,583) for the nine months ended December 31, 2020 and<br>2021, respectively and net (gain)/loss reclassified to cost of revenues of ₹ (99) and<br>₹ 709 for the nine months ended December 31, 2020 and 2021, respectively. | |||||
| --- | --- |
As at December 31, 2020 and 2021, there were no significant gains or losses on derivative transactions or portions thereof that have become ineffective as hedges or associated with an underlying exposure that did not occur.
Fair value:
Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables, employee and other advances, eligible current and non-current assets, loans, borrowings and bank overdrafts, trade payables and accrued expenses, and eligible current liabilities and non-current liabilities.
The fair value of cash and cash equivalents, trade receivables, unbilled receivables, loans, borrowings and bank overdrafts, trade payables and accrued expenses, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value. Further, finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated losses on these receivables. As at March 31, 2021 and December 31, 2021, the carrying value of such receivables, net of allowances approximates the fair value.
Investments in short-term mutual funds and fixed maturity plans, which are classified as FVTPL are measured using net asset values at the reporting date multiplied by the quantity held. Fair value of investments in non-convertible debentures, government securities, commercial papers, certificate of deposits and bonds classified as FVTOCI is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in equity instruments classified as FVTOCI or FVTPL is determined using market and income approaches.
The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
20
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
| Particular | As at March 31, 2021 | As at December 31, 2021 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fair value measurements at reporting date | Fair value measurements at reporting date | |||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
| Assets | ||||||||||||||||||||||
| Derivative instruments: | ||||||||||||||||||||||
| Cash flow hedges | ₹ | 2,998 | ₹ | — | ₹ | 2,998 | ₹ | — | ₹ | 3,516 | ₹ | — | ₹ | 3,516 | ₹ | — | ||||||
| Others | 1,082 | — | 1,082 | — | 1,796 | — | 1,796 | — | ||||||||||||||
| Investments: | ||||||||||||||||||||||
| Short-term mutual funds | 23,502 | 23,502 | — | — | 24,485 | 24,485 | — | — | ||||||||||||||
| Equity instruments | 10,572 | 26 | 319 | 10,227 | 15,398 | 52 | 566 | 14,780 | ||||||||||||||
| Non-convertible debentures, government securities,<br>commercial papers and bonds | 131,382 | 2,217 | 129,165 | — | 194,630 | 1,271 | 193,359 | — | ||||||||||||||
| Fixed maturity plan mutual funds | — | — | — | — | 509 | — | 509 | — | ||||||||||||||
| Liabilities | ||||||||||||||||||||||
| Derivative instruments: | ||||||||||||||||||||||
| Cash flow hedges | ₹ | (816 | ) | ₹ | — | ₹ | (816 | ) | ₹ | — | ₹ | (80 | ) | ₹ | — | ₹ | (80 | ) | ₹ | — | ||
| Others | (254 | ) | — | (254 | ) | — | (261 | ) | — | (261 | ) | — | ||||||||||
| Contingent consideration | (2,293 | ) | — | — | (2,293 | ) | (4,422 | ) | — | — | (4,422 | ) |
The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments included in the above table.
Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counterparties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As at December 31, 2021, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.
Investment in Non-convertible debentures, government securities, commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at reporting date.
Investment in equity instruments and fixed maturity plan mutual funds: Fair value of these instruments is derived based on the indicative quotes of price prevailing in the market as at reporting date.
The following methods and assumptions were used to estimate the fair value of the level 3 financial instruments included in the above table.
Investment in equity instruments: Fair value of these instruments is determined using market and income approaches.
Details of assets and liabilities considered underLevel 3 classification
| As at | ||||||
|---|---|---|---|---|---|---|
| Investment in equity instruments | March 31, 2021 | December 31, 2021 | ||||
| Balance at the beginning of the period | ₹ | 9,178 | ₹ | 10,227 | ||
| Additions | 1,575 | 3,193 | ||||
| Disposals | (1,256 | ) | (7,647 | ) | ||
| Transfers out of Level 3 | (27 | ) | — | |||
| Gain recognized in statement of income | — | (3 | ) | |||
| Gain recognized in other comprehensive income | 1,009 | 8,883 | ||||
| Translation adjustment | (252 | ) | 127 | |||
| Balance at the end of the period | ₹ | 10,227 | ₹ | 14,780 | ||
| As at | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Contingent consideration | March 31, 2021 | December 31, 2021 | ||||
| Balance at the beginning of the period | ₹ | — | ₹ | (2,293 | ) | |
| Additions | (2,293 | ) | (2,480 | ) | ||
| Reversals | — | 351 | ||||
| Payouts | — | 117 | ||||
| Finance expense recognized in statement of income | (25 | ) | (56 | ) | ||
| Translation adjustment | 25 | (61 | ) | |||
| Balance at the end of the period | ₹ | (2,293 | ) | ₹ | (4,422 | ) |
21
18. Foreign currency translation reserve and Other reserves
The movement in foreign currency translation reserve attributable to equity holders of the Company is summarized below:
| Nine months ended December 31, | |||||
|---|---|---|---|---|---|
| 2020 | 2021 | ||||
| Balance at the beginning of the period | ₹ | 23,539 | ₹ | 22,936 | |
| Translation difference related to foreign operations, net | 851 | (189 | ) | ||
| Reclassification of foreign currency translation differences on sale of investment in associates<br>and liquidation of subsidiaries to statement of income | — | (151 | ) | ||
| Balance at the end of the period | ₹ | 24,390 | ₹ | 22,596 |
The movement in other reserves is summarized below:
| Other Reserves | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Remeasurementsof the definedbenefit plans | Investment in debtinstruments<br>measured at fairvalue through OCI | Investment inequity instruments<br>measured at fairvalue through OCI | CapitalRedemptionReserve | ||||||
| As at April 1, 2020 | ₹ | (1,120 | ) | ₹ | 2,386 | ₹ | 162 | ₹ | 647 | |
| Other comprehensive income | (213 | ) | 2,868 | 465 | — | |||||
| As at December 31, 2020 | ₹ | (1,333 | ) | ₹ | 5,254 | ₹ | 627 | ₹ | 647 | |
| As at April 1, 2021 | **** | (897 | ) | ₹ | 4,237 | ₹ | 1,378 | ₹ | 1,122 | |
| Other comprehensive income | (675 | ) | (995 | ) | 8,248 | — | ||||
| As at December 31, 2021 | ₹ | (1,572 | ) | ₹ | 3,242 | ₹ | 9,626 | ₹ | 1,122 |
19. Income taxes
| Three months ended December 31, | Nine months ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||||||
| Income tax expense as per the interim condensed consolidated statement of income | ₹ | 8,524 | ₹ | 8,063 | ₹ | 22,590 | ₹ | 22,547 | ||||
| Income tax included in other comprehensive income on: | ||||||||||||
| Gains/(losses) on investment securities | 63 | (194 | ) | 586 | 658 | |||||||
| Gains on cash flow hedging derivatives | 65 | 28 | 854 | 389 | ||||||||
| Remeasurements of the defined benefit plans | (20 | ) | 52 | (61 | ) | (216 | ) | |||||
| ₹ | 8,632 | ₹ | 7,949 | ₹ | 23,969 | ₹ | 23,378 |
Income tax expense consists of the following:
| Three months ended December 31, | Nine months ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||||||
| Current taxes | ||||||||||||
| Domestic | ₹ | 4,195 | ₹ | 5,102 | ₹ | 12,516 | ₹ | 23,399 | ||||
| Foreign | 2,629 | 2,633 | 5,351 | (249 | ) | |||||||
| ₹ | 6,824 | ₹ | 7,735 | ₹ | 17,867 | **** | 23,150 | |||||
| Deferred taxes | ||||||||||||
| Domestic | ₹ | 2,153 | ₹ | 644 | ₹ | 5,383 | ₹ | 1,319 | ||||
| Foreign | (453 | ) | (316 | ) | (660 | ) | (1,922 | ) | ||||
| ₹ | 1,700 | ₹ | 328 | ₹ | 4,723 | ₹ | (603 | ) | ||||
| ₹ | 8,524 | ₹ | 8,063 | ₹ | 22,590 | ₹ | 22,547 |
Income tax expenses are net of (provision recorded)/reversal of taxes pertaining to earlier periods, amounting to ₹ 1,564 and ₹ 548 for the three months ended December 31, 2020 and 2021 respectively, and ₹ 3,124 and ₹ 3,768 for the nine months ended December 31, 2020 and 2021 respectively. The reversal of ₹ 3,768 includes a reversal on account of closure of tax assessments of the Company for earlier years.
| 20. Revenues |
|---|
The tables below present disaggregated revenue from contracts with customers by business segment, sector and nature of contract. The Company believes that the below disaggregation best depicts the nature, amount, timing and uncertainty of revenue and cash flows from economic factors.
22
Information on disaggregation of revenues for the three months ended December 31, 2020 is as follows:
| IT Services | IT Products | ISRE | Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||
| A. Revenue | ||||||||||||||||
| Rendering of services | ₹ | 44,877 | ₹ | 44,545 | ₹ | 42,694 | ₹ | 20,640 | ₹ | 152,756 | ₹ | — | ₹ | 2,387 | ₹ | 155,143 |
| Sale of products | — | — | — | — | — | 1,557 | — | **** | 1,557 | |||||||
| ₹ | 44,877 | ₹ | 44,545 | ₹ | 42,694 | ₹ | â20,640 | ₹ | 152,756 | ₹ | 1,557 | ₹ | 2,387 | ₹ | 156,700 | |
| B. Revenue by sector | ||||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 747 | ₹ | 25,736 | ₹ | 14,359 | ₹ | 5,789 | ₹ | 46,631 | ||||||
| Health | 16,630 | 1 | 3,370 | 1,209 | 21,210 | |||||||||||
| Consumer | 17,234 | 571 | 4,591 | 2,598 | 24,994 | |||||||||||
| Communications | 1,733 | 304 | 2,031 | 3,916 | 7,984 | |||||||||||
| Energy, Natural Resources and Utilities | 113 | 6,694 | 8,170 | 5,014 | 19,991 | |||||||||||
| Manufacturing | 65 | 5,909 | 5,932 | 721 | 12,627 | |||||||||||
| Technology | 8,355 | 5,330 | 4,241 | 1,393 | 19,319 | |||||||||||
| ₹ | 44,877 | ₹ | 44,545 | ₹ | 42,694 | ₹ | 20,640 | ₹ | 152,756 | ₹ | 1,557 | ₹ | 2,387 | ₹ | 156,700 | |
| C. Revenue by nature of contract | ||||||||||||||||
| Fixed price and volume based | ₹ | 24,981 | ₹ | 27,306 | ₹ | 28,627 | ₹ | 13,588 | ₹ | 94,502 | ₹ | — | ₹ | 2,012 | ₹ | 96,514 |
| Time and material | 19,896 | 17,239 | 14,067 | 7,052 | 58,254 | — | 375 | **** | 58,629 | |||||||
| Products | — | — | — | — | — | 1,557 | — | **** | 1,557 | |||||||
| **** | 44,877 | ₹ | 44,545 | ₹ | 42,694 | ₹ | 20,640 | ₹ | 152,756 | ₹ | 1,557 | ₹ | 2,387 | ₹ | 156,700 |
Information on disaggregation of revenues for the three months ended December 31, 2021 is as follows:
| IT Services | IT Products | ISRE | Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||
| A. Revenue | ||||||||||||||||
| Rendering of services | ₹ | 56,356 | ₹ | 60,727 | ₹ | 59,232 | ₹ | 23,429 | ₹ | 199,744 | ₹ | — | ₹ | 1,623 | ₹ | 201,367 |
| Sale of products | — | — | — | — | — | 1,769 | **** | 1,769 | ||||||||
| ₹ | 56,356 | ₹ | 60,727 | ₹ | 159,232 | ₹ | 23,429 | ₹ | 199,744 | ₹ | 1,769 | ₹ | 1,623 | ₹ | 203,136 | |
| B. Revenue by sector | ||||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 923 | ₹ | 37,710 | ₹ | 23,724 | ₹ | 7,870 | ₹ | 70,227 | ||||||
| Health | 18,871 | 37 | 3,790 | 918 | 23,616 | |||||||||||
| Consumer | 23,354 | 680 | 8,003 | 3,280 | 35,317 | |||||||||||
| Communications | 2,608 | 301 | 3,287 | 3,802 | 9,998 | |||||||||||
| Energy, Natural Resources and Utilities | 176 | 8,482 | 9,919 | 4,808 | 23,385 | |||||||||||
| Manufacturing | 63 | 6,731 | 5,808 | 809 | 13,411 | |||||||||||
| Technology | 10,361 | 6,786 | 4,701 | 1,942 | 23,790 | |||||||||||
| ₹ | 56,356 | ₹ | 60,727 | ₹ | 59,232 | ₹ | 23,429 | ₹ | 199,744 | ₹ | 1,769 | ₹ | 1,623 | ₹ | 203,136 | |
| C. Revenue by nature of contract | ||||||||||||||||
| Fixed price and volume based | ₹ | 31,075 | ₹ | 33,931 | ₹ | 35,575 | ₹ | 14,386 | ₹ | 114,967 | ₹ | 1,262 | ₹ | 116,229 | ||
| Time and material | 25,281 | 26,796 | 23,657 | 9,043 | 84,777 | 361 | **** | 85,138 | ||||||||
| Products | — | 1,769 | **** | 1,769 | ||||||||||||
| ₹ | 56,356 | ₹ | 60,727 | ₹ | 59,232 | ₹ | 23,429 | ₹ | 199,744 | ₹ | 1,769 | ₹ | 1,623 | ₹ | 203,136 |
23
Information on disaggregation of revenues for the nine months ended December 31, 2020 is as follows:
| IT Services | IT Products | ISRE | Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||
| A. Revenue | ||||||||||||||||
| Rendering of services | ₹ | 131,075 | ₹ | 132,713 | ₹ | 119,673 | ₹ | 61,359 | ₹ | ¯444,820 | ₹ | — | ₹ | 6,610 | ₹ | 451,430 |
| Sale of products | — | — | — | — | — | 5,546 | — | **** | 5,546 | |||||||
| ₹ | 131,075 | ₹ | 132,713 | ₹ | 119,673 | ₹ | 61,359 | ₹ | 444,820 | ₹ | 5,546 | ₹ | 6,610 | ₹ | 456,976 | |
| B. Revenue by sector | ||||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 1,802 | ₹ | 77,222 | ₹ | 41,013 | ₹ | 16,910 | ₹ | 136,947 | ||||||
| Health | 48,027 | 10 | 9,157 | 3,887 | 61,081 | |||||||||||
| Consumer | 49,808 | 1,706 | 12,532 | 7,833 | 71,879 | |||||||||||
| Communications | 4,623 | 836 | 5,948 | 11,736 | 23,143 | |||||||||||
| Energy, Natural Resources and Utilities | 300 | 19,655 | 22,946 | 15,132 | 58,033 | |||||||||||
| Manufacturing | 196 | 17,529 | 16,480 | 2,281 | 36,486 | |||||||||||
| Technology | 26,319 | 15,755 | 11,597 | 3,580 | 57,251 | |||||||||||
| ₹ | 131,075 | ₹ | 132,713 | ₹ | 119,673 | ₹ | 61,359 | ₹ | 444,820 | ₹ | 5,546 | ₹ | 6,610 | ₹ | 456,976 | |
| C. Revenue by nature of contract | ||||||||||||||||
| Fixed price and volume based | ₹ | 73,471 | ₹ | 81,326 | ₹ | 78,548 | ₹ | 40,885 | ₹ | 274,230 | ₹ | — | ₹ | 5,261 | ₹ | 279,491 |
| Time and material | 57,604 | 51,387 | 41,125 | 20,474 | 170,590 | — | 1,349 | **** | 171,939 | |||||||
| Products | — | — | — | — | — | 5,546 | — | **** | 5,546 | |||||||
| ₹ | 131,075 | ₹ | 132,713 | ₹ | 119,673 | ₹ | 61,359 | ₹ | 444,820 | ₹ | 5,546 | ₹ | 6,610 | ₹ | 456,976 |
Information on disaggregation of revenues for the nine months ended December 31, 2021 is as follows:
| IT Services | IT Products | ISRE | Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||
| A. Revenue | ||||||||||||||||
| Rendering of services | ₹ | 158,764 | ₹ | 174,469 | ₹ | 71,624 | ₹ | 67,076 | ₹ | 571,933 | ₹ | — | ₹ | 5,427 | ₹ | 577,360 |
| Sale of products | — | — | — | — | — | 4,974 | — | **** | 4,974 | |||||||
| ₹ | 158,764 | ₹ | 174,469 | ₹ | 171,624 | ₹ | 67,076 | ₹ | 71,933 | ₹ | 4,974 | ₹ | 5,427 | ₹ | 582,334 | |
| B. Revenue by sector | ||||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 1,665 | ₹ | 105,518 | ₹ | 68,034 | ₹ | 22,033 | ₹ | 197,250 | ||||||
| Health | 54,446 | 82 | 10,365 | 2,510 | 67,403 | |||||||||||
| Consumer | 65,509 | 1,852 | 23,330 | 9,036 | 99,727 | |||||||||||
| Communications | 6,941 | 898 | 9,651 | 11,276 | 28,766 | |||||||||||
| Energy, Natural Resources and Utilities | 498 | 26,863 | 29,004 | 14,359 | 70,724 | |||||||||||
| Manufacturing | 170 | 19,054 | 17,391 | 2,303 | 38,918 | |||||||||||
| Technology | 29,535 | 20,202 | 13,849 | 5,559 | 69,145 | |||||||||||
| ₹ | 158,764 | ₹ | 174,469 | ₹ | 171,624 | ₹ | 67,076 | ₹ | 571,933 | ₹ | 4,974 | ₹ | 5,427 | ₹ | 582,334 | |
| C. Revenue by nature of contract | ||||||||||||||||
| Fixed price and volume based | ₹ | 86,788 | ₹ | 98,557 | ₹ | 103,967 | ₹ | 42,047 | ₹ | 331,359 | ₹ | — | ₹ | 4,305 | ₹ | 335,664 |
| Time and material | 71,976 | 75,912 | 67,657 | 25,029 | 240,574 | — | 1,122 | **** | 241,696 | |||||||
| Products | — | — | — | — | — | 4,974 | — | **** | 4,974 | |||||||
| ₹ | 158,764 | ₹ | 174,469 | ₹ | 171,624 | ₹ | 67,076 | ₹ | 571,933 | ₹ | 4,974 | ₹ | 5,427 | ₹ | 582,334 |
24
21. Expenses by nature
| Three months ended December 31, | Nine months ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | ||||||||
| Employee compensation | ₹ | 82,769 | ₹ | 114,860 | ₹ | 246,199 | ₹ | 328,773 | |||
| Sub-contracting/ technical fees | 20,657 | 28,190 | 62,115 | 80,086 | |||||||
| Cost of hardware and software | 1,441 | 1,705 | 5,465 | 5,083 | |||||||
| Travel | 1,394 | 2,281 | 3,948 | 5,361 | |||||||
| Facility expenses | 4,996 | 6,352 | 14,967 | 18,222 | |||||||
| Depreciation, amortization and impairment* | 7,927 | 7,459 | 20,661 | 23,566 | |||||||
| Communication | 1,462 | 1,391 | 4,617 | 4,371 | |||||||
| Legal and professional fees | 1,437 | 2,015 | 3,972 | 5,942 | |||||||
| Rates, taxes and insurance | 636 | 1,175 | 2,540 | 3,208 | |||||||
| Marketing and brand building | 283 | 499 | 679 | 1,434 | |||||||
| Lifetime expected credit loss/ (write-back) | (230 | ) | (203 | ) | 1,615 | (408 | ) | ||||
| Miscellaneous expenses** | 681 | 3,078 | 3,340 | 6,980 | |||||||
| Total cost of revenues, selling and marketing expenses and general and administrativeexpenses | ₹ | 123,453 | ₹ | 168,802 | ₹ | 370,118 | ₹ | 482,618 | |||
| * | Depreciation, amortization and impairment includes an impairment charge on certain software platforms, capital work-in-progress and intangible assets amounting to ₹ 1,673 and ₹ 2,427, for the three months and nine months ended December 31, 2020, respectively. | ||||||||||
| --- | --- | ||||||||||
| ** | Miscellaneous expenses for the three months and nine months ended December 31, 2020, includes an amount of<br>₹ Nil and ₹ 991, respectively towards<br>COVID-19 contributions. | ||||||||||
| --- | --- |
22. Finance expenses
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| Interest expense | ₹ | 1,220 | ₹ | 1,403 | ₹ | 3,315 | ₹ | 3,608 |
| Exchange fluctuation loss on foreign currency borrowings | 180 | — | 651 | — | ||||
| ₹ | 1,400 | ₹ | 1,403 | ₹ | 3,966 | ₹ | 3,608 |
23. Finance and other income and Foreign exchange gains/(losses), net
| Three months ended December 31, | Nine months ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||||
| Interest income | ₹ | 5,072 | ₹ | 3,185 | ₹ | 14,710 | ₹ | 9,493 | ||
| Dividend income | — | — | 1 | 2 | ||||||
| Exchange fluctuation gain on foreign currency borrowings | — | — | — | 1,485 | ||||||
| Net gain from investments classified as FVTPL | 582 | 392 | 1,171 | 965 | ||||||
| Net gain from investments classified as FVTOCI | 321 | 1 | 583 | 366 | ||||||
| Finance and other income | ₹ | 5,975 | ₹ | 3,578 | ₹ | 16,465 | ₹ | 12,311 | ||
| Foreign exchange gains/(losses), net, on financial instruments measured at FVTPL | ₹ | 270 | ₹ | 1,224 | ₹ | 3,422 | ₹ | 1,549 | ||
| Other foreign exchange gains/(losses), net | 296 | (37 | ) | (1,313 | ) | 1,731 | ||||
| Foreign exchange gains/(losses), net | ₹ | 566 | ₹ | 1,187 | ₹ | 2,109 | ₹ | 3,280 |
24. Earnings per share:
A reconciliation of profit for the period and equity shares used in the computation of basic and diluted earnings per equity share is set out below:
Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period, excluding equity shares purchased by the Company and held as treasury shares.
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| Profit attributable to equity holders of the Company | ₹ | 29,667 | ₹ | 29,690 | ₹ | 78,225 | ₹ | 91,318 |
| Weighted average number of equity shares outstanding | 5,696,798,493 | 5,467,954,878 | 5,694,731,405 | 5,465,359,077 | ||||
| Basic earnings per share | ₹ | 5.21 | ₹ | 5.43 | ₹ | 13.74 | ₹ | 16.71 |
Diluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares outstanding during the period for assumed conversion of all dilutive potential equity shares. Employee share options are dilutive potential equity shares for the Company.
The calculation is performed in respect of share options to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Company’s shares during the period). The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
25
For the three and nine months ended December 31, 2020, the calculation of the potential dilutive effect on earnings per share on buyback of equity shares includes the incremental equity shares arrived as the difference between the number of ordinary shares assumed at the fair value (determined as the average market price of the Company’s shares during the period) and the number of ordinary shares received from satisfying the buyback offer.
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| Profit attributable to equity holders of the Company | ₹ | 29,667 | ₹ | 29,690 | ₹ | 78,225 | ₹ | 91,318 |
| Weighted average number of equity shares outstanding | 5,696,798,493 | 5,467,954,878 | 5,694,731,405 | 5,465,359,077 | ||||
| Effect of dilutive equivalent share options | 12,157,947 | 13,249,943 | 12,356,425 | 13,407,535 | ||||
| Dilutive effect from proposed buyback of equity shares | 32,114,026 | — | 105,691,275 | — | ||||
| Weighted average number of equity shares for diluted earnings per share | 5,741,070,466 | 5,481,204,821 | 5,812,779,105 | 5,478,766,612 | ||||
| Diluted earnings per share | ₹ | 5.17 | ₹ | 5.42 | ₹ | 13.46 | ₹ | 16.67 |
Diluted earnings per share for each of the three months ended June 30, September 30 and December 31 will not add up to diluted earnings per share for the nine months ended December 31, 2020, on account of dilutive effect of liability for proposed buyback of equity shares.
25. Employee compensation
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| Salaries and bonus | ₹ | 79,432 | ₹ | 110,094 | ₹ | 236,124 | ₹ | 314,754 |
| Employee benefits plans | 2,760 | 3,961 | 8,269 | 11,585 | ||||
| Share-based compensation* | 577 | 805 | 1,806 | 2,434 | ||||
| ₹ | 82,769 | ₹ | 114,860 | ₹ | 246,199 | ₹ | 328,773 | |
| * | Includes ₹ 174 and ₹ 6 the three months ended December 31, 2020 and 2021 respectively, ₹ 583 and ₹ 36 for the nine months ended December 31, 2020, and 2021 respectively, towards cash settled ADS RSUs. | |||||||
| --- | --- |
The employee benefit cost is recognized in the following line items in the interim condensed consolidated statement of income:
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| Cost of revenues | ₹ | 70,286 | ₹ | 97,347 | ₹ | 209,540 | ₹ | 279,119 |
| Selling and marketing expenses | 7,779 | 10,897 | 23,163 | 30,541 | ||||
| General and administrative expenses | 4,704 | 6,616 | 13,496 | 19,113 | ||||
| ₹ | 82,769 | ₹ | 114,860 | ₹ | 246,199 | ₹ | 328,773 |
The Company has granted 1,235,938 and 1,316,899 options under RSU option plan during the three and nine months ended December 31, 2021 (2,402,440 and 2,472,440 for the three and nine months ended December 31, 2020); 2,831,623 and 3,649,391 options under ADS option plan during the three and nine months ended December 31, 2021 (1,085,420 and 1,701,420 for the three and nine months ended December 31, 2020).
The Company has also granted 1,134,173 Performance based stock options (RSU) during the three and nine months ended December 31, 2021, respectively (2,879,860 and 2,969,860 for the three and nine months ended December 31, 2020); 2,121,329 Performance based stock options (ADS) during the three and nine months ended December 31, 2021, respectively (1,452,980 and 2,376,980 for three and nine months ended December 31, 2020).
The RSU grants were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007 plan) and the ADS grants were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).
26. Other operating income/(loss), net
The Company has partially met the first and second-year business targets pertaining to sale of hosted data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement of cumulative business targets amounting to ₹ Nil and ₹ (81) for the three and nine months ended December 31, 2020 has been recognized under other operating income/(loss), net.
During the nine months ended December 31, 2021, as a result of acquisition by another investor, the Company sold its investment in Ensono Holdings, LLC for a consideration of ₹ 5,614 and recognized a cumulative gain of ₹ 1,249 (net of tax ₹ 429) in other comprehensive income being profit on sale of investment designated as FVTOCI. The Company also recognized ₹ 1,230 for the nine months ended December 31, 2021 under other operating income/(loss), net towards change in fair value of callable units pertaining to achievement of cumulative business targets.
During the nine months ended December 31, 2021, as a result of acquisition of by another investor, the Company sold its investment in Denim Group, Ltd. and Denim Group Management, LLC (“Denim Group”), accounted for using the equity method, for a consideration of ₹ 1,648 and recognized a cumulative gain of ₹ 949 in other operating income/(loss), net including reclassification of exchange differences on foreign currency translation.
26
27. Commitments and contingencies
Capital commitments: As at March 31, 2021 and December 31, 2021 the Company had committed to spend ₹ 7,490 and ₹ 12,291 respectively, under agreements to purchase/ construct property and equipment. These amounts are net of capital advances paid in respect of these purchases.
Guarantees: As at March 31, 2021 and December 31, 2021, guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies aggregate to ₹ 17,128 and ₹ 15,341 respectively, as part of the bank line of credit.
Contingencies and lawsuits: The Company is subject to legal proceedings and claims resulting from tax assessment orders/ penalty notices issued under the Income Tax Act, 1961, which have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial position of the Company.
The Company’s assessments are completed for the years up to March 31, 2018. The Company has received demands on multiple tax issues. These claims are primarily arising out of denial of deduction under section 10A of the Income Tax Act, 1961 in respect of profit earned by the Company’s undertaking in Software Technology Park at Bengaluru, the appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2008 which either has been or may be contested by the Income tax authorities before the Supreme Court of India. Other claims relate to disallowance of tax benefits on profits earned from Software Technology Park and Special Economic Zone units, capitalization of research and development expenses, transfer pricing adjustments on intercompany / inter unit transactions and other issues.
Income tax claims against the Company amounting to ₹ 80,032 and ₹ 91,431 are not acknowledged as debt as at March 31, 2021 and December 31, 2021, respectively. These matters are pending before various Appellate Authorities and the management expects its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company’s financial position and results of operations.
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounting to ₹ 11,413 and ₹ 11,669 as of March 31, 2021 and December 31, 2021, respectively. However, the resolution of these disputed demands is not likely to have a material and adverse effect on the results of operations or the financial position of the Company.
The Hon’ble Supreme Court of India, through a ruling in February 2019, provided interpretation on the components of Salary on which the Company and its employees are to contribute towards Provident Fund under the Employee’s Provident Fund Act. Based on the current evaluation, the Company believes it is not probable that certain components of Salary paid by the Company will be subject to contribution towards Provident Fund due to the Supreme Court order. The Company will continue to monitor and evaluate its position based on future events and developments.
28. Segment information
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (“ISRE”).
IT Services: During the year ended March 31, 2021, in order to broad base our growth, the Company re-organized IT Services segment to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East 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.
The corresponding information for the three and nine months ended December 31, 2020 has been re-stated to give effect to the above changes.
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.
Prior to the Company’s re-organization of its IT services segment, the IT services segment was organized by seven industry verticals: Banking, Financial Services and Insurance (“BFSI”), Health Business unit (“Health BU”), Consumer Business unit (“CBU”), Energy, Natural Resources & Utilities (“ENU”), Manufacturing (“MFG”), Technology (“TECH”) and Communications (“COMM”).
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.
27
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.
ISRE: This segment consists of IT Services offerings to entities and/or departments owned or controlled by Government of India and/or any State Governments.
The Chairman 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.
28
Information on reportable segments for the three months ended December 31, 2020, is as follows:
| IT Services | IT Products | ISRE | ReconcilingItems | Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||||||
| Revenue | ₹ | 45,015 | ₹ | 44,702 | ₹ | 42,880 | ₹ | 20,717 | ₹ | 153,314 | ₹ | 1,563 | ₹ | 2,388 | ₹ | 1 | ₹ | 157,266 | ||
| Other operating income/(loss), net | — | — | — | — | **** | — | — | — | — | — | ||||||||||
| Segment Result | 8,075 | 10,190 | 9,283 | 2,778 | **** | 30,326 | 78 | 471 | (7 | ) | 30,868 | |||||||||
| Unallocated | **** | 2,945 | — | — | — | 2,945 | ||||||||||||||
| Segment Result Total | ₹ | 33,271 | ₹ | 78 | ₹ | 471 | ₹ | (7 | ) | ₹ | 33,813 | |||||||||
| Finance expenses | (1,400 | ) | ||||||||||||||||||
| Finance and other income | 5,975 | |||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | 101 | |||||||||||||||||||
| Profit before tax | ₹ | 38,489 | ||||||||||||||||||
| Income tax expense | (8,524 | ) | ||||||||||||||||||
| Profit for the period | ₹ | 29,965 | ||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 7,927 |
Information on reportable segments for the three months ended December 31, 2021, is as follows:
| IT Services | IT Products | ISRE | ReconcilingItems | Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||||||
| Revenue | ₹ | 56,644 | ₹ | 61,076 | ₹ | 59,620 | ₹ | 23,596 | ₹ | 200,936 | ₹ | 1,767 | ₹ | 1,623 | ₹ | (3 | ) | ₹ | 204,323 | |
| Other operating income/(loss), net | — | — | — | — | **** | 14 | — | — | — | 14 | ||||||||||
| Segment Result | 11,390 | 12,057 | 9,172 | 2,483 | **** | 35,102 | 96 | 134 | 16 | 35,348 | ||||||||||
| Unallocated | **** | 173 | — | — | — | 173 | ||||||||||||||
| Segment Result Total | ₹ | 35,289 | ₹ | 96 | ₹ | 134 | ₹ | 16 | ₹ | 35,535 | ||||||||||
| Finance expenses | (1,403 | ) | ||||||||||||||||||
| Finance and other income | 3,578 | |||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | 76 | |||||||||||||||||||
| Profit before tax | ₹ | 37,786 | ||||||||||||||||||
| Income tax expense | (8,063 | ) | ||||||||||||||||||
| Profit for the period | ₹ | 29,723 | ||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 7,459 |
29
Information on reportable segments for the nine months ended December 31, 2020, is as follows:
| IT Services | IT Products | ISRE | ReconcilingItems | Total | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||||||||
| Revenue | ₹ | 131,581 | ₹ | 133,346 | ₹ | 120,334 | ₹ | 61,637 | ₹ | 446,898 | ₹ | 5,568 | ₹ | 6,610 | ₹ | 9 | ₹ | 459,085 | ||||
| Other operating income/(loss), net | — | — | — | — | **** | (81 | ) | — | — | — | (81 | ) | ||||||||||
| Segment Result | 23,177 | 31,089 | 22,969 | 8,402 | **** | 85,637 | (100 | ) | 474 | (940 | ) | 85,071 | ||||||||||
| Unallocated | **** | 3,896 | — | — | — | 3,896 | ||||||||||||||||
| Segment Result Total | ₹ | 89,452 | ₹ | (100 | ) | ₹ | 474 | ₹ | (940 | ) | ₹ | 88,886 | ||||||||||
| Finance expense | (3,966 | ) | ||||||||||||||||||||
| Finance and other income | 16,465 | |||||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | 126 | |||||||||||||||||||||
| Profit before tax | ₹ | 101,511 | ||||||||||||||||||||
| Income tax expense | (22,590 | ) | ||||||||||||||||||||
| Profit for the period | ₹ | 78,921 | ||||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 20,661 |
Information on reportable segments for the nine months ended December 31, 2021, is as follows:
| IT Services | IT Products | ISRE | ReconcilingItems | Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||||||||
| Revenue | ₹ | 159,532 | ₹ | 175,441 | ₹ | 172,700 | ₹ | 67,543 | ₹ | 575,216 | ₹ | 4,972 | ₹ | 5,427 | ₹ | (1 | ) | ₹ | 585,614 | |
| Other operating income/(loss), net | — | — | — | — | **** | 2,179 | — | — | — | 2,179 | ||||||||||
| Segment Result | 31,290 | 35,226 | 26,683 | 8,577 | **** | 101,776 | 137 | 1,002 | 8 | 102,923 | ||||||||||
| Unallocated | **** | 73 | — | — | — | 73 | ||||||||||||||
| Segment Result Total | ₹ | 104,028 | ₹ | 137 | ₹ | 1,002 | ₹ | 8 | ₹ | 105,175 | ||||||||||
| Finance expense | (3,608 | ) | ||||||||||||||||||
| Finance and other income | 12,311 | |||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | 73 | |||||||||||||||||||
| Profit before tax | ₹ | 113,951 | ||||||||||||||||||
| Income tax expense | (22,547 | ) | ||||||||||||||||||
| Profit for the period | ₹ | 91,404 | ||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 23,566 |
30
Revenues from India, being Company’s country of domicile, is ₹ 6,399 and ₹ 6,620 for three months ended December 31, 2020 and 2021, respectively and ₹ 19,945 and ₹ 19,143 for nine months ended December 31, 2020 and 2021, respectively
Revenues from United States of America and United Kingdom contributed more than 10% of Company’s total revenues as per table below:
| Three months ended December 31, | Nine months ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||
| United States of America | ₹ | 84,133 | ₹ | 110,731 | ₹ | 249,777 | ₹ | 312,380 |
| United Kingdom | 17,379 | 26,135 | 48,758 | 74,514 | ||||
| ₹ | 101,512 | ₹ | 136,866 | ₹ | 298,535 | ₹ | 386,894 |
No customer individually accounted for more than 10% of the revenues during the three and nine months ended December 31, 2020 and 2021.
Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.
Notes:
| a) | Effective beginning of fiscal year ended March 31, 2021, revenue from sale of traded cloud-based licenses<br>is no longer reported in IT Services revenue and finance income on deferred consideration earned under total outsourcing contracts is not included in segment revenue. Further, for evaluating performance of the individual operating segments, stock<br>compensation expense is allocated based on the accelerated amortization as per IFRS 2. Segment information for the three and nine months ended December 31, 2020 has been re-stated to give effect to these<br>changes. |
|---|---|
| b) | “Reconciling items” includes elimination of inter-segment transactions and other corporate<br>activities. |
| --- | --- |
| c) | Revenue from sale of company owned intellectual properties is reported as part of IT Services revenues.<br> |
| --- | --- |
| d) | For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains /<br>(losses), net” in revenues (which is reported as a part of operating profit in the interim condensed consolidated statement of income). |
| --- | --- |
| e) | During the three and nine months ended December 31, 2020, the Company has contributed ₹ Nil and ₹ 991 respectively towards<br>COVID-19 and is reported in Reconciling items. |
| --- | --- |
| f) | Other operating income/(loss) of<br>₹ Nil and ₹ 14 is included as part of IT Services segment results for three<br>months ended December 31, 2020 and 2021 respectively and ₹ (81) and<br>₹ 2,179 is included as part of IT Services segment results for nine months ended December 31, 2020 and 2021 respectively. Refer to Note 26.<br> |
| --- | --- |
| g) | Segment results are after considering the impact of impairment charge of ₹ 995 in Americas 1 for the three months ended December 31, 2020 and ₹ 1,257 and ₹ 192 in Americas 1 and Europe, respectively, for the nine months ended December 31, 2020. Further, an impairment charge of ₹ 678 for the three and nine months ended December 31, 2020, towards certain marketing-related intangible assets and software platform recognized on acquisitions, is allocated to all IT<br>Services SMUs. The remaining impairment charge of ₹ Nil and ₹ 300 for the<br>three and nine months ended December 31, 2020, respectively is included under unallocated. (Refer to Note 4, 6 and 21). |
| --- | --- |
| h) | Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 577 and ₹ 805 for the three months ended December 31, 2020 and 2021,<br>respectively and ₹ 1,806 and ₹ 2,434 for the nine months ended<br>December 31, 2020 and 2021, respectively. |
| --- | --- |
29. List of subsidiaries and investments accounted for using equity method as atDecember 31, 2021 is provided below:
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
|---|---|---|---|
| Wipro, LLC | USA | ||
| Wipro Gallagher Solutions, LLC | USA | ||
| Wipro Opus Risk Solutions LLC (formerly known as Wipro Opus Mortgage Solutions LLC) | USA | ||
| Wipro Insurance Solutions, LLC | USA | ||
| Wipro IT Services, LLC | USA | ||
| HealthPlan Services, Inc. ** | USA | ||
| Wipro Appirio, Inc. ** | USA | ||
| Designit North America, Inc. | USA | ||
| Infocrossing, LLC | USA | ||
| Wipro US Foundation | USA | ||
| International TechneGroup Incorporated ** | USA | ||
| Wipro Designit Services, Inc. ** | USA | ||
| Wipro VLSI Design Services, LLC | USA | ||
| Cardinal US Holdings, Inc** | USA | ||
| LeanSwift Solutions, Inc** | USA | ||
| Edgile, LLC | USA | ||
| Wipro Overseas IT Services Private Limited | India | ||
| Wipro Japan KK | Japan | ||
| Designit Tokyo Ltd. | Japan | ||
| Wipro Shanghai Limited | China |
31
| Wipro Trademarks Holding Limited | India | ||
|---|---|---|---|
| Wipro Travel Services Limited | India | ||
| 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 Sweden AB | Sweden | ||
| Designit T.L.V Ltd. | Israel | ||
| Designit Spain Digital, S.L.U | Spain | ||
| Wipro Europe Limited | U.K. | ||
| Wipro UK Limited | U.K. | ||
| Wipro Financial Services UK Limited | U.K. | ||
| Wipro IT Services S.R.L. | Romania | ||
| Wipro Gulf LLC | Sultanate of Oman | ||
| Wipro Bahrain Limited Co. W.L.L | Bahrain | ||
| Wipro 4C NV | Belgium | ||
| Wipro 4C Danmark ApS | Denmark | ||
| Wipro 4C Nederland B.V (formerly known as 4C Nederland B.V) | Netherlands | ||
| Wipro Weare4C UK Limited ** | U.K. | ||
| Wipro 4C Consulting France SAS | France | ||
| Wipro IT Services UK Societas | U.K. | ||
| Wipro Doha LLC # | Qatar | ||
| Wipro Technologies SA DE CV | Mexico | ||
| Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | ||
| Wipro Holdings Investment<br> <br>Korlátolt<br>Felelősségű Társaság | Hungary | ||
| Wipro Information Technology Egypt SAE | Egypt | ||
| Wipro Arabia Co. Limited * | Saudi Arabia | ||
| Women’s Business Park Technologies Limited * | Saudi Arabia | ||
| Wipro Poland SP Z.O.O | Poland | ||
| Wipro IT Services Poland SP Z.O.O | Poland | ||
| Wipro Technologies Australia Pty Ltd | Australia | ||
| Ampion Holdings Pty Ltd** | Australia | ||
| Wipro Corporate Technologies Ghana Limited | Ghana | ||
| Wipro Technologies South Africa (Proprietary) Limited | South Africa | ||
| Wipro Technologies Nigeria Limited | Nigeria | ||
| Wipro IT Service Ukraine, LLC | Ukraine | ||
| Wipro Information Technology Netherlands BV. | Netherlands | ||
| Wipro Portugal S.A. ** | Portugal | ||
| Wipro Technologies Limited | 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 Peru SAC | Peru | ||
| Wipro do Brasil Technologia Ltda** | Brazil | ||
| Wipro Technologies SA | Argentina | ||
| Wipro Technologies SRL | Romania | ||
| PT. WT Indonesia | Indonesia | ||
| Wipro (Thailand) Co. Limited | Thailand |
32
| Rainbow Software LLC | Iraq | ||
|---|---|---|---|
| Cardinal Foreign Holdings S.á.r.l | Luxembourg | ||
| Cardinal Foreign Holdings 2 S.á.r.l** | Luxembourg | ||
| Wipro Networks Pte Limited | Singapore | ||
| Wipro (Dalian) Limited | China | ||
| Wipro Technologies SDN BHD | Malaysia | ||
| Wipro Chengdu Limited | China | ||
| Wipro Philippines, Inc. | Philippines | ||
| Wipro IT Services Bangladesh Limited | Bangladesh | ||
| Wipro HR Services India Private Limited | India | ||
| Encore Theme Technologies Private Limited * | India | ||
| Wipro VLSI Design Services India Private Limited (Formerly known as Eximius Design India Private Limited) | India | ||
| Capco Technologies Private Limited | India | ||
| * | All the above direct subsidiaries are 100% held by the Company except that the Company holds 83.4% of the<br>equity securities of Encore Theme Technologies Private Limited, 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.<br> | ||
| --- | --- |
The remaining 16.6% equity securities of Encore Theme Technologies Private Limited will be acquired subject to and after receipt of certain regulatory approvals/confirmations.
| # | 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in<br>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 and Wipro Foundation in India.
| ** | Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, HealthPlan Services, Inc,<br>International TechneGroup Incorporated, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro Weare4C UK Limited, Cardinal US Holdings, Inc, Cardinal Foreign Holdings 2 S.á.r.l, Ampion Holdings Pty Ltd, and LeanSwift Solutions, Inc are as<br>follows: | ||
|---|---|---|---|
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Wipro Portugal S.A. | Portugal | ||
| Wipro Technologies GmbH | Germany | ||
| Wipro IT Services Austria GmbH | Austria | ||
| Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH)*** | Germany | ||
| Wipro do Brasil Technologia Ltda | Brazil | ||
| Wipro Do Brasil Sistemetas De Informatica Ltd | Brazil | ||
| Wipro do Brasil Servicos Ltda | Brazil | ||
| HealthPlan Services, Inc. | USA | ||
| HealthPlan Services Insurance Agency, LLC | USA | ||
| International TechneGroup Incorporated | USA | ||
| International TechneGroup Ltd. | U.K. | ||
| ITI Proficiency Ltd | Israel | ||
| International TechneGroup S.R.L. | Italy | ||
| MechWorks S.R.L. | Italy | ||
| Wipro Appirio, Inc. | USA | ||
| Wipro Appirio, K.K. (formerly known as Appirio, K.K) | Japan | ||
| Topcoder, LLC. | USA | ||
| Wipro Appirio (Ireland) Limited | Ireland | ||
| Wipro Appirio UK Limited | U.K. |
33
| Wipro Designit Services, Inc | USA | ||
|---|---|---|---|
| Wipro Designit Services Limited | Ireland | ||
| Wipro Weare4C UK Limited | U.K. | ||
| CloudSocius DMCC | UAE | ||
| Cardinal Foreign Holdings 2 S.á.r.l | Luxembourg | ||
| Grove Holdings 2 S.á.r.l | Luxembourg | ||
| The Capital Markets Company BV*** | Belgium | ||
| Capco Brasil Serviços E Consultoria Em Informática Ltda | Brazil | ||
| Cardinal US Holdings, Inc | USA | ||
| The Capital Markets Company LLC | USA | ||
| CAPCO (US) LLC | USA | ||
| Capco Consulting Services LLC | USA | ||
| Capco RISC Consulting LLC | USA | ||
| ATOM Solutions LLC | USA | ||
| NEOS Holdings LLC | USA | ||
| NEOS LLC | USA | ||
| NEOS Software LLC | USA | ||
| Ampion Holdings Pty Ltd | Australia | ||
| Ampion Pty Ltd | Australia | ||
| Crowdsprint Pty Ltd | Australia | ||
| Revolution IT Pty Ltd | Australia | ||
| Iris Holdco Pty Ltd*** | Australia | ||
| LeanSwift Solutions, Inc | USA | ||
| LeanSwift Solutions, LLC | USA | ||
| LeanSwift AB | Sweden | ||
| *** | Step Subsidiary details of The Capital Markets Company BV, Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH) and Iris Holdco Pty Ltd are as follows: | ||
| --- | --- | ||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| The Capital Markets Company BV | Belgium | ||
| Capco Belgium BV | Belgium | ||
| The Capital Markets Company (UK) Ltd | UK | ||
| Capco (UK) 1, Limited | UK | ||
| The Capital Markets Company Limited | Canada | ||
| Capco (US) GP LLC**** | USA | ||
| The Capital Markets Company Limited | Hong Kong | ||
| Capco Consulting Services (Guangzhou) Company Limited | China | ||
| The Capital Markets Company s.r.o | Slovakia | ||
| The Capital Markets Company S.A.S | France | ||
| Capco Poland sp. z.o.o | Poland | ||
| The Capital Markets Company S.á.r.l | Switzerland | ||
| Andrion AG | Switzerland | ||
| The Capital Markets Company BV | Netherlands | ||
| CapAfric Consulting (Pty) Ltd | South Africa | ||
| Capco Consulting Singapore Pte. Ltd | Singapore | ||
| Capco Sweden AB | Sweden | ||
| The Capital Markets Company GmbH | Germany | ||
| Capco Austria GmbH | Austria | ||
| Capco Consultancy (Malaysia) Sdn. Bhd | Malaysia | ||
| Capco Greece Single Member P.C | Greece | ||
| Capco Consultancy (Thailand) Ltd | Thailand | ||
| Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH) | Germany | ||
| Wipro Technology Solutions S.R.L (formerly known as Metro Systems Romania S.R.L) | Romania | ||
| Iris Holdco Pty Ltd | Australia | ||
| Iris Bidco Pty Ltd | Australia | ||
| Shelde Pty Ltd | Australia |
34
| **** | Step Subsidiary details of Capco (US) GP LLC is as follows: | ||
|---|---|---|---|
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Capco (US) GP LLC | USA | ||
| Capco (Canada) GP ULC | Canada |
As at December 31, 2021, the Company held 43.7% interest in Drivestream Inc, accounted for using the equity method.
The list of controlled trusts are:
| Name of the entity | Country of incorporation |
|---|---|
| Wipro Equity Reward Trust | India |
| Wipro Foundation | India |
| Capco (Canada) LP^@^ | Canada |
| ^@^ | The Capital Markets Company Limited (Canada) and Capco (Canada) GP ULC act as Limited and General Partners,<br>respectively. |
| --- | --- |
| 30. | The Indian Parliament has approved the Code on Social Security, 2020 which would impact the<br>contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stake holders which<br>are under active consideration by the Ministry. Based on an initial assessment by the Company and its Indian subsidiaries, the additional impact on Provident Fund contributions by the Company and its Indian subsidiaries is not expected to be<br>material, whereas, the likely additional impact on Gratuity liability / contributions by the Company and its Indian subsidiaries could be material. The Company and its Indian subsidiaries will complete their evaluation once the subject rules are<br>notified and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. |
| --- | --- |
| 31. | Buyback of equity shares during the year ended March 31,2021 |
| --- | --- |
On October 13, 2020, the Board of Directors approved a proposal to Buyback up to 237,500,000 equity shares of ₹ 2 each (representing 4.16% of total paid-up equity share capital as at September 30, 2020) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of ₹ 400 per equity share for an aggregate amount not exceeding ₹ 95,000 (“Buyback”), in accordance with the provisions contained in the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made thereunder (“Buyback Regulations”). Subsequently, the shareholders of the Company approved the Buyback through postal ballot (including e-voting) on November 16, 2020 and December 11, 2020 was fixed as the record date for the Buyback. In accordance with the provisions of the Buyback Regulations, the Letter of offer for the buyback was approved by SEBI on December 21, 2020 and tender period for Buyback opened on December 29, 2020 and closed on January 11, 2021. Consequently, the Company has recorded a liability towards gross obligation on Buyback of equity shares of ₹ 95,000 and the corresponding liability for tax on buyback of ₹ 22,021 as at December 31, 2020.
| 32. | As part of customer contract with Metro AG, the Company has acquired<br>Metro-nom GmbH (currently known as Wipro Business Solutions GmbH) and Metro Systems Romania S.R.L (currently known as Wipro Technology Solutions S.R.L), the IT units of Metro AG in Germany and Romania,<br>respectively, for a consideration of ₹ 4,964. Considering the terms and conditions of the agreement, the Company has concluded that this transaction does not meet<br>the definition of Business under IFRS 3*“Business Combinations”*. The transaction was consummated on April 1, 2021. The fair value of net assets acquired aggregating to<br>₹ 4,559 is allocated to respective assets and liabilities. The excess of consideration paid, and net assets taken over is accounted as ‘costs to obtain<br>contract’, which will be amortized over the tenure of the contract as reduction in revenues. |
|---|---|
| 33. | Events after the reporting period |
| --- | --- |
The Board of Directors in their meeting held on January 12, 2022, declared an interim dividend of ₹ 1/- (USD 0.01) per equity share and ADR (50% on an equity share of par value of ₹ 2/-).
| As per our report of even date attached | For and on behalf of the Board of Directors | ||
|---|---|---|---|
| for Deloitte Haskins & Sells LLP | Rishad A. Premji | Deepak M. Satwalekar | Thierry Delaporte |
| Chartered Accountants | Chairman | Director | Chief Executive Officer and |
| Firm Registration No: 117366W/W - 100018 | Managing Director | ||
| Vikas Bagaria | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 60408 | |||
| Bengaluru | |||
| January 12, 2022 |
35
EX-99.5
Exhibit 99.5
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: +91-80-28440054
STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2021
UNDER IFRS (IASB)
(₹in millions, except share and per share data, unless otherwise stated)
| Particulars | Nine months ended | Year ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,2021 | December 31,2020 | December 31,2021 | December 31,2020 | March 31,2021 | ||||||||||||||
| Income from operations | ||||||||||||||||||
| a) Revenue | 203,136 | 196,674 | 156,700 | 582,334 | 456,976 | 619,430 | ||||||||||||
| b) Other operating income/(loss), net | 14 | 15 | — | 2,179 | (81 | ) | (81 | ) | ||||||||||
| c) Foreign exchange gains | 1,187 | 933 | 566 | 3,280 | 2,109 | 2,995 | ||||||||||||
| I | Total income from operations | 204,337 | **** | 197,622 | **** | 157,266 | **** | 587,793 | **** | 459,004 | **** | 622,344 | ||||||
| Expenses | ||||||||||||||||||
| a) Purchase of stock-in-trade | 2,031 | 1,628 | 1,461 | 5,096 | 4,893 | 6,957 | ||||||||||||
| b) Changes in inventories of finished goods and stock-in-trade | (285 | ) | 148 | (227 | ) | (69 | ) | 279 | 315 | |||||||||
| c) Employee benefit expense | 114,860 | 111,202 | 82,769 | 328,773 | 246,199 | 332,371 | ||||||||||||
| d) Depreciation, amortization and impairment | 7,459 | 7,717 | 7,927 | 23,566 | 20,661 | 27,656 | ||||||||||||
| e) Sub-contracting/ technical fees | 28,190 | 27,277 | 20,657 | 80,086 | 62,115 | 83,609 | ||||||||||||
| f) Facility expenses | 6,352 | 6,220 | 4,996 | 18,222 | 14,967 | 20,255 | ||||||||||||
| g) Travel | 2,281 | 1,645 | 1,394 | 5,361 | 3,948 | 5,258 | ||||||||||||
| h) Communication | 1,391 | 1,464 | 1,462 | 4,371 | 4,617 | 6,069 | ||||||||||||
| i) Legal and professional fees | 2,015 | 1,720 | 1,437 | 5,942 | 3,972 | 5,561 | ||||||||||||
| j) Marketing and brand building | 499 | 510 | 283 | 1,434 | 679 | 1,011 | ||||||||||||
| k) Lifetime expected credit loss/ (write-back) | (203 | ) | 48 | (230 | ) | (408 | ) | 1,615 | 1,506 | |||||||||
| l) Other expenses | 4,212 | 3,123 | 1,524 | 10,244 | 6,173 | 8,723 | ||||||||||||
| II | Total expenses | 168,802 | **** | 162,702 | **** | 123,453 | **** | 482,618 | **** | 370,118 | **** | 499,291 | ||||||
| III | Finance expenses | 1,403 | 1,459 | 1,400 | 3,608 | 3,966 | 5,088 | |||||||||||
| IV | Finance and Other Income | 3,578 | 4,114 | 5,975 | 12,311 | 16,465 | 20,912 | |||||||||||
| V | Share of net profit/ (loss) of associates accounted for using the equity method | 76 | (10 | ) | 101 | 73 | 126 | 130 | ||||||||||
| VI | Profit before tax [I-II-III+IV+V] | 37,786 | **** | 37,565 | **** | 38,489 | **** | 113,951 | **** | 101,511 | **** | 139,007 | ||||||
| VII | Tax expense | 8,063 | 8,259 | 8,524 | 22,547 | 22,590 | 30,345 | |||||||||||
| VIII | Profit for the period [VI-VII] | 29,723 | **** | 29,306 | **** | 29,965 | **** | 91,404 | **** | 78,921 | **** | 108,662 | ||||||
| IX | Total Other comprehensive income | 1,772 | 2,055 | 1,624 | 7,129 | 7,295 | 6,679 | |||||||||||
| Total comprehensive income for the period [VIII+IX] | 31,495 | **** | 31,361 | **** | 31,589 | **** | 98,533 | **** | 86,216 | **** | 115,341 | |||||||
| X | Profit for the period attributable to: | |||||||||||||||||
| Equity holders of the Company | 29,690 | 29,307 | 29,667 | 91,318 | 78,225 | 107,946 | ||||||||||||
| Non-controlling Interests | 33 | (1 | ) | 298 | 86 | 696 | 716 | |||||||||||
| 29,723 | **** | 29,306 | **** | 29,965 | **** | 91,404 | **** | 78,921 | **** | 108,662 | ||||||||
| Total comprehensive income for the period attributable to: | ||||||||||||||||||
| Equity holders of the Company | 31,459 | 31,362 | 31,306 | 98,421 | 85,573 | 114,678 | ||||||||||||
| Non-controlling Interests | 36 | (1 | ) | 283 | 112 | 643 | 663 | |||||||||||
| 31,495 | **** | 31,361 | **** | 31,589 | **** | 98,533 | **** | 86,216 | **** | 115,341 | ||||||||
| XI | Paid up equity share capital (Par value 2 per share) | 10,962 | 10,962 | 11,431 | 10,962 | 11,431 | 10,958 | |||||||||||
| XII | Reserves excluding revaluation reserves and Non-controlling Interests as per balance sheet | 542,137 | ||||||||||||||||
| XIII | Earnings per share (EPS) | |||||||||||||||||
| (Equity shares of par value of 2/- each) | ||||||||||||||||||
| (EPS for the three and nine months ended periods is not annualized) | ||||||||||||||||||
| Basic (in ) | 5.43 | 5.36 | 5.21 | 16.71 | 13.74 | 19.11 | ||||||||||||
| Diluted (in ) | 5.42 | 5.35 | 5.17 | 16.67 | 13.46 | 19.07 |
All values are in Indian Rupees.
1
| 1. | The audited consolidated financial results of the Company for the three and nine months ended<br>December 31, 2021, have been approved by the Board of Directors of the Company at its meeting held on January 12, 2022. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued an audit report<br>with unmodified opinion on the consolidated financial results. |
|---|---|
| 2. | The above consolidated financial results have been prepared from the interim condensed consolidated<br>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<br>the consolidated financial results (including notes) are reported in millions of Indian rupees (₹ in millions) except share and per share data, unless otherwise<br>stated. |
| --- | --- |
| 3. | Estimation uncertainty relating to the global health pandemic onCOVID-19 |
| --- | --- |
In assessing the recoverability of receivables including unbilled receivables, contract assets and contract costs, goodwill, intangible assets, and certain investments, the Company has considered internal and external information up to the date of approval of these consolidated financial results including credit reports and economic forecasts. The Company has performed sensitivity analysis on the assumptions used herein. Based on the current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets.
The Company basis its assessment believes that the probability of the occurrence of forecasted transactions is not impacted by COVID-19. The Company has also considered the effect of changes, if any, in both counterparty credit risk and own credit risk while assessing hedge effectiveness and measuring hedge ineffectiveness and continues to believe that there is no impact on effectiveness of its hedges.
The impact of COVID-19 remains uncertain and may be different from what had been estimated as of the date of approval of these consolidated financial results and the Company will continue to closely monitor any material changes to future economic conditions.
| 4. | List of subsidiaries and investments accounted for using equity method as at December 31, 2021 areprovided in the table below: | ||
|---|---|---|---|
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Wipro, LLC | USA | ||
| Wipro Gallagher Solutions, LLC | USA | ||
| Wipro Opus Risk Solutions LLC (formerly known as Wipro Opus Mortgage Solutions LLC) | USA | ||
| Wipro Insurance Solutions, LLC | USA | ||
| Wipro IT Services, LLC | USA | ||
| HealthPlan Services, Inc. ** | USA | ||
| Wipro Appirio, Inc. ** | USA | ||
| Designit North America, Inc. | USA | ||
| Infocrossing, LLC | USA | ||
| Wipro US Foundation | USA | ||
| International TechneGroup Incorporated ** | USA | ||
| Wipro Designit Services, Inc. ** | USA | ||
| Wipro VLSI Design Services, LLC | USA | ||
| Cardinal US Holdings, Inc** | USA | ||
| LeanSwift Solutions, Inc** | USA | ||
| Edgile, LLC | USA | ||
| Wipro Overseas IT Services Private Limited | India | ||
| Wipro Japan KK | Japan | ||
| Designit Tokyo Ltd. | Japan | ||
| Wipro Shanghai Limited | China | ||
| Wipro Trademarks Holding Limited | India | ||
| Wipro Travel Services Limited | India |
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 Sweden AB | Sweden | ||
| Designit T.L.V Ltd. | Israel | ||
| Designit Spain Digital, S.L.U | Spain | ||
| Wipro Europe Limited | U.K. | ||
| Wipro UK Limited | U.K. | ||
| Wipro Financial Services UK Limited | U.K. | ||
| Wipro IT Services S.R.L. | Romania | ||
| Wipro Gulf LLC | Sultanate of Oman | ||
| Wipro Bahrain Limited Co. W.L.L | Bahrain | ||
| Wipro 4C NV | Belgium | ||
| Wipro 4C Danmark ApS | Denmark | ||
| Wipro 4C Nederland B.V (formerly known as 4C Nederland B.V) | Netherlands | ||
| Wipro Weare4C UK Limited ** | U.K. | ||
| Wipro 4C Consulting France SAS | France | ||
| Wipro IT Services UK Societas | U.K. | ||
| Wipro Doha LLC # | Qatar | ||
| Wipro Technologies SA DE CV | Mexico | ||
| Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | ||
| Wipro Holdings Investment <br>Korlátolt Felelősségű Társaság | Hungary | ||
| Wipro Information Technology Egypt SAE | Egypt | ||
| Wipro Arabia Co. Limited * | Saudi Arabia | ||
| Women’s Business Park Technologies Limited * | Saudi Arabia | ||
| Wipro Poland SP Z.O.O | Poland | ||
| Wipro IT Services Poland SP Z.O.O | Poland | ||
| Wipro Technologies Australia Pty Ltd | Australia | ||
| Ampion Holdings Pty Ltd** | Australia | ||
| Wipro Corporate Technologies Ghana Limited | Ghana | ||
| Wipro Technologies South Africa (Proprietary) Limited | South Africa | ||
| Wipro Technologies Nigeria Limited | Nigeria | ||
| Wipro IT Service Ukraine, LLC | Ukraine | ||
| Wipro Information Technology Netherlands BV. | Netherlands | ||
| Wipro Portugal S.A. ** | Portugal | ||
| Wipro Technologies Limited | 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 Peru SAC | Peru | ||
| Wipro do Brasil Technologia Ltda ** | Brazil | ||
| Wipro Technologies SA | Argentina | ||
| Wipro Technologies SRL | Romania | ||
| PT. WT Indonesia | Indonesia | ||
| Wipro (Thailand) Co. Limited | Thailand | ||
| Rainbow Software LLC | Iraq | ||
| Cardinal Foreign Holdings S.á.r.l | Luxembourg | ||
| Cardinal Foreign Holdings 2 S.á.r.l ** | Luxembourg |
3
| Wipro Networks Pte Limited | Singapore | ||
|---|---|---|---|
| Wipro (Dalian) Limited | China | ||
| Wipro Technologies SDN BHD | Malaysia | ||
| Wipro Chengdu Limited | China | ||
| Wipro Philippines, Inc. | Philippines | ||
| Wipro IT Services Bangladesh Limited | Bangladesh | ||
| Wipro HR Services India Private Limited | India | ||
| Encore Theme Technologies Private Limited * | India | ||
| Wipro VLSI Design Services India Private Limited (Formerly known as Eximius Design India Private Limited) | India | ||
| Capco Technologies Private Limited | India | ||
| * All the above direct subsidiaries are 100% held by the Company<br>except that the Company holds 83.4% of the equity securities of Encore Theme Technologies Private Limited, 66.67% of the equity securities of Wipro Arabia Co. Limited and 55% of the equity securities of Women’s Business Park Technologies<br>Limited are held by Wipro Arabia Co. Limited.<br> <br><br> <br>The remaining 16.6% equity<br>securities of Encore Theme Technologies Private Limited will be acquired subject to and after receipt of certain regulatory approvals/confirmations. | |||
| # 51% of equity securities of Wipro Doha LLC are held by a local<br>shareholder. However, the beneficial interest in these holdings is with the Company.<br> <br><br><br><br>The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated<br>in South Africa and Wipro Foundation in India. | |||
| ** Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil<br>Technologia Ltda, HealthPlan Services, Inc, International TechneGroup Incorporated, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro Weare4C UK Limited, Cardinal US Holdings, Inc, Cardinal Foreign Holdings 2 S.á.r.l, Ampion Holdings<br>Pty Ltd, and LeanSwift Solutions, Inc are as follows: | |||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| Wipro Portugal S.A. | Portugal | ||
| Wipro Technologies GmbH | Germany | ||
| Wipro IT Services Austria GmbH | Austria | ||
| Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH)*** | Germany | ||
| Wipro do Brasil Technologia Ltda | Brazil | ||
| Wipro Do Brasil Sistemetas De Informatica Ltd | Brazil | ||
| Wipro do Brasil Servicos Ltda | Brazil | ||
| HealthPlan Services, Inc. | USA | ||
| HealthPlan Services Insurance Agency, LLC | USA | ||
| International TechneGroup Incorporated | USA | ||
| International TechneGroup Ltd. | U.K. | ||
| ITI Proficiency Ltd | Israel | ||
| International TechneGroup S.R.L. | Italy | ||
| MechWorks S.R.L. | Italy | ||
| Wipro Appirio, Inc. | USA | ||
| Wipro Appirio, K.K. (formerly known as Appirio, K.K) | Japan | ||
| Topcoder, LLC. | USA | ||
| Wipro Appirio (Ireland) Limited | Ireland | ||
| Wipro Appirio UK Limited | U.K. | ||
| Wipro Designit Services, Inc | USA | ||
| Wipro Designit Services Limited | Ireland | ||
| Wipro Weare4C UK Limited | U.K. | ||
| CloudSocius DMCC | UAE |
4
| Cardinal Foreign Holdings 2 S.á.r.l | Luxembourg | ||
|---|---|---|---|
| Grove Holdings 2 S.á.r.l | Luxembourg | ||
| The Capital Markets Company BV*** | Belgium | ||
| Capco Brasil Serviços E Consultoria Em Informática Ltda | Brazil | ||
| Cardinal US Holdings, Inc | USA | ||
| The Capital Markets Company LLC | USA | ||
| CAPCO (US) LLC | USA | ||
| Capco Consulting Services LLC | USA | ||
| Capco RISC Consulting LLC | USA | ||
| ATOM Solutions LLC | USA | ||
| NEOS Holdings LLC | USA | ||
| NEOS LLC | USA | ||
| NEOS Software LLC | USA | ||
| Ampion Holdings Pty Ltd | Australia | ||
| Ampion Pty Ltd | Australia | ||
| Crowdsprint Pty Ltd | Australia | ||
| Revolution IT Pty Ltd | Australia | ||
| Iris Holdco Pty Ltd*** | Australia | ||
| LeanSwift Solutions, Inc | USA | ||
| LeanSwift Solutions, LLC | USA | ||
| LeanSwift AB | Sweden | ||
| *** Step Subsidiary details of The Capital Markets Company BV, Wipro<br>Business Solutions GmbH (formerly known as Metro-nom GmbH) and Iris Holdco Pty Ltd are as follows: | |||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| The Capital Markets Company BV | Belgium | ||
| Capco Belgium BV | Belgium | ||
| The Capital Markets Company (UK) Ltd | UK | ||
| Capco (UK) 1, Limited | UK | ||
| The Capital Markets Company Limited | Canada | ||
| Capco (US) GP LLC**** | USA | ||
| The Capital Markets Company Limited | Hong Kong | ||
| Capco Consulting Services (Guangzhou) Company Limited | China | ||
| The Capital Markets Company s.r.o | Slovakia | ||
| The Capital Markets Company S.A.S | France | ||
| Capco Poland sp. z.o.o | Poland | ||
| The Capital Markets Company S.á.r.l | Switzerland | ||
| Andrion AG | Switzerland | ||
| The Capital Markets Company BV | Netherlands | ||
| CapAfric Consulting (Pty) Ltd | South Africa | ||
| Capco Consulting Singapore Pte. Ltd | Singapore | ||
| Capco Sweden AB | Sweden | ||
| The Capital Markets Company GmbH | Germany | ||
| Capco Austria GmbH | Austria | ||
| Capco Consultancy (Malaysia) Sdn. Bhd | Malaysia | ||
| Capco Greece Single Member P.C | Greece | ||
| Capco Consultancy (Thailand) Ltd | Thailand | ||
| Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH) | Germany | ||
| Wipro Technology Solutions S.R.L (formerly known as Metro Systems Romania S.R.L) | Romania | ||
| Iris Holdco Pty Ltd | Australia | ||
| Iris Bidco Pty Ltd | Australia | ||
| Shelde Pty Ltd | Australia |
5
| ****Step Subsidiary details of Capco (US) GP LLC is as follows: | |||
|---|---|---|---|
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| Capco (US) GP LLC | USA | ||
| Capco (Canada) GP ULC | Canada | ||
| As at December 31, 2021, the Company held 43.7% interest in Drivestream Inc, accounted for using the equity method. | |||
| The list of controlled trusts are: | |||
| Name of the entity | Country of incorporation | ||
| Wipro Equity Reward Trust | India | ||
| Wipro Foundation | India | ||
| Capco (Canada) LP^@^ | Canada | ||
| ^@^ The Capital<br>Markets Company Limited (Canada) and Capco (Canada) GP ULC act as Limited and General Partners, respectively. | |||
| 5. | Segment Information | ||
| --- | --- |
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (“ISRE”).
IT Services: During the year ended March 31, 2021, in order to broad base our growth, the Company re-organized IT Services segment to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East 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.
The corresponding information for the three and nine months ended December 31, 2020 has been re-stated to give effect to the above changes.
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.
Prior to the Company’s re-organization of its IT services segment, the IT services segment was organized by seven industry verticals: Banking, Financial Services and Insurance (“BFSI”), Health Business unit (“Health BU”), Consumer Business unit (“CBU”), Energy, Natural Resources & Utilities (“ENU”), Manufacturing (“MFG”), Technology (“TECH”) and Communications (“COMM”).
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.
ISRE: This segment consists of IT Services offerings to entities and/or departments owned or controlled by Government of India and/or any State Governments.
The Chairman 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.
6
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 December 31, 2021, September 30, 2021 and December 31, 2020, nine months ended December 31, 2021 and December 31, 2020 and year ended March 31, 2021 are as follows:
| Three months ended | Nine months ended | Yearended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | December 31,2021 | September 30,2021 | December 31,2020 | December 31,2021 | December 31,2020 | March 31,2021 | ||||||||||||
| Audited | Audited | Audited | Audited | Audited | Audited | |||||||||||||
| Revenue | ||||||||||||||||||
| IT Services | ||||||||||||||||||
| Americas 1 | 56,644 | 53,205 | 45,015 | 159,532 | 131,581 | 178,091 | ||||||||||||
| Americas 2 | 61,076 | 59,260 | 44,702 | 175,441 | 133,346 | 179,821 | ||||||||||||
| Europe | 59,620 | 58,619 | 42,880 | 172,700 | 120,334 | 165,441 | ||||||||||||
| APMEA | 23,596 | 22,715 | 20,717 | 67,543 | 61,637 | 82,462 | ||||||||||||
| Total of IT Services | **** | 200,936 | **** | 193,799 | **** | 153,314 | **** | 575,216 | **** | 446,898 | **** | 605,815 | ||||||
| IT Products | 1,767 | 1,894 | 1,563 | 4,972 | 5,568 | 7,685 | ||||||||||||
| ISRE | 1,623 | 1,867 | 2,388 | 5,427 | 6,610 | 8,912 | ||||||||||||
| Reconciling Items | (3 | ) | 47 | 1 | (1 | ) | 9 | 13 | ||||||||||
| Total Revenue | **** | 204,323 | **** | 197,607 | **** | 157,266 | **** | 585,614 | **** | 459,085 | **** | 622,425 | ||||||
| Other operating income/(loss), net | ||||||||||||||||||
| IT Services | 14 | 15 | — | 2,179 | (81 | ) | (81 | ) | ||||||||||
| Total Other operating income/(loss), net | **** | 14 | **** | 15 | **** | — | **** | **** | 2,179 | **** | (81 | ) | **** | (81 | ) | |||
| Segment Result | ||||||||||||||||||
| IT Services | ||||||||||||||||||
| Americas 1 | 11,390 | 10,521 | 8,075 | 31,290 | 23,177 | 33,040 | ||||||||||||
| Americas 2 | 12,057 | 11,819 | 10,190 | 35,226 | 31,089 | 41,589 | ||||||||||||
| Europe | 9,172 | 9,186 | 9,283 | 26,683 | 22,969 | 31,673 | ||||||||||||
| APMEA | 2,483 | 3,028 | 2,778 | 8,577 | 8,402 | 11,476 | ||||||||||||
| Unallocated | 173 | (156 | ) | 2,945 | 73 | 3,896 | 5,153 | |||||||||||
| Other operating income/(loss), net | 14 | 15 | — | 2,179 | (81 | ) | (81 | ) | ||||||||||
| Total of IT Services | **** | 35,289 | **** | 34,413 | **** | 33,271 | **** | 104,028 | **** | 89,452 | **** | 122,850 | ||||||
| IT Products | 96 | 94 | 78 | 137 | (100 | ) | 45 | |||||||||||
| ISRE | 134 | 393 | 471 | 1,002 | 474 | 1,061 | ||||||||||||
| Reconciling Items | 16 | 20 | (7 | ) | 8 | (940 | ) | (903 | ) | |||||||||
| Total | **** | 35,535 | **** | 34,920 | **** | 33,813 | **** | 105,175 | **** | 88,886 | **** | 123,053 | ||||||
| Finance expenses | (1,403 | ) | (1,459 | ) | (1,400 | ) | (3,608 | ) | (3,966 | ) | (5,088 | ) | ||||||
| Finance and Other Income | 3,578 | 4,114 | 5,975 | 12,311 | 16,465 | 20,912 | ||||||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 76 | (10 | ) | 101 | 73 | 126 | 130 | |||||||||||
| Profit before tax | **** | 37,786 | **** | 37,565 | **** | 38,489 | **** | 113,951 | **** | 101,511 | **** | 139,007 |
Notes
| a) | Effective beginning of fiscal year ended March 31, 2021, revenue from sale of traded cloud-based licenses<br>is no longer reported in IT Services revenue and finance income on deferred consideration earned under total outsourcing contracts is not included in segment revenue. Further, for evaluating performance of the individual operating segments, stock<br>compensation expense is allocated based on the accelerated amortization as per IFRS 2. Segment information for the three and nine months ended December 31, 2020 has been re-stated to give effect to these<br>changes. |
|---|---|
| b) | “Reconciling items” includes elimination of inter-segment transactions and other corporate<br>activities. |
| --- | --- |
7
| c) | Revenue from sale of company owned intellectual properties is reported as part of IT Services revenues.<br> |
|---|---|
| d) | For the purpose of segment reporting, the Company has included the net impact of foreign exchange in revenues<br>amounting to ₹ 1,187, ₹ 933 and ₹ 566 for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020 respectively,<br>₹ 3,280 and ₹ 2,109 for the nine months ended December 31, 2021,<br>December 31, 2020, and ₹ 2,995 for the year ended March 31, 2021, which is reported under foreign exchange gains in the consolidated financial results.<br> |
| --- | --- |
| e) | During the nine months ended December 31, 2020, and year ended March 31, 2021 the Company has<br>contributed ₹ 991 towards COVID-19 and is reported in Reconciling items. |
| --- | --- |
| f) | Segment results are after considering the impact of impairment charge of ₹ 995 in Americas 1 for the three months ended December 31, 2020 and ₹ 1,257 and ₹ 192 in Americas 1 and Europe, respectively, for the nine months ended December 31, 2020. Further, an impairment charge of ₹ 678 for the three and nine months ended December 31, 2020, towards certain marketing-related intangible assets and software platform recognized on acquisitions, is allocated to all IT<br>Services SMUs. The remaining impairment charge of ₹ Nil and ₹ 300 for the<br>three and nine months ended December 31, 2020, respectively is included under unallocated. |
| --- | --- |
| g) | Segment results for the year ended March 31, 2021, are after considering the impact of impairment charge<br>of ₹ 1,250 in Americas 1 and ₹ 192 in Europe, respectively. Further, an<br>impairment charge of ₹ 674 for the year ended March 31, 2021, respectively towards certain marketing-related intangible assets and software platform<br>recognized on acquisitions, is allocated to all IT Services SMUs. The remaining impairment charge of ₹ 302 for the year ended March 31, 2021 is included<br>under unallocated. |
| --- | --- |
| h) | Segment results for the year ended March 31, 2021, are after considering additional amortization of ₹ 795 in Americas 2 due to change in our estimate of useful life of the customer-related intangibles in an earlier business combination. |
| --- | --- |
| i) | Other operating income/(loss) of<br>₹ 14, ₹ 15 and<br>₹ Nil for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020 respectively, ₹ 2,179 and ₹ (81) for the nine months ended December 31, 2021, December 31, 2020, and ₹ (81) for the year ended March 31, 2021. Refer to Note 6. |
| --- | --- |
| j) | Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 805, ₹ 652 and<br>₹ 577 for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020 respectively, ₹ 2,434 and ₹ 1,806 for the nine months ended December 31, 2021 and December 31, 2020 respectively,<br>and ₹ 2,897 for the year ended March 31, 2021. |
| --- | --- |
| 6. | Other operating income/(loss), net |
| --- | --- |
The Company has partially met the first and second-year business targets pertaining to sale of hosted data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement of cumulative business targets amounting to ₹ Nil and ₹ (81) for the three and nine months ended December 31, 2020 has been recognized under other operating income/(loss), net.
During the nine months ended December 31, 2021, as a result of acquisition by another investor, the Company sold its investment in Ensono Holdings, LLC for a consideration of ₹ 5,614 and recognized a cumulative gain of ₹ 1,249 (net of tax ₹ 429) in other comprehensive income being profit on sale of investment designated as FVTOCI. The Company also recognized ₹ 1,230 for the nine months ended December 31, 2021 under other operating income/(loss), net towards change in fair value of callable units pertaining to achievement of cumulative business targets.
During the nine months ended December 31, 2021, as a result of acquisition of by another investor, the Company sold its investment in Denim Group, Ltd. and Denim Group Management, LLC (“Denim Group”), accounted for using the equity method, for a consideration of ₹ 1,648 and recognized a cumulative gain of ₹ 949 in other operating income/(loss), net including reclassification of exchange differences on foreign currency translation.
| 7. | Business combinations |
|---|
Summary of acquisitions during the nine months ended December 31, 2021 is given below:
Capco and its subsidiaries (“Capco”)
On March 4, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Capco, a global management and technology consultancy company providing digital, consulting and technology services to financial institutions in the Americas, Europe and Asia Pacific, and its subsidiaries. The acquisition was consummated on April 29, 2021 and total cash consideration paid was ₹ 109,530. The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 4,379 | ₹ | — | ₹ | 4,379 | ||
| Customer-related intangibles | — | 24,273 | 24,273 | |||||
| Marketing-related intangibles | — | 8,083 | 8,083 | |||||
| Deferred tax liabilities on intangible assets | — | (9,383 | ) | (9,383 | ) | |||
| Total | ₹ | 4,379 | ₹ | 22,973 | ₹ | 27,352 | ||
| Goodwill | 82,178 | |||||||
| Total purchase price | ₹ | 109,530 |
8
Ampion Holdings Pty Ltd and its subsidiaries (“Ampion”)
On April 1, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Ampion, an Australia-based provider of cyber security, DevOps and quality engineering services. The acquisition was consummated on August 6, 2021 and total cash consideration paid was ₹ 9,102. The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 1,158 | ₹ | — | ₹ | 1,158 | ||
| Customer-related intangibles | — | 1,748 | 1,748 | |||||
| Marketing-related intangibles | — | 460 | 460 | |||||
| Deferred tax liabilities on intangible assets | — | (663 | ) | (663 | ) | |||
| Total | ₹ | 1,158 | ₹ | 1,545 | ₹ | 2,703 | ||
| Goodwill | 6,399 | |||||||
| Total purchase price | ₹ | 9,102 |
Edgile, LLC (“Edgile”)
On December 19, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Edgile, a USA based transformational cybersecurity consulting provider that focuses on risk and compliance, information and cloud security, and digital identity. The acquisition was consummated on December 31, 2021 for total consideration (upfront cash payout to acquire control and contingent consideration) of ₹ 17,117.
The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||
|---|---|---|---|---|---|---|
| Net assets | ₹ | 1,309 | ₹ | — | ₹ | 1,309 |
| Customer-related intangibles | — | 1,747 | 1,747 | |||
| Marketing-related intangibles | — | 1,160 | 1,160 | |||
| Total | ₹ | 1,309 | ₹ | 2,907 | ₹ | 4,216 |
| Goodwill | 12,901 | |||||
| Total purchase price | ₹ | 17,117 |
LeanSwift Solutions Inc. and its subsidiaries (“LeanSwift”)
On December 14, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in LeanSwift, a system integrator of Infor products for customers across the Americas and Europe. The acquisition was consummated on December 31, 2021 and total cash consideration paid was ₹ 1,606.
The following table presents the provisional purchase price allocation:
| Description | Acquiree’scarrying amount | Fair valueadjustments | Purchase priceallocated | |||||
|---|---|---|---|---|---|---|---|---|
| Net assets | ₹ | 210 | ₹ | — | ₹ | 210 | ||
| Customer-related intangibles | — | 89 | 89 | |||||
| Marketing-related intangibles | — | 119 | 119 | |||||
| Deferred tax liabilities on intangible assets | (58 | ) | (58 | ) | ||||
| Total | ₹ | 210 | ₹ | 150 | ₹ | 360 | ||
| Goodwill | 1,246 | |||||||
| Total purchase price | ₹ | 1,606 | ||||||
| 8. | The Indian Parliament has approved the Code on Social Security, 2020 which would impact the<br>contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stake holders which<br>are under active consideration by the Ministry. Based on an initial assessment by the Company and its Indian subsidiaries, the additional impact on Provident Fund contributions by the Company and its Indian subsidiaries is not expected to be<br>material, whereas, the likely additional impact on Gratuity liability / contributions by the Company and its Indian subsidiaries could be material. The Company and its Indian subsidiaries will complete their evaluation once the subject rules are<br>notified and will give appropriate impact in the financial results in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. | |||||||
| --- | --- | |||||||
| 9. | As part of customer contract with Metro AG, the Company has acquired<br>Metro-nom GmbH (currently known as Wipro Business Solutions GmbH) and Metro Systems Romania S.R.L (currently known as Wipro Technology Solutions S.R.L), the IT units of Metro AG in Germany and Romania,<br>respectively, for a consideration of ₹ 4,964. Considering the terms and conditions of the agreement, the Company has concluded that this transaction does not meet<br>the definition of Business under IFRS 3 “Business Combinations”. The transaction was consummated on April 1, 2021. The fair value of net assets acquired aggregating to<br>₹ 4,559 is allocated to respective assets and liabilities. The excess of consideration paid, and net assets taken over is accounted as ‘costs to obtain<br>contract’, which will be amortized over the tenure of the contract as reduction in revenues. | |||||||
| --- | --- | |||||||
| 10. | On June 23, 2021, Wipro IT Services LLC, a wholly owned step-down subsidiary of Wipro Limited,<br>issued ₹ 55,748 (US$ 750 million) in unsecured notes 2026 (the “Notes”). The Notes bear interest at a rate of 1.50% per annum and will mature on<br>June 23, 2026. The notes were issued at the discounted price of 99.636% against par value and have an effective interest rate of 1.6939% after considering the issue expenses and discount of ₹ 501 (US$6.7 million). Interest on the Notes is payable semi-annually on June 23 and December 23 of each year, commencing from December 23, 2021. The Notes are listed on Singapore<br>Exchange Securities Trading Limited (SGX-ST). | |||||||
| --- | --- |
9
| 11. | Events after the reporting period |
|---|
The Board of Directors in their meeting held on January 12, 2022, declared an interim dividend of ₹ 1/- (USD 0.01) per equity share and ADR (50% on an equity share of par value of ₹ 2/-).
| By order of the Board, | For, Wipro Limited |
|---|---|
| Place: Bengaluru<br> <br>Date: January 12,<br>2022 | Rishad A. Premji<br> <br>Chairman |
10
EX-99.6
Exhibit 99.6
Wipro Limited Highlights for the Quarter ended December 31, 2021 REVENUE Sequential QoQ Constant Operating $2.64 Bn Growth Currency Margin 2.3% 3.0% 17.6% STRATEGIC MARKET UNITS MIX 28.2% AMERICAS 1 30.4% AMERICAS 2 29.7% EUROPE 11.7% APMEA SECTOR MIX 35.2% 17.7% 11.8% 11.7% 11.9% 6.7% 5.0% Banking, Energy, Manufacturing Financial Consumer Health Natural Technology Communication Services Resources & Insurance and Utilities GLOBAL BUSINESS LINES MIX 61.0% iDEAS 39.0% iCORE Integrated Digital, Cloud Infrastructure, Digital Engineering & Operations, Risk & Enterprise Application Services Cyber Security Services OUTLOOK Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million*. This For quarter ended translates to a sequential growth of 2.0% to 4.0%. March 31, 2022 * Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79 CUSTOMER CONCENTRATION TOP1 3.2% 12.7% TOP 10 20.2% TOP 5 TOTAL HEADCOUNT 231,671 ATTRITION VOL – TTM 22.7% GROSS UTILIZATION 75.6% OFFSHORE REVENUE 56.3% PERCENTAGE OF SERVICES Page 1
Wipro Limited Results for the Quarter ended December 31, 2021 FY 21 – 22 FY 20 – 21 A IT Services Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 IT Services Revenues ($Mn) Note 1 2,639.7 2,580.0 2,414.5 8,136.5 2,152.4 2,070.8 1,992.4 1,921.0 Sequential Growth 2.3% 6.9% 12.2% -1.4% 3.9% 3.9% 3.7% -7.3% Sequential Growth in Constant Currency Note 2 3.0% 8.1% 12.0% -2.3% 3.0% 3.3% 2.0% -7.5% Operating Margin % Note 3 17.6% 17.8% 18.8% 20.3% 21.0% 21.7% 19.2% 19.1% Strategic Market Units Mix Americas 1 28.2% 27.5% 27.6% 29.4% 29.2% 29.4% 29.7% 29.2% Americas 2 30.4% 30.6% 30.5% 29.7% 29.3% 29.1% 30.1% 30.3% Europe 29.7% 30.2% 30.2% 27.3% 28.4% 28.0% 26.1% 26.7% APMEA 11.7% 11.7% 11.7% 13.6% 13.1% 13.5% 14.1% 13.8% Sectors Mix Banking, Financial Services and Insurance 35.2% 34.8% 33.4% 30.7% 30.5% 30.5% 31.2% 30.7% Consumer 17.7% 17.3% 17.3% 16.4% 17.0% 16.4% 16.2% 15.9% Health 11.8% 11.7% 11.9% 13.5% 13.0% 13.9% 13.7% 13.5% Energy, Natural Resources and Utilities 11.7% 12.3% 13.1% 13.1% 13.2% 13.1% 12.9% 13.2% Technology 11.9% 12.2% 12.2% 13.0% 13.4% 12.6% 12.5% 13.5% Manufacturing 6.7% 6.7% 7.0% 8.1% 7.9% 8.3% 8.2% 8.1% Communications 5.0% 5.0% 5.1% 5.2% 5.0% 5.2% 5.3% 5.1% Global Business Lines Mix iDEAS 61.0% 61.3% 60.1% 57.4% 56.8% 57.3% 57.6% 58.0% iCORE 39.0% 38.7% 39.9% 42.6% 43.2% 42.7% 42.4% 42.0% Guidance ($Mn) 2,631-2,683 2,535-2,583 2,324-2,367 — 2,102-2,143 2,022-2,062 — — Guidance restated based on 2,614-2,666 2,504-2,553 2,328-2,371 — 2,121- 2,162 2,034-2,074 — —actual currency realized ($Mn) Revenues performance against guidance 2,639.7 2,580.0 2,414.5 — 2,152.4 2,070.8 — — ($Mn) Note 1: The revenue from prior period has been restated due to change in revenue segment policy. For details, please refer the segment notes in IFRS financials Note 2: Constant currency (CC) revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period Note 3: IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials 2 Page Public
FY 21 – 22 FY 20 – 21 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 Customer size distribution (TTM) > $100Mn 17 15 13 11 11 10 11 13 > $75Mn 29 28 27 27 27 24 24 22 > $50Mn 47 44 42 40 40 38 39 39 > $20Mn 110 100 95 93 93 97 100 97 > $10Mn 189 182 176 167 167 168 166 163 > $5Mn 286 279 273 257 257 260 257 258 > $3Mn 399 390 361 349 349 341 342 348 > $1Mn 661 623 601 566 566 567 573 577 Revenue from Existing customers % 94.9% 95.1% 97.2% 98.0% 96.4% 97.4% 98.6% 99.7% Number of new customers 67 116 129 280 52 89 97 42 Total Number of active customers 1,315 1,284 1,229 1,120 1,120 1,136 1,089 1,004 Customer Concentration Top customer 3.2% 3.1% 3.1% 3.1% 3.1% 3.1% 3.2% 3.2% Top 5 12.7% 12.5% 12.1% 12.1% 12.2% 11.9% 12.0% 12.3% Top 10 20.2% 20.1% 19.8% 19.5% 19.5% 18.9% 19.6% 20.3% % of Revenue USD 60% 59% 58% 61% 60% 61% 62% 63% GBP 11% 12% 12% 10% 11% 10% 10% 10% EUR 10% 10% 10% 8% 8% 8% 8% 8% INR 5% 4% 4% 5% 5% 4% 5% 5% AUD 5% 5% 5% 5% 5% 5% 5% 5% CAD 3% 4% 4% 3% 3% 3% 2% 2% Others 6% 6% 7% 8% 8% 9% 8% 7% Closing Employee Count 231,671 221,365 209,890 197,712 197,712 190,308 185,243 181,804 Sales & Support Staff (IT Services) 17,595 17,051 16,689 15,368 15,368 14,838 14,806 14,567 Utilization (IT Services excl. DOP, Designit, Cellent, Cooper, Topcoder, Rational, ITI, IVIA, 4C, Eximius, Encore, Capco & Ampion) Gross Utilization 75.6% 78.1% 77.7% 75.7% 76.7% 74.8% 76.4% 75.0% Net Utilization (Excluding Trainees) 85.8% 89.2% 86.8% 85.9% 86.0% 86.3% 86.9% 84.5% Attrition Voluntary TTM (IT Services excl. DOP) 22.7% 20.5% 15.5% 12.1% 12.1% 11.0% 11.0% 13.0% DOP % — Post Training Quarterly 10.0% 8.7% 8.0% 6.3% 7.4% 7.0% 6.1% 4.4% Page 3 Public
B IT Services (Excluding DOP, Designit, Cellent, Cooper, Topcoder, Rational, ITI, IVIA, 4C, Eximius, Encore, Capco & Ampion) Revenue from FPP 63.2% 62.6% 63.1% 62.0% 63.0% 62.7% 60.4% 61.8% Offshore Revenue — % of Services 56.3% 55.6% 54.0% 52.6% 54.5% 53.9% 51.9% 50.0% C Growth Metrics for the Quarter ended December 31, 2021 Note 2 Q3’22 Q3’22 Q3’22 Q3’22 Reported Reported CC CC QoQ% YoY% QoQ% YoY% IT Services 2.3% 27.5% 3.0% 28.5% Strategic Market Units Americas 1 5.1% 22.3% 5.2% 22.7% Americas 2 1.6% 32.9% 1.7% 32.7% Europe 0.4% 35.4% 2.3% 38.0% APMEA 2.5% 10.8% 2.9% 12.5% Sectors Banking, Financial Services and Insurance 3.5% 46.8% 4.1% 47.4% Consumer 4.7% 37.0% 5.2% 37.9% Health 3.7% 8.8% 3.8% 9.1% Energy, Natural Resources and Utilities -3.0% 14.2% -2.2% 15.0% Technology 0.0% 20.4% 0.9% 21.9% Manufacturing 1.9% 3.2% 2.7% 4.9% Communications 1.8% 22.8% 3.8% 26.5% Global Business Lines iDEAS 2.0% 35.9% 2.7% 37.0% iCORE 2.9% 16.2% 3.4% 17.1% D Annexure to Datasheet Segment-wise breakup of Q3 FY21-22 (INR Mn) Cost of Revenues, S&M and G&A Reconciling Particulars IT Services IT Products ISRE Total Items Cost of revenues 139,544 1,725 1,492 17 142,778 Selling and marketing expenses 13,920 30 36 2 13,988 General and administrative expenses 12,197 (84) (39) (38) 12,036 Total 165,661 1,671 1,489 (19) 168,802 P a g e 4 Public