BANGALORE, India and EAST BRUNSWICK, N.J.: Wipro Limited (NYSE: WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2011.

Highlights of the Results:

Results for the Quarter ended March 31, 2011:

• IT Services Revenue was $1,400 million, a sequential increase of 4.2% and YoY increase of 20.1%. Non-GAAP constant currency revenue was $1,391 million.
• Total Revenues were Rs.83.02 billion ($1.86 billion(1)), an increase of 18% YoY.
• Net Income was Rs.13.75 billion ($309 million(1)), an increase of 14% YoY. Non-GAAP Adjusted Net Income was Rs.13.68 billion ($307 million(1)), an increase of 13% YoY.
• IT Services Revenues were Rs.62.89 billion ($1,412 million(1)), an increase of 20% YoY.
• IT Services Earnings Before Interest and Tax (EBIT) was Rs.13.88 billion ($312 million(1)), an increase of 9% YoY.
• Our Operating Income to Revenue for IT Services was 22.1% for the quarter.
• Wipro declares final dividend of Rs.4 ($0.09(1)) per share/ADS, taking the total dividend declared during the year to Rs.6 ($0.13(1)) per share/ADS.

Results for the year ended March 31, 2011:

• IT Services Revenue was $5,221 million, an increase of 18.9% YoY.
• Total Revenues were Rs.310.99 billion ($6.98 billion(1)), an increase of 15% YoY.
• Net Income was Rs.52.98 billion ($1.19 billion(1)), an increase of 15% YoY. Non-GAAP Adjusted Net Income was Rs.52.60 billion ($1.18 billion(1)), an increase of 15% YoY.
• IT Services Revenues were Rs.234.85 billion ($5.27 billion(1)), an increase of 16% YoY.
• IT Services Earnings Before Interest and Tax (EBIT) was Rs.53.41 billion ($1.20 billion(1)), an increase of 12% YoY.
• Our Operating Income to Revenue for IT Services was 22.7% for the year.

Performance for the quarter and year ended March 31, 2011.

Azim Premji, Chairman of Wipro, commenting on the results said – "We have made good progress in creating a leaner, simpler and more customer centric organization structure. We believe our business strategy along with the new structure will deliver industry leading growth."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "The business environment is positive and we are focusing on growth by directing investments on momentum verticals. We have announced wage hikes effective June 1, 2011, which would have an impact on the operating margins."

T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – "Our journey of building the new Wipro is based on the foundation of customer focus, domain and technology leadership directed towards the customer needs and providing enriching career opportunities for our employees."

Outlook for the Quarter ending June 30, 2011

We expect Revenues from our IT Services business to be in the range of $1,394 million to $1,422 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.64, Euro/USD at 1.46, AUD/USD at 1.07, USD/INR at 44.29.

IT Services (76% of Total Revenue and 93% of Operating Income for the year ended March 31, 2011)

IT Services segment had 122,385 employees as of March 31, 2011, an increase of 2,894 people this quarter and 14,314 people in the year. We added 68 new customers for the quarter and 155 new customers during the year.

As a testament to our focus on high growth verticals, we signed an agreement to acquire the Global Oil and Gas Information Technology practice of the Commercial Business Services business unit of Science Applications International Corporation (SAIC), for an all-cash consideration of approximately US$150 million, subject to adjustments. This acquisition will further strengthen Wipro's leadership position in the Energy, Natural Resources and Utilities Strategic Business Unit (SBU).

This quarter also saw Wipro signing a strategic agreement with Temenos, the world's leading supplier of packaged banking software, to deliver core banking on an Application Service Provider (ASP) model to European banks. Wipro will provide banks with a solution based on Temenos' best-selling TEMENOS T24 (T24) core banking solution and charge clients based on a per use or monthly fee. This offering will address the significant and growing demand for an ASP offering, from small and medium sized banks, to bundle the license, maintenance, services and infrastructure costs of a banking application into a predictable monthly fee and achieve a much faster time to market than if installed on premise.

Wipro has been chosen as the Strategic Partner for Infrastructure Services sustenance and transformation for a leading European Banking Conglomerate's Investment Banking division, over a 5 year program.

Continuing the trend in the BFSI sector, a significant player in Lloyds of London market has engaged Wipro to deliver a Regulatory Compliance Data Warehousing Solution to meet the upcoming Lloyds 10 day reporting and Solvency II regulations. The scope of the engagement is an end-to-end solution including process analysis and definition. Wipro will be the sole vendor to deliver this capability. This engagement provides Wipro with a framework and reference architecture to offer compliance solutions, which has been an area of focus for Wipro.

Wipro and a leading Pharmacy retailer in USA have entered into a multi-year engagement to provide application management and testing services.

The India and Middle East regions demonstrated strong growth across multiple segments. The Government vertical led the deal momentum in India with a large turnkey project from Punjab Excise for automating the taxation system. Wipro won a large deal for Information Storage consolidation from a leading Space Research organization for a period of three years. The National Informatics Center (NIC) awarded Wipro a five year contract for supply and maintenance of hardware and software for the National Animal Disease Reporting System. Two State Service Delivery Gateway (SSDG) projects from Rajasthan and Tamil Nadu governments were also won by Wipro.

IT Products (12% of Total Revenue and 3% of Operating Income for the year ended March 31, 2011)

• Our IT Products segment recorded Revenue of Rs.36.91 billion ($829 million(1)) for the year, a decline of 3% YoY. Revenue for the quarter was Rs.9.11 billion ($204 million(1)), an increase of 2% YoY.
• EBIT was Rs.1.61 billion ($36 million(1)) for the year, a decline of 9% YoY. EBIT was Rs.332 million ($7.46 million(1)) for the quarter, an increase of 28% YoY.
• The ratio of our Operating Income to Revenue for this segment was 4.4% for the year and 3.6% for the quarter.

Consumer Care and Lighting (9% of Total Revenue and 6% of Operating Income for the
year ended March 31, 2011)

• Our Consumer Care and Lighting business segment recorded Revenue of Rs.27.26 billion ($612 million(1)) for the year, an increase of 21% YoY. Revenues for the quarter was Rs.7.24 billion ($163 million(1)), an increase of 19% YoY.
• EBIT was Rs.3.45 billion ($77 million(1)) for the year, an increase of 11% YoY. EBIT was Rs.870 million ($20 million(1)) for the quarter, an increase of 5% YoY.
• Operating Income to Revenue for this segment was 12.7% for the year and 12.0% for the quarter.

Wipro Limited

• Total Revenue for the quarter and year ended March 31, 2011 was Rs.83.02 billion ($1.86 billion(1)) and Rs.310.99 billion ($6.98 billion(1)) respectively.
• Net Income for the quarter and year ended March 31, 2011 was Rs.13.75 billion ($309 million(1)) and Rs.52.98 billion ($1.19 billion(1)) respectively.
• Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock based compensation) for the quarter and year ended March 31, 2011 was Rs.13.68 billion ($307 million(1)) and Rs.52.60 billion ($1.18 billion(1)) respectively.

Please see the table on page 7 for a reconciliation between (i) IFRS Net Income and non-GAAP Adjusted Net Income (excluding the impact of stock-based compensation) and (ii) IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

About Non-GAAP financial measures

This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that are adjusted to exclude or include amounts that are excluded or included, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.

The table on page 7 provides Adjusted Net Income for the period, which is a non-GAAP measure that excludes the impact of accelerated amortization in respect of stock options that vest in a graded manner, and IT Services Revenue on a constant currency basis, which is a non-GAAP 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 consider a stock option award with a graded vesting schedule to be in substance a single award not multiple stock option awards and accordingly believe the straight line amortization reflects the economic substance of the award. 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. We believe that the presentation of this Non-GAAP Adjusted Net Income, when shown in conjunction with the corresponding IFRS measure, provides useful information to investors and management regarding financial and business trends relating to its Net Income for the period

These 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. In addition to these 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.

For internal budgeting process, our management also uses financial statements that exclude the impact of accelerated amortization relating to stock options that vest in a graded manner. Management of the Company also uses Non-GAAP Adjusted Net Income, in addition to the corresponding IFRS measure, in reviewing our financial results.

Results for the year ended March 31, 2011, computed under IFRS, along with individual business segment reports, are available in the Investors section of our website at www.wipro.com.

Quarterly Conference Calls

We will hold a conference call today at 02:00 p.m. Indian Standard Time (04:30 a.m. US Eastern Time) and at 6:45 p.m. Indian Standard Time (9:15 a.m. US Eastern Time) to discuss our performance for the quarter. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com.

About Wipro Limited (NYSE: WIT)

Wipro provides comprehensive IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services company globally. Wipro's IT Services business was assessed at Level 5 for CMMI V 1.2 across Offshore and Onsite development centers. Wipro also has a strong presence in niche market segments of Infrastructure Engineering and Consumer Products & Lighting.

For more information, please visit our websites at www.wipro.com, www.wiprocorporate.com and www.wipro.in.

Forward-looking and Cautionary 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, 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.

(1) For the convenience of the reader, the amounts in Indian rupees in this release have been translated into United States dollars at the noon buying rate in New York City on March 31, 2011, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1=Rs.44.54. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2011 was US$1=Rs.44.91

SOURCE Wipro Limited