Business context and reporting period
Wipro Limited’s Form 20-F is an audited annual report for the fiscal year ended March 31, 2023 (FY2023), not a standalone 2022 Q4 filing. Wipro is an India-based IT services and consulting company; financial statements are prepared under IFRS and presented in Indian rupees (₹). Amounts below are ₹ millions unless stated otherwise. Revenue reported for segment analysis includes foreign-exchange effects; consolidated statement-of-income revenue excludes them.
Key financial metrics
| Metric | FY2023 | Prior period / change |
|---|---|---|
| Revenue, segment-reporting basis | ₹909,348 | ₹795,289; +14.34% |
| Revenue, consolidated income statement | ₹904,876 | ₹790,934; +14.4% |
| Operating income | ₹139,606 | ₹140,286; −0.48% |
| Operating margin, segment-reporting basis | 15.35% | 17.59%; −224 bps |
| Profit attributable to equity holders | ₹113,500 | ₹122,191; −7.11% |
| Basic / diluted EPS | ₹20.73 / ₹20.68 | ₹22.35 / ₹22.29 |
| Net cash from operating activities | ₹130,601 | ₹110,797 |
| Net cash used in investing / financing | ₹84,065 / ₹60,881 | ₹224,495 used / ₹46,586 generated |
On the segment-reporting basis, gross profit was ₹263,902 and gross margin 29.02%, compared with ₹239,417 and 30.02% in FY2022. The consolidated income statement reports gross profit of ₹259,430 against revenue of ₹904,876; the different revenue and profit presentations reflect foreign-exchange treatment. IT Services produced 98.7% of FY2023 segment revenue and reported ₹897,478 revenue (+14.79%) and ₹140,783 segment results (+1.23%). IT Products revenue declined 2.04% to ₹6,047 and its segment result was a loss of ₹176; ISRE revenue declined 20.18% to ₹5,823 and segment results fell 62.40% to ₹441.
At March 31, 2023, cash and cash equivalents were ₹91,880 and current investments ₹309,232. Management reported cash, cash equivalents and short-term investments of ₹401,112; net of loans and borrowings, the amount was ₹251,019. Loans, borrowings and overdrafts totaled ₹150,093, and lease liabilities were ₹24,573. Unutilized credit lines were reported as ₹54,230, subject to lender consent and financial covenants. Total current assets were ₹661,096 and current liabilities ₹267,753.
Material changes, outlook and notable items
- Revenue growth was supported by demand, acquisitions, ramp-up of new and large deals, and rupee depreciation. Costs rose faster than revenue: cost of revenue increased 16.11%, selling and marketing 18.61%, and general and administrative expenses 27.50%. Management cited higher compensation, headcount, subcontracting, travel, software licenses and acquisition-related costs.
- Finance expenses rose to ₹10,077 from ₹5,325, primarily due to higher interest rates and incremental borrowings. The effective tax rate increased to 23.02% from 19.13%, partly because FY2022 included reversals of provisions related to earlier tax audits.
- Operating cash flow improved with lower working-capital requirements, despite increased income-tax payments. Investing cash use included ₹45,566 for acquisitions and ₹65,747 net purchases of investments. FY2023 restructuring costs included ₹1,355 of employee severance costs.
- Management described an uncertain near-term economic outlook, with customers emphasizing cost reduction and operational efficiency and showing caution on discretionary spending, particularly in financial services, technology and retail/consumer. Healthcare, utilities and automotive were described as relatively resilient. The filing gives no specific company revenue or earnings guidance for FY2024.
- Management cited margin pressures from utilization, wage growth, pricing limits, vendor consolidation or insourcing, foreign exchange and acquisition mix. Other principal risks include customer concentration by geography and industry, contract termination, cybersecurity and data privacy, talent retention, technology change, and regulatory and tax uncertainty.
- On April 27, 2023, after year-end, the Board proposed a tender-offer buyback of up to 269,662,921 shares (4.91%) at ₹445 per share, capped at ₹120,000, subject to shareholder approval. FY2023 dividends totaled ₹1 per share; the FY2023 final dividend recommendation was to adopt the interim dividend.
- Disputed income-tax claims not recognized as debt were ₹91,465 at March 31, 2023; other disputed excise, customs, sales-tax and related demands were ₹15,240. Management expects its position to prevail and does not expect a material adverse effect, but outcomes are uncertain. The auditor issued unqualified opinions on the financial statements and internal controls; fixed-price contract revenue estimates were identified as a critical audit matter.
Important facts for investors to verify
- Reconcile segment-reporting revenue and margins with consolidated IFRS figures, including the treatment of foreign exchange.
- Track whether revenue growth translates into operating-margin recovery after higher personnel and overhead costs.
- Review the use and liquidity of the ₹309,232 current investment balance, debt maturities, and credit-line conditions.
- Assess progress and returns from acquisitions, goodwill of ₹307,970, and acquired-intangible impairment charges of ₹1,816.
- Monitor resolution of tax disputes, execution and funding of the proposed buyback, and the effects of subdued client spending on demand and utilization.