Wipro Ltd Q4FY22 Results Update

On 29th April 2022, Wipro Ltd announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22 Performance updates:

- The gross revenue was ₹208.6 billion with a growth of 28.4% YoY  

- IT Services Segment Revenue was at $2,721.7 million, an increase of 3.1% QoQ and 26.4% YoY  

- Non-GAAP constant currency IT Services segment revenue increased by 3.1% QoQ and 28.5% YoY  

- IT Services Operating Margin for the quarter was at 17.0%, a decrease of 60 bps QoQ  

- Net Income for Q4FY22 was ₹30.9 billion with a growth of 4.0% QoQ and 3.9% YoY  

- Earnings Per Share for the quarter was at ₹5.64, an increase of 4.6% YoY

- Operating Cash Flow was at ₹23.3 billion ($307.3 million1), which is 75.5% of Net Income 

FY22 Annual Financial Performance:

- For FY22, the gross revenue was ₹790.9 billion with a growth of 27.7% YoY

- IT Services Segment Revenue was at $10,355.9 million, an increase of 27.3% YoY 

- Non-GAAP constant currency IT Services Segment Revenue increased by 26.9% YoY  

- IT Services Operating Margin for the year was at 17.7% saw a decrease of 254 bps YoY  

- Net Income for the year was ₹122.2 billion ($1,610.5 million), saw a growth of 13.2% YoY  

- Earnings Per Share for the year was at ₹22.35 saw an increase of 17.0% YoY  

- Operating Cash Flow was at ₹110.8 which is 90.7% of Net Income  

- The company’s strength of employees for IT Services was at 243,128 with an increase of 45,416 employees on a YoY

Outlook for the quarter ending June 30, 2022:

Wipro Ltd expects Revenue from its IT Services business to be in the range of $2,748 million to $2,803 million.
 

IT Services Highlights:

- A US-based global healthcare company will leverage Wipro FullStride Cloud Services to engineer products for cloud and digital technologies based on a Product Oriented Delivery (POD) model.  

- A US-based multinational technology company has renewed its existing contract to curate geospatial information that will enable the customer with evaluations and recommendations on map modeling processes.  

- A leading US-based global benefits and payroll administration company has awarded Wipro a transformational business process services contract to optimize costs in health & wealth benefits and customer care. 

-  A multinational telecommunications network company, headquartered in the Nordics, has awarded Wipro a contract to drive the transformation and digitalization of business processes that enhance customer value through high-quality service delivery.  

- A leading Europe-based provider of transport solutions has partnered with Wipro to transform its digital workplace, supporting the shift towards sustainable transport solutions.

Digital Services Highlights:

- A leading global cosmetics company has selected Wipro to rollout their SAP S/4HANA in a region that will drive their business growth. 

- A leading Asia-based multinational automotive electronics supplier has selected Wipro to develop the engineering blueprint for their next-generation software-defined vehicle platform using Wipro’s Cloud Car architecture.  

- Designit by Wipro has been selected by a multinational technology conglomerate to design a digital onboarding experience and support the hybrid working needs of employees of a large company in the mobility sector.  

- A Smart City based in the Middle East has selected Wipro to build a secure, reliable on-demand 5G network using autonomous drones for the high-bandwidth requirements of residents, businesses, and visitors.  

- A Europe-based financial services company has renewed is its Data Center and cloud infrastructure management contract with Wipro to support its transformation to a Hybrid Cloud model.  

- A government body based in the Middle East has selected Wipro as the digital partner to build a data-led AI marketplace that will bring the local talent, government, and private sector together.

- Wipro is engaged as the primary partner to design and develop hardware for a series of RUs (radio units) to enable end-to-end O-RAN 5G solution deployment for service provider customers with one of the leading US-based telecommunications networking providers.

The interim dividend of ₹1 and ₹5 declared by the Board at its meetings held on January 14th and March 25th, 2022 shall be considered as the final dividend for the financial year 2021-22. 

Thierry Delaporte, CEO and Managing Director said, “We have had an outstanding year, finishing with $10.4 Bn in revenues, and an industry-leading growth of 27% year on year. This is our sixth straight quarter of strong revenue growth at or over 3%. We are excited with the addition of Rizing and the CAS Group to Wipro’s service offerings. With all markets, sectors, and Global Business Lines now growing in the double-digits year on year, we have a strong foundation for next year’s growth.” 

Jatin Dalal, Chief Financial Officer said, “Our efforts on client mining have resulted in an addition of eight customers in more than $100 Mn bucket on YoY basis. We delivered operating margins of 17.7% for the year, after significant investments on solutions, capabilities, and talent. Net Income for the year was highest ever at $1.6 Bn and delivered robust growth in EPS of 17.0% YoY.”

On Monday, Wipro’s share price declined by 3.01 percent.