EX-99.5 6 d500020dex995.htm EX-99.5

EX-99.5

Exhibit 99.5

WIPRO LIMITED

CIN: L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore - 560035, India

Website: www.wipro.com ; Email id – info@wipro.com ; Tel: +91-80-2844 0011 ; Fax: +91-80-2844 0054

STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2017 UNDER IFRS (IASB)

(₹ in millions, except share and per share data, unless otherwise stated)

		Particulars		Three months ended												Nine months ended								Year ended
				December 31,2017				September 30,2017				December 31,2016				December 31,2017				December 31,2016				March 31, 2017
1		Income from operations
		a) Net Sales/Income			136,690				134,234				136,878				407,185				410,527				550,402
		b) Other operating income			—				—				—				—				—				4,082
		c)Foreign exchange gains/(losses),net			125				453				767				931				3,032				3,777
		Total income from operations			136,815				134,687				137,645				408,116				413,559				558,261
2		Expenses
		a) Purchase of stock-in-trade			3,883				2,939				6,393				13,128				20,179				25,560
		b) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process			719				(30	)			(414	)			1,144				(235	)			1,411
		c) Employee benefit expense			67,409				67,612				66,052				202,463				199,334				268,081
		d) Depreciation,amortisation and impairment			5,279				5,200				5,412				15,422				14,926				23,107
		e) Sub contracting/technical fees			21,543				21,503				21,224				63,293				61,503				82,747
		f) Other expenses			18,207				14,422				15,745				47,757				48,801				63,476
		Total expenses			117,040				111,646				114,412				343,207				344,508				464,382
3		Finance expenses			1,205				1,386				1,366				4,065				4,130				5,183
4		Finance and Other Income			6,134				6,661				5,719				18,995				16,024				21,660
5		Share of profits/(loss) of equity accounted investees			10				5				—				14				—				—
6		Profit before tax [1-2-3+4+5]			24,714				28,321				27,586				79,853				80,945				110,356
7		Tax expense			5,355				6,426				6,440				17,775				18,471				25,213
8		Net profit for the period [6-7]			19,359				21,895				21,146				62,078				62,474				85,143
9		Non Controlling Interest			(12	)			(22	)			52				25				190				248
10		Net profit after taxes and Non Controlling Interest [8-9]			19,371				21,917				21,094				62,053				62,284				84,895
11		Paid up equity share capital (Face value ₹ 2 per share)			9,047				9,733				4,861				9,047				4,861				4,861
12		Reserves excluding revaluation reserves and Non Controlling Interest as per balance sheet of previous accounting period																							515,443
13		EARNINGS PER SHARE (EPS)
		(of ₹2/- each) (not annualised)
		Basic (in ₹)			4.03				4.52				4.36				12.85				12.81				17.48
		Diluted (in ₹)			4.03				4.52				4.35				12.83				12.77				17.43

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1. The audited consolidated financial results of the Company for the three and nine months ended December 31, 2017 have been approved by the Board of Directors of the Company at its meeting held on January 19, 2018. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued audit reports with unmodified opinion on the consolidated financial results. Amounts for the three and nine months ended December 31, 2016 and year ended March 31, 2017 were audited by B S R & Co. LLP.

2. The above consolidated financial results have been prepared from the interim condensed 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 (“IASB”).

3. In December 2017, National Grid filed a legal claim against the Company in U.S. District Court of the Eastern District of New York seeking damages amounting to $140 million (8,936 million) plus additional costs related to an ERP implementation project that was completed in 2014. The Company expects to defend itself against the claim and believes that the claim will not sustain.

4. List of subsidiaries and equity accounted investees as of December 31, 2017 are provided in the table below:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro LLC						USA
		Wipro Gallagher Solutions, Inc.				USA
				Opus Capital Markets Consultants LLC		USA
				Wipro Promax Analytics Solutions LLC		USA
		Infocrossing, Inc.				USA
		Wipro Insurance Solutions LLC				USA
		Wipro Data Centre and Cloud Services, Inc.				USA
		Wipro IT Services, Inc.				USA
				HPH Holdings Corp.(A)		USA
				Appirio, Inc. (A)		USA
				Cooper Software, Inc.		USA
Wipro Overseas IT Services Pvt. Ltd						India
Wipro Japan KK						Japan
Wipro Shanghai Limited						China
Wipro Trademarks Holding Limited						India
Wipro Travel Services Limited						India
Wipro Holdings (Mauritius) Limited						Mauritius
Wipro Holdings UK Limited						U.K.
		Wipro Information Technology Austria GmbH				Austria
				Wipro Technologies Austria GmbH		Austria
				New Logic Technologies SARL		France
		Wipro Digital Aps				Denmark
				Designit A/S (A)		Denmark
		Wipro Europe Limited				U.K.
				Wipro UK Limited		U.K.
		Wipro Financial Services UK Limited				U.K.

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Cyprus Private Limited						Cyprus
		Wipro Doha LLC #				Qatar
		Wipro Technologies S.A DE C.V				Mexico
		Wipro BPO Philippines LTD. Inc.				Philippines
		Wipro Holdings Hungary Korlátolt Felelősségű Társaság				Hungary
				Wipro Holdings Investment Korlátolt Felelősségű Társaság		Hungary
		Wipro Technologies SA				Argentina
		Wipro Information Technology Egypt SAE				Egypt
		Wipro Arabia Co. Limited *				Saudi Arabia
				Women’s Business Park Technologies Limited *		Saudi Arabia
		Wipro Poland Sp. Z.o.o				Poland
		Wipro IT Services Poland Sp.zo.o				Poland
		Wipro Technologies Australia Pty Ltd				Australia
		Wipro Corporate Technologies Ghana Limited				Ghana
		Wipro Technologies South Africa (Proprietary) Limited				South Africa
				Wipro Technologies Nigeria Limited		Nigeria
		Wipro IT Service Ukraine LLC				Ukraine
		Wipro Information Technology Netherlands BV.				Netherlands
				Wipro Portugal S.A.(A)		Portugal
				Wipro Technologies Limited, Russia		Russia
				Wipro Technology Chile SPA		Chile
				Wipro Solutions Canada Limited		Canada
				Wipro Information Technology Kazakhstan LLP		Kazakhstan
				Wipro Technologies W.T. Sociedad Anonima		Costa Rica
				Wipro Outsourcing Services (Ireland) Limited		Ireland
				Wipro Technologies VZ, C.A.		Venezuela
				Wipro Technologies Peru S.A.C		Peru
				InfoSERVER S.A.		Brazil
		Wipro Technologies SRL				Romania
		PT WT Indonesia				Indonesia
		Wipro (Thailand) Co Limited				Thailand
		Wipro Bahrain Limited WLL				Bahrain
		Wipro Gulf LLC				Sultanate of Oman
		Rainbow Software LLC				Iraq
		Cellent GmbH				Germany

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
				Cellent Mittelstandsberatung GmbH		Germany
				Cellent Gmbh (A)		Austria
Wipro Networks Pte Limited						Singapore
		Wipro (Dalian) Limited				China
		Wipro Technologies SDN BHD				Malaysia
Wipro Chengdu Limited						China
Wipro Airport IT Services Limited *						India
Appirio India Cloud Solutions Private Limited						India

* All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Co. Limited, 74% of the equity securities of Wipro Airport IT Services Limited and 55% of the equity securities of Women’s Business Park Technologies Limited.

# 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the Company.

The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa and Wipro Foundation in India

^(A) Step Subsidiary details of Wipro Portugal S.A, Digital A/s, Cellent GmbH, HPH Holdings Corp. and Appirio, Inc. are as follows:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Portugal S.A.						Portugal
		Wipro do Brasil Technologia Ltda				Brazil
		Wipro Technologies Gmbh				Germany
		Wipro Do Brasil Sistemetas De Informatica Ltd				Brazil
Designit A/S						Denmark
		Designit Denmark A/S				Denmark
		Designit Munich GmbH				Germany
		Designit Oslo A/S				Norway
		Designit Sweden AB				Sweden
		Designit T.L.V Ltd.				Israel
		Designit Tokyo Lt.d				Japan
		Denextep Spain Digital, S.L				Spain
				Designit Colombia S A S		Colombia
				Designit Peru SAC		Peru
Cellent GmbH						Austria
		Frontworx Informations technologie GmbH				Austria
HPH Holdings Corp.						USA
		HealthPlan Services Insurance Agency, Inc.				USA
		HealthPlan Services, Inc.				USA

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Appirio, Inc.						USA
		Appirio, K.K				Japan
		Topcoder, Inc.				USA
		Appirio Ltd				Ireland
				Appirio GmbH		Germany
				Apprio Ltd (UK)		U.K.
				Saaspoint, Inc.		USA
		Appirio Singapore Pte Ltd				Singapore

As of December 31, 2017, the Company held 43.7% interest in Drivestream Inc., accounted for using the equity method.

5. Segment Information

The Company is organized by the following operating segments; IT Services and IT Products.

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Lifesciences (HLS), Consumer Business Unit (CBU), Energy, Natural Resources and Utilities (ENU), Manufacturing and Technology (MNT) and Communications (COMM). IT Services segment also includes Others which comprises dividend income relating to strategic investments, which are presented within “Finance and other Income” in the statement of Income. Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

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.

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.

Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Information on reportable segment for the three months ended December 31, 2017, September 30, 2017 and December 31, 2016, nine months ended December 31, 2017 and December 31, 2016 and year ended March 31, 2017 is as follows:

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Particulars		Three months ended												Nine months ended								Year ended
		December 31, 2017				September 30, 2017				December 31, 2016				December 31, 2017				December 31, 2016				March 31, 2017
		Audited				Audited				Audited				Audited				Audited				Audited
Revenue
IT Services
BFSI			37,766				36,349				33,843				109,049				101,056				135,967
HLS			18,463				17,989				20,972				55,602				61,786				82,242
CBU			21,209				20,989				20,780				62,733				62,213				83,417
ENU			16,426				17,769				17,131				51,659				51,368				68,883
MNT			30,050				30,010				29,517				89,402				88,518				119,175
COMM			8,432				8,583				9,718				25,846				29,478				38,756
Total of IT Services			132,346				131,689				131,961				394,291				394,419				528,440
IT Products			4,498				2,988				5,713				13,829				19,309				25,922
Reconciling Items			(29	)			10				(29	)			(4	)			(169	)			(183	)
Total Revenue			136,815				134,687				137,645				408,116				413,559				554,179
Other operating Income
IT Services			—				—				—				—				—				4,082
IT Products			—				—				—				—				—				—
Total Other Operating Income			—				—				—				—				—				4,082
Segment Result
IT Services
BFSI			6,832				6,055				6,413				18,328				19,786				24,939
HLS			2,364				2,698				3,400				7,796				9,490				9,479
CBU			3,869				3,244				3,415				10,047				10,774				14,493
ENU			(1,312	)			3,435				3,856				5,774				10,324				14,421
MNT			5,692				5,400				5,355				16,267				17,484				23,453
COMM			1,315				1,147				1,604				3,911				4,700				6,149
Unallocated			830				805				112				2,167				(1,762	)			(951	)
Other Operating Income			—				—				—												4,082
Total of IT Services			19,590				22,784				24,155				64,290				70,796				96,065
IT Products			195				88				(586	)			314				(1,252	)			(1,680	)
Reconciling Items			(10	)			169				(336	)			305				(493	)			(506	)
Total			19,775				23,041				23,233				64,909				69,051				93,879
Finance Expense			(1,205	)			(1,386	)			(1,366	)			(4,065	)			(4,130	)			(5,183	)
Finance and Other Income			6,134				6,661				5,719				18,995				16,024				21,660
Share of profit/ (loss) of equity accounted investee			10				5				—				14				—				—
Profit before tax			24,714				28,321				27,586				79,853				80,945				110,356

Notes:

a) “Reconciling items” includes elimination of inter-segment transactions and other corporate activities.

b) Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues.

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c) For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues (which is reported as a part of operating profit in the statement of income).

d) For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items.

e) The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

f) Net gain from sale of Eco Energy division for the period ended March 31, 2017 is included as part of IT Services segment result.

g) Segment results for ENU industry vertical for three months and nine months ended December 31, 2017 is after considering impact of provision for impairment of receivables and deferred contract cost (Refer note 9).

6. Issue of Bonus share

The bonus issue in the proportion of 1:1 i.e.1 (One) bonus equity share of ₹ 2 each for every 1 (one) fully paid-up equity share held (including ADS holders) had been approved by the shareholders of the Company on June 03, 2017 through Postal Ballot /e-voting. For this purpose, June 14, 2017, was fixed as the record date. Consequently, 2,433,074,327 shares have been issued and ₹ 4,866 (representing par value of ₹ 2 per share) has been transferred from retained earnings to share capital.

7. Buyback of equity shares:

During the current period, the Company has concluded the buyback of 343.75 million equity shares as approved by the Board of Directors on July 20, 2017. This has resulted in a total cash outflow of ₹ 110,000 million. In line with the requirement of the Companies Act 2013, an amount of ₹ 1,656 and ₹ 108,344 has been utilized from the share premium account and retained earnings respectively. Further, capital redemption reserves (included in other reserves) of ₹ 687 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, share capital has reduced by ₹ 687.

8. Consequent to insolvency of a customer post balance sheet date, the Company has recorded a provision of ₹ 3,175 for impairment of receivables and deferred contract cost.

9. Events after the reporting period

On January 19, 2018, the Board of Directors of the Company declared an interim dividend of ₹ 1.00 ($ 0.02) per equity share and ADR (50% on an equity share of par value of ₹ 2).

By order of the Board,		For, Wipro Limited
		Azim H Premji
Place: Bangalore		Executive Chairman &
Date: January 19, 2018		Managing Director

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