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TBR
T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .
Wipro IT Services
PROFESSIONAL SERVICES BUSINESS QUARTERLYSM
INITIAL RESPONSE
Publish Date: Oct. 21, 2015
Author: Amy McLaughlin, ([email protected]) Professional Services Research Analyst Content Editor: Ramunas Svarcas, Principal Analyst
Third Calendar Quarter 2015
Second Fiscal Quarter 2016 Ended Sept. 30, 2015
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 2
TBR Assessment Corporate Strategic Objectives
Citing strong momentum in global infrastructure services and open source, in 3Q15 Wipro ITS reported $1.9 billion in revenues, marking a 2.8% year-to-year growth rate compared to 11% in the year-ago quarter. Although IT services revenue growth across the industry is slowing, TBR believes Wipro can leverage its systems integrator (SI) roots and substantial regional brand equity in India to win Smart City contracts involving infrastructure modernization and applications services. Wipro will sacrifice revenue growth in the interim, as lucrative projects continue to hit their stride and Wipro aggressively attempts to unseat incumbents for multiyear, large enterprise contract renewals. TBR expects Wipro’s Holmes artificial intelligence platform to begin driving revenue as employee headcount and skills correlate more closely with anticipated project demands associated with Internet of Things (IoT) and machine-to-machine (M2M) engagements.
Secure long-term, sustainable growth through a reorganized management structure and optimized delivery capabilities
Wipro continues to synthesize COO Abid Ali Neemuchwala’s mandated go-to-market that emphasizes agile processes and real-time collaboration through services and delivery integration. The company accentuates R&D that will support its pursuit of large, end-to-end business transformation sales, helping clients balance top-line growth with cost efficiency and customer satisfaction metrics through accelerated automation and online business models. Wipro’s 2Q15 Designit acquisition will continue to generate opportunities to connect with C-level executives and put Wipro’s Digital business unit closer to realizing its target of $1 billion in annual digital revenue by 2018.
Leverage partnerships and strategic investments to extend Wipro Analytics’ service line
In 3Q15 Wipro launched two software-defined infrastructure (SDI) Centers of Excellence (CoE) to exhibit open data center technologies, located in Mountain View, Calif. and Bangalore, India. Wipro also released a cloud-based CRM migration framework with Informatica and LiVE Workspace, an analytics-embedded digital solution for workplace collaboration jointly developed with VMware. These investments reflect an industrywide trend toward complete infrastructure virtualization, and enhance Wipro’s ability to demonstrate its capacity to deliver real-time, data-driven insights that mitigate risk and cost within evolving business and technology environments.
Hyperautomation and analytics-based IoT solutions provide avenues for Wipro to deliver business agility to clients and revive revenue growth
TBR Position
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3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Est.
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WIPRO ITS REVENUE, PROFITABILITY AND GROWTH
Total Revenue Gross Profit
Operating Profit Revenue Growth YTY
TBR
SOURCE: TBR AND WIPRO
TBR
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TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 3
Key Developments
Chelsea FC deal heightens Wipro’s brand awareness among sports fans worldwide, showcasing next-gen digital capabilities
In 3Q15 we have seen an increase in B2B technology companies sponsoring high-profile sporting events or teams, creating a win-win relationship in which companies provide digital transformation to promote fan engagement and tech companies broaden the scope of their brand identity. The trend underscores the impact of consumerism, where the latest technology is adopted by consumers before extending to business and government. In the past Wipro has sponsored San Francisco Tech Marathon, which caters to a technology-focused audience, and the company sponsors its own Spirit of Wipro run as part of its Corporate Social Responsibility program. However, Wipro and its peers are now recognizing that existing, well-known sports events and teams can more broadly raise brand awareness. In 2014 TCS became the title sponsor of the New York City Marathon, and HCL recently signed a three-year deal with Manchester United to improve fan experience and engagement. High-profile sponsorships are a feasible way for Wipro to expand its addressable market through real-life, cultural connections that foster recognition of the company’s ability to manage the IT infrastructure for international events, leading to opportunities to gain trust outside its traditional customer base.
IP-led managed services is a gateway for Wipro to establish itself in the business intelligence (BI) market
Wipro folds BI under its digital umbrella, with Wipro Analytics at the center, and relies on partnerships and co-innovation to drive BI-related revenue, which we believe primarily comes from operations, management and maintenance. In 3Q15 Wipro Analytics made up 7.5% of overall revenues, with an estimated 7.1% year-to-year growth rate, and the company is in the process of training 15,000 employees in analytics best practices. We believe vendors that are versed in applying analytics to derive business value from IoT data will gain an advantage in this fast-emerging market. Wipro’s ServiceNXT, Decision Management Hub and Apollo fraud detection platforms are differentiators that enable the company to present itself in a consulting/solutions partner framework. The trade-off is that spending on IP investments diluted the pace of Wipro’s revenue growth, and the movement to “as a Service” cloud models also shrinks margins. Among India-centric peers, TCS continues to outpace in BI services through strengthened advisory offerings and IP-based analytics putting Wipro in a challenging catch-up position. We see managed services as a growth driver, particularly in North America, where adoption of BI services is moving beyond consulting to include implementation and management of BI solutions, which will play to Wipro’s strengths.
Executive Summary
To capture more transformational digital engagements Wipro invests in analytics IP and uses high-profile sponsorships to raise brand awareness
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 4
Service Line Performance and Strategies
Global Infrastructure Services (GIS)
$521M, 6.2% YTY
Global Infrastructure Services revenue is driven by demand for infrastructure optimization through software-defined networking (SDN), hybrid cloud and mobility. We expect partnerships and deals won earlier in the 2015 calendar year to be growth drivers for the service line.
Application Services
$867M, -2.6% YTY
Application services revenues will be supported by demand for 24/7 application support, platform-agnostic front- and back-office integration, and vertical-specific requirements. Wipro and Informatica’s joint CRM cloud migration offering will contribute positively to service line revenues.
Business
Process Services (BPS)
$182M, 9.5% YTY
Wipro’s deep partner relationships with Salesforce and Red Hat will support BPS revenues, as both companies increasingly leverage systems integrator partners to reduce selling, general and administrative (SG&A) expenses. We expect Salesforce to build out its industry-specific clouds (public sector and healthcare), providing Wipro with opportunities in those sectors.
Product Engineering
$146M, 16% YTY
Wipro expects Product Engineering to grow as investments in connected device technology pay off into 1H16.
Wipro Analytics
$139M, 7.1% YTY
Investments in cognitive computing and automation, cloud computing and SDI IP drove Wipro growth in 3Q15, including CRM and workforce collaboration solutions, two new SDI-focused CoEs, and joining the International M2M Council.
Executive Summary
As Wipro leverages optimization through automation, partner reliance on SIs plays a vital role for service line revenue growth
Note: In 2Q15 Wipro began reporting earnings for its Wipro Analytics service line and removed Application Development & Management (ADM) from its report to coincide with its 2016 fiscal year and accurately reflect 1Q15 organizational changes.
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 5
Financial Model Strategy
Revenues
Wipro ITS reported $1.85 billion in revenue for 3Q15, generating 2.8% growth, led by product engineering and BPO service lines. We believe Wipro is positioning itself for revenue growth in the next 18 to 24 months as several large-scale deals ramp up, but its growth rate will hinge on controlling costs while monetizing investments.
Expenses
Services cost of revenue was 66.2% in 3Q15, flat from 3Q14 and up 30 basis points sequentially. IT operating expenses were reduced by 40% after implementing Oracle’s identity management solutions during the quarter, offset by regional infrastructure investments in APAC, such as Wipro’s Home to Hospital Care program to provide free ambulance services in New Delhi. Such investments lay the groundwork for future government contract consideration.
Margins
Wipro ITS’ operating margin decreased sequentially in 3Q15 from 21.7% to 21.5% and was down by 50 basis points year-to-year (22% in 3Q14) due to competitive pressures, particularly in its legacy business. In comparison with its peers: TCS’ margins rose from 26.8% to 27.1% year-to-year, HCL declined 450 basis points to 19.4% due to wage hikes and investments, and Infosys was down 60 basis points in the same time period.
Portfolio investment drives value for enterprise clients but undermines Wipro’s profit margins
(in $ Millions except EPS) Consensus Guidance Range Actual
Wipro ITS Revenue N/A $1,781-1,809 $1,853 h
Wipro ITS Operating Income N/A N/A $399
Wipro Non-GAAP EPS $0.14 N/A $0.16 h
(in $ Millions except EPS) TBR Estimate Consensus Guidance Range
Wipro ITS Revenue $1,934 N/A $1,803-$1,839
Wipro ITS Operating Income $416 N/A N/A
Wipro Non-GAAP EPS N/A 0.14 N/A
SOURCE: TBR, WIPRO AND INDUSTRY
WIPRO ITS 3Q15 PERFORMANCE VS. EXPECTATIONS
WIPRO ITS 4Q15 GUIDANCE AND EXPECTATIONS
TBR
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 6
Go-to-market and Services Strategies
Signings and Pipeline Wipro secured three transformational deals in 3Q15, including a notable digital strategy contract with Chelsea Football Club, a high-profile professional U.K.-based soccer team. In this digital transformational contract, Wipro will provide IT services and strategy to develop a real-time digital fan engagement and experience campaign, leveraging its Customer Journey Engineering methodology. Although Wipro indicates a strong pipeline, we believe competitive pricing pressures and shared risk have potential to constrain margins and price per deal through at least the next two quarters. New Services Announcements Wipro announced the following new services in 3Q15:
• CRM modernization solution: Jointly released with Informatica, the solution complements Wipro’s business process advisory services, rendered during CRM application migration from on-premises to cloud environments.
• LiVE Workspace: Jointly released with VMware, the offering enables enterprises to create a collaborative mobile workspace and includes a five-step transformation process based on standard reference architectures.
Key 3Q15 Customer Wins
Dutch State Mines (DSM) (Netherlands): In this multiyear contract, DSM selected Wipro to deploy the company’s secure LiVe Workspace as part of its workplace optimization initiative. Wipro will provide multichannel support and user experience management, migrating select workloads to the cloud and leveraging smart systems for predictive analytics and monitoring. The engagement will optimize DSM’s costs while utilizing self-help and self-heal systems to limit service interruptions.
New Delhi Accident Government’s Centralized Accident and Trauma Services (CATS) (India): Wipro signed a six-year contract to establish and maintain an ISO-certified ambulance control center through its Home to Hospital Care program. Wipro will procure 110 life-support ambulances and provide mobile data storage and backup solutions, advanced systems and applications. Ambulances will be managed through computer-aided dispatch (CAD) using GPS.
Wipro highlights mobile workload migration and collaboration with client-centric LiVE Workspace and CRM modernization solutions
CALENDAR QUARTER 3Q14 4Q14 1Q15 2Q15 3Q15
Active Clients 1018 1062 1127 1071 1100
Added During the Quarter 50 44 45 36 67
New Business 1.4% 1.5% 3.3% 0.4% 1.5%
Top Client 3.5% 3.8% 3.8% 3.3% 3.1%
Top 5 Clients 12.9% 12.7% 12.6% 12.2% 11.7%
Top 10 Clients 21.5% 21.0% 20.6% 20.1% 19.8%
SOURCE: TBR AND WIPRO
REVENUE CONTRIBUTION BY CLIENT
WIPRO ITS CLIENT DATA TBR
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 7
Vertical Performance
Partnerships and deals made in the past six months, along with customer loyalty driven by client emphasis on mobile customer analytics and Web-based customer experiences, continue to contribute to a healthy pace of revenue growth within Wipro’s Retail, Consumer Goods and Transportation sector. We expect the 3Q15 partnership with Maxicaster to contribute positively to Wipro’s Retail, Consumer Goods and Transportation vertical, which grew 11.7% year-to-year. Wipro’s 3Q15 partnership with BlackLine, a firm offering enterprise-class software designed to automate and control the entire financial close process, broadens Wipro’s ability to address financial clients’ need for cloud-based, automated task management, and certification and compliance. Finance Solutions contributed 28.6% to Wipro ITS revenues and grew 13.1% year-to-year in 3Q15. BlackLine also partners with NetSuite, Oracle and SAP, with which Wipro shares joint solutions and industry-specific best practices.
Go-to-market and Services Strategies
BlackLine partnership strengthens Wipro’s business process automation capabilities and deepens relationships with SAP, Oracle and NetSuite
Geographic Performance
For the past eight quarters APAC and Other Emerging Markets grew revenue at a low- to middle-single-digit pace. In 3Q15 the company declined 4% year-to-year, the first year-to-year decline since TBR began coverage in 2006. In October Wipro formed a pilot consortium with TCS, Tech Mahindra, Infosys and National Information Infrastructure Testbed (NIIT) under the Confederation of Indian Industry (CII) Shanghai, to win expansive government contracts in Guizhou, China, including a cloud-based data center. The initiative earmarks $16 million to train IT professionals and is a stepping stone to compete with multinational corporations such as IBM and local vendors with relationships in the region.
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 8
Resource Management Strategy
Strategy and Investments
• During the quarter Wipro announced acquiring next-gen technology startups, similar to Vicarious and Talena, is a top priority for meeting future client demand. While specifics around timeframe and investment level remain undisclosed, we believe the company’s announced $100 million investment fund is an adjustable guideline. Similar investments in delivery scale, talent procurement and portfolio fortification by peers challenges Wipro to differentiate.
• Wipro opened a second office in Qatar, with plans to scale its nearshore delivery capabilities and expand its presence in the country over the next 12 months. Wipro has over 350 local employees serving 35 clients in the region. From this outlet Wipro meets customers’ demand for digital, mobility and analytics in verticals such as oil and gas, banking and telecommunications.
• As part of its corporate social responsibility initiative, Wipro launched the fifth iteration of its earthian sustainability education program, which reached over 100,000 India-based students in the past five years.
Wipro focuses on global diversification, expands delivery in the Middle East and invests in India to further recognition
Organizational Changes Dave Chopra, former TCS executive, was appointed vice president of global infrastructure services at Wipro and will be responsible for driving strategy, marketing and business development for the unit. Kris Denton replaced Alexis Samuel as global head of Consulting and will report to Bhanumurthy Ballapuram, Wipro’s CEO for Digital, Wipro Consulting Services and Business Application Services. Denton is based out of Chicago and has held several management positions at Wipro since 2009, most recently managing partner of the Americas. Prior to joining Wipro in 2009, Denton was partner at McKinsey (1987-2002) and Accenture (2002-2005).
3Q14 3Q15
Revenue per Employee $46,859 $45,760
Operating Income per Employee $10,818 $9,847
Utilization (Excl. Trainees) 79.4% 82.3%
Attrition 16.9% 16.6%
SOUCE: TBR AND WIPRO
WIPRO ITS EFFICIENCY METRICS TBR
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 9
Income Statement
Note: Growth rates and financial measures reported by Wipro in USD may not align with TBR calculations due to TBR exchange rate calculations. Such variances are noted only for foreign-owned companies reporting in local currencies.
WIPRO LIMITED AND SUBSIDIARIES
Consolidated Statements of Income
(in $ Thousands Except Share Data)
CALENDAR QUARTER 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Est.
FISCAL QUARTER 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Est.
Total Revenues $1,928,139 $1,935,722 $1,951,252 $1,930,663 $1,925,907 $1,974,054
Total Cost of Revenues $1,334,505 $1,337,520 $1,327,549 $1,337,641 $1,320,885 $1,357,170
Gross Profit $593,634 $598,202 $623,703 $593,022 $605,021 $616,884
SG&A $234,882 $225,161 $233,806 $235,022 $239,401 $237,962
Foreign Exchange (loss) Gains, Net $21,833 $14,882 $4,725 $20,983 $8,203 $12,455
Operating Income $380,584 $387,922 $394,621 $378,983 $373,823 $391,377
Other Income, Net $67,991 $81,429 $73,345 $102,989 $119,785 $96,332
Income before Taxes and Minority Interest $448,575 $469,351 $467,966 $481,972 $493,608 $487,708
Income Taxes $102,300 $100,523 $100,520 $93,791 $98,742 $100,330
Minority Interest $2,228 $1,662 $2,330 $2,461 $831 $1,762
Net Income from Continuing Operations $344,048 $367,166 $365,116 $385,719 $394,035 $385,617
Net Income $344,048 $367,166 $365,116 $385,719 $394,035 $385,617
Net Earnings per Equity Share $0.14 $0.15 $0.15 $0.16 $0.16 N/A
Diluted Common Shares Outstanding 2,467,151,917 2,469,323,243 2,465,876,236 2,460,584,039 2,461,507,934 N/A
AS A PERCENTAGE OF REVENUE
Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total Cost of Revenues 69.2% 69.1% 68.0% 69.3% 68.6% 68.8%
Gross Margin 30.8% 30.9% 32.0% 30.7% 31.4% 31.2%
SG&A 12.2% 11.6% 12.0% 12.2% 12.4% 12.1%
Foreign Exchange Gains, Net 1.1% 0.8% 0.2% 1.1% 0.4% 0.6%
Operating Margin 19.7% 20.0% 20.2% 19.6% 19.4% 19.8%
Other Income, Net 3.5% 4.2% 3.8% 5.3% 6.2% 4.9%
Equity in Profits/(Losses) of Affiliates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Income before Taxes and Minority Interest 23.3% 24.2% 24.0% 25.0% 25.6% 24.7%
Income Taxes 5.3% 5.2% 5.2% 4.9% 5.1% 5.1%
Net Income from Continuing Operations 17.8% 19.0% 18.7% 20.0% 20.5% 19.5%
Net Margin 17.8% 19.0% 18.7% 20.0% 20.5% 19.5%
YEAR-TO-YEAR CHANGE
Total Revenues 11.0% 6.4% 3.3% 3.6% -0.1% 2.0%
Total Cost of Revenues 11.5% 8.5% 5.4% 6.7% -1.0% 1.5%
Gross Margin 9.8% 2.0% -0.9% -2.7% 1.9% 3.1%
SG&A 9.6% 3.1% 6.6% 2.2% 1.9% 5.7%
Foreign Exchange Gains, Net -38.3% 52.7% -42.8% 14.2% -62.4% -16.3%
Operating Income 5.3% 2.7% -5.7% -4.7% -1.8% 0.9%
Other Income, Net 53.0% 73.2% 45.2% 83.7% 76.2% 18.3%
Equity in Profits/(Losses) of Affiliates
Income before Taxes and Minority Interest 10.5% 10.5% -0.2% 6.2% 10.0% 3.9%
Income Taxes 10.3% 2.8% -5.1% -5.7% -3.5% -0.2%
Net Income from Continuing Operations 10.4% 12.9% 1.2% 9.6% 14.5% 5.0%
Net Income 10.4% 12.9% 1.2% 9.6% 14.5% 5.0%
SOURCE: TBR AND WIPRO
TBR
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 10
Balance Sheet
WIPRO LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(in $ Thousands)
CALENDAR QUARTER 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
FISCAL QUARTER 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
ASSETS
Current Assets
Cash and Equivalents $1,374,066 $1,795,672 $1,970,973 $2,554,208 $2,097,278 $1,546,543
Short-term Investments $1,616,715 $1,101,173 $1,339,425 $866,316 $1,744,642 $1,897,896
Accounts Receivable (Net of Allowances) $1,442,137 $1,456,525 $1,513,291 $1,470,928 $1,447,335 $1,485,796
Unbilled Revenue $697,441 $701,017 $681,745 $680,383 $729,804 $735,764
Inventories $39,792 $45,811 $70,389 $77,925 $74,717 $85,741
Other Current Assets $1,156,183 $1,101,206 $1,063,728 $1,364,783 $1,257,165 $1,613,292
Total Current Assets $6,326,333 $6,201,405 $6,639,551 $7,014,543 $7,350,942 $7,365,032
Property, Plant, Equip., Net $870,764 $903,174 $874,302 $871,105 $879,350 $883,468
Deferred Income Taxes $59,871 $60,070 $57,767 $47,327 $57,363 $63,009
Intangible Assets, Net $30,137 $156,577 $142,005 $127,453 $125,944 $134,514
Goodwill $1,066,024 $1,131,043 $1,118,977 $1,094,032 $1,092,364 $1,158,083
Other Assets $453,688 $452,107 $454,777 $488,231 $473,515 $461,704
Total Assets $8,806,816 $8,904,377 $9,287,378 $9,642,690 $9,979,478 $10,065,811
LIABILITIES
Current Liabilities
Borrowings from Banks $608,922 $760,311 $921,368 $1,063,948 $1,089,871 $1,283,994
Accounts Payable $953,459 $893,784 $866,377 $944,048 $1,009,095 $946,755
Other Current Liabilities $760,007 $662,632 $617,570 $736,902 $640,904 $634,940
Total Current Liabilities $2,322,388 $2,316,727 $2,405,315 $2,635,990 $2,739,870 $2,865,689
LT Debt, Net of Current $180,903 $183,576 $202,112 $204,205 $200,393 $244,465
Deferred Income Taxes $31,592 $66,110 $46,178 $52,068 $50,264 $52,236
Other Noncurrent Liabilities $133,063 $144,250 $176,755 $141,145 $99,739 $176,361
Total Liabilities $2,688,361 $2,733,419 $2,854,637 $3,059,859 $3,119,090 $3,368,547
Minority Interest $20,415 $22,757 $24,275 $26,452 $28,824 $29,796
STOCKHOLDERS' EQUITY
Equity Shares 82,562$ 81,441$ 79,686$ 79,339$ 77,904$ 76,030$
Additional Paid-in Capital 234,901$ 237,259$ 243,545$ 246,566$ 249,395$ 247,958$
Accumulated Comprehensive Income/Loss 188,483$ 209,914$ 227,905$ 248,350$ 228,522$ 251,468$
Retained Earnings 5,621,579$ 5,651,289$ 5,881,606$ 5,982,125$ 6,218,727$ 6,092,012$
Total Stockholders' Equity 6,118,456$ 6,170,958$ 6,432,742$ 6,582,831$ 6,803,372$ 6,697,264$
Total Liabilities & Equity 8,806,816$ 8,904,377$ 9,287,378$ 9,642,690$ 9,922,462$ 10,065,811$
SOURCE: TBR AND WIPRO
TBR
TBR
Wipro IT Services 3Q15 Initial Response | Professional Services Business Quarterly ©2015 Technology Business Research, Inc. 11
Wipro ITS Financials
CALENDAR QUARTER 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Est.
FISCAL QUARTER 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Est.
Total Revenue $1,803 $1,831 $1,807 $1,826 $1,853 $1,934
Cost of Revenues $1,194 $1,231 $1,183 $1,205 $1,227 $1,281
Gross Profit $608 $600 $624 $622 $626 $653
Total Operating Expenses $212 $226 $219 $225 $227 $237
Operating Income $396 $374 $404 $397 $399 $416
AS A PERCENTAGE OF REVENUE
Total Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Revenues 66.2% 67.2% 65.5% 65.9% 66.2% 66.2%
Gross Margin 33.8% 32.8% 34.5% 34.1% 33.8% 33.8%
Total Operating Expenses 11.8% 12.3% 12.1% 12.3% 12.3% 12.3%
Operating Margin 22.0% 20.4% 22.4% 21.7% 21.5% 21.5%
SOURCE: TBR ESTIMATES AND WIPRO
WIPRO IT SERVICES INCOME (IN $ MILLIONS) TBR
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