6-K
Wipro Ltd (WIT)
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 July 2023
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
Wipro Limited, a company organized under the laws of the Republic of India (the “Company”), hereby furnishes the Commission with the following information concerning our public disclosures regarding our results of operations for the quarter ended June 30, 2023. 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 July 13, 2023, we announced our results of operations for the quarter ended June 30, 2023. 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.
We placed advertisements in certain Indian newspapers concerning our results of operations for the quarter ended June 30, 2023, under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Item 99.2.
We made available on our website the Condensed Consolidated Interim Financial Statements as of and for the three months ended June 30, 2023, under IFRS. A copy of such financial statements is attached to this Form 6K as Item 99.3.
We filed with stock exchanges in India a statement of statutorily audited consolidated financial results for the three months ended June 30, 2023, under IFRS. A copy of such financial statements is attached to this Form 6K as Item 99.4.
We filed with stock exchanges in India a datasheet containing operating metrics for the quarter ended June 30, 2023. A copy of such data sheet is attached to this Form 6-K as Item 99.5.
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 | |
|---|---|
| By: | /s/ Jatin Pravinchandra Dalal |
| Jatin Pravinchandra Dalal | |
| Chief Financial Officer |
Dated: July 14, 2023
INDEX TO EXHIBITS
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
Wipro Announces Results for the Quarter ended June 30, 2023,
Delivers Net Income growth of 12% YoY
Total Bookings of $3.7 billion for the Quarter
Large deal Bookings growth of 9% YoY. Highest in last 8 Quarters
Operating Cash Flows at 130**%** of Net Income
EAST BRUNSWICK, N.J. | BANGALORE, India – July 13, 2023: Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2023.
Highlights of the Results
Results for theQuarter ended June 30, 2023:
| 1. | Gross Revenue reached<br>₹ 228.3 billion ($2.8 billion^1^), an increase of 6.0% YoY |
|---|---|
| 2. | IT Services Segment Revenue increased to $2,778.5 million, an increase of 0.8% YoY and an increase of 6.1%<br>YoY in INR terms |
| --- | --- |
| 3. | Non-GAAP^2^ constant<br>currency IT Services segment revenue decreased 2.8% QoQ, increased 1.1% YoY |
| --- | --- |
| 4. | Total Bookings^3^ was at $3.7 billion and large deal<br>bookings^4^ was at $1.2 billion, up by 9% YoY |
| --- | --- |
| 5. | IT Services Operating Margin^5^ for the quarter was at<br>16.0%, up 112 bps YoY |
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| 6. | Net Income for the quarter was at<br>₹ 28.7 billion ($349.8 million^1^), an increase of 12.0% YoY |
| --- | --- |
| 7. | Earnings Per Share for the quarter was at<br>₹ 5.23 ($0.06^1^), an increase of 11.5% YoY |
| --- | --- |
| 8. | Operating Cash Flows at 130% of Net Income for the quarter was at ₹ 37.5 billion ($457.1 million^1^) |
| --- | --- |
| 9. | Voluntary attrition^6^ has continued to moderate QoQ, coming<br>in at an 8-quarter low of 14% in Q1’24 |
| --- | --- |
Outlook for the Quarter ending September 30,2023
We expect Revenue from our IT Services business segment to be in the range of $2,722 million to $2,805 million*. This translates to sequential guidance of -2.0% to +1.0% in constant currency terms.
| * | Outlook for the Quarter ending September 30, 2023, is based on the following exchange rates: GBP/USD at 1.26,<br>Euro/USD at 1.10, AUD/USD at 0.67, USD/INR at 82.34 and CAD/USD at 0.76 |
|---|
1
Performance for the Quarter ended June 30, 2023
“Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins,” said Thierry Delaporte, CEO and Managing Director. “Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the USD 1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses.”
Jatin Dalal, Chief Financial Officer, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating Margin for the first quarter was 16% an expansion of 112 basis point YoY. We generated strong operating cash flows at 130% of our net income for the Quarter. EPS for the quarter grew by 11.5% YoY.”
Analyst Recognition
| 1. | Wipro was positioned as a Leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2023 Vendor<br>Assessment (Doc # US49647023 May 2023) |
|---|---|
| 2. | Wipro was positioned as a Leader in Avasant’s Applied AI Services RadarView^™^ 2022 – 2023 |
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| 3. | Wipro was positioned a Leader in Everest Group’s Application Automation Services PEAK Matrix^®^ Assessment 2023 |
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| 4. | Wipro was rated a Leader in Everest Group’s Enterprise Blockchain Services PEAK Matrix^®^ Assessment 2023 |
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| 5. | Wipro was featured as a Leader in Avasant’s Cybersecurity Services RadarView^™^ 2023 |
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| 6. | Wipro was rated as a Leader in ISG Provider Lens^™^<br>– Network-Software Defined Solutions and Services 2023 - US, UK, Germany (multiple quadrants) |
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| 7. | Wipro was named as a Leader in ISG Provider Lens^™^<br>– ServiceNow Ecosystem Partners 2023 - US (multiple quadrants) |
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| 8. | Wipro was recognized as a Leader in ISG Provider<br>Lens^™^ – Salesforce Ecosystem Partners 2023—US, UK, Germany (multiple quadrants) |
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| 9. | Wipro was recognized a Leader in Everest Group’s Intelligent Process Automation (IPA) PEAK Matrix^®^ Assessment 2023 |
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| 10. | Wipro was rated as a Leader in Avasant’s Multisourcing Service Integration RadarView^™^ 2022 – 2023 |
| --- | --- |
IT Products
| • | IT Products segment revenue for the quarter was<br>₹ 0.69 billion ($8.5 million^1^) |
|---|---|
| • | IT Products segment results for the quarter was a loss of ₹ 0.16 billion ($2.0 million^1^) |
| --- | --- |
Please refer to the table on page 11 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.
2
Highlights of Strategic Deal Wins
In the first quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
| • | A Fortune 100 global healthcare payer has extended its partnership with Wipro for a multi- year deal,<br>consolidating and transforming their contact center operations. The Wipro team will collaborate with the client to develop solutions to reduce and deflect call volumes, improve productivity, as well as develop AI to simplify processes and improve<br>their Net Promoter Score (NPS). |
|---|---|
| • | Wipro has been awarded a contract by a leading global cycle manufacturer to run an<br>end-to-end transformation program covering business operations in sales, manufacturing, and finance & supply chain across 15 countries. Through this program Wipro will consolidate multiple Enterprise<br>Resource Planning (ERP) systems into a single harmonised Dynamics 365 Finance and Operations (F&O) platform. This will improve inventory and supply chain visibility, leading to better order fulfilment including contract negotiation and value<br>realisation for the procurement function; minimize downtime through better production planning for manufacturing and create better cashflow visibility for finance; while setting up a data foundation to become an<br>AI-driven insights-led organisation. |
| --- | --- |
| • | A major US airport selected Wipro to help them reduce their carbon footprint, aligned to Airports Carbon<br>Accreditation (ACA) requirements. Wipro will assist by delivering a greenhouse gas inventory analysis, carbon reduction roadmap, sustainability transparency reporting, and the design for their annual report. Wipro will leverage its unique Wipro<br>Impact Framework to align the client to ACA accreditation requirements, while also enabling them to ready for future. |
| --- | --- |
| • | An energy services and delivery company has selected Wipro to standardize their software development process. The<br>project will enable the client to more efficiently develop software using automation, agile principles, continuous integration, as well as a redesigned team structure. This transformation project will allow for a better flow of business value for<br>the client, reduce technical debt, enable cloud adoption and create an enhanced experience for their customers. |
| --- | --- |
| • | A global transportation, e-commerce, and business services company has<br>selected Wipro to help address challenges around business transformation, cost optimization and capacity management. The Wipro team will have the ownership and accountability of Specialized Managed Services focused on continuous improvement and<br>outcome-based services. The Wipro team will ensure the retention of institutional knowledge of more than 50 portfolio applications delivering predictable outcomes, driving strategic initiatives, and complementing client’s optimization charter<br>to drive better efficiencies and enhanced user experiences. |
| --- | --- |
| • | One of the largest home improvement retailers has selected Wipro to help them operate and transform their retail<br>and core finance functions. Wipro and the client will co-create a solution to improve operational efficiencies, optimize costs, and ensure zero disruption during peak periods. The project will also help them<br>gain and retain key talent by supporting flexible work from home model. |
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3
| • | A leading India-based private sector bank has selected Wipro to transform their traditional Managed Services<br>support model to a Modern Workplace model to enhance their overall user experience and create a hyper-personalized and frictionless workplace. Wipro will deliver rapid transformation through a machine-first approach with cognition, hyper-<br>automation, and analytics. Automation will drive the resolution of up to 25% of the tickets raised. Through an employee-centric design for streamlined banking services, Wipro will enable standardized operations globally, eliminate redundancies and<br>improve service quality with a focus on compliance. Wipro will also provide an efficient, scalable, secure, and centralized estate to improve asset and vendor management. |
|---|---|
| • | A global tech giant chose Wipro to help them reduce their products’ total cost of ownership. Over the course<br>of this multi-year deal, Wipro will set up a dedicated facility to reduce their operational cost burden. The project will involve Quality Assurance automation to improve productivity, reduce costs, and generate additional revenue.<br> |
| --- | --- |
| • | A general insurance company has selected Wipro to fulfil a multi-year transformation program to migrate their<br>claims legacy landscape to the cloud. One the key aspect of this project is the migration of the client’s inbound and outbound communication as well as documentation to a cloud-based platform. To achieve this, the Wipro team built a bespoke<br>version of our DocHawk tool to seamlessly integrate it into the client’s infrastructure. The client has seen an immediate cost saving of over 30% with the option to expand this efficiency across all other critical programs.<br> |
| --- | --- |
| • | A global pharmaceutical and medical device company selected Wipro to enable them to track, manage and report<br>complaints. In this highly regulated industry, they needed a partner who had extensive experience in the medical sector, could provide multilingual support, and ensure they remained compliant with relevant regulatory bodies. Wipro devised a unique<br>solution including a multi-lingual contact center, with the ability to support calls, emails, and surface mails. As well as a robust Quality Assurance process, in compliance with FDA guidelines, supported by an automated auditing process to ensure<br>accuracy of data submission to government regulatory bodies, helping the client meet regulatory submission requirements. |
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| 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 = ₹ 82.06, as published by the Federal Reserve Board of Governors on June 30, 2023. However,<br>the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2023 was US$1= ₹ 81.90 |
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| 2. | Constant currency for a period is the product of volumes in that period times the average actual exchange rate<br>of the corresponding comparative period |
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| 3. | Total Bookings refers to the total contract value of all orders that were booked during the period including<br>new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency<br>exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2 |
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| 4. | Large deal bookings consist of deals greater than or equal to $30 million in total contract value<br> |
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| 5. | IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials.<br> |
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| 6. | Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP<br> |
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| 7. | Effective April 1, 2023, we merged our ISRE segment with our IT Services segment. The QoQ and YoY growth<br>rates for the quarter ended June 30, 2023 were computed by rebaselining ISRE numbers in Q4’23 and Q1’23 |
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4
About Key Metrics and Non-GAAP Financial Measures
This press release contains key metrics and 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 11 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.
Our key metrics and non-GAAP financial measures are 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. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our non-GAAP measures, 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 ended June 30, 2023, prepared under IFRS, along with individual business segment reports, areavailable in the Investors section of our website www.wipro.com/investors/
Quarterly Conference Call
We will hold an earnings conference call today at 07:30 p.m. Indian Standard Time (10:00 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=WIP130723
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
5
About Wipro Limited
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With around 250,000 employees and business partners across 65 countries, we deliver on the promise of helping our clients, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com
| Contact for Investor Relations | Contact for Media & Press | |
|---|---|---|
| Dipak Kumar Bohra | Abhishek Jain | |
| Phone: +91-80-6142 7201 | Phone: +91-80-6142 6143 | Phone: +91-80-6142 6450 |
| dipak.bohra@wipro.com | abhishek.jain2@wipro.com | media-relations@wipro.com |
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)
6
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, 2023 | As at June 30, 2023 | |||||
|---|---|---|---|---|---|---|
| Convenience translation intoUS dollar in millions<br>Refer footnote in page 4 | ||||||
| ASSETS | ||||||
| Goodwill | 307,970 | 306,970 | 3,741 | |||
| Intangible assets | 43,045 | 41,155 | 502 | |||
| Property, plant and equipment | 88,659 | 86,464 | 1,054 | |||
| Right-of-Use<br>assets | 18,702 | 18,448 | 225 | |||
| Financial assets | ||||||
| Derivative assets | 29 | 193 | 2 | |||
| Investments | 20,720 | 20,782 | 253 | |||
| Trade receivables | 863 | 861 | 10 | |||
| Other financial assets | 6,330 | 6,368 | 78 | |||
| Investments accounted for using the equity method | 780 | 782 | 10 | |||
| Deferred tax assets | 2,100 | 1,942 | 24 | |||
| Non-current tax assets | 11,922 | 12,295 | 150 | |||
| Other non-current assets | 13,606 | 13,247 | 161 | |||
| Total non-current assets | **** | 514,726 | **** | 509,507 | **** | 6,210 |
| Inventories | 1,188 | 1,375 | 17 | |||
| Financial assets | ||||||
| Derivative assets | 1,844 | 3,297 | 40 | |||
| Investments | 309,232 | 351,156 | 4,279 | |||
| Cash and cash equivalents | 91,880 | 83,616 | 1,019 | |||
| Trade receivables | 126,350 | 114,457 | 1,395 | |||
| Unbilled receivables | 60,515 | 64,467 | 786 | |||
| Other financial assets | 9,096 | 12,478 | 152 | |||
| Contract assets | 23,001 | 25,168 | 307 | |||
| Current tax assets | 5,091 | 4,750 | 58 | |||
| Other current assets | 32,899 | 30,344 | 370 | |||
| Total current assets | **** | 661,096 | **** | 691,108 | **** | 8,423 |
| TOTAL ASSETS | **** | 1,175,822 | **** | 1,200,615 | **** | 14,633 |
| EQUITY | ||||||
| Share capital | 10,976 | 10,978 | 134 | |||
| Share premium | 3,689 | 4,155 | 51 | |||
| Retained earnings | 660,964 | 545,698 | 6,650 | |||
| Share-based payment reserve | 5,632 | 6,268 | 76 | |||
| Special Economic Zone re-investment reserve | 46,803 | 45,891 | 559 | |||
| Other components of equity | 53,100 | 56,039 | 683 | |||
| Equity attributable to the equity holders of the Company | **** | 781,164 | **** | 669,029 | **** | 8,153 |
| Non-controlling interests | 589 | 624 | 8 | |||
| TOTAL EQUITY | **** | 781,753 | **** | 669,653 | **** | 8,161 |
| LIABILITIES | ||||||
| Financial liabilities | ||||||
| Loans and borrowings | 61,272 | 61,197 | 746 | |||
| Lease liabilities | 15,953 | 16,079 | 196 | |||
| Derivative liabilities | 179 | 45 | 1 | |||
| Other financial liabilities | 2,649 | 1,547 | 19 | |||
| Deferred tax liabilities | 15,153 | 15,772 | 192 | |||
| Non-current tax liabilities | 21,777 | 23,504 | 286 | |||
| Other non-current liabilities | 9,333 | 10,151 | 124 | |||
| Provisions | ^ | — | — | |||
| Total non-current liabilities | **** | 126,316 | **** | 128,295 | **** | 1,564 |
| Financial liabilities | ||||||
| Loans, borrowings and bank overdrafts | 88,821 | 88,712 | 1,081 | |||
| Lease liabilities | 8,620 | 8,706 | 106 | |||
| Derivative liabilities | 2,825 | 1,448 | 18 | |||
| Trade payables and accrued expenses | 89,054 | 80,735 | 984 | |||
| Other financial liabilities | 4,141 | 123,413 | 1,504 | |||
| Contract liabilities | 22,682 | 19,595 | 239 | |||
| Current tax liabilities | 18,846 | 20,898 | 255 | |||
| Other current liabilities | 30,215 | 56,760 | 692 | |||
| Provisions | 2,549 | 2,400 | 29 | |||
| Total current liabilities | **** | 267,753 | **** | 402,667 | **** | 4,908 |
| TOTAL LIABILITIES | **** | 394,069 | **** | 530,962 | **** | 6,472 |
| TOTAL EQUITY AND LIABILITIES | **** | 1,175,822 | **** | 1,200,615 | **** | 14,633 |
| ^ Value is less than 1 |
7
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(₹inmillions, except share and per share data, unless otherwise stated)
| Three months ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2023 | 2023 | |||||||
| Convenience translationinto US dollar in millions<br>Refer footnote in page 4 | |||||||||
| Revenues | 215,286 | 228,310 | 2,782 | ||||||
| Cost of revenues | (155,600 | ) | (161,261 | ) | (1,965 | ) | |||
| Gross profit | **** | 59,686 | **** | **** | 67,049 | **** | **** | 817 | **** |
| Selling and marketing expenses | (15,359 | ) | (16,584 | ) | (202 | ) | |||
| General and administrative expenses | (13,471 | ) | (15,887 | ) | (194 | ) | |||
| Foreign exchange gains/(losses), net | 1,034 | (62 | ) | (1 | ) | ||||
| Results from operating activities | **** | 31,890 | **** | **** | 34,516 | **** | **** | 420 | **** |
| Finance expenses | (2,045 | ) | (3,086 | ) | (38 | ) | |||
| Finance and other income | 3,690 | 6,542 | 80 | ||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | (15 | ) | 3 | ^ | |||||
| Profit before tax | **** | 33,520 | **** | **** | 37,975 | **** | **** | 462 | **** |
| Income tax expense | (7,931 | ) | (9,115 | ) | (111 | ) | |||
| Profit for the period | **** | 25,589 | **** | **** | 28,860 | **** | **** | 351 | **** |
| Profit attributable to: | |||||||||
| Equity holders of the Company | 25,636 | 28,701 | 349 | ||||||
| Non-controlling interests | (47 | ) | 159 | 2 | |||||
| Profit for the period | **** | 25,589 | **** | **** | 28,860 | **** | **** | 351 | **** |
| Earnings per equity share: | |||||||||
| Attributable to equity holders of the Company | |||||||||
| Basic | 4.69 | 5.23 | 0.06 | ||||||
| Diluted | 4.67 | 5.12 | 0.06 | ||||||
| Weighted average number of equity shares used in computing earnings per equityshare | |||||||||
| Basic | 5,471,449,783 | 5,482,733,329 | 5,482,733,329 | ||||||
| Diluted | 5,485,057,994 | 5,600,307,315 | 5,600,307,315 | ||||||
| ^ Value is less than 1 |
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Additional Information:
| Three months ended | Year ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | June 30,<br>2023 | March 31,<br>2023 | June 30,<br>2022 | March 31,2023 | ||||||||
| Audited | Audited | Audited | Audited | |||||||||
| Segment revenue | ||||||||||||
| IT Services | ||||||||||||
| Americas 1 | 65,607 | 66,430 | 61,702 | 261,270 | ||||||||
| Americas 2 | 68,303 | 70,563 | 66,613 | 278,374 | ||||||||
| Europe | 67,134 | 67,562 | 60,276 | 256,845 | ||||||||
| APMEA | 26,510 | 27,207 | 25,783 | 106,812 | ||||||||
| Total of IT Services | **** | 227,554 | **** | **** | 231,762 | **** | **** | 214,374 | **** | **** | 903,301 | **** |
| IT Products | 694 | 1,131 | 1,946 | 6,047 | ||||||||
| Total segment revenue | **** | 228,248 | **** | **** | 232,893 | **** | **** | 216,320 | **** | **** | 909,348 | **** |
| Segment result | ||||||||||||
| IT Services | ||||||||||||
| Americas 1 | 13,537 | 13,445 | 11,570 | 51,555 | ||||||||
| Americas 2 | 14,169 | 15,940 | 13,224 | 59,689 | ||||||||
| Europe | 9,968 | 11,024 | 7,986 | 37,667 | ||||||||
| APMEA | 2,800 | 3,030 | 2,069 | 10,681 | ||||||||
| Unallocated | (3,957 | ) | (5,773 | ) | (2,844 | ) | (18,368 | ) | ||||
| Total of IT Services | **** | 36,517 | **** | **** | 37,666 | **** | **** | 32,005 | **** | **** | 141,224 | **** |
| IT Products | (161 | ) | (59 | ) | (55 | ) | (176 | ) | ||||
| Reconciling Items | (1,840 | ) | (30 | ) | (60 | ) | (1,442 | ) | ||||
| Total segment result | **** | 34,516 | **** | **** | 37,577 | **** | **** | 31,890 | **** | **** | 139,606 | **** |
| Finance expenses | (3,086 | ) | (2,860 | ) | (2,045 | ) | (10,077 | ) | ||||
| Finance and Other Income | 6,542 | 5,463 | 3,690 | 18,185 | ||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 3 | 4 | (15 | ) | (57 | ) | ||||||
| Profit before tax | **** | 37,975 | **** | **** | 40,184 | **** | **** | 33,520 | **** | **** | 147,657 | **** |
9
Effective April 1, 2023, we merged our India State Run Enterprise segment (“ISRE”) with our IT Services segment. Currently, the Company is organized into the following operating segments: IT Services and IT Products.
IT Services: As announced on November 12, 2020, effective January 1, 2021, we re-organized our IT Services segment into 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.
IT Products: The Company is a value-added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.
10
Reconciliation of selected GAAP measures to Non-GAAP measures
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS($Mn)
| Three Months ended June 30, 2023 | |||
|---|---|---|---|
| IT Services Revenue as per IFRS | $ | 2,778.5 | |
| Effect of Foreign currency exchange movement | $ | (19.5 | ) |
| Non-GAAP Constant Currency IT Services Revenue based on<br>previous quarter exchange rates | $ | 2,759.0 | |
| Three Months ended June 30, 2023 | |||
| --- | --- | --- | |
| IT Services Revenue as per IFRS | $ | 2,778.5 | |
| Effect of Foreign currency exchange movement | $ | 8.1 | |
| Non-GAAP Constant Currency IT Services Revenue based on<br>exchange rates of comparable period in previous year | $ | 2,786.6 |
Reconciliation of Free Cash Flow for three months ended June 30, 2023
| Amount in Mn | ||
|---|---|---|
| Three months endedJune 30, 2023 | ||
| Net Income for the period [A] | ||
| Computation of Free Cash Flow | ||
| Net cash generated from operating activities [B] | ||
| Add/ (deduct) cash inflow/ (outflow) on: | ||
| Purchase of property, plant and equipment | ) | |
| Proceeds from sale of property, plant and equipment | ||
| Free Cash Flow [C] | ||
| Operating Cash Flow as percentage of Net Income [B/A] | % | |
| Free Cash Flow as percentage of Net Income [C/A] | % |
All values are in Indian Rupees.
11
EX-99.2
Exhibit 99.2
UNEQUAL DISTRIBUTION OF RAIN Water levels in southern reservoirs decline 30% Audited Financial Results of Wipro Limited under Ind AS p . Quarter ended Quarter ended Quarter ended Kanicuiars Jun& 3{) ZQ23 March 3112023 June 30,2022 Total income from operations (net) 225,310 231,903 215,286 Net Profit / (Loss) before tax and exceptional 37,975 40,184 33,520 items Net Profit / (Loss) before tax but after 37,975 40,184 33,520 exceptional items Net Profit / (Loss) after tax and exceptional 28,860 30,935 25,589 items Total Comprehensive Income after tax 31,717 31,685 27,150 [ Equity Share Capital 10,978 10,976 10,965 Reserves (excluding Revaluation Reserve)1 765,703 765,703 643,066 as shown in the Audited Balance Sheet Earnings Per Share (of T 2/- each) Basic: 5.23 5.61 4.69 Diluted; 5.12 5.60 4.67 ‘Balance forthe three months ended June 30r 2023 and March 31, 2023 represent balances as perthe audited consolidated balance sheet for the year ended March 31,2023 and balance for the three months ended June 30,2022 represent balances as per the audited consolidated balance sheet forthe year ended March 31,2022, as required by the SEBi (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audited consolidated financial results (under Ind AS) of the Company for the three months ended June 30, 2023 have been approved by the Board of Directors of the Company at its meeting held on July 13, 2023. The statutory auditors have expressed an unmodified audit opinion. Standalone Audited Financial Results of Wipro Limited under Ind AS p . . Quarter ended Quarter ended Quarter ended HarLlcuLars june ao, 2023 March 31,2023 June 30,2022 TotaL income from operations (net) 172,028 174,773 162,556 Net Profit / (Loss) before tax and exceptional 34,211 31,425 29,437 items Net Profit / (Loss) before tax but after 34,211 31,425 29,437 exceptional items Net Profit / (Loss) after tax and exceptional 25,878 22,641 22,166 items Total Comprehensive Income after tax 29,008 24,632 16,909 The audited standalone financial results (under Ind AS) of the Company for the three months ended June 30, 2023 have been approved by the Soard of Directors of the Company at its meeting held on July 13, 2023. 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 under Regulation 33 of the SEBl (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.bseindta.com), the National Stock Exchange website (URL; www.nseindia.com) and on the Company’s website (URL: www.wipro.com). By Order of the Board, For Wipro Limited Place: Bengaluru Rishad A. Premji Date: July 13, 2023 Chairman
EX-99.3
Exhibit 99.3
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNDER IFRS
AS AT AND FOR THE THREE MONTHS ENDED JUNE 30, 2023
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(₹ in millions,except share and per share data, unless otherwise stated)
| Notes | As at March 31, 2023 | As at June 30, 2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| Convenience translation into US<br>dollar in millions (unaudited)<br>Refer to Note 2(iii) | ||||||||
| ASSETS | ||||||||
| Goodwill | 6 | 307,970 | 306,970 | 3,741 | ||||
| Intangible assets | 6 | 43,045 | 41,155 | 502 | ||||
| Property, plant and equipment | 4 | 88,659 | 86,464 | 1,054 | ||||
| Right-of-Use assets | 5 | 18,702 | 18,448 | 225 | ||||
| Financial assets | ||||||||
| Derivative assets | 17 | 29 | 193 | 2 | ||||
| Investments | 8 | 20,720 | 20,782 | 253 | ||||
| Trade receivables | 863 | 861 | 10 | |||||
| Other financial assets | 11 | 6,330 | 6,368 | 78 | ||||
| Investments accounted for using the equity method | 780 | 782 | 10 | |||||
| Deferred tax assets | 2,100 | 1,942 | 24 | |||||
| Non-current tax assets | 11,922 | 12,295 | 150 | |||||
| Other non-current assets | 12 | 13,606 | 13,247 | 161 | ||||
| Total non-current assets | **** | 514,726 | **** | 509,507 | **** | 6,210 | ||
| Inventories | 9 | 1,188 | 1,375 | 17 | ||||
| Financial assets | ||||||||
| Derivative assets | 17 | 1,844 | 3,297 | 40 | ||||
| Investments | 8 | 309,232 | 351,156 | 4,279 | ||||
| Cash and cash equivalents | 10 | 91,880 | 83,616 | 1,019 | ||||
| Trade receivables | 126,350 | 114,457 | 1,395 | |||||
| Unbilled receivables | 60,515 | 64,467 | 786 | |||||
| Other financial assets | 11 | 9,096 | 12,478 | 152 | ||||
| Contract assets | 23,001 | 25,168 | 307 | |||||
| Current tax assets | 5,091 | 4,750 | 58 | |||||
| Other current assets | 12 | 32,899 | 30,344 | 370 | ||||
| Total current assets | **** | 661,096 | **** | 691,108 | **** | 8,423 | ||
| TOTAL ASSETS | **** | 1,175,822 | **** | 1,200,615 | **** | 14,633 | ||
| EQUITY | ||||||||
| Share capital | 10,976 | 10,978 | 134 | |||||
| Share premium | 3,689 | 4,155 | 51 | |||||
| Retained earnings | 660,964 | 545,698 | 6,650 | |||||
| Share-based payment reserve | 5,632 | 6,268 | 76 | |||||
| Special Economic Zone re-investment reserve | 46,803 | 45,891 | 559 | |||||
| Other components of equity | 53,100 | 56,039 | 683 | |||||
| Equity attributable to the equity holders of the Company | **** | 781,164 | **** | 669,029 | **** | 8,153 | ||
| Non-controlling interests | 589 | 624 | 8 | |||||
| TOTAL EQUITY | **** | 781,753 | **** | 669,653 | **** | 8,161 | ||
| LIABILITIES | ||||||||
| Financial liabilities | ||||||||
| Loans and borrowings | 13 | 61,272 | 61,197 | 746 | ||||
| Lease liabilities | 15,953 | 16,079 | 196 | |||||
| Derivative liabilities | 17 | 179 | 45 | 1 | ||||
| Other financial liabilities | 14 | 2,649 | 1,547 | 19 | ||||
| Deferred tax liabilities | 15,153 | 15,772 | 192 | |||||
| Non-current tax liabilities | 21,777 | 23,504 | 286 | |||||
| Other non-current liabilities | 15 | 9,333 | 10,151 | 124 | ||||
| Provisions | 16 | ^ | — | — | ||||
| Total non-current liabilities | **** | 126,316 | **** | 128,295 | **** | 1,564 | ||
| Financial liabilities | ||||||||
| Loans, borrowings and bank overdrafts | 13 | 88,821 | 88,712 | 1,081 | ||||
| Lease liabilities | 8,620 | 8,706 | 106 | |||||
| Derivative liabilities | 17 | 2,825 | 1,448 | 18 | ||||
| Trade payables and accrued expenses | 89,054 | 80,735 | 984 | |||||
| Other financial liabilities | 14 | 4,141 | 123,413 | 1,504 | ||||
| Contract liabilities | 22,682 | 19,595 | 239 | |||||
| Current tax liabilities | 18,846 | 20,898 | 255 | |||||
| Other current liabilities | 15 | 30,215 | 56,760 | 692 | ||||
| Provisions | 16 | 2,549 | 2,400 | 29 | ||||
| Total current liabilities | **** | 267,753 | **** | 402,667 | **** | 4,908 | ||
| TOTAL LIABILITIES | **** | 394,069 | **** | 530,962 | **** | 6,472 | ||
| TOTAL EQUITY AND LIABILITIES | **** | 1,175,822 | **** | 1,200,615 | **** | 14,633 | ||
| ^ | 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’s Registration No: 117366W/W - 100018 | Managing Director | |||||||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | ||||||
| Partner | Chief Financial Officer | Company Secretary | ||||||
| Membership No.: 110815 | ||||||||
| Bengaluru<br> <br>July 13, 2023 |
1
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(₹ in millions,except share and per share data, unless otherwise stated)
| Three months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes | 2022 | 2023 | 2023 | ||||||||
| Convenience translation into<br>US dollar in millions<br>(unaudited) Refer to Note<br>2(iii) | |||||||||||
| Revenues | 20 | 215,286 | 228,310 | 2,782 | |||||||
| Cost of revenues | 21 | (155,600 | ) | (161,261 | ) | (1,965 | ) | ||||
| Gross profit | **** | 59,686 | **** | **** | 67,049 | **** | **** | 817 | **** | ||
| Selling and marketing expenses | 21 | (15,359 | ) | (16,584 | ) | (202 | ) | ||||
| General and administrative expenses | 21 | (13,471 | ) | (15,887 | ) | (194 | ) | ||||
| Foreign exchange gains/(losses), net | 23 | 1,034 | (62 | ) | (1 | ) | |||||
| Results from operating activities | **** | 31,890 | **** | **** | 34,516 | **** | **** | 420 | **** | ||
| Finance expenses | 22 | (2,045 | ) | (3,086 | ) | (38 | ) | ||||
| Finance and other income | 23 | 3,690 | 6,542 | 80 | |||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | (15 | ) | 3 | ^ | |||||||
| Profit before tax | **** | 33,520 | **** | **** | 37,975 | **** | **** | 462 | **** | ||
| Income tax expense | 19 | (7,931 | ) | (9,115 | ) | (111 | ) | ||||
| Profit for the period | **** | 25,589 | **** | **** | 28,860 | **** | **** | 351 | **** | ||
| Profit attributable to: | |||||||||||
| Equity holders of the Company | 25,636 | 28,701 | 349 | ||||||||
| Non-controlling interests | (47 | ) | 159 | 2 | |||||||
| Profit for the period | **** | 25,589 | **** | **** | 28,860 | **** | **** | 351 | **** | ||
| Earnings per equity share: | 24 | ||||||||||
| Attributable to equity holders of the Company | |||||||||||
| Basic | 4.69 | 5.23 | 0.06 | ||||||||
| Diluted | 4.67 | 5.12 | 0.06 | ||||||||
| Weighted average number of equity shares used in computing earnings per equityshare | |||||||||||
| Basic | 5,471,449,783 | 5,482,733,329 | 5,482,733,329 | ||||||||
| Diluted | 5,485,057,994 | 5,600,307,315 | 5,600,307,315 | ||||||||
| ^ | 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’s Registration No: 117366W/W - 100018 | Managing Director | ||||||||||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |||||||||
| Partner | Chief Financial Officer | Company Secretary | |||||||||
| Membership No.: 110815 | |||||||||||
| Bengaluru<br> <br>July 13, 2023 |
2
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(₹ in millions,except share and per share data, unless otherwise stated)
| Three months ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2023 | 2023 | |||||||
| Convenience translation into<br>US dollar in millions<br>(unaudited) Refer to Note<br>2(iii) | |||||||||
| Profit for the period | **** | 25,589 | **** | **** | 28,860 | **** | **** | 351 | **** |
| Other comprehensive income (OCI) | |||||||||
| Items that will not be reclassified to profit or loss in subsequent periods | |||||||||
| Remeasurements of the defined benefit plans, net | 312 | (45 | ) | ^ | |||||
| Net change in fair value of investment in equity instruments measured at fair value through<br>OCI | 1,333 | 16 | ^ | ||||||
| **** | 1,645 | **** | **** | (29 | ) | **** | ^ | **** | |
| Items that will be reclassified to profit or loss in subsequent periods | |||||||||
| Foreign currency translation differences | 5,631 | (362 | ) | (4 | ) | ||||
| Reclassification of foreign currency translation differences on liquidation of subsidiaries to<br>statement of income | — | 2 | ^ | ||||||
| Net change in time value of option contracts designated as cash flow hedges | (246 | ) | 40 | ^ | |||||
| Net change in intrinsic value of option contracts designated as cash flow hedges | (206 | ) | 512 | 6 | |||||
| Net change in fair value of forward contracts designated as cash flow hedges | (983 | ) | 1,648 | 20 | |||||
| Net change in fair value of investment in debt instruments measured at fair value through<br>OCI | (4,102 | ) | 1,039 | 13 | |||||
| **** | 94 | **** | **** | 2,879 | **** | **** | 35 | **** | |
| Total other comprehensive income, net of taxes | 1,739 | 2,850 | 35 | ||||||
| Total comprehensive income for the period | **** | 27,328 | **** | **** | 31,710 | **** | **** | 386 | **** |
| Total comprehensive income attributable to: | |||||||||
| Equity holders of the Company | 27,351 | 31,640 | 385 | ||||||
| Non-controlling interests | (23 | ) | 70 | 1 | |||||
| **** | 27,328 | **** | **** | 31,710 | **** | **** | 386 | **** | |
| ^ | 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’s Registration No: 117366W/W - 100018 | Managing Director | ||||||||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |||||||
| Partner | Chief Financial Officer | Company Secretary | |||||||
| Membership No.: 110815 | |||||||||
| Bengaluru<br> <br>July 13, 2023 |
3
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(₹ in millions,except share and per share data, unless otherwise stated)
| Other components of equity | |||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Number<br>of shares^(1)^ | Share<br>capital,<br>fully<br>paid-up | Share<br>premium | Retained<br>earnings | Share-<br>based<br>payment<br>reserve | SpecialEconomicZone re-investmentreserve | Foreigncurrencytranslationreserve^(2)^ | Cash flowhedgingreserve^(3)^ | Otherreserves^(2)^ | Equityattributable<br>to the equityholders ofthe Company | Non-controllinginterests | Total<br>equity | |||||||||||||||||||
| As at April 1, 2022 | **** | 5,482,070,115 | **** | 10,964 | **** | 1,566 | **** | 551,252 | **** | **** | 5,258 | **** | **** | 47,061 | **** | 26,850 | **** | 1,477 | **** | **** | 13,730 | **** | **** | 658,158 | **** | **** | 515 | **** | **** | 658,673 | **** |
| Adjustment on adoption of amendments to IAS 37 | — | — | — | (51 | ) | — | — | — | — | — | (51 | ) | — | (51 | ) | ||||||||||||||||
| Adjusted balance as at April 1, 2022 | **** | 5,482,070,115 | **** | 10,964 | **** | 1,566 | **** | 551,201 | **** | **** | 5,258 | **** | **** | 47,061 | **** | 26,850 | **** | 1,477 | **** | **** | 13,730 | **** | **** | 658,107 | **** | **** | 515 | **** | **** | 658,622 | **** |
| Comprehensive income for the period | |||||||||||||||||||||||||||||||
| Profit for the period | — | — | 25,636 | — | — | — | — | — | **** | 25,636 | **** | (47 | ) | **** | 25,589 | **** | |||||||||||||||
| Other comprehensive income | — | — | — | — | — | 5,607 | (1,435 | ) | (2,457 | ) | **** | 1,715 | **** | 24 | **** | 1,739 | **** | ||||||||||||||
| Total comprehensive income for the period | **** | — | **** | — | **** | 25,636 | **** | **** | — | **** | **** | — | **** | 5,607 | **** | (1,435 | ) | **** | (2,457 | ) | **** | 27,351 | **** | **** | (23 | ) | **** | 27,328 | **** | ||
| Issue of equity shares on exercise of options | 276,665 | 1 | 92 | — | (92 | ) | — | — | — | — | **** | 1 | **** | — | **** | 1 | **** | ||||||||||||||
| Issue of shares by controlled trust on exercise of options^(1)^ | — | — | 186 | (186 | ) | — | — | — | — | **** | — | **** | — | **** | — | **** | |||||||||||||||
| Compensation cost related to employee share-based payment | — | — | 2 | 1,430 | — | — | — | — | **** | 1,432 | **** | — | **** | 1,432 | **** | ||||||||||||||||
| Transferred to Special Economic Zone re-investment reserve | — | — | (931 | ) | — | 931 | — | — | — | **** | — | **** | — | **** | — | **** | |||||||||||||||
| Others | — | — | — | — | — | — | — | — | **** | — | **** | (77 | ) | **** | (77 | ) | |||||||||||||||
| Other transactions for the period | **** | 276,665 | **** | 1 | **** | 92 | **** | (743 | ) | **** | 1,152 | **** | **** | 931 | **** | — | **** | — | **** | **** | — | **** | **** | 1,433 | **** | **** | (77 | ) | **** | 1,356 | **** |
| As at June 30, 2022 | **** | 5,482,346,780 | **** | 10,965 | **** | 1,658 | **** | 576,094 | **** | **** | 6,410 | **** | **** | 47,992 | **** | 32,457 | **** | 42 | **** | **** | 11,273 | **** | **** | 686,891 | **** | **** | 415 | **** | **** | 687,306 | **** |
| ^(1)^ | Includes 13,979,651 treasury shares held as at June 30, 2022 by a controlled trust. 710,078 shares have<br>been transferred by the controlled trust to eligible employees on exercise of options during the three months ended June 30, 2022. | ||||||||||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||||||||||
| ^(2)^ | Refer to Note 18 | ||||||||||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||||||||||
| ^(3)^ | Refer to Note 17 | ||||||||||||||||||||||||||||||
| --- | --- |
4
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(₹ in millions,except share and per share data, unless otherwise stated)
| Other components of equity | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Number<br>of shares^(1)^ | Sharecapital,fully<br>paid-up | Sharepremium | Retainedearnings | Share-basedpaymentreserve | SpecialEconomicZone re-investmentreserve | Foreigncurrencytranslationreserve^(2)^ | Cash flowhedgingreserve^(3)^ | Otherreserves^(2)^ | Equityattributable<br>to the equityholders ofthe Company | Non-controllinginterests | Total<br>equity | ||||||||||||||||||||
| As at April 1, 2023 | **** | 5,487,917,741 | **** | 10,976 | **** | 3,689 | **** | 660,964 | **** | **** | 5,632 | **** | **** | 46,803 | **** | **** | 43,255 | **** | **** | (1,403 | ) | **** | 11,248 | **** | 781,164 | **** | **** | 589 | **** | **** | 781,753 | **** |
| Comprehensive income for the period | ||||||||||||||||||||||||||||||||
| Profit for the period | — | — | — | 28,701 | — | — | — | — | — | **** | 28,701 | **** | 159 | **** | 28,860 | **** | ||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | (359 | ) | 2,200 | 1,098 | **** | 2,939 | **** | (89 | ) | **** | 2,850 | **** | ||||||||||||||
| Total comprehensive income for the period | **** | — | **** | — | **** | — | **** | 28,701 | **** | **** | — | **** | **** | — | **** | **** | (359 | ) | **** | 2,200 | **** | **** | 1,098 | **** | 31,640 | **** | **** | 70 | **** | **** | 31,710 | **** |
| Issue of equity shares on exercise of options | 924,252 | 2 | 466 | — | (466 | ) | — | — | — | — | **** | 2 | **** | — | **** | 2 | **** | |||||||||||||||
| Issue of shares by controlled trust on exercise of options^(1)^ | — | — | — | 444 | (444 | ) | — | — | — | — | **** | — | **** | — | **** | — | **** | |||||||||||||||
| Compensation cost related to employee share-based payment | — | — | — | 3 | 1,546 | — | — | — | — | **** | 1,549 | **** | — | **** | 1,549 | **** | ||||||||||||||||
| Transferred from Special Economic Zone re-investment reserve | — | — | — | 912 | — | (912 | ) | — | — | — | **** | — | **** | — | **** | — | **** | |||||||||||||||
| Liability for Buyback of equity shares, including tax thereon^(4)^ | — | — | — | (144,978 | ) | — | — | — | — | — | **** | (144,978 | ) | — | **** | (144,978 | ) | |||||||||||||||
| Transaction costs related to Buyback | — | — | — | (348 | ) | — | — | — | — | — | **** | (348 | ) | — | **** | (348 | ) | |||||||||||||||
| Others | — | — | — | — | — | — | — | — | — | **** | — | **** | (35 | ) | **** | (35 | ) | |||||||||||||||
| Other transactions for the period | **** | 924,252 | **** | 2 | **** | 466 | **** | (143,967 | ) | **** | 636 | **** | **** | (912 | ) | **** | — | **** | **** | — | **** | **** | — | **** | (143,775 | ) | **** | (35 | ) | **** | (143,810 | ) |
| As at June 30, 2023 | **** | 5,488,841,993 | **** | 10,978 | **** | 4,155 | **** | 545,698 | **** | **** | 6,268 | **** | **** | 45,891 | **** | **** | 42,896 | **** | **** | 797 | **** | **** | 12,346 | **** | 669,029 | **** | **** | 624 | **** | **** | 669,653 | **** |
| Convenience translation into US dollar in millions (unaudited) Refer toNote2(iii) | **** | 134 | **** | 51 | **** | 6,650 | **** | **** | 76 | **** | **** | 559 | **** | **** | 523 | **** | **** | 10 | **** | **** | 150 | **** | 8,153 | **** | **** | 8 | **** | **** | 8,161 | **** | ||
| ^(1)^ | Includes 8,607,941 treasury shares held as at June 30, 2023 by a controlled trust. 1,287,895 shares have<br>been transferred by the controlled trust to eligible employees on exercise of options during the three months ended June 30, 2023. | |||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| ^(2)^ | Refer to Note 18 | |||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| ^(3)^ | Refer to Note 17 | |||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| ^(4)^ | Refer to Note 29 | |||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| 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’s Registration No: 117366W/W - 100018 | Managing Director | |||||||||||||||||||||||||||||||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | ||||||||||||||||||||||||||||||
| Partner | Chief Financial Officer | Company Secretary | ||||||||||||||||||||||||||||||
| Membership No.: 110815 | ||||||||||||||||||||||||||||||||
| Bengaluru | ||||||||||||||||||||||||||||||||
| July 13, 2023 |
5
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(₹ in millions,except share and per share data, unless otherwise stated)
| Three months ended June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2023 | 2023 | |||||||
| Convenience translationinto US dollar in millions(unaudited) Refer toNote 2(iii) | |||||||||
| Cash flows from operating activities | |||||||||
| Profit for the period | 25,589 | 28,860 | 351 | ||||||
| Adjustments to reconcile profit for the period to net cash generated from operatingactivities: | |||||||||
| (Gain)/loss on sale of property, plant and equipment, net | (122 | ) | 78 | 1 | |||||
| Depreciation, amortization and impairment expense | 7,738 | 7,380 | 90 | ||||||
| Unrealized exchange (gain)/loss, net and exchange (gain)/loss on borrowings | 1,944 | (226 | ) | (3 | ) | ||||
| Share-based compensation expense | 1,430 | 1,546 | 19 | ||||||
| Share of net (profit)/loss of associates accounted for using equity method | 15 | (3 | ) | ^ | |||||
| Income tax expense | 7,931 | 9,115 | 111 | ||||||
| Finance and other income, net of finance expenses | (1,645 | ) | (3,456 | ) | (42 | ) | |||
| Gain on derecognition of contingent consideration payable | (86 | ) | (16 | ) | ^ | ||||
| Changes in operating assets and liabilities, net of effects from acquisitions | |||||||||
| Trade receivables | (7,348 | ) | 11,933 | 145 | |||||
| Unbilled receivables and Contract assets | (7,966 | ) | (6,047 | ) | (74 | ) | |||
| Inventories | (337 | ) | (182 | ) | (2 | ) | |||
| Other assets | (3,642 | ) | 5,292 | 64 | |||||
| Trade payables, accrued expenses, other liabilities and provisions | (14,740 | ) | (8,052 | ) | (98 | ) | |||
| Contract liabilities | (2,534 | ) | (3,072 | ) | (37 | ) | |||
| Cash generated from operating activities before taxes | **** | 6,227 | **** | **** | 43,150 | **** | **** | 525 | **** |
| Income taxes paid, net | (4,443 | ) | (5,637 | ) | (69 | ) | |||
| Net cash generated from operating activities | **** | 1,784 | **** | **** | 37,513 | **** | **** | 456 | **** |
| Cash flows from investing activities: | |||||||||
| Payment for purchase of property, plant and equipment | (4,862 | ) | (2,209 | ) | (27 | ) | |||
| Proceeds from disposal of property, plant and equipment, including advances | 167 | 1,030 | 13 | ||||||
| Payment for purchase of investments | (166,530 | ) | (269,072 | ) | (3,279 | ) | |||
| Proceeds from sale of investments | 176,501 | 239,800 | 2,922 | ||||||
| Proceeds from restricted interim dividend account | 27,410 | — | — | ||||||
| Payment for business acquisitions including deposits and escrow, net of cash acquired | (46,353 | ) | — | — | |||||
| Payment into escrow and term deposits pertaining to Buyback | — | (15,230 | ) | (186 | ) | ||||
| Interest received | 3,764 | 6,869 | 84 | ||||||
| Dividend received | 2 | 1 | ^ | ||||||
| Net cash used in investing activities | **** | (9,901 | ) | **** | (38,811 | ) | **** | (473 | ) |
| Cash flows from financing activities: | |||||||||
| Proceeds from issuance of equity shares and shares pending allotment | 1 | 2 | ^ | ||||||
| Repayment of loans and borrowings | (39,979 | ) | (15,000 | ) | (183 | ) | |||
| Proceeds from loans and borrowings | 58,645 | 15,000 | 183 | ||||||
| Payment of lease liabilities | (2,681 | ) | (2,399 | ) | (29 | ) | |||
| Payment for deferred contingent consideration | (227 | ) | (1,286 | ) | (15 | ) | |||
| Interest and finance expenses paid | (1,787 | ) | (2,626 | ) | (32 | ) | |||
| Payment of dividend | (27,337 | ) | — | — | |||||
| Payment for transaction costs related to Buyback | — | (201 | ) | (2 | ) | ||||
| Net cash used in financing activities | **** | (13,365 | ) | **** | (6,510 | ) | **** | (78 | ) |
| Net decrease in cash and cash equivalents during the period | (21,482 | ) | (7,808 | ) | (95 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 475 | (461 | ) | (5 | ) | ||||
| Cash and cash equivalents at the beginning of the period | 103,833 | 91,861 | 1,119 | ||||||
| Cash and cash equivalents at the end of the period (Note 10) | **** | 82,826 | **** | **** | 83,592 | **** | **** | 1,019 | **** |
| ^ | 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’s Registration No: 117366W/W - 100018 | Managing Director | ||||||||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |||||||
| Partner | Chief Financial Officer | Company Secretary | |||||||
| Membership No.: 110815 | |||||||||
| Bengaluru | |||||||||
| July 13, 2023 |
6
WIPRO LIMITED AND SUBSIDIARIES
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(₹ in millions, exceptshare 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 Limited. 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 July 13, 2023.
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, 2023. 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 interim condensed consolidated statements of income, interim condensed consolidated statements of comprehensive income and interim condensed consolidated statements of financial position. These items are disaggregated separately in the notes to the interim condensed consolidated financial statements, 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, 2023.
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. Previous period figures have been regrouped/rearranged, wherever necessary.
(ii) Basis of measurement
These 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 months ended June 30, 2023, have been translated into United States dollars at the certified foreign exchange rate of US$1 = ₹ 82.06 as published by Federal Reserve Board of Governors on June 30, 2023. 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, accounting estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Accounting estimates are monetary amounts in the interim condensed consolidated financial statements that are subject to measurement uncertainty. An accounting policy may require items in the interim condensed consolidated financial statements to be measured at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, management develops an accounting estimate to achieve the objective set out by the accounting policy. Developing accounting estimates involves the use of judgements or assumptions based on the latest available and reliable information. Actual results may differ from those accounting estimates.
Accounting estimates and underlying assumptions are reviewed on an ongoing basis. Changes to accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected. In particular, information about material areas of estimation, uncertainty and critical judgments in applying accounting policies that have material effect on the amounts recognized in the interim condensed consolidated financial statements are included in the following notes:
7
| 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. Revenue is recognized upon transfer of control of<br>promised products or services to customers in an amount that reflects the consideration the Company expects to receive (the “Transaction Price”). The Company allocates the Transaction Price to separately identifiable performance obligation<br>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 estimating the stand-alone selling price. The<br>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 completion method accounting relies on estimates of total expected<br>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 factors that are reviewed in estimating the future costs to complete<br>include estimates of future labor costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, revenue recognized, profit and timing of<br>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 provided for in the period in which the loss becomes probable. Volume<br>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 from the customer. |
|---|---|
| b) | Impairment testing: Goodwill recognized on business combination is tested for impairment at least<br>annually and when events occur or changes in circumstances indicate that the recoverable amount of goodwill or a cash generating unit to which goodwill pertains, is less than the carrying value. The Company assesses acquired intangible assets with<br>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 higher of value-in-use and fair value less cost<br>of disposal. The calculation of value in use of an asset or a cash generating unit involves use of significant estimates and assumptions which include turnover, growth rates and net margins used to calculate projected future cash flows,<br>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 America.<br> |
| --- | --- |
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 resolved over extended time periods.
Deferred tax is recorded on temporary differences between the tax bases of assets and 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 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 considered realizable, however, could reduce in the near term if estimates of future taxable income during the carry-forward period are reduced.
| d) | Business combinations: In accounting for business combinations, judgment is required to assess whether<br>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. |
|---|---|
| e) | 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. |
| --- | --- |
| f) | 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. |
| --- | --- |
| g) | 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. |
| --- | --- |
| h) | 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
| i) | 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.
3. Material accounting policy information
Please refer to the Company’s Annual report for the year ended March 31, 2023, for a discussion of the Company’s other material accounting policy information except for the adoption of new accounting standards, amendments and interpretations effective on or after April 1, 2023.
Newamendment adopted by the Company effective from April 1, 2023:
Amendments 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, 2023, and are to be applied retrospectively, with earlier application permitted. The adoption of amendments to IAS 1 did not have any material impact on the interim condensed consolidated financial statements.
Amendments to IAS 1 – Presentation of Financial Statements: On October 31, 2022, IASB issued ‘Non-current Liabilities with Covenants (Amendments to IAS 1)’. The amendments specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for reporting periods beginning on or after January 1, 2024, with earlier application permitted. The adoption of these amendments to IAS 1 did not have any material impact on the interim condensed 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 adoption of these amendments to IAS 12 did not have any material impact on the interim condensed consolidated financial statements.
Newamendments not yet adopted:
Certain new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2023 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:
Amendments to IAS 12 – “Income Taxes”: On 23 May 2023, the IASB issued International Tax Reform—Pillar Two Model Rules—Amendments to IAS 12 “Income Taxes” to clarify the application of IAS 12 to income taxes arising from tax law enacted or substantively enacted to implement the Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two model rules (Pillar Two income taxes). The Amendments introduced:
| a) | a mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional<br>implementation of the Pillar Two model rules; and |
|---|---|
| b) | disclosure requirements for affected entities to help users of the financial statements better understand an<br>entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. |
| --- | --- |
The mandatory temporary exception – the use of which is required to be disclosed – applies immediately. The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023, but not for any interim periods ending on or before 31 December 2023. The Company is currently evaluating the impact of these amendments on the consolidated financial statements.
Amendments to IFRS 16 – Leases: On September 22, 2022, IASB issued ‘Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)’ that specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendment is intended to improve the requirements for sale and leaseback transactions in IFRS 16 and will not change the accounting for leases unrelated to sale and leaseback transactions. 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 IFRS 16 is not expected to have any material impact on the interim condensed consolidated financial statements.
9
4. Property, plant and equipment
| Land | Buildings | Plant and | Furniture | Office | Vehicles | Total | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| equipment^(1)^ | fixtures | equipment | |||||||||||||||||||
| Gross carrying value: | |||||||||||||||||||||
| As at April 1, 2022 | ₹ | 4,813 | ₹ | 40,686 | ₹ | 123,471 | ₹ | 15,386 | ₹ | 7,259 | ₹ | 317 | ₹ | 191,932 | |||||||
| Additions | — | 38 | 3,720 | 242 | 84 | 1 | 4,085 | ||||||||||||||
| Additions through Business | 373 | ||||||||||||||||||||
| combinations | — | 7 | 357 | 6 | — | 3 | |||||||||||||||
| Disposals | (3 | ) | (7 | ) | (490 | ) | (2 | ) | (6 | ) | — | (508 | ) | ||||||||
| Translation adjustment | (4 | ) | (18 | ) | 319 | 6 | (3 | ) | — | 300 | |||||||||||
| As at June 30, 2022 | ₹ | 4,806 | **** | ₹ | 40,706 | **** | ₹ | 127,377 | **** | ₹ | 15,638 | **** | ₹ | 7,334 | **** | ₹ | 321 | **** | ₹ | 196,182 | **** |
| Accumulated depreciation/ impairment: | |||||||||||||||||||||
| As at April 1, 2022 | ₹ | — | ₹ | 10,003 | ₹ | 90,465 | ₹ | 10,814 | ₹ | 5,743 | ₹ | 297 | ₹ | 117,322 | |||||||
| Depreciation and impairment | — | 318 | 3,390 | 395 | 150 | 2 | 4,255 | ||||||||||||||
| Disposals | — | (1 | ) | (439 | ) | (1 | ) | (6 | ) | — | (447 | ) | |||||||||
| Translation adjustment | — | 3 | 320 | 9 | (3 | ) | — | 329 | |||||||||||||
| As at June 30, 2022 | ₹ | — | **** | ₹ | 10,323 | **** | ₹ | 93,736 | **** | ₹ | 11,217 | **** | ₹ | 5,884 | **** | ₹ | 299 | **** | ₹ | 121,459 | **** |
| Capital work-in-progress | ₹ | 16,953 | |||||||||||||||||||
| Net carrying value including Capital work-in-progress as at June 30,2022 | **** | ₹ | 91,676 | **** | |||||||||||||||||
| Gross carrying value: | |||||||||||||||||||||
| As at April 1, 2022 | ₹ | 4,813 | ₹ | 40,686 | ₹ | 123,471 | ₹ | 15,386 | ₹ | 7,259 | ₹ | 317 | ₹ | 191,932 | |||||||
| Additions | 40 | 7,269 | 12,191 | 3,917 | 964 | 7 | 24,388 | ||||||||||||||
| Additions through Business combinations | — | 7 | 357 | 6 | — | 3 | 373 | ||||||||||||||
| Disposals | (3 | ) | (435 | ) | (20,016 | ) | (1,325 | ) | (474 | ) | (168 | ) | (22,421 | ) | |||||||
| Translation adjustment | 10 | 173 | 1,729 | 102 | 69 | 2 | 2,085 | ||||||||||||||
| As at March 31, 2023 | ₹ | 4,860 | **** | ₹ | 47,700 | **** | ₹ | 117,732 | **** | ₹ | 18,086 | **** | ₹ | 7,818 | **** | ₹ | 161 | **** | ₹ | 196,357 | **** |
| Accumulated depreciation/ impairment: | |||||||||||||||||||||
| As at April 1, 2022 | ₹ | — | ₹ | 10,003 | ₹ | 90,465 | ₹ | 10,814 | ₹ | 5,743 | ₹ | 297 | ₹ | 117,322 | |||||||
| Depreciation and impairment | — | 1,217 | 13,305 | 1,794 | 600 | 10 | 16,926 | ||||||||||||||
| Disposals | — | (395 | ) | (19,655 | ) | (1,158 | ) | (463 | ) | (163 | ) | (21,834 | ) | ||||||||
| Translation adjustment | — | 102 | 1,386 | 70 | 48 | 1 | 1,607 | ||||||||||||||
| As at March 31, 2023 | ₹ | — | **** | ₹ | 10,927 | **** | ₹ | 85,501 | **** | ₹ | 11,520 | **** | ₹ | 5,928 | **** | ₹ | 145 | **** | ₹ | 114,021 | **** |
| Capital work-in-progress | ₹ | 6,323 | |||||||||||||||||||
| Net carrying value including Capital work-in-progress as at March 31,2023 | **** | ₹ | 88,659 | **** | |||||||||||||||||
| Gross carrying value: | |||||||||||||||||||||
| As at April 1, 2023 | ₹ | 4,860 | ₹ | 47,700 | ₹ | 117,732 | ₹ | 18,086 | ₹ | 7,818 | ₹ | 161 | ₹ | 196,357 | |||||||
| Additions | — | 97 | 1,176 | 446 | 60 | 1 | 1,780 | ||||||||||||||
| Disposals | — | (1 | ) | (3,661 | ) | (38 | ) | (1 | ) | — | (3,701 | ) | |||||||||
| Translation adjustment | (1 | ) | 26 | (16 | ) | (6 | ) | (14 | ) | 1 | (10 | ) | |||||||||
| As at June 30, 2023 | ₹ | 4,859 | **** | ₹ | 47,822 | **** | ₹ | 115,231 | **** | ₹ | 18,488 | **** | ₹ | 7,863 | **** | ₹ | 163 | **** | ₹ | 194,426 | **** |
| Accumulated depreciation/ impairment: | |||||||||||||||||||||
| As at April 1, 2023 | ₹ | — | ₹ | 10,927 | ₹ | 85,501 | ₹ | 11,520 | ₹ | 5,928 | ₹ | 145 | ₹ | 114,021 | |||||||
| Depreciation and impairment | — | 358 | 2,993 | 532 | 162 | 2 | 4,047 | ||||||||||||||
| Disposals | — | (1 | ) | (3,312 | ) | (26 | ) | (1 | ) | — | (3,340 | ) | |||||||||
| Translation adjustment | — | 13 | (14 | ) | — | (9 | ) | 1 | (9 | ) | |||||||||||
| As at June 30, 2023 | ₹ | — | **** | ₹ | 11,297 | **** | ₹ | 85,168 | **** | ₹ | 12,026 | **** | ₹ | 6,080 | **** | ₹ | 148 | **** | ₹ | 114,719 | **** |
| Capital work-in-progress | ₹ | 6,757 | |||||||||||||||||||
| Net carrying value including Capital work-in-progress as at June 30,2023 | **** | ₹ | 86,464 | **** | |||||||||||||||||
| ^(1)^ | Including net carrying value of computer equipment and software amounting to ₹ 25,828, ₹ 22,425 and ₹ 20,495, as at<br>June 30, 2022, March 31, 2023 and June 30, 2023, respectively. | ||||||||||||||||||||
| --- | --- |
10
5. Right-of-Use assets
| Category of Right-of-Use asset | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings | Plant andequipment^(1)^ | Vehicles | Total | ||||||||||
| Gross carrying value: | ||||||||||||||
| As at April 1, 2022 | ₹ | 1,278 | ₹ | 25,993 | ₹ | 2,511 | ₹ | 904 | ₹ | 30,686 | ||||
| Additions | — | 1,433 | 45 | 72 | 1,550 | |||||||||
| Additions through business combinations | — | 201 | — | — | 201 | |||||||||
| Disposals | — | (919 | ) | — | (88 | ) | (1,007 | ) | ||||||
| Translation adjustment | — | (23 | ) | — | (14 | ) | (37 | ) | ||||||
| As at June 30, 2022 | ₹ | 1,278 | ₹ | 26,685 | **** | ₹ | 2,556 | **** | ₹ | 874 | **** | ₹ | 31,393 | **** |
| Accumulated depreciation: | ||||||||||||||
| As at April 1, 2022 | ₹ | 58 | ₹ | 9,676 | ₹ | 1,512 | ₹ | 570 | ₹ | 11,816 | ||||
| Depreciation | 5 | 1,386 | 125 | 74 | 1,590 | |||||||||
| Disposals | — | (739 | ) | — | (81 | ) | (820 | ) | ||||||
| Translation adjustment | — | 17 | 9 | (8 | ) | 18 | ||||||||
| As at June 30, 2022 | ₹ | 63 | ₹ | 10,340 | **** | ₹ | 1,646 | **** | ₹ | 555 | **** | ₹ | 12,604 | **** |
| Net carrying value as at June 30, 2022 | ₹ | 18,789 | **** | |||||||||||
| Gross carrying value: | ||||||||||||||
| As at April 1, 2022 | ₹ | 1,278 | ₹ | 25,993 | ₹ | 2,511 | ₹ | 904 | ₹ | 30,686 | ||||
| Additions | — | 6,015 | 1,109 | 236 | 7,360 | |||||||||
| Additions through business combinations | — | 201 | — | — | 201 | |||||||||
| Disposals | — | (5,085 | ) | (1,160 | ) | (317 | ) | (6,562 | ) | |||||
| Translation adjustment | — | 822 | 120 | 42 | 984 | |||||||||
| As at March 31, 2023 | ₹ | 1,278 | ₹ | 27,946 | **** | ₹ | 2,580 | **** | ₹ | 865 | **** | ₹ | 32,669 | **** |
| Accumulated depreciation: | ||||||||||||||
| As at April 1, 2022 | ₹ | 58 | ₹ | 9,676 | ₹ | 1,512 | ₹ | 570 | ₹ | 11,816 | ||||
| Depreciation | 19 | 5,651 | 614 | 238 | 6,522 | |||||||||
| Disposals | — | (3,564 | ) | (1,003 | ) | (263 | ) | (4,830 | ) | |||||
| Translation adjustment | — | 364 | 69 | 26 | 459 | |||||||||
| As at March 31, 2023 | ₹ | 77 | ₹ | 12,127 | **** | ₹ | 1,192 | **** | ₹ | 571 | **** | ₹ | 13,967 | **** |
| Net carrying value as at March 31, 2023 | ₹ | 18,702 | **** | |||||||||||
| Gross carrying value: | ||||||||||||||
| As at April 1, 2023 | ₹ | 1,278 | ₹ | 27,946 | ₹ | 2,580 | ₹ | 865 | ₹ | 32,669 | ||||
| Additions | — | 1,520 | — | 64 | 1,584 | |||||||||
| Disposals | — | (934 | ) | (367 | ) | (42 | ) | (1,343 | ) | |||||
| Translation adjustment | — | (20 | ) | 6 | (3 | ) | (17 | ) | ||||||
| As at June 30, 2023 | ₹ | 1,278 | ₹ | 28,512 | **** | ₹ | 2,219 | **** | ₹ | 884 | **** | ₹ | 32,893 | **** |
| Accumulated depreciation: | ||||||||||||||
| As at April 1, 2023 | ₹ | 77 | ₹ | 12,127 | ₹ | 1,192 | ₹ | 571 | ₹ | 13,967 | ||||
| Depreciation | 5 | 1,361 | 109 | 48 | 1,523 | |||||||||
| Disposals | — | (706 | ) | (292 | ) | (35 | ) | (1,033 | ) | |||||
| Translation adjustment | — | (10 | ) | — | (2 | ) | (12 | ) | ||||||
| As at June 30, 2023 | ₹ | 82 | ₹ | 12,772 | **** | ₹ | 1,009 | **** | ₹ | 582 | **** | ₹ | 14,445 | **** |
| Net carrying value as at June 30, 2023 | ₹ | 18,448 | **** | |||||||||||
| ^(1)^ | Comprised of net carrying value of computer equipment. | |||||||||||||
| --- | --- |
6. Goodwill and intangible assets
The movement in goodwill balance is given below:
| For the period ended | ||||||
|---|---|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||||
| Balance at the beginning of the period | ₹ | 246,989 | ₹ | 307,970 | ||
| Translation adjustment | 20,335 | (511 | ) | |||
| Acquisition through business<br>combinations^(1)^ | 40,687 | (489 | ) | |||
| Disposals | (41 | ) | — | |||
| Balance at the end of the period | ₹ | 307,970 | **** | ₹ | 306,970 | **** |
11
| ^(1)^ | Acquisition through business combinations for the year ended March 31, 2023 and three months ended<br>June 30, 2023 is after considering the impact of ₹ 57 and ₹ 489 towards<br>measurement period changes in purchase price allocation of acquisitions made during the year ended March 31, 2022 and 2023, respectively. |
|---|
The movement in intangible assets is given below:
| Intangible assets | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Customer-related | Marketing-related | Total | |||||||
| Gross carrying value: | |||||||||
| As at April 1, 2022 | ₹ | 43,366 | ₹ | 11,428 | ₹ | 54,794 | |||
| Acquisition through business combinations | 5,480 | 482 | 5,962 | ||||||
| Deductions/adjustments^(1)^ | (38 | ) | — | (38 | ) | ||||
| Translation adjustment | 1,522 | 411 | 1,933 | ||||||
| As at June 30, 2022 | ₹ | 50,330 | **** | ₹ | 12,321 | **** | ₹ | 62,651 | **** |
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2022 | ₹ | 9,483 | ₹ | 1,756 | ₹ | 11,239 | |||
| Amortization and impairment | 1,455 | 438 | 1,893 | ||||||
| Translation adjustment | 266 | 54 | 320 | ||||||
| As at June 30, 2022 | ₹ | 11,204 | **** | ₹ | 2,248 | **** | ₹ | 13,452 | **** |
| Net carrying value as at June 30, 2022 | ₹ | 39,126 | **** | ₹ | 10,073 | **** | ₹ | 49,199 | **** |
| Gross carrying value: | |||||||||
| As at April 1, 2022 | ₹ | 43,366 | ₹ | 11,428 | ₹ | 54,794 | |||
| Acquisition through business combinations | 5,602 | 482 | 6,084 | ||||||
| Deductions/adjustments^(1)^ | (2,555 | ) | (862 | ) | (3,417 | ) | |||
| Translation adjustment | 3,400 | 876 | 4,276 | ||||||
| As at March 31, 2023 | ₹ | 49,813 | **** | ₹ | 11,924 | **** | ₹ | 61,737 | **** |
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2022 | ₹ | 9,483 | ₹ | 1,756 | ₹ | 11,239 | |||
| Amortization and impairment^(2)^ | 7,718 | 2,236 | 9,954 | ||||||
| Deductions/adjustments | (2,519 | ) | (862 | ) | (3,381 | ) | |||
| Translation adjustment | 735 | 145 | 880 | ||||||
| As at March 31, 2023 | ₹ | 15,417 | **** | ₹ | 3,275 | **** | ₹ | 18,692 | **** |
| Net carrying value as at March 31, 2023 | ₹ | 34,396 | **** | ₹ | 8,649 | **** | ₹ | 43,045 | **** |
| Gross carrying value: | |||||||||
| As at April 1, 2023 | ₹ | 49,813 | ₹ | 11,924 | ₹ | 61,737 | |||
| Translation adjustment | (98 | ) | (25 | ) | (123 | ) | |||
| As at June 30, 2023 | ₹ | 49,715 | **** | ₹ | 11,899 | **** | ₹ | 61,614 | **** |
| Accumulated amortization/ impairment: | |||||||||
| As at April 1, 2023 | ₹ | 15,417 | ₹ | 3,275 | ₹ | 18,692 | |||
| Amortization and impairment | 1,420 | 390 | 1,810 | ||||||
| Translation adjustment | (34 | ) | (9 | ) | (43 | ) | |||
| As at June 30, 2023 | ₹ | 16,803 | **** | ₹ | 3,656 | **** | ₹ | 20,459 | **** |
| Net carrying value as at June 30, 2023 | ₹ | 32,912 | **** | ₹ | 8,243 | **** | ₹ | 41,155 | **** |
| ^(1)^ | Includes ₹ 38 and ₹ 36 for the period ended June 30, 2022 and March 31, 2023 respectively, towards measurement period adjustment in customer-related intangible in an acquisition<br>completed during the year ended March 31, 2022. | ||||||||
| --- | --- | ||||||||
| ^(2)^ | During the year ended March 31, 2023, decline in the revenue and earnings estimates led to revision of<br>recoverable value of customer-relationship intangible assets and marketing related intangible assets recognized on business combinations. Consequently, the Company has recognized impairment charge of ₹ 1,816 for the year ended March 31, 2023, as part of amortization and impairment. | ||||||||
| --- | --- | ||||||||
| Amortization expense on intangible assets is included in selling and marketing expenses in the interim<br>condensed consolidated statement of income. | |||||||||
| --- |
12
7. Business combinations
Rizing Intermediate Holdings, Inc and its subsidiaries (“Rizing”), a global SAP consulting firm with industry expertise and consulting capabilities in enterprise asset management, consumer industries, and human experience management. Rizing complements the Company in capabilities (EAM, HCM and S/4HANA), in industries such as Energy and Utilities, Retail and Consumer Products, Manufacturing and Hi Tech in geographies across North America, Europe, Asia, and Australia. The acquisition was consummated on May 20, 2022, for total cash consideration of ₹ 43,845. During the three months ended June 30, 2023, the Company finalized the purchase price allocation as below.
| Description | Amount | ||
|---|---|---|---|
| Net assets | ₹ | 4,425 | |
| Fair value of customer-related intangibles | 3,894 | ||
| Fair value of marketing-related intangibles | 482 | ||
| Deferred tax liabilities on intangible assets | (1,750 | ) | |
| Total | ₹ | 7,051 | **** |
| Goodwill | 36,794 | ||
| Total purchase price | ₹ | 43,845 | **** |
| Net Assets include: | |||
| Cash and cash equivalents | ₹ | 2,114 | |
| Fair value of acquired trade receivables included in net assets | ₹ | 3,220 | |
| Gross contractual amount of acquired trade receivables | ₹ | 3,233 | |
| Less: Allowance for lifetime expected credit loss | (13 | ) |
The goodwill of ₹ 36,794 comprises value of acquired workforce and expected synergies arising from the business combination. Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.
8. Investments
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Financial instruments at FVTPL | ||||
| Equity instruments | ₹ | 3,773 | ₹ | 3,812 |
| Fixed maturity plan mutual funds | 1,300 | 1,324 | ||
| Financial instruments at FVTOCI | ||||
| Equity instruments | 15,647 | 15,646 | ||
| Financial instruments at amortized cost | ||||
| Inter corporate and term deposits | ^ | ^ | ||
| ₹ | 20,720 | ₹ | 20,782 | |
| Current | ||||
| Financial instruments at FVTPL | ||||
| Short-term mutual funds | ₹ | 40,262 | ₹ | 157,972 |
| Financial instruments at FVTOCI | ||||
| Non-convertible debentures, government securities, commercial papers, certificate of deposit and<br>bonds | 245,195 | 160,675 | ||
| Financial instruments at amortized cost | ||||
| Inter corporate and term deposits<br>^(1)^ | 23,775 | 32,509 | ||
| ₹ | 309,232 | ₹ | 351,156 | |
| ₹ | 329,952 | ₹ | 371,938 | |
| ^ | Value is less than 1 | |||
| --- | --- | |||
| ^(1)^ | These deposits earn a fixed rate of interest. Term deposits include current deposits in lien with banks<br>primarily on account of term deposits of ₹ 12,951 (March 31, 2023: ₹ 653) held<br>as margin money deposits against guarantees including ₹ 12,472 towards buyback of equity shares (Refer to Note 29). | |||
| --- | --- |
9. Inventories
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Stores and spare parts | ₹ | 30 | ₹ | 33 |
| Finished and traded goods | 1,158 | 1,342 | ||
| ₹ | 1,188 | ₹ | 1,375 |
10. Cash and cash equivalents
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Cash and bank balances | ₹ | 60,417 | ₹ | 61,996 |
| Demand deposits with banks^(1)^ | 31,463 | 21,620 | ||
| ₹ | 91,880 | ₹ | 83,616 | |
| ^(1)^ | These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the<br>principal. | |||
| --- | --- |
13
Cash and cash equivalents consist of the following for the purpose of the statement of cash flows:
| As at | ||||||
|---|---|---|---|---|---|---|
| June 30, 2022 | June 30, 2023 | |||||
| Cash and cash equivalents | ₹ | 82,828 | ₹ | 83,616 | ||
| Bank overdrafts | (2 | ) | (24 | ) | ||
| ₹ | 82,826 | **** | ₹ | 83,592 | **** |
11. Other financial assets
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Security deposits | ₹ | 1,566 | ₹ | 1,315 |
| Finance lease receivables | 4,742 | 5,035 | ||
| Others | 22 | 18 | ||
| ₹ | 6,330 | ₹ | 6,368 | |
| Current | ||||
| Security deposits | ₹ | 1,549 | ₹ | 1,964 |
| Dues from officers and employees | 735 | 731 | ||
| Interest receivables | 386 | 635 | ||
| Finance lease receivables | 5,672 | 5,604 | ||
| Escrow balances with bank for buyback of equity shares | — | 3,000 | ||
| Others | 754 | 544 | ||
| ₹ | 9,096 | ₹ | 12,478 | |
| ₹ | 15,426 | ₹ | 18,846 |
12. Other assets
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Prepaid expenses | ₹ | 5,375 | ₹ | 5,120 |
| Costs to obtain contract ^(1)^ | 2,936 | 2,675 | ||
| Costs to fulfil contract ^(2)^ | 261 | 246 | ||
| Others | 5,034 | 5,206 | ||
| ₹ | 13,606 | ₹ | 13,247 | |
| Current | ||||
| Prepaid expenses | ₹ | 19,164 | ₹ | 19,594 |
| Dues from officers and employees | 799 | 704 | ||
| Advance to suppliers | 2,506 | 1,221 | ||
| Balance with GST and other authorities | 7,929 | 6,431 | ||
| Costs to obtain contract ^(1)^ | 978 | 970 | ||
| Costs to fulfil contract ^(2)^ | 59 | 59 | ||
| Others | 1,464 | 1,365 | ||
| ₹ | 32,899 | ₹ | 30,344 | |
| ₹ | 46,505 | ₹ | 43,591 | |
| ^(1)^ | Costs to obtain contract amortization of<br>₹ 214 and ₹ 328 during the three months ended June 30, 2022 and 2023<br>respectively. | |||
| --- | --- | |||
| ^(2)^ | Costs to fulfil contract amortization of<br>₹ 14 and ₹ 15 during the three months ended June 30, 2022 and 2023 respectively.<br> | |||
| --- | --- |
13. Loans, borrowings and bank overdrafts
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Unsecured Notes 2026 | ₹ | 61,272 | ₹ | 61,197 |
| ₹ | 61,272 | ₹ | 61,197 | |
| Current | ||||
| Borrowings from banks | ₹ | 88,745 | ₹ | 88,631 |
| Loans from institutions other than banks | 57 | 57 | ||
| Bank overdrafts | 19 | 24 | ||
| ₹ | 88,821 | ₹ | 88,712 | |
| ₹ | 150,093 | ₹ | 149,909 |
14
14. Other financial liabilities
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Contingent consideration (Refer to Note 17) | ₹ | 1,545 | ₹ | 535 |
| Deposits and others | 1,104 | 1,012 | ||
| ₹ | 2,649 | ₹ | 1,547 | |
| Current | ||||
| Liability towards buyback of equity shares | ₹ | — | ₹ | 120,000 |
| Contingent consideration (Refer to Note 17) | 1,508 | 1,234 | ||
| Advance from customers | 1,373 | 1,095 | ||
| Cash settled ADS RSUs | 6 | 4 | ||
| Capital creditors | 215 | 220 | ||
| Deposits and others | 1,039 | 860 | ||
| ₹ | 4,141 | ₹ | 123,413 | |
| ₹ | 6,790 | ₹ | 124,960 |
15. Other liabilities
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Employee benefits obligations | ₹ | 2,947 | ₹ | 3,214 |
| Others | 6,386 | 6,937 | ||
| ₹ | 9,333 | ₹ | 10,151 | |
| Current | ||||
| Tax on liability towards buyback of equity shares | ₹ | — | ₹ | 24,978 |
| Employee benefits obligations | 15,885 | 16,052 | ||
| Statutory and other liabilities | 13,155 | 13,613 | ||
| Advance from customers and others | 645 | 1,479 | ||
| Others | 530 | 638 | ||
| ₹ | 30,215 | ₹ | 56,760 | |
| ₹ | 39,548 | ₹ | 66,911 |
16. Provisions
| As at | ||||
|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||
| Non-current | ||||
| Provision for warranty | ₹ | ^ | ₹ | — |
| ₹ | ^ | ₹ | — | |
| Current | ||||
| Provision for onerous contracts | ₹ | 1,590 | ₹ | 1,672 |
| Provision for warranty | 456 | 230 | ||
| Others | 503 | 498 | ||
| ₹ | 2,549 | ₹ | 2,400 | |
| ₹ | 2,549 | ₹ | 2,400 | |
| ^ | Value is less than 1 | |||
| --- | --- |
17. Financial instruments:
Derivative assets andliabilities:
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 is also exposed to interest rate fluctuations on investments in floating rate financial assets and floating rate borrowings. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, interest rates, 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 immaterial.
15
The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:
(in million)
| As at | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||||||||||
| Notional | Fair value | Notional | Fair value | |||||||||
| Designated derivative instruments | ||||||||||||
| Sell: Forward contracts | USD | 977 | ₹ | (262 | ) | USD | 1,179 | ₹ | 1,248 | |||
| € | 94 | ₹ | (497 | ) | € | 93 | ₹ | (249 | ) | |||
| £ | 138 | ₹ | (728 | ) | £ | 152 | ₹ | (711 | ) | |||
| AUD | 89 | ₹ | 9 | AUD | 65 | ₹ | 26 | |||||
| Range forward option contracts | USD | 1,157 | ₹ | (19 | ) | USD | 958 | ₹ | 692 | |||
| € | 49 | ₹ | (112 | ) | € | 47 | ₹ | (3 | ) | |||
| £ | 60 | ₹ | (69 | ) | £ | 47 | ₹ | (54 | ) | |||
| AUD | 34 | ₹ | 29 | AUD | 58 | ₹ | (91 | ) | ||||
| Interest rate swaps | INR | 4,750 | ₹ | (113 | ) | INR | 4,750 | ₹ | (94 | ) | ||
| USD | — | ₹ | — | USD | 200 | ₹ | 333 | |||||
| Non-designated derivative instruments | ||||||||||||
| Sell: Forward contracts^(1)^ | USD | 1,550 | ₹ | 736 | USD | 1,552 | ₹ | 713 | ||||
| € | 171 | ₹ | (176 | ) | € | 200 | ₹ | 126 | ||||
| £ | 129 | ₹ | (100 | ) | £ | 114 | ₹ | 56 | ||||
| AUD | 56 | ₹ | 69 | AUD | 41 | ₹ | (9 | ) | ||||
| SGD | 14 | ₹ | 1 | SGD | 14 | ₹ | 8 | |||||
| ZAR | 43 | ₹ | (7 | ) | ZAR | — | ₹ | — | ||||
| CAD | 69 | ₹ | (25 | ) | CAD | 20 | ₹ | (7 | ) | |||
| SAR | 147 | ₹ | (6 | ) | SAR | 206 | ₹ | (4 | ) | |||
| CHF | 9 | ₹ | 5 | CHF | — | ₹ | — | |||||
| QAR | 4 | ₹ | (2 | ) | QAR | — | ₹ | — | ||||
| TRY | 30 | ₹ | (1 | ) | TRY | 86 | ₹ | 16 | ||||
| NOK | 13 | ₹ | 6 | NOK | — | ₹ | — | |||||
| OMR | 1 | ₹ | ^ | OMR | 2 | ₹ | (1 | ) | ||||
| SEK | 3 | ₹ | ^ | SEK | — | ₹ | — | |||||
| JPY | 784 | ₹ | 6 | JPY | 400 | ₹ | 8 | |||||
| DKK | 33 | ₹ | (4 | ) | DKK | 33 | ₹ | 5 | ||||
| AED | 20 | ₹ | ^ | AED | 5 | ₹ | ^ | |||||
| CNH | 1 | ₹ | ^ | CNH | 1 | ₹ | 1 | |||||
| Buy: Forward contracts | AED | 5 | ₹ | ^ | AED | — | ₹ | — | ||||
| NOK | 12 | ₹ | ^ | NOK | 95 | ₹ | (10 | ) | ||||
| QAR | 4 | ₹ | 2 | QAR | 11 | ₹ | 4 | |||||
| ZAR | 7 | ₹ | 1 | ZAR | 51 | ₹ | ^ | |||||
| PLN | 26 | ₹ | 13 | PLN | 18 | ₹ | 11 | |||||
| SEK | — | ₹ | — | SEK | 15 | ₹ | (6 | ) | ||||
| JPY | — | ₹ | — | JPY | 261 | ₹ | (11 | ) | ||||
| Range forward option contracts | USD | 30 | ₹ | 31 | USD | — | ₹ | — | ||||
| Interest rate swaps | USD | 200 | ₹ | 82 | USD | — | ₹ | — | ||||
| ₹ | (1,131 | ) | ₹ | 1,997 | **** | |||||||
| ^ | Value is less than 1 | |||||||||||
| --- | --- | |||||||||||
| ^(1)^ | USD 1,550 and USD 1,552 includes USD/PHP sell forward of USD 77 and USD 117 as at March 31, 2023 and<br>June 30, 2023, 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.
16
The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:
| Three months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | |||||
| Balance as at the beginning of the period | ₹ | 1,943 | **** | ₹ | (1,762 | ) |
| Changes in fair value of effective portion of derivatives | (1,033 | ) | 1,846 | |||
| Net (gain)/loss reclassified to statement of income on occurrence of hedged transactions ^(1)^ | (855 | ) | 1,013 | |||
| Ineffective portion of derivative instruments classified to statement of income | — | (33 | ) | |||
| Gain/(loss) on cash flow hedging derivatives, net | ₹ | (1,888 | ) | ₹ | 2,826 | **** |
| Balance as at the end of the period | ₹ | 55 | **** | ₹ | 1,064 | **** |
| Deferred tax thereon | (13 | ) | (267 | ) | ||
| Balance as at the end of the period, net of deferred tax | ₹ | 42 | **** | ₹ | 797 | **** |
| ^(1)^ | Includes net (gain)/loss reclassified to revenue of<br>₹ (794) and ₹ 914 for the three months ended June 30, 2022, and 2023,<br>respectively and net (gain)/loss reclassified to cost of revenues of ₹ (61) and<br>₹ 99 for the three months ended June 30, 2022, and 2023, respectively. | |||||
| --- | --- |
As at June 30, 2022 and 2023, 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, short-term 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. Finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated credit losses on these receivables. As at March 31, 2023 and June 30, 2023, the carrying value of such receivables, net of allowances approximates the fair value. The Company’s Unsecured Notes 2026 are contracted at fixed coupon rate of 1.50% and market yield of Unsecured Notes 2026 as of June 30, 2023 is 5.653%.
Investments in short-term mutual funds and fixed maturity plan mutual funds, 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 deposit 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 approach primarily based on market multiples method.
The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves and currency volatility.
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).
There were no transfer between Level 1, 2 and 3 during the year ended March 31, 2023 and three months ended June 30, 2023.
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The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
| As at | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | June 30, 2023 | |||||||||||||||||||||
| 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 | ₹ | 772 | ₹ | — | ₹ | 772 | ₹ | — | ₹ | 2,380 | ₹ | — | ₹ | 2,380 | ₹ | — | ||||||
| Others | 1,101 | — | 1,101 | — | 1,110 | — | 1,110 | — | ||||||||||||||
| Investments: | ||||||||||||||||||||||
| Short-term mutual funds | 40,262 | 40,262 | — | — | 157,972 | 157,972 | — | — | ||||||||||||||
| Fixed maturity plan mutual funds | 1,300 | — | 1,300 | — | 1,324 | — | 1,324 | — | ||||||||||||||
| Equity instruments | 19,420 | 99 | — | 19,321 | 19,458 | 74 | — | 19,384 | ||||||||||||||
| Non-convertible debentures, government securities, commercial papers, certificate of deposit and<br>bonds | 245,195 | 1,256 | 243,939 | — | 160,675 | 1,250 | 159,425 | — | ||||||||||||||
| Liabilities | ||||||||||||||||||||||
| Derivative instruments: | ||||||||||||||||||||||
| Cash flow hedges | ₹ | (2,534 | ) | ₹ | — | ₹ | (2,534 | ) | ₹ | — | ₹ | (1,316 | ) | ₹ | — | ₹ | (1,316 | ) | ₹ | — | ||
| Others | (470 | ) | — | (470 | ) | — | (177 | ) | — | (177 | ) | — | ||||||||||
| Contingent consideration | (3,053 | ) | — | — | (3,053 | ) | (1,769 | ) | — | — | (1,769 | ) |
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 June 30, 2023, 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 deposit 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 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 approach primarily based on market multiples method.
Details of assets and liabilities considered under Level 3 classification
| As at | ||||||
|---|---|---|---|---|---|---|
| Investment in equity instruments | March 31, 2023 | June 30, 2023 | ||||
| Balance at the beginning of the period | ₹ | 16,324 | ₹ | 19,321 | ||
| Additions | 2,093 | 78 | ||||
| Disposals^(1)^ | (632 | ) | (46 | ) | ||
| Unrealized gain/(loss) recognized in statement of income | (2 | ) | (12 | ) | ||
| Gain recognized in other comprehensive income | 291 | 19 | ||||
| Translation adjustment | 1,247 | 24 | ||||
| Balance at the end of the period | ₹ | 19,321 | **** | ₹ | 19,384 | **** |
| ^(1)^ | During the year ended March 31, 2023, the Company sold its shares in Vicarious FPC, Inc. and Harte Hanks<br>Inc. at a fair value of ₹ 1,150 and recognized a cumulative gain of ₹30 in other<br>comprehensive income. | |||||
| --- | --- |
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| As at | ||||||
|---|---|---|---|---|---|---|
| Contingent consideration | March 31, 2023 | June 30, 2023 | ||||
| Balance at the beginning of the period | ₹ | (4,329 | ) | ₹ | (3,053 | ) |
| Additions | (1,662 | ) | — | |||
| Reversals^(1)^ | 1,671 | 16 | ||||
| Payouts | 1,784 | 1,286 | ||||
| Finance expense recognized in statement of income | (131 | ) | (20 | ) | ||
| Translation adjustment | (386 | ) | 2 | |||
| Balance at the end of the period | ₹ | (3,053 | ) | ₹ | (1,769 | ) |
| ^(1)^ | Towards change in fair value of earn-out liability as a result of changes in estimates of revenue and earnings<br>over the earn-out period. | |||||
| --- | --- |
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:
| Three months ended June 30, | |||||
|---|---|---|---|---|---|
| 2022 | 2023 | ||||
| Balance at the beginning of the period | ₹ | 26,850 | ₹ | 43,255 | |
| Translation difference related to foreign operations, net | 5,607 | (361 | ) | ||
| Reclassification of foreign currency translation differences on liquidation of subsidiaries to<br>statement of income | — | 2 | |||
| Balance at the end of the period | ₹ | 32,457 | ₹ | 42,896 | **** |
The movement in other reserves is summarized below:
| Other Reserves | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Remeasurements ofthe defined benefitplans | Investment in debtinstrumentsmeasured at fairvalue throughOCI | Investment in equityinstrumentsmeasured at fairvalue through OCI | Capital RedemptionReserve | ||||||
| As at April 1, 2022 | ₹ | (498 | ) | ₹ | 3,018 | **** | ₹ | 10,088 | ₹ | 1,122 |
| Other comprehensive income | 312 | (4,102 | ) | 1,333 | — | |||||
| As at June 30, 2022 | ₹ | (186 | ) | ₹ | (1,084 | ) | ₹ | 11,421 | ₹ | 1,122 |
| As at April 1, 2023 | ₹ | (548 | ) | ₹ | (119 | ) | ₹ | 10,793 | ₹ | 1,122 |
| Other comprehensive income | 43 | 1,039 | 16 | — | ||||||
| As at June 30, 2023 | ₹ | (505 | ) | ₹ | 920 | **** | ₹ | 10,809 | ₹ | 1,122 |
19. Income taxes
| Three months ended June 30, | |||||
|---|---|---|---|---|---|
| 2022 | 2023 | ||||
| Income tax expense as per the interim condensed consolidated statement of income | ₹ | 7,931 | ₹ | 9,115 | |
| Income tax included in other comprehensive income on: | |||||
| Gains/(losses) on investment securities | (393 | ) | 162 | ||
| Gains/(losses) on cash flow hedging derivatives | (453 | ) | 626 | ||
| Remeasurements of the defined benefit plans | 95 | 33 | |||
| ₹ | 7,180 | **** | ₹ | 9,936 |
Income tax expense consists of the following:
| Three months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | |||||
| Current taxes | ₹ | 9,029 | ₹ | 9,135 | ||
| Deferred taxes | (1,098 | ) | (20 | ) | ||
| ₹ | 7,931 | **** | ₹ | 9,115 | **** |
Income tax expenses are net of reversal of taxes pertaining to earlier periods, amounting to ₹ (68) and ₹ (627) for the three months ended June 30, 2022 and 2023, respectively.
19
For the three months ended June 30, 2023, the Company has applied mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules under International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12.
20. Revenues
The tables below present disaggregated revenue from contracts with customers by business segment (Refer to Note 27 “Segment Information”), 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.
Effective April 1, 2023, the Company has reorganized its segments by merging India State Run Enterprises (“ISRE”) segment as part of its APMEA SMU within IT Services segment. Comparative period disaggregated revenue information has been restated to give effect to this change.
20
Information on disaggregation of revenues for the three months ended June 30, 2022 is as follows:
| IT Services | IT Products | Total | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||
| A. Revenue | ||||||||||||||
| Rendering of services | ₹ | 61,440 | ₹ | 66,300 | ₹ | 59,957 | ₹ | 25,643 | ₹ | 213,340 | ₹ | — | ₹ | 213,340 |
| Sale of products | — | — | — | — | — | 1,946 | 1,946 | |||||||
| ₹ | 61,440 | ₹ | 66,300 | ₹ | 59,957 | ₹ | 25,643 | ₹ | 213,340 | ₹ | 1,946 | ₹ | 215,286 | |
| B. Revenue by sector | ||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 1,085 | ₹ | 40,988 | ₹ | 24,536 | ₹ | 9,094 | ₹ | 75,703 | ||||
| Health | 19,444 | 42 | 3,929 | 884 | 24,299 | |||||||||
| Consumer | 25,721 | 896 | 8,820 | 4,193 | 39,630 | |||||||||
| Communications | 3,192 | 341 | 3,134 | 3,883 | 10,550 | |||||||||
| Energy, Natural Resources and Utilities | 217 | 9,273 | 9,304 | 4,986 | 23,780 | |||||||||
| Manufacturing | 17 | 7,843 | 5,583 | 904 | 14,347 | |||||||||
| Technology | 11,764 | 6,917 | 4,651 | 1,699 | 25,031 | |||||||||
| ₹ | 61,440 | ₹ | 66,300 | ₹ | 59,957 | ₹ | 25,643 | ₹ | 213,340 | ₹ | 1,946 | ₹ | 215,286 | |
| C. Revenue by nature of contract | ||||||||||||||
| Fixed price and volume based | ₹ | 35,884 | ₹ | 33,859 | ₹ | 33,977 | ₹ | 15,224 | ₹ | 118,944 | ₹ | — | ₹ | 118,944 |
| Time and materials | 25,556 | 32,441 | 25,980 | 10,419 | 94,396 | — | 94,396 | |||||||
| Products | — | — | — | — | — | 1,946 | 1,946 | |||||||
| ₹ | 61,440 | ₹ | 66,300 | ₹ | 59,957 | ₹ | 25,643 | ₹ | 213,340 | ₹ | 1,946 | ₹ | 215,286 |
Information on disaggregation of revenues for the three months ended June 30, 2023 is as follows:
| IT Services | IT Products | Total | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | ||||||||||
| A. Revenue | ||||||||||||||
| Rendering of services | ₹ | 65,622 | ₹ | 68,321 | ₹ | 67,155 | ₹ | 26,518 | ₹ | 227,616 | ₹ | — | ₹ | 227,616 |
| Sale of products | — | — | — | — | — | 694 | 694 | |||||||
| ₹ | 65,622 | ₹ | 68,321 | ₹ | 67,155 | ₹ | 26,518 | ₹ | 227,616 | ₹ | 694 | ₹ | 228,310 | |
| B. Revenue by sector | ||||||||||||||
| Banking, Financial Services and Insurance | ₹ | 784 | ₹ | 42,015 | ₹ | 25,522 | ₹ | 9,041 | ₹ | 77,362 | ||||
| Health | 21,727 | 85 | 4,823 | 1,250 | 27,885 | |||||||||
| Consumer | 26,355 | 1,114 | 10,799 | 4,269 | 42,537 | |||||||||
| Communications | 3,486 | 347 | 3,123 | 3,462 | 10,418 | |||||||||
| Energy, Natural Resources and Utilities | 106 | 10,294 | 11,111 | 5,845 | 27,356 | |||||||||
| Manufacturing | 47 | 8,484 | 6,893 | 1,038 | 16,462 | |||||||||
| Technology | 13,117 | 5,982 | 4,884 | 1,613 | 25,596 | |||||||||
| ₹ | 65,622 | ₹ | 68,321 | ₹ | 67,155 | ₹ | 26,518 | ₹ | 227,616 | ₹ | 694 | ₹ | 228,310 | |
| C. Revenue by nature of contract | ||||||||||||||
| Fixed price and volume based | ₹ | 37,524 | ₹ | 35,450 | ₹ | 39,723 | ₹ | 15,942 | ₹ | 128,639 | ₹ | — | ₹ | 128,639 |
| Time and materials | 28,098 | 32,871 | 27,432 | 10,576 | 98,977 | — | 98,977 | |||||||
| Products | — | — | — | — | — | 694 | 694 | |||||||
| ₹ | 65,622 | ₹ | 68,321 | ₹ | 67,155 | ₹ | 26,518 | ₹ | 227,616 | ₹ | 694 | ₹ | 228,310 |
21
21. Expenses by nature
| Three months ended June 30, | |||||
|---|---|---|---|---|---|
| 2022 | 2023 | ||||
| Employee compensation | ₹ | 126,134 | ₹ | 140,276 | |
| Sub-contracting and technical fees | 29,454 | 26,385 | |||
| Cost of hardware and software | 2,143 | 806 | |||
| Travel | 3,070 | 4,175 | |||
| Facility expenses^(1)^ | 3,299 | 3,452 | |||
| Software license expense for internal use^(1)^ | 4,577 | 4,607 | |||
| Depreciation, amortization and impairment | 7,738 | 7,380 | |||
| Communication | 1,543 | 1,249 | |||
| Legal and professional fees^(2)^ | 3,893 | 2,251 | |||
| Rates, taxes and insurance | 1,497 | 1,462 | |||
| Marketing and brand building | 900 | 977 | |||
| Lifetime expected credit loss/ (write-back) | (22 | ) | 300 | ||
| Miscellaneous expenses^(2)^ | 204 | 412 | |||
| Total cost of revenues, selling and marketing expenses and general and administrativeexpenses | ₹ | 184,430 | **** | ₹ | 193,732 |
| ^(1)^ | Software license expense for internal use has been reclassified from Facility expenses to a separate nature of<br>expense for the three months ended June 30, 2022. | ||||
| --- | --- | ||||
| ^(2)^ | Staff recruitment expense has been reclassified from Miscellaneous expenses to Legal and professional fees for<br>the three months ended June 30, 2022. | ||||
| --- | --- |
22. Finance expenses
| Three months ended June 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| Interest expense | ₹ | 2,045 | ₹ | 3,086 |
| ₹ | 2,045 | ₹ | 3,086 |
23. Finance and other income and Foreign exchange gains/(losses), net
| Three months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | |||||
| Interest income | ₹ | 3,579 | ₹ | 5,244 | ||
| Dividend income | 2 | 1 | ||||
| Net gain from investments classified as FVTPL | 116 | 1,336 | ||||
| Net loss from investments classified as FVTOCI | (7 | ) | (39 | ) | ||
| Finance and other income | ₹ | 3,690 | **** | ₹ | 6,542 | **** |
| Foreign exchange gains/(losses), net, on financial instruments measured at FVTPL | ₹ | (1,751 | ) | ₹ | 881 | |
| Other foreign exchange gains/(losses), net | 2,785 | (943 | ) | |||
| Foreign exchange gains/(losses), net | ₹ | 1,034 | **** | ₹ | (62 | ) |
24. Earnings per equity 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 June 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| Profit attributable to equity holders of the Company | ₹ | 25,636 | ₹ | 28,701 |
| Weighted average number of equity shares outstanding | 5,471,449,783 | 5,482,733,329 | ||
| Basic earnings per equity share | ₹ | 4.69 | ₹ | 5.23 |
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.
22
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 June 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| Profit attributable to equity holders of the Company | ₹ | 25,636 | ₹ | 28,701 |
| Weighted average number of equity shares outstanding | 5,471,449,783 | 5,482,733,329 | ||
| Effect of dilutive equivalent share options | 13,608,211 | 10,422,480 | ||
| Dilutive effect from buyback of equity shares | — | 107,151,506 | ||
| Weighted average number of equity shares for diluted earnings per share | 5,485,057,994 | 5,600,307,315 | ||
| Diluted earnings per equity share | ₹ | 4.67 | ₹ | 5.12 |
25. Employee compensation
| Three months ended June 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| Salaries and bonus | ₹ | 120,141 | ₹ | 133,800 |
| Employee benefits plans | 4,548 | 4,932 | ||
| Share-based compensation ^(1)^ | 1,445 | 1,544 | ||
| ₹ | 126,134 | ₹ | 140,276 | |
| ^(1)^ | Includes ₹ 15 and ₹ (2) for the three months ended June 30, 2022, and 2023 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 June 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| Cost of revenues | ₹ | 107,864 | ₹ | 117,733 |
| Selling and marketing expenses | 11,122 | 12,612 | ||
| General and administrative expenses | 7,148 | 9,931 | ||
| ₹ | 126,134 | ₹ | 140,276 |
The Company has granted 3,217,885 options under RSU option plan during the three months ended June 30, 2023 (173,269 for the three months ended June 30, 2022); 8,061,125 options under ADS option plan during the three months ended June 30, 2023 (1,113,342 for the three months ended June 30, 2022).
The Company has also granted 1,892,498 Performance based stock options (RSU) during the three months ended June 30, 2023, respectively (Nil for the three months ended June 30, 2022); 5,648,833 Performance based stock options (ADS) during the three months ended June 30, 2023, respectively (Nil for three months ended June 30, 2022).
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). Performance based stock options will vest based on the performance parameters of the Company.
26. Commitments andcontingencies
Capital commitments: As at March 31, 2023 and June 30, 2023 the Company had committed to spend approximately ₹ 7,675 and ₹ 7,786 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, 2023 and June 30, 2023, guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies aggregate to ₹ 16,076 and ₹ 26,403 (including ₹ 12,150 towards Buyback as referred in Note 29) 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, 2019. 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
23
by the Income tax authorities before the Hon’ble 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 ₹ 91,465 and ₹ 92,491 are not acknowledged as debt as at March 31, 2023 and June 30, 2023, 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 ₹ 15,240 and ₹ 15,248 as of March 31, 2023, and June 30, 2023, 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.
27. Segment information
Effective April 1, 2023, the Company has reorganized its segments by merging ISRE segment as part of its APMEA SMU within IT Services segment. Comparative period segment information has been restated to give effect to this change.
The Company is now organized into the following operating segments: IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT services offerings to customers organized by four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East and Africa (“APMEA”). Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America: healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms. Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: banking, financial services and insurance, manufacturing, hi-tech, energy and utilities. Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Benelux, the Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.
Revenue from each customer is attributed to the respective SMUs based on the location of the customer’s primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customer’s buying centers, but the total revenue related to these strategic global customers are attributed to a single SMU based on the geographical location of key decision makers.
Our IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design.
IT Products: The Company is a value-added reseller of security, packaged and SaaS software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to these items is reported as revenue from the sale of IT Products.
The Chief Executive Officer (“CEO”) and Managing Director of the Company has been identified as the Chief Operating Decision Maker as defined by IFRS 8, “Operating Segments”. The CEO of the Company evaluates the segments based on their revenue growth and operating income.
Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
24
Information on reportable segments for the three months ended June 30, 2022, is as follows:
| IT Services | IT Products | Reconciling | Total | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | Items | ||||||||||||||||
| Revenue | ₹ | 61,702 | ₹ | 66,613 | ₹ | 60,276 | ₹ | 25,783 | ₹ | 214,374 | ₹ | 1,946 | ₹ | — | ₹ | 216,320 | |||||
| Segment Result | 11,570 | 13,224 | 7,986 | 2,069 | 34,849 | (55 | ) | (60 | ) | 34,734 | |||||||||||
| Unallocated | (2,844 | ) | — | — | (2,844 | ) | |||||||||||||||
| Segment result total | ₹ | 32,005 | **** | ₹ | (55 | ) | ₹ | (60 | ) | ₹ | 31,890 | **** | |||||||||
| Finance expenses | (2,045 | ) | |||||||||||||||||||
| Finance and other income | 3,690 | ||||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | (15 | ) | |||||||||||||||||||
| Profit before tax | ₹ | 33,520 | **** | ||||||||||||||||||
| Income tax expense | (7,931 | ) | |||||||||||||||||||
| Profit for the period | ₹ | 25,589 | **** | ||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 7,738 |
Information on reportable segments for the three months ended June 30, 2023, is as follows:
| IT Services | IT Products | Reconciling | Total | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Americas 1 | Americas 2 | Europe | APMEA | Total | Items | ||||||||||||||||
| Revenue | ₹ | 65,607 | ₹ | 68,303 | ₹ | 67,134 | ₹ | 26,510 | ₹ | 227,554 | ₹ | 694 | ₹ | — | ₹ | 228,248 | |||||
| Segment Result | 13,537 | 14,169 | 9,968 | 2,800 | 40,474 | (161 | ) | (1,840 | ) | 38,473 | |||||||||||
| Unallocated | (3,957 | ) | — | — | (3,957 | ) | |||||||||||||||
| Segment result total | ₹ | 36,517 | **** | ₹ | (161 | ) | ₹ | (1,840 | ) | ₹ | 34,516 | **** | |||||||||
| Finance expenses | (3,086 | ) | |||||||||||||||||||
| Finance and other income | 6,542 | ||||||||||||||||||||
| Share of net profit/(loss) of associates accounted for using the equity method | 3 | ||||||||||||||||||||
| Profit before tax | ₹ | 37,975 | **** | ||||||||||||||||||
| Income tax expense | (9,115 | ) | |||||||||||||||||||
| Profit for the period | ₹ | 28,860 | **** | ||||||||||||||||||
| Depreciation, amortization and impairment | ₹ | 7,380 |
25
Revenues from India, being Company’s country of domicile, is ₹ 6,507 and ₹ 6,007 for the three months ended June 30, 2022, and 2023, 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 endedJune 30, | ||||
|---|---|---|---|---|
| 2022 | 2023 | |||
| United States of America | ₹ | 120,491 | ₹ | 126,497 |
| United Kingdom | 26,606 | ₹ | 29,763 | |
| ₹ | 147,097 | ₹ | 156,260 |
No customer individually accounted for more than 10% of the revenues during the three months ended June 30, 2022, and 2023.
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) | “Reconciling items” includes elimination of inter-segment transactions and other corporate<br>activities. |
|---|---|
| b) | Revenue from sale of Company owned intellectual properties is reported as part of IT Services revenues.<br> |
| --- | --- |
| c) | For the purpose of segment reporting, the Company has included the impact of foreign exchange gains/(losses),<br>net in revenues (which is reported as a part of operating profit in the interim condensed consolidated statement of income). |
| --- | --- |
| d) | Restructuring cost of ₹ Nil<br>and ₹ 1,887 is included under Reconciling items for the three months ended June 30, 2022 and 2023 respectively. |
| --- | --- |
| e) | Effective April 1, 2023, amortization and impairment of intangibles assets arising from business<br>combination and change in fair value of contingent consideration due to change in estimates is included under “Unallocated” within IT Services segment. Comparative period has been restated to give effect to these changes. Accordingly, for<br>the three months ended June 30, 2023, ₹ 1,810 and ₹ (16) towards<br>amortization and impairment of intangible assets and change in fair value of contingent consideration, respectively, is included under “Unallocated” within IT Services segment.<br>(₹ 1,893 and ₹ (86) for the three months ended June 30, 2022).<br> |
| --- | --- |
| f) | Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 1,445 and ₹ 1,544 for the three months ended June 30, 2022 and 2023, respectively.<br> |
| --- | --- |
28. List of subsidiaries and investments accounted for using equity method as at June 30, 2023 is provided below:
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
|---|---|---|---|
| Attune Consulting India Private Limited | India | ||
| Capco Technologies Private Limited | India | ||
| Encore Theme Technologies Private Limited | India | ||
| Wipro Chengdu Limited | China | ||
| Wipro Holdings (UK) Limited | U.K. | ||
| Designit A/S | Denmark | ||
| Designit Denmark A/S | Denmark | ||
| Designit Germany GmbH | Germany | ||
| Designit Oslo A/S | Norway | ||
| Designit Spain Digital, S.L.U | Spain | ||
| Designit Sweden AB | Sweden | ||
| Designit T.L.V Ltd. | Israel | ||
| Wipro 4C NV | Belgium | ||
| Wipro 4C Consulting France SAS | France | ||
| Wipro 4C Danmark ApS | Denmark | ||
| Wipro 4C Nederland B.V | Netherlands | ||
| Wipro Weare4C UK Limited^(1)^ | U.K. | ||
| Wipro Bahrain Limited Co. W.L.L | Bahrain | ||
| Wipro Financial Outsourcing Services | U.K. | ||
| Limited | |||
| Wipro UK Limited | U.K. | ||
| Wipro Gulf LLC | Sultanate of | ||
| Oman | |||
| Wipro IT Services S.R.L. | Romania | ||
| Wipro HR Services India Private Limited | India |
26
| Wipro IT Services Bangladesh Limited | Bangladesh | ||
|---|---|---|---|
| Wipro IT Services UK Societas | U.K. | ||
| Grove Holdings 2 S.á.r.l | Luxembourg | ||
| Capco Solution Services GmbH | Germany | ||
| The Capital Markets Company Italy Srl | Italy | ||
| Capco Brasil Serviços E Consultoria Em | Brazil | ||
| Informática Ltda | |||
| The Capital Markets Company BV^(1)^ | Belgium | ||
| PT. WT Indonesia | Indonesia | ||
| Rainbow Software LLC | Iraq | ||
| Wipro Arabia Limited^(2)^ | Saudi Arabia | ||
| Women’s Business Park Technologies | Saudi Arabia | ||
| Limited^(2)^ | |||
| Wipro Doha LLC | Qatar | ||
| Wipro Holdings Hungary Korlátolt | Hungary | ||
| Felelősségű Társaság | |||
| Wipro Holdings Investment Korlátolt | Hungary | ||
| Felelősségű Társaság | |||
| Wipro Information Technology Egypt | Egypt | ||
| SAE | |||
| Wipro Information Technology | Netherlands | ||
| Netherlands BV. | |||
| Wipro do Brasil Technologia Ltda^(1)^ | Brazil | ||
| Wipro Information Technology Kazakhstan | Kazakhstan | ||
| LLP | |||
| Wipro Outsourcing Services (Ireland) Limited | Ireland | ||
| Wipro Portugal S.A.^(1)^ | Portugal | ||
| Wipro Solutions Canada Limited | Canada | ||
| Wipro Technologies Limited | Russia | ||
| Wipro Technologies Peru SAC | Peru | ||
| Wipro Technologies W.T. Sociedad Anonima | Costa Rica | ||
| Wipro Technology Chile SPA | Chile | ||
| Wipro IT Service Ukraine, LLC | U.K.raine | ||
| Wipro IT Services Poland SP Z.O.O | Poland | ||
| Wipro Technologies Australia Pty Ltd | Australia | ||
| Wipro Ampion Holdings Pty Ltd^(1)^ | Australia | ||
| Wipro Technologies SA | Argentina | ||
| Wipro Technologies SA DE CV | Mexico | ||
| Wipro Technologies South Africa | South Africa | ||
| (Proprietary) Limited | |||
| Wipro Technologies Nigeria Limited | Nigeria | ||
| Wipro Technologies SRL | Romania | ||
| Wipro (Thailand) Co. Limited | Thailand | ||
| Wipro Japan KK | Japan | ||
| Designit Tokyo Co., Ltd. | Japan | ||
| Wipro Networks Pte Limited | Singapore | ||
| Wipro (Dalian) Limited | China | ||
| Wipro Technologies SDN BHD | Malaysia | ||
| Wipro Overseas IT Services Private Limited | India | ||
| Wipro Philippines, Inc. | Philippines | ||
| Wipro Shanghai Limited | China | ||
| Wipro Trademarks Holding Limited | India | ||
| Wipro Travel Services Limited | India | ||
| Wipro VLSI Design Services India Private Limited | India | ||
| Wipro, LLC | USA | ||
| Wipro Gallagher Solutions, LLC | USA | ||
| Wipro Insurance Solutions, LLC | USA | ||
| Wipro IT Services, LLC | USA |
27
| Cardinal US Holdings, Inc.^(1)^ | USA |
|---|---|
| Convergence Acceleration Solutions, LLC | USA |
| Designit North America, Inc. | USA |
| Edgile, LLC | USA |
| HealthPlan Services, Inc. ^(1)^ | USA |
| Infocrossing, LLC | USA |
| International TechneGroup Incorporated ^(1)^ | USA |
| LeanSwift Solutions, Inc.^(1)^ | USA |
| Rizing Intermediate Holdings, Inc. ^(1)^ | USA |
| Wipro Appirio, Inc. ^(1)^ | USA |
| Wipro Designit Services, Inc. ^(1)^ | USA |
| Wipro VLSI Design Services, LLC | USA |
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD’ incorporated in South Africa and Wipro Foundation in India.
| ^(2)^ | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the<br>equity securities of Wipro Arabia Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Limited. | ||
|---|---|---|---|
| ^(1)^ | Step Subsidiary details of Cardinal US Holdings, Inc., HealthPlan Services, Inc., International TechneGroup<br>Incorporated, LeanSwift Solutions, Inc., Rizing Intermediate Holdings, Inc., The Capital Markets Company BV, Wipro Ampion Holdings Pty Ltd, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro do Brasil Technologia Ltda, Wipro Portugal S.A. and<br>Wipro Weare4C UK Limited are as follows: | ||
| --- | --- | ||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Cardinal US Holdings, Inc. | USA | ||
| ATOM Solutions LLC | USA | ||
| Capco Consulting Services LLC | USA | ||
| Capco RISC Consulting LLC | USA | ||
| The Capital Markets Company LLC | USA | ||
| HealthPlan Services, Inc. | USA | ||
| HealthPlan Services Insurance Agency, LLC | USA | ||
| International TechneGroup Incorporated | USA | ||
| International TechneGroup Ltd. | U.K. | ||
| ITI Proficiency Ltd | Israel | ||
| MechWorks S.R.L. | Italy | ||
| LeanSwift Solutions, Inc. | USA | ||
| LeanSwift AB | Sweden | ||
| Rizing Intermediate Holdings, Inc. | USA | ||
| Rizing Lanka (Pvt) Ltd | Sri Lanka | ||
| Attune Netherlands B.V.^(3)^ | Netherlands | ||
| Rizing Solutions Canada Inc. | Canada | ||
| Rizing LLC | USA | ||
| Aasonn Philippines Inc. | Philippines | ||
| Rizing B.V. | Netherlands | ||
| Rizing Consulting Ireland Limited | Ireland | ||
| Rizing Consulting Pty Ltd. | Australia | ||
| Rizing Geospatial LLC | USA | ||
| Rizing GmbH | Germany | ||
| Rizing Limited | U.K. | ||
| Rizing Middle East DMCC | United Arab | ||
| Emirates | |||
| Rizing Pte Ltd. (3) | Singapore | ||
| Vesta Middle East FZE | United Arab | ||
| Emirates | |||
| The Capital Markets Company BV | Belgium | ||
| CapAfric Consulting (Pty) Ltd | South Africa | ||
| Capco Belgium BV | Belgium |
28
| Capco Consultancy (Malaysia) Sdn. Bhd | Malaysia | ||
|---|---|---|---|
| Capco Consultancy (Thailand) Ltd | Thailand | ||
| Capco Consulting Singapore Pte. Ltd | Singapore | ||
| Capco Greece Single Member P.C | Greece | ||
| Capco Poland sp. z.o.o | Poland | ||
| The Capital Markets Company (UK) Ltd | U.K. | ||
| Capco (UK) 1, Limited | U.K. | ||
| The Capital Markets Company BV | Netherlands | ||
| The Capital Markets Company GmbH | Germany | ||
| Capco Austria GmbH | Austria | ||
| The Capital Markets Company Limited | Hong Kong | ||
| Capco Consulting Services (Guangzhou) | China | ||
| Company Limited | |||
| The Capital Markets Company Limited | Canada | ||
| The Capital Markets Company S.á.r.l | Switzerland | ||
| Andrion AG | Switzerland | ||
| The Capital Markets Company S.A.S | France | ||
| The Capital Markets Company s.r.o | Slovakia | ||
| Wipro Ampion Holdings Pty Ltd | Australia | ||
| Wipro Ampion Pty Ltd | Australia | ||
| Wipro Iris Holdco Pty Ltd^(3)^ | Australia | ||
| Wipro Revolution IT Pty Ltd | Australia | ||
| Crowdsprint Pty Ltd | Australia | ||
| Wipro Shelde Australia Pty Ltd | Australia | ||
| Wipro Appirio, Inc. | USA | ||
| Wipro Appirio (Ireland) Limited | Ireland | ||
| Wipro Appirio UK Limited | U.K. | ||
| Wipro Appirio, K.K. | Japan | ||
| Topcoder, LLC. | USA | ||
| Wipro Designit Services, Inc. | USA | ||
| Wipro Designit Services Limited | Ireland | ||
| Wipro do Brasil Technologia Ltda | Brazil | ||
| Wipro do Brasil Servicos Ltda | Brazil | ||
| Wipro Do Brasil Sistemetas De | Brazil | ||
| Informatica Ltda | |||
| Wipro Portugal S.A. | Portugal | ||
| Wipro Technologies GmbH | Germany | ||
| Wipro Business Solutions GmbH^(3)^ | Germany | ||
| Wipro IT Services Austria GmbH | Austria | ||
| Wipro Weare4C UK Limited | U.K. | ||
| CloudSocius DMCC | United Arab | ||
| Emirates | |||
| ^(3)^ | Step Subsidiary details of Attune Netherlands B.V., Rizing Pte Ltd., Wipro Business Solutions GmbH and Wipro<br>Iris Holdco Pty Ltd are as follows: | ||
| --- | --- | ||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Attune Netherlands B.V. | Netherlands | ||
| Attune Australia Pty Ltd | Australia | ||
| Rizing Consulting USA, Inc. | USA | ||
| Rizing Germany GmbH | Germany | ||
| Attune Italia S.R.L | Italy | ||
| Rizing Management LLC | USA | ||
| Attune UK Ltd. | U.K. | ||
| Rizing Pte Ltd. | Singapore | ||
| Rizing New Zealand Ltd. | New Zealand | ||
| Rizing Philippines Inc. | Philippines | ||
| Rizing SDN BHD | Malaysia |
29
| Rizing Solutions Pty Ltd | Australia | |
|---|---|---|
| Synchrony Global SDN BHD | Malaysia | |
| Wipro Business Solutions GmbH | Germany | |
| Wipro Technology Solutions S.R.L | Romania | |
| Wipro Iris Holdco Pty Ltd | Australia | |
| Wipro Iris Bidco Pty Ltd | Australia |
As at June 30, 2023, the Company held 43.7% interest in Drivestream Inc., accounted for using the equity method.
The list of controlled trusts and firms are:
| Name of the entity | Country of incorporation |
|---|---|
| Wipro Equity Reward Trust | India |
| Wipro Foundation | India |
29. Buyback of equity shares
On April 27, 2023, the Board of Directors approved a proposal to Buyback up to 269,662,921 fully paid-up equity shares of ₹ 2 each (representing up to 4.91% of the number of equity shares in the paid-up equity share capital as at March 31, 2023) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of ₹ 445 per equity share for an aggregate amount not exceeding ₹ 120,000 (“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, by way of a special resolution, through a postal ballot.
In accordance with the provisions of the Buyback Regulations, the Letter of offer for the Buyback was filed with SEBI on June 20, 2023, and tender period for Buyback opened on June 22, 2023, and closed on June 30, 2023. The settlement of all valid bids was completed on July 4, 2023, and the equity shares bought back were extinguished on July 7, 2023. Pursuant to the issuance of Letter of Offer, the Company has recorded a liability towards Buyback of equity shares of ₹ 120,000 and the corresponding liability for tax on Buyback of ₹ 24,978 as at June 30, 2023.
| 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’s Registration No: 117366W/W - 100018 | Managing Director | ||
| Anand Subramanian | Jatin Pravinchandra Dalal | M. Sanaulla Khan | |
| Partner | Chief Financial Officer | Company Secretary | |
| Membership No. 110815 |
Bengaluru
July 13, 2023
30
EX-99.4
Exhibit 99.4
WIPRO LIMITED
CIN:L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakannelli, Sarjapur Road, Bengaluru - 560035, India
Website:www.wipro.com ; Email id – info@wipro.com ; Tel: +91-80-2844 0011 ; Fax: +91-80-28440054
STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2023
UNDER IFRS (IASB)
(₹inmillions, except share and per share data, unless otherwise stated)
| Year ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | June 30, | March | ||||||||||
| Particulars | 2023 | 2022 | 31, 2023 | |||||||||
| Income from operations | ||||||||||||
| a) Revenue | 228,310 | 231,903 | 215,286 | 904,876 | ||||||||
| b) Foreign exchange gains/(losses), net | (62 | ) | 990 | 1,034 | 4,472 | |||||||
| I | Total income from operations | 228,248 | **** | **** | 232,893 | **** | **** | 216,320 | **** | **** | 909,348 | **** |
| Expenses | ||||||||||||
| a) Purchases of<br>stock-in-trade | 978 | 361 | 2,487 | 6,494 | ||||||||
| b) Changes in inventories of finished goods and stock-in-trade | (182 | ) | 835 | (346 | ) | 150 | ||||||
| c) Employee benefits expense | 140,276 | 138,076 | 126,134 | 537,644 | ||||||||
| d) Depreciation, amortization and impairment expense | 7,380 | 8,466 | 7,738 | 33,402 | ||||||||
| e) Sub-contracting and technical fees | 26,385 | 28,176 | 29,454 | 115,247 | ||||||||
| f) Facility expenses | 3,452 | 3,693 | 3,299 | 13,492 | ||||||||
| g) Travel | 4,175 | 4,565 | 3,070 | 14,445 | ||||||||
| h) Communication | 1,249 | 1,405 | 1,543 | 5,911 | ||||||||
| i) Legal and professional fees | 2,251 | 2,856 | 3,893 | 13,288 | ||||||||
| j) Software license expense for internal use | 4,607 | 4,444 | 4,577 | 18,717 | ||||||||
| k) Marketing and brand building | 977 | 728 | 900 | 2,951 | ||||||||
| l) Lifetime expected credit loss/ (write-back) | 300 | (604 | ) | (22 | ) | (604 | ) | |||||
| m) Other expenses | 1,884 | 2,315 | 1,703 | 8,605 | ||||||||
| II | Total expenses | 193,732 | **** | **** | 195,316 | **** | **** | 184,430 | **** | **** | 769,742 | **** |
| III | Finance expenses | 3,086 | 2,860 | 2,045 | 10,077 | |||||||
| IV | Finance and other Income | 6,542 | 5,463 | 3,690 | 18,185 | |||||||
| V | Share of net profit/ (loss) of associates accounted for using the equity method | 3 | 4 | (15 | ) | (57 | ) | |||||
| VI | Profit before tax [I-II-III+IV+V] | 37,975 | **** | **** | 40,184 | **** | **** | 33,520 | **** | **** | 147,657 | **** |
| VII | Tax expense | 9,115 | 9,249 | 7,931 | 33,992 | |||||||
| VIII | Profit for the period [VI-VII] | 28,860 | **** | **** | 30,935 | **** | **** | 25,589 | **** | **** | 113,665 | **** |
| IX | Total other comprehensive income for the period | 2,850 | 720 | 1,739 | 11,095 | |||||||
| Total comprehensive income for the period [VIII+IX] | 31,710 | **** | **** | 31,655 | **** | **** | 27,328 | **** | **** | 124,760 | **** | |
| X | Profit for the period attributable to: | |||||||||||
| Equity holders of the Company | 28,701 | 30,745 | 25,636 | 113,500 | ||||||||
| Non-controlling interests | 159 | 190 | (47 | ) | 165 | |||||||
| 28,860 | **** | **** | 30,935 | **** | **** | 25,589 | **** | **** | 113,665 | **** | ||
| Total comprehensive income for the period attributable to: | ||||||||||||
| Equity holders of the Company | 31,640 | 31,463 | 27,351 | 124,543 | ||||||||
| Non-controlling interests | 70 | 192 | (23 | ) | 217 | |||||||
| 31,710 | **** | **** | 31,655 | **** | **** | 27,328 | **** | **** | 124,760 | **** | ||
| XI | Paid up equity share capital (Par value 2 per share) | 10,978 | 10,976 | 10,965 | 10,976 | |||||||
| XII | Reserves excluding revaluation reserves and Non-controlling interests as per balance sheet | 770,188 | ||||||||||
| XIII | Earnings per share (EPS) | |||||||||||
| (Equity shares of par value of 2/- each) | ||||||||||||
| (EPS for the three months ended periods is not annualized) | ||||||||||||
| Basic (in ) | 5.23 | 5.61 | 4.69 | 20.73 | ||||||||
| Diluted (in ) | 5.12 | 5.60 | 4.67 | 20.68 |
All values are in Indian Rupees.
| 1. | The audited consolidated financial results of the Company for the three months ended June 30, 2023, have<br>been approved by the Board of Directors of the Company at its meeting held on July 13, 2023. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued an audit report with unmodified opinion on the<br>consolidated financial results. |
|---|---|
| 2. | The above consolidated financial results have been prepared on the basis of the audited interim condensed<br>consolidated financial statements which are prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board<br>(“IASB”). All amounts included in the consolidated financial results (including notes) are reported in millions of Indian rupees (₹ in millions)<br>except share and per share data, unless otherwise stated. |
| --- | --- |
1
| 3. | Software license expense for internal use has been reclassified from Facility expenses to a separate nature of<br>expense for the three months ended June 30, 2022. Staff recruitment expense has been reclassified from Miscellaneous expenses to Legal and Professional fees for the three months ended June 30, 2022. | ||
|---|---|---|---|
| 4. | List of subsidiaries and investments accounted for using equity method as at June 30,2023 are provided in the table below: | ||
| --- | --- | ||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Attune Consulting India Private Limited | India | ||
| Capco Technologies Private Limited | India | ||
| Encore Theme Technologies Private Limited | India | ||
| Wipro Chengdu Limited | China | ||
| Wipro Holdings (UK) Limited | U.K. | ||
| Designit A/S | Denmark | ||
| Designit Denmark A/S | Denmark | ||
| Designit Germany GmbH | Germany | ||
| Designit Oslo A/S | Norway | ||
| Designit Spain Digital, S.L.U | Spain | ||
| Designit Sweden AB | Sweden | ||
| Designit T.L.V Ltd. | Israel | ||
| Wipro 4C NV | Belgium | ||
| Wipro 4C Consulting France SAS | France | ||
| Wipro 4C Danmark ApS | Denmark | ||
| Wipro 4C Nederland B.V | Netherlands | ||
| Wipro Weare4C UK Limited ^(1)^ | U.K. | ||
| Wipro Bahrain Limited Co. W.L.L | Bahrain | ||
| Wipro Financial Outsourcing Services Limited | U.K. | ||
| Wipro UK Limited | U.K. | ||
| Wipro Gulf LLC | Sultanate of | ||
| Oman | |||
| Wipro IT Services S.R.L. | Romania | ||
| Wipro HR Services India Private Limited | India | ||
| Wipro IT Services Bangladesh Limited | Bangladesh | ||
| Wipro IT Services UK Societas | U.K. | ||
| Grove Holdings 2 S.á.r.l | Luxembourg | ||
| Capco Solution Services GmbH | Germany | ||
| The Capital Markets Company Italy Srl | Italy | ||
| Capco Brasil Serviços E Consultoria Em | Brazil | ||
| Informática Ltda | |||
| The Capital Markets Company BV ^(1)^ | Belgium | ||
| PT. WT Indonesia | Indonesia | ||
| Rainbow Software LLC | Iraq | ||
| Wipro Arabia Limited ^(2)^ | Saudi Arabia | ||
| Women’s Business Park Technologies Limited ^(2)^ | Saudi Arabia | ||
| Wipro Doha LLC | Qatar | ||
| Wipro Holdings Hungary Korlátolt | Hungary | ||
| Felelősségű Társaság | |||
| Wipro Holdings Investment Korlátolt Felelősségű Társaság | Hungary | ||
| Wipro Information Technology Egypt SAE | Egypt |
2
| Wipro Information Technology Netherlands BV. | Netherlands | ||
|---|---|---|---|
| Wipro do Brasil Technologia Ltda ^(1)^ | Brazil | ||
| Wipro Information Technology Kazakhstan LLP | Kazakhstan | ||
| Wipro Outsourcing Services (Ireland) Limited | Ireland | ||
| Wipro Portugal S.A. ^(1)^ | Portugal | ||
| Wipro Solutions Canada Limited | Canada | ||
| Wipro Technologies Limited | Russia | ||
| Wipro Technologies Peru SAC | Peru | ||
| Wipro Technologies W.T. Sociedad Anonima | Costa Rica | ||
| Wipro Technology Chile SPA | Chile | ||
| Wipro IT Service Ukraine, LLC | U.K.raine | ||
| Wipro IT Services Poland SP Z.O.O | Poland | ||
| Wipro Technologies Australia Pty Ltd | Australia | ||
| Wipro Ampion Holdings Pty Ltd ^(1)^ | Australia | ||
| Wipro Technologies SA | Argentina | ||
| Wipro Technologies SA DE CV | Mexico | ||
| Wipro Technologies South Africa (Proprietary) Limited | South Africa | ||
| Wipro Technologies Nigeria Limited | Nigeria | ||
| Wipro Technologies SRL | Romania | ||
| Wipro (Thailand) Co. Limited | Thailand | ||
| Wipro Japan KK | Japan | ||
| Designit Tokyo Co., Ltd. | Japan | ||
| Wipro Networks Pte Limited | Singapore | ||
| Wipro (Dalian) Limited | China | ||
| Wipro Technologies SDN BHD | Malaysia | ||
| Wipro Overseas IT Services Private Limited | India | ||
| Wipro Philippines, Inc. | Philippines | ||
| Wipro Shanghai Limited | China | ||
| Wipro Trademarks Holding Limited | India | ||
| Wipro Travel Services Limited | India | ||
| Wipro VLSI Design Services India Private Limited | India | ||
| Wipro, LLC | USA | ||
| Wipro Gallagher Solutions, LLC | USA | ||
| Wipro Insurance Solutions, LLC | USA | ||
| Wipro IT Services, LLC | USA | ||
| Cardinal US Holdings, Inc.^(1)^ | USA | ||
| Convergence Acceleration Solutions, LLC | USA | ||
| Designit North America, Inc. | USA | ||
| Edgile, LLC | USA | ||
| HealthPlan Services, Inc. ^(1)^ | USA | ||
| Infocrossing, LLC | USA | ||
| International TechneGroup<br> <br>Incorporated ^(1)^ | USA | ||
| LeanSwift Solutions, Inc.^(1)^ | USA | ||
| Rizing Intermediate Holdings, Inc. ^(1)^ | USA | ||
| Wipro Appirio, Inc. ^(1)^ | USA | ||
| Wipro Designit Services, Inc. ^(1)^ | USA | ||
| Wipro VLSI Design Services, LLC | USA |
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD’ incorporated in South Africa and Wipro Foundation in India.
| ^(2)^ | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the<br>equity securities of Wipro Arabia Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Limited. |
|---|
3
| ^(1)^ | Step Subsidiary details of Cardinal US Holdings, Inc., HealthPlan Services, Inc., International TechneGroup<br>Incorporated, LeanSwift Solutions, Inc., Rizing Intermediate Holdings, Inc., The Capital Markets Company BV, Wipro Ampion Holdings Pty Ltd, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro do Brasil Technologia Ltda, Wipro Portugal S.A. and<br>Wipro Weare4C UK Limited are as follows: | ||
|---|---|---|---|
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Cardinal US Holdings, Inc. | USA | ||
| ATOM Solutions LLC | USA | ||
| Capco Consulting Services LLC | USA | ||
| Capco RISC Consulting LLC | USA | ||
| The Capital Markets Company LLC | USA | ||
| HealthPlan Services, Inc. | USA | ||
| HealthPlan Services Insurance Agency, LLC | USA | ||
| International TechneGroup Incorporated | USA | ||
| International TechneGroup Ltd. | U.K. | ||
| ITI Proficiency Ltd | Israel | ||
| MechWorks S.R.L. | Italy | ||
| LeanSwift Solutions, Inc. | USA | ||
| LeanSwift AB | Sweden | ||
| Rizing Intermediate Holdings, Inc. | USA | ||
| Rizing Lanka (Pvt) Ltd | Sri Lanka | ||
| Attune Netherlands B.V. ^(3)^ | Netherlands | ||
| Rizing Solutions Canada Inc. | Canada | ||
| Rizing LLC | USA | ||
| Aasonn Philippines Inc. | Philippines | ||
| Rizing B.V. | Netherlands | ||
| Rizing Consulting Ireland Limited | Ireland | ||
| Rizing Consulting Pty Ltd. | Australia | ||
| Rizing Geospatial LLC | USA | ||
| Rizing GmbH | Germany | ||
| Rizing Limited | U.K. | ||
| Rizing Middle East DMCC | United Arab | ||
| Emirates | |||
| Rizing Pte Ltd. ^(3)^ | Singapore | ||
| Vesta Middle East FZE | United Arab | ||
| Emirates | |||
| The Capital Markets Company BV | Belgium | ||
| CapAfric Consulting (Pty) Ltd | South Africa | ||
| Capco Belgium BV | Belgium | ||
| Capco Consultancy (Malaysia) Sdn. | Malaysia | ||
| Bhd | |||
| Capco Consultancy (Thailand) Ltd | Thailand | ||
| Capco Consulting Singapore Pte. Ltd | Singapore | ||
| Capco Greece Single Member P.C | Greece | ||
| Capco Poland sp. z.o.o | Poland | ||
| The Capital Markets Company (UK) Ltd | U.K. | ||
| Capco (UK) 1, Limited | U.K. | ||
| The Capital Markets Company BV | Netherlands | ||
| The Capital Markets Company GmbH | Germany | ||
| Capco Austria GmbH | Austria | ||
| The Capital Markets Company Limited | Hong Kong | ||
| Capco Consulting Services (Guangzhou) Company Limited | China | ||
| The Capital Markets Company Limited | Canada | ||
| The Capital Markets Company S.á.r.l | Switzerland | ||
| Andrion AG | Switzerland | ||
| The Capital Markets Company S.A.S | France | ||
| The Capital Markets Company s.r.o | Slovakia |
4
| Wipro Ampion Holdings Pty Ltd | Australia | ||
|---|---|---|---|
| Wipro Ampion Pty Ltd | Australia | ||
| Wipro Iris Holdco Pty Ltd ^(3)^ | Australia | ||
| Wipro Revolution IT Pty Ltd | Australia | ||
| Crowdsprint Pty Ltd | Australia | ||
| Wipro Shelde Australia Pty Ltd | Australia | ||
| Wipro Appirio, Inc. | USA | ||
| Wipro Appirio (Ireland) Limited | Ireland | ||
| Wipro Appirio UK Limited | U.K. | ||
| Wipro Appirio, K.K. | Japan | ||
| Topcoder, LLC. | USA | ||
| Wipro Designit Services, Inc. | USA | ||
| Wipro Designit Services Limited | Ireland | ||
| Wipro do Brasil Technologia Ltda | Brazil | ||
| Wipro do Brasil Servicos Ltda | Brazil | ||
| Wipro Do Brasil Sistemetas De Informatica Ltda | Brazil | ||
| Wipro Portugal S.A. | Portugal | ||
| Wipro Technologies GmbH | Germany | ||
| Wipro Business Solutions GmbH ^(3)^ | Germany | ||
| Wipro IT Services Austria GmbH | Austria | ||
| Wipro Weare4C UK Limited | U.K. | ||
| CloudSocius DMCC | United Arab | ||
| Emirates | |||
| ^(3)^ | Step Subsidiary details of Attune Netherlands B.V., Rizing Pte Ltd., Wipro Business Solutions GmbH and Wipro<br>Iris Holdco Pty Ltd are as follows: | ||
| --- | --- | ||
| Subsidiaries | Subsidiaries | Subsidiaries | Country ofIncorporation |
| --- | --- | --- | --- |
| Attune Netherlands B.V. | Netherlands | ||
| Attune Australia Pty Ltd | Australia | ||
| Rizing Consulting USA, Inc. | USA | ||
| Rizing Germany GmbH | Germany | ||
| Attune Italia S.R.L | Italy | ||
| Rizing Management LLC | USA | ||
| Attune UK Ltd. | U.K. | ||
| Rizing Pte Ltd. | Singapore | ||
| Rizing New Zealand Ltd. | New Zealand | ||
| Rizing Philippines Inc. | Philippines | ||
| Rizing SDN BHD | Malaysia | ||
| Rizing Solutions Pty Ltd | Australia | ||
| Synchrony Global SDN BHD | Malaysia | ||
| Wipro Business Solutions GmbH | Germany | ||
| Wipro Technology Solutions S.R.L | Romania | ||
| Wipro Iris Holdco Pty Ltd | Australia | ||
| Wipro Iris Bidco Pty Ltd | Australia |
As at June 30, 2023, the Company held 43.7% interest in Drivestream Inc., accounted for using the equity method.
The list of controlled trusts and firms are:
| Name of the entity | Country of incorporation |
|---|---|
| Wipro Equity Reward Trust | India |
| Wipro Foundation | India |
5
| 5. | Segment Information |
|---|
Effective April 1, 2023, the Company has reorganized its segments by merging India State Run Enterprises (“ISRE”) segment as part of its APMEA SMU within IT Services segment. Comparative period segment information has been restated to give effect to this change.
The Company is now organized into the following operating segments: IT Services and IT Products.
IT Services: The IT services segment primarily consists of IT services offerings to customers organized by four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East and Africa (“APMEA”). Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America: healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms. Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: banking, financial services and insurance, manufacturing, hi-tech, energy and utilities. Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Benelux, the Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.
Revenue from each customer is attributed to the respective SMUs based on the location of the customer’s primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customer’s buying centers, but the total revenue related to these strategic global customers are attributed to a single SMU based on the geographical location of key decision makers.
Our IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design.
IT Products: The Company is a value-added reseller of security, packaged and SaaS software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to these items is reported as revenue from the sale of IT Products.
The Chief Executive Officer (“CEO”) and Managing Director of the Company has been identified as the Chief Operating Decision Maker as defined by IFRS 8, “Operating Segments”. The CEO of the Company evaluates the segments based on their revenue growth and operating income.
Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
6
Information on reportable segments for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, year ended March 31, 2023 are as follows: ****
| Three months ended | Year ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | June 30,2023 | March 31,2023 | June 30,2022 | March 31,2023 | ||||||||
| Audited | Audited | Audited | Audited | |||||||||
| Segment revenue | ||||||||||||
| IT Services | ||||||||||||
| Americas 1 | 65,607 | 66,430 | 61,702 | 261,270 | ||||||||
| Americas 2 | 68,303 | 70,563 | 66,613 | 278,374 | ||||||||
| Europe | 67,134 | 67,562 | 60,276 | 256,845 | ||||||||
| APMEA | 26,510 | 27,207 | 25,783 | 106,812 | ||||||||
| Total of IT Services | **** | 227,554 | **** | **** | 231,762 | **** | **** | 214,374 | **** | **** | 903,301 | **** |
| IT Products | 694 | 1,131 | 1,946 | 6,047 | ||||||||
| Total segment revenue | **** | 228,248 | **** | **** | 232,893 | **** | **** | 216,320 | **** | **** | 909,348 | **** |
| Segment result | ||||||||||||
| IT Services | ||||||||||||
| Americas 1 | 13,537 | 13,445 | 11,570 | 51,555 | ||||||||
| Americas 2 | 14,169 | 15,940 | 13,224 | 59,689 | ||||||||
| Europe | 9,968 | 11,024 | 7,986 | 37,667 | ||||||||
| APMEA | 2,800 | 3,030 | 2,069 | 10,681 | ||||||||
| Unallocated | (3,957 | ) | (5,773 | ) | (2,844 | ) | (18,368 | ) | ||||
| Total of IT Services | **** | 36,517 | **** | **** | 37,666 | **** | **** | 32,005 | **** | **** | 141,224 | **** |
| IT Products | (161 | ) | (59 | ) | (55 | ) | (176 | ) | ||||
| Reconciling Items | (1,840 | ) | (30 | ) | (60 | ) | (1,442 | ) | ||||
| Total segment result | **** | 34,516 | **** | **** | 37,577 | **** | **** | 31,890 | **** | **** | 139,606 | **** |
| Finance expenses | (3,086 | ) | (2,860 | ) | (2,045 | ) | (10,077 | ) | ||||
| Finance and Other Income | 6,542 | 5,463 | 3,690 | 18,185 | ||||||||
| Share of net profit/ (loss) of associates accounted for using the equity method | 3 | 4 | (15 | ) | (57 | ) | ||||||
| Profit before tax | **** | 37,975 | **** | **** | 40,184 | **** | **** | 33,520 | **** | **** | 147,657 | **** |
Notes:
| a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate<br>activities. |
|---|---|
| b) | Revenue from sale of Company owned intellectual properties is reported as part of IT Services revenues.<br> |
| --- | --- |
| c) | For the purpose of segment reporting, the Company has included the net impact of foreign exchange in revenues<br>amounting to ₹ (62), ₹ 990 and ₹ 1,034 for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022 respectively and<br>₹ 4,472 for the year ended March 31, 2023, which is reported under foreign exchange gains/(losses), net in the consolidated financial results.<br> |
| --- | --- |
| d) | Restructuring cost of<br>₹ 1,887, ₹ (34) and ₹ Nil is included under Reconciling items for the three months ended June 30, 2023, March 31, 2023 and June 30, 2022, respectively and ₹ 1,355 for the year ended March 31, 2023. |
| --- | --- |
| e) | Effective April 1, 2023, amortization and impairment of intangibles assets arising from business<br>combination and change in fair value of contingent consideration is included under “Unallocated” within IT Services segment. Comparative period has been restated to give effect to these changes. Accordingly, for the three months ended<br>June 30, 2023, March 31, 2023, and June 30, 2022 and year ended March 31, 2023, ₹ 1,810, ₹ 2,607, ₹ 1,893 and<br>₹ 9,954 towards amortization and impairment of intangible assets, respectively, and for the three months ended June 30, 2023, March 31, 2023, and<br>June 30, 2022 and year ended March 31, 2023, ₹ (16), ₹ (387), ₹ (86) and ₹ (1,671) towards change in fair value of contingent consideration,<br>respectively, is included under “Unallocated” within IT Services segment. |
| --- | --- |
| f) | Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 1,544, ₹ 297 and<br>₹ 1,445 for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022 respectively and ₹ 3,958 for the year ended March 31, 2023. |
| --- | --- |
7
| 6. | Buyback of equity shares |
|---|
On April 27, 2023, the Board of Directors approved a proposal to Buyback up to 269,662,921 fully paid-up equity shares of ₹ 2 each (representing up to 4.91% of the number of equity shares in the paid-up equity share capital as at March 31, 2023) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of ₹ 445 per equity share for an aggregate amount not exceeding ₹ 120,000 (“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, by way of a special resolution, through a postal ballot.
In accordance with the provisions of the Buyback Regulations, the Letter of offer for the Buyback was filed with SEBI on June 20, 2023, and tender period for Buyback opened on June 22, 2023, and closed on June 30, 2023. The settlement of all valid bids was completed on July 4, 2023, and the equity shares bought back were extinguished on July 7, 2023. Pursuant to the issuance of Letter of Offer, the Company has recorded a liability towards Buyback of equity shares of ₹ 120,000 and the corresponding liability for tax on Buyback of ₹ 24,978 as at June 30, 2023.
| By order of the Board, | For, Wipro Limited |
|---|---|
| Place: Bengaluru | Rishad A. Premji |
| Date: July 13, 2023 | Chairman |
8
EX-99.5
Exhibit 99.5
Wipro Limited Highlights for the Quarter ended June 30, 2023 REVENUE QoQ Constant YoY Constant Operating $2.78 Bn Currency Currency Margin -2.8% 1.1% 16.0% STRATEGIC MARKET UNITS MIX 28.8% AMERICAS 1 30.0% AMERICAS 2 29.5% EUROPE 11.7% APMEA SECTOR MIX 33.9% 18.7% 12.2% 12.0% 11.3% 7.3% 4.6% Banking, Energy, Financial Consumer Health Technology Manufacturing Communication Natural Services Resources & Insurance and Utilities TOTAL BOOKINGS LARGE DEALS TCV 3% YoY Constant 9% YoY Constant BOOKINGS $3.7 Bn $1.2 Bn Currency Currency OUTLOOK Revenue from our IT Services business segment to be in the range of $2,722 million to $2,805 million*. This translates to a sequential guidance of -2.0% to +1.0% in constant currency terms. for the Quarter ending September 30, 2023 * Outlook for the Quarter ending September 30, 2023, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.10, AUD/USD at 0.67, USD/INR at 82.34 and CAD/USD at 0.76 CUSTOMER CONCENTRATION TOP1 3.1% 12.5% TOP 10 20.5% TOP 5 TOTAL HEADCOUNT 249,758 ATTRITION VOL – TTM 17.3% NET UTILIZATION 83.7% OFFSHORE REVENUE 59.5% EXCLUDING TRAINEES PERCENTAGE OF SERVICES P age 1
Wipro Limited Results for the Quarter ended June 30, 2023 FY 23 – 24 FY 22 – 23 FY 21 – 22 A IT Services Q1 FY Q4 Q3 Q2 Q1 FY IT Services Revenues ($Mn) 2,778.5 11,234.4 2,839.5 2,821.4 2,817.4 2,756.1 10,454.1 Sequential Growth -2.1% 7.5% 0.6% 0.1% 2.2% 0.3% 26.6% Sequential Growth in Constant Currency Note 2 -2.8% 11.2% -0.7% 0.6% 4.1% 1.9% 26.2% Operating Margin % Note 3 16.0% 15.6% 16.3% 16.2% 15.1% 14.9% 17.7% Strategic Market Units Mix Americas 1 28.8% 28.8% 28.5% 29.1% 28.8% 28.7% 27.6% Americas 2 30.0% 30.8% 30.5% 30.6% 31.1% 31.1% 30.3% Europe 29.5% 28.6% 29.3% 28.8% 28.0% 28.2% 29.6% APMEA 11.7% 11.8% 11.7% 11.5% 12.1% 12.0% 12.5% Sectors Mix Banking, Financial Services and Insurance 33.9% 35.0% 34.4% 35.0% 35.3% 35.5% 34.9% Consumer 18.7% 18.9% 18.9% 19.0% 19.0% 18.6% 17.7% Health 12.2% 11.7% 12.1% 11.9% 11.4% 11.4% 11.6% Energy, Natural Resources and Utilities 12.0% 11.5% 12.2% 11.4% 11.2% 11.1% 12.1% Technology 11.3% 11.3% 10.9% 11.2% 11.5% 11.7% 11.9% Manufacturing 7.3% 6.9% 7.0% 6.9% 6.9% 6.7% 6.8% Communications 4.6% 4.7% 4.5% 4.6% 4.8% 4.9% 4.9% Total Bookings TCV ($Mn) Note 4 3,724 — 4,172 4,333 — — —Large deal TCV ($Mn) Note 5 1,198 3,897 1,083 978 713 1,123 2,340 Guidance ($Mn) Note 1 2,753-2,811 — 2,785-2,831 2,811-2,853 2,817-2,872 2,748-2,803 — Guidance restated based on 2,773-2,831 — 2,823-2,869 2,799-2,841 2,766-2,821 2,704-2,759 —actual currency realized ($Mn) Revenues performance against guidance ($Mn) 2,779 — 2,823 2,803 2,798 2,736 — P age 2 Public
FY 23 – 24 FY 22 – 23 FY 21 – 22 Q1 FY Q4 Q3 Q2 Q1 FY Customer size distribution (TTM) > $100Mn 21 19 19 19 19 20 19 > $75Mn 28 29 29 29 29 30 29 > $50Mn 51 53 53 52 52 50 50 > $20Mn 123 117 117 119 122 120 117 > $10Mn 207 210 210 204 199 196 195 > $5Mn 319 315 315 312 314 313 304 > $3Mn 444 436 436 440 434 427 418 > $1Mn 769 766 766 755 745 719 696 Revenue from Existing customers % 99.6% 97.4% 96.6% 96.9% 97.4% 98.7% 95.3% Number of new customers 65 437 63 82 128 164 429 Total Number of active customers 1,444 1,479 1,479 1,530 1,514 1,475 1,415 Customer Concentration Top customer 3.1% 3.2% 3.2% 3.2% 3.2% 3.2% 3.1% Top 5 12.5% 12.9% 12.5% 13.3% 13.0% 12.9% 12.4% Top 10 20.5% 20.7% 20.2% 21.2% 20.8% 20.8% 19.9% % of Revenue USD 59% 61% 60% 62% 61% 61% 59% GBP 11% 10% 11% 10% 10% 10% 11% EUR 11% 10% 11% 9% 9% 9% 10% INR 5% 5% 5% 5% 5% 5% 6% AUD 4% 4% 4% 4% 5% 5% 5% CAD 3% 3% 3% 3% 3% 3% 3% Others 7% 7% 6% 7% 7% 7% 6% Closing Employee Count 249,758 258,570 258,570 262,109 262,626 262,049 246,743 Sales & Support Staff (IT Services) 16,942 16,999 16,999 17,089 16,664 17,831 17,716 Utilization Note 1 & 6 Net Utilization (Excluding Trainees) 83.7% 81.2% 81.7% 79.7% 79.8% 83.8% 86.8% Attrition Voluntary TTM (IT Services excl. DOP) 17.3% 19.4% 19.4% 21.2% 22.9% 23.0% 23.3% DOP % — Post Training Quarterly 9.2% 9.9% 9.0% 8.7% 10.3% 11.4% 9.0% P age 3
FY 23 – 24 FY 22 – 23 FY 21 – 22 Q1 FY Q4 Q3 Q2 Q1 FY Revenue Mix Note 6 Revenue from FPP 59.7% 59.4% 59.6% 59.4% 58.7% 59.9% 62.9% Offshore Revenue — % of Services 59.5% 59.3% 59.9% 59.2% 59.1% 58.9% 56.5% B Growth Metrics for the Quarter ended June 30, 2023 Note 2 Q1’24 Q1’24 Q1’24 Q1’24 Reported Reported CC CC QoQ% YoY% QoQ% YoY% IT Services -2.1% 0.8% -2.8% 1.1% Strategic Market Units Americas 1 -1.0% 1.2% -1.1% 1.5% Americas 2 -3.7% -2.8% -4.2% -2.7% Europe -1.5% 5.5% -3.4% 4.1% APMEA -2.5% -1.8% -1.9% 3.1% Sectors Banking, Financial Services and Insurance -3.5% -3.8% -4.3% -3.4% Consumer -3.1% 1.2% -3.5% 1.5% Health -1.0% 8.4% -1.3% 8.5% Energy, Natural Resources and Utilities -3.6% 9.7% -4.9% 9.9% Technology 0.9% -3.0% 0.1% -3.2% Manufacturing 1.4% 8.5% 0.9% 8.7% Communications 0.1% -6.5% -0.5% -4.8% C Annexure to Datasheet Segment-wise breakup of Q1 FY23-24 (INR Mn) Cost of Revenues, S&M and G&A Reconciling Particulars IT Services IT Products Total Items Cost of revenues 158,986 844 1,431 161,261 Selling and marketing expenses 16,150 15 419 16,584 General and administrative expenses 15,901 (4) (10) 15,887 Total 191,037 855 1,840 193,732 Note 1: Guidance and Utilization numbers for the previous quarters have not been restated to include India State Run Enterprise (ISRE) business. All other numbers for the previous quarters have been restated to include ISRE business Note 2: Constant currency (CC) 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 Note 4: Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and changes to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2 Note 5: Large deal bookings constitute of deals greater than or equal to $30 million in total contract value terms Note 6: IT Services excluding DOP, Info crossing, Designit, Topcoder, Rational, ITI, Capco, Ampion, Edgile, LeaSwift, CAS and Rizing Page 4