Wipro Limited · NSE:WIPRO
Wipro — Q4 FY2020 Earnings Presentation
27 slides from Wipro's earnings presentation, Apr 15, 2020
Slide 1: Press Release cover letter to exchanges
• ••••• •••••• • • ••••••• ' ro:>1\: wip.. . ....•• - • • ••••••• • •••••• ••••• April 15, 2020 The Manager- Listing National Stock Exchange of India Limited (NSE: WIPRO) The Manager- Listing BSE Limited (BSE: 507685) The Market Operations NYSE, New York (NYSE:WIT) Dear Sir/Madam, Sub: Press Release
Slide 2: Results for the Quarter and Year ended March 31, 2020 under IFRS
FOR IMMEDIATE RELEASE Results for the Quarter and Year ended March 31, 2020 under IFRS IT Services Revenues2&3 in Constant Currency grew by 3.9% for the year EPS for the year grew at 11.2% YOY Bangalore, India and East Brunswick, New Jersey, USA – April 15, 2020 - Wipro Limited (NYSE: WIT, BSE: 5076
Slide 3: COVID-19 impact and IT Services deal wins
We estimate that the IT Services Revenues for the quarter ended March 31, 2020 were negatively impacted by COVID-19 by approximately $14 -$16 million5(0.7%-0.8% of revenues). Due to the uncertainty around the course of the COVID-19 pandemic, we do not have visibility into the extent to which it will
Slide 4: Client examples and analyst recognition
Even amidst the operational issues posed by the pandemic, we were able to help our client, a clothing retailer in South Africa, successfully go-live with a large Oracle retail implementation. This is an example of a 100% ‘remote’ cutover, and has enabled the client to optimize its operations signi
Slide 5: Non-GAAP financial measures note
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
Slide 6: Forward-looking statements and risk factors
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 dema
Slide 7: Interim Condensed Consolidated Statement of Financial Position
WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (₹ in millions, except share and per share data, unless otherwise stated) As at March 31, 2019 As at March 31, 2020 Convenience translation into US dollar in millions Refer footnote 1 in page 1 ASSETS Goodw
Slide 8: Interim Condensed Consolidated Statement of Income
WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME (₹ in millions, except share and per share data, unless otherwise stated) Three months ended March 31, Year ended March 31, 2019 2020 2020 2019 2020 2020 Convenience Convenience translation into US translation into US
Slide 9: Additional Information: Segment revenue and results
Additional Information: Three months ended Year ended December 31, Particulars March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 2019 Audited Audited Audited Audited Audited Revenue IT Services BFSI 46,690 46,612 46,043 184,457 175,262 Health BU 20,589 19,799 19,288 78,240 75,081 CBU 25,66
Slide 10: Operating segments description
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE). IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. The industry verticals are as follows:
Slide 11: Operating Metrics Pertaining to IT Services Segment
Wipro Limited Results for the Quarter and Year ended March 31, 2020 Operating Metrics Pertaining to IT Services Segment A. IT Services FY 19-20 FY 18-19 FY Q4 Q3 Q2 Q1 FY Q4 IT services Revenues ($Mn) 8,256.2 2,073.7 2,094.8 2,048.9 2,038.8 8,120.3 2,075.5 Revenue & OM % Sequential Growth Note 1 2.5
Slide 12: Employee Metrics and Currency Mix
FY 19-20 FY 18-19 FY Q4 Q3 Q2 Q1 FY Q4 % of Revenue USD 63% 62% 63% 63% 62% 61% 62% Currency Mix GBP 10% 10% 10% 9% 10% 10% 10% EUR 8% 8% 8% 8% 9% 9% 9% INR 4% 5% 4% 4% 4% 5% 4% AUD 5% 4% 4% 5% 5% 5% 5% CAD 3% 3% 3% 3% 3% 3% 3% Others 7% 8% 8% 8% 7% 7% 7% Closing Employee Count 182,886 182,886 187,3
Slide 13: Performance for the Quarter & Year ended March 31, 2020
Performance for the Quarter & Year ended March 31, 2020 Jatin Dalal Chief Financial Officer Wipro Limited Public
Slide 14: Revenue growth- QoQ/ YoY (IT Services)
Revenue growth- QoQ/ YoY IT Services $ Revenue Mn Q4’20 FY’19 to FY’20 1. QoQ & YoY* growth on Constant Currency basis is 0.4% & 2.6% 1. YoY* growth on Constant Currency basis is 3.9% 2. Reported YoY growth after adjustment of divestments is 0.4% 2. Reported YoY growth after adjustment of divestment
Slide 15: Revenue growth- QoQ/ YoY (Gross Revenue)
Revenue growth- QoQ/ YoY Q4’20 Gross Revenue in INR Mn FY’19 to FY’20 Public © 3
Slide 16: Operating Margin- QoQ/ YoY
Operating Margin- QoQ/ YoY Q4’20 IT Services Operating Margin FY’19 to FY’20 Public © 4
Slide 17: Operating Profit- QoQ/ YoY
Operating Profit- QoQ/ YoY Operating Profit (Wipro Ltd.) in INR Mn Q4’20 FY’19 to FY’20 Public © 5
Slide 18: Net Income- QoQ/ YoY
Net Income- QoQ/ YoY Q4’20 Net Income in INR Mn FY’19 to FY’20 Note: • The Effective Tax Rate for Q4’20 was 20.9% vs 20.0% in Q3’20 and 22.1% in Q4’19. For FY’20, ETR was 20.2% vs 21.9% in FY’19 Public © 6
Slide 19: Earnings per share- QoQ/ YoY
Earnings per share- QoQ/ YoY Earnings per share in INR Q4’20 FY’19 to FY’20 Public © 7
Slide 20: Cash Flow Metrics- Operating Cash Flow
Cash Flow Metrics- QoQ/ YoY Operating Cash flow in INR Mn Q4’20 FY’19 to FY’20 Operating Cash Flow is at 60.5% of Net Income Operating Cash Flow is at 103.5% of Net Income Public © 8
Slide 21: Cash Flow Metrics- Free Cash Flow
Cash Flow Metrics- QoQ/ YoY Free Cash flow in INR Mn* Q4’20 FY’19 to FY’20 Free Cash Flow is at 37.3% of Net Income Free Cash Flow is at 80.7% of Net Income * Note on the Non-GAAP measures walk has been provided in the annexure Public © 9
Slide 22: Other highlights
Other highlights 1. EPS grew double digit by 11.2% YoY for the year 2. Added 5 accounts to the >$100mn+ bucket YoY 3. Voluntary Attrition on LTM basis has reduced to 14.7% 4. FPP mix at 63.2% for Q4’20 5. Offshore mix is at 48.2% for Q4’20 6. Digital is now at 41.2% of our revenue in Q4’20 Public ©
Slide 23: Outlook for quarter ending June 30, 2020
Outlook for quarter ending June 30, 2020 Due to the uncertainty around the course of the COVID-19 pandemic, we do not have visibility into the extent to which it will disrupt our operations, and we have decided to not provide revenue guidance for the quarter ending June 30, 2020. We anticipate that
Slide 24: Thank You
Thank You Public
Slide 25: Reconciliation of selected GAAP measures to Non-GAAP measures
Reconciliation of selected GAAP measures to Non-GAAP measures Reconciliation of gross cash as of March 31, 2020 Wipro Ltd and subsidiaries ( Amount in INR Crores) Computation of Gross Cash Cash & Cash Equivalents 14,449.9 Investments - Current 18,963.5 Total 33,413.4 Reconciliation of free cash flow
Slide 26: Reconciliation of selected GAAP measures to Non-GAAP measures
Reconciliation of selected GAAP measures to Non-GAAP measures Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN): Three Months ended March 31, 2020 IT Services Revenue as per IFRS $ 2,073.7 Effect of Foreign currency exchange movement $ 30.5 Non
Slide 27: Reconciliation of selected GAAP measures to Non-GAAP measures
Reconciliation of selected GAAP measures to Non-GAAP measures Reconciliation of Non-GAAP Adjusted IT Services Revenue to IT Services Revenue as per IFRS ($MN) Three Months ended March 31, 2019 IT Services Revenue as per IFRS $ 2,075.5 Effect of divestments $ (9.3) Adjusted IT Services Revenue $ 2,06