Wipro Ltd:Annual Report 2023-24 Analysis

Wipro Ltd.: A Comprehensive Overview #

About the Company #

Year of Establishment and Founding History: Wipro was founded in 1945 in Amalner, Maharashtra, India by Mohamed Premji as Western India Vegetable Products Limited. Initially, the company manufactured vegetable oil and later diversified into other consumer products.

Headquarters Location and Global Presence: The company’s headquarters are located in Bangalore, Karnataka, India. Wipro has a significant global presence with offices and development centers across the Americas, Europe, Asia-Pacific, and the Middle East.

Company Vision and Mission:

• Vision: To be the most admired and trusted technology and consulting company in the world.
• Mission: To enable our clients to become more innovative and successful by leveraging our deep expertise and technology solutions.

Key Milestones in Their Growth Journey:

• 1945: Founded as Western India Vegetable Products Limited.
• 1966: Azim Premji takes over the business after his father’s death.
• 1980: Wipro enters the IT industry.
• 1999: Wipro listed on the New York Stock Exchange (NYSE).
• 2000s-Present: Significant acquisitions and expansion into new technologies and markets.
• 2024: Transitioned to a more simplified organizational structure.

Stock Exchange Listing Details and Market Capitalization: Wipro is listed on the Bombay Stock Exchange (BSE: 507685) and the National Stock Exchange (NSE: WIPRO). It was also formerly listed on the New York Stock Exchange (NYSE: WIT), delisted in 2024. As of late 2023/early 2024, Wipro’s market capitalization fluctuates around $30-35 billion USD, however that changes regularly.

Recent Financial Performance Highlights: Wipro’s recent financial performance is readily available in their quarterly and annual reports, usually on their investor relations page on their website. These reports typically include revenue, profit margins, earnings per share, and growth rates.

Management Team and Leadership Structure: Wipro has a board of directors and a management team led by the CEO. The leadership structure is typically hierarchical with various business units and functional heads.

Notable Awards or Recognitions: Wipro has received numerous awards and recognitions for its business practices, sustainability efforts, and innovation. These are listed on their website or in their press releases.

Their Products #

Complete Product Portfolio with Categories:

Wipro’s portfolio is categorized primarily into:

• IT Services: Application development and maintenance, infrastructure management, testing services, business process services.
• Consulting: Business and technology consulting services to help clients with digital transformation, business strategy, and operational improvements.
• Digital Operations and Platforms: Digital transformation, AI, Automation, Cloud, Cybersecurity, EngineeringNXT, Data Analytics.

Flagship or Signature Product Lines:

• Wipro Holmes: An AI and automation platform for enterprises.
• Wipro LiVE Workspace: Digital workspace solution.

Key Technological Innovations or Patents: Wipro has invested heavily in R&D, particularly in areas like AI, automation, cloud computing, and cybersecurity. Details of their specific patents can be found through patent databases.

Primary Customers #

Target Industries and Sectors:

Wipro serves a wide range of industries, including:

• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Consumer Goods
• Manufacturing
• Energy and Utilities
• Communications
• Technology

Geographic Markets (Domestic vs. International): While Wipro has a strong presence in India, the majority of its revenue comes from international markets, particularly North America and Europe.

Major Client Segments: Wipro caters to large enterprises, mid-sized companies, and government organizations.

Major Competitors #

Direct Competitors in India and Globally:

• Globally: Accenture, Tata Consultancy Services (TCS), Infosys, Capgemini, IBM, HCLTech.
• India: TCS, Infosys, HCLTech.

How they Differentiate from Competitors: Wipro differentiates itself through a focus on deep industry expertise, technology leadership, client-centricity, and innovation. They emphasize their ability to deliver end-to-end solutions and provide exceptional customer service.

Industry Challenges and Opportunities: The IT services industry faces challenges such as:

• Rapid technological advancements.
• Increasing competition.
• Evolving client expectations.
• Geopolitical uncertainties.
• Talent shortages.

Opportunities include:

• Digital transformation initiatives.
• Cloud adoption.
• Artificial intelligence.
• Cybersecurity.
• Data analytics.

Market Positioning Strategy: Wipro positions itself as a trusted partner for digital transformation, offering innovative solutions and deep industry expertise to help clients achieve their business goals.

Future Outlook #

Expansion Plans or Growth Strategy:

Wipro’s expansion plans typically involve:

• Strategic acquisitions to enhance capabilities.
• Expanding into new markets and geographies.
• Investing in emerging technologies.
• Strengthening partnerships with technology vendors.

Sustainability Initiatives or ESG Commitments: Wipro has a strong focus on sustainability and ESG (Environmental, Social, and Governance) initiatives. This includes reducing carbon emissions, promoting diversity and inclusion, and adhering to ethical business practices. Specific goals and reports are available on their website.

Industry Trends Affecting Their Business: Key industry trends impacting Wipro include:

• Increased adoption of cloud computing.
• The rise of artificial intelligence and automation.
• Growing demand for cybersecurity solutions.
• Focus on data analytics and insights.
• Shift towards remote work and digital collaboration.

Long-Term Vision and Strategic Goals: Wipro aims to be a leading technology and consulting company, known for its innovation, client-centricity, and commitment to sustainability.

3-Year Financial Performance Analysis #

Revenue Trends #

• Revenue decreased slightly from ₹904,876 million in FY23 to ₹897,603 million in FY24, following an increase from ₹790,934 million in FY22.

Profitability Trends #

• Profit for the year decreased to ₹111,121 million in FY24 from ₹113,665 million in FY23, after rising from ₹122,329 million in FY22.

Earnings Per Share (EPS) #

• Basic EPS decreased from ₹20.77 in FY23 to ₹20.89 in FY24 after it was ₹22.39 in FY22.
• Diluted EPS decreased from ₹20.72 in FY23 to ₹20.82 in FY24 after it was ₹22.33 in FY22.

Total Equity #

• Total Equity decreased from 781,489 in FY23 to 746,384 in FY24.

Business Segment Performance #

IT Services #

• Dominates revenue, contributing ₹893,476 million in FY24, ₹898,829 million in FY23 and ₹784,761 million in FY22.
• Segment results: ₹164,462 million in FY24, ₹159,391 in FY23 and ₹144,767 million in FY22.

IT Products #

• Contributed ₹4,127 million in FY24, ₹6,047 million in FY23, and ₹6,173 million in FY22.

Segment Reorganization Note #

• The reorganization effective April 1, 2023, merged the ISRE segment into the APMEA SMU within the IT Services segment, affecting year-over-year comparability.
• Americas 1 and Americas 2 are the highest revenue-generated SMU of IT Services segment during the last three years.

Strategic Initiatives #

Acquisitions #

• Wipro completed the acquisition of Aggne Global IT Services in FY24, adding to its capabilities in the insurance and insurtech sectors.

Segment Reorganization #

• Merging ISRE into APMEA is aimed at driving focused growth in priority markets.

AI Initiative #

• Launched in 2023, the ai360 innovation ecosystem has trained over 225,000 employees in AI fundamentals, showing progress in embedding AI across operations.

Risk Landscape #

Geopolitical Risks #

• Increased sanctions against Russia pose a significant medium-term risk.

ESG Initiatives #

Environmental #

• Wipro aims to achieve Net Zero GHG emissions by 2040.

Social #

• The Company has been included in the Dow Jones Sustainability Indices for the 14th consecutive year.

Management Outlook #

Strategic Focus #

• The Company is focused on building innovative solutions to address clients’ digital transformation needs.
• Wipro aims to become an AI-centric organization.
• The stated goal is to infuse AI into all processes and tools.

Detailed Analysis #

Financial Position: Balance Sheet Analysis #

3-Year Comparative Analysis of Assets, Liabilities, and Equity (IT Services) #

Industry Benchmark Comparison (IT Services): A direct comparison is not feasible as the document lacks total figures, but generally, the IT Services industry sees varying asset, liability, and equity structures depending on the business model (e.g., consulting vs. outsourcing).

Asset Quality Metrics (IT Services) #

Goodwill, Customer related intangibles and market related intangibles has been allocated to the IT Services segment.

Goodwill increased in both fiscal year, because of the acquisitions that were made.

Customer related and market related intangibles, had important YoY changes

Industry Benchmark Comparison (IT Services): Asset quality in IT Services is best gauged by the level of goodwill, Customer related, and Market related intangibles

Operating Performance #

Income Statement Analysis #

Revenue Breakdown by Segment/Geography with Growth Rates #

• IT Services: FY24 revenue was C893,476 million, with the following SMU breakdown:
  • Americas 1: C268,131 million.
  • Americas 2: C269,387 million.
  • Europe: C253,817 million.
  • APMEA: C102,141 million.
  • IT Services segment saw minimal growth, with year ended March 31, 2023 being C898,829.
• IT Products: FY24 revenue was C4,127 million, showing negative growth of -31.7% compared to FY23 revenue.
• Geographical Revenue (Key Markets):
  • United States increased, with FY23 at C506,364 million to C512,727 million for FY24.
  • United Kingdom decreased from C113,058 million in FY23 to C108,823 million for FY24.
  • India, Company’s domicile, generated C23,484 in FY24, decreasing from C25,115 in FY23.

Cost Structure Analysis #

• Employee Benefit Expenses: Represented the largest cost component, with C549,826 million in FY24, showing a moderate increase of 2.36% compared to FY23.
• Sub-contracting and Technical Fees: The second largest expense, showing decreased spending by 10.65%, from C115,562 million in FY23 to C103,259 million in FY24.
• Cost of Revenues: Decreased to C631,767 million in FY24, representing 70.36% of FY24 revenue, from C645,618 million, representing 71.35% in FY23.

Margin Analysis (Gross, Operating, Net) with Trends #

• Gross Profit: Increased, from C259,258 million in FY23 to C266,176 million in FY24.
• Results from Operating Activities: Decreased to C136,099 million in FY24. FY23 results were C139,606.
• Net Profit Attributable to Equity Holders: Decreased from FY23 amount of C113,500 to C110,452 in FY24.

Non-Recurring Items #

• Reclassification of foreign currency translation differences, from sale of investment, was included in other comprehensive income.
• Gain/loss on sale of property and plant was reclassified from other expenses to Other income.

GAAP vs. Non-GAAP Reconciliation #

• The provided financials are prepared in accordance with IFRS. A reconciliation to GAAP is not provided in the data.

EPS Analysis (Basic/Diluted) #

• Basic EPS: Decreased to 17.96 in FY23 to 20.87 in FY24.
• Diluted EPS: Decreased to 17.92 in FY23 to 20.82 in FY24.

Cash Management #

Cash Flow and Liquidity Analysis #

Detailed OCF, ICF, FCF Components #

• OCF: Increased to C176,196 million for the year ended March 31, 2024, from C130,187 million in the prior year.
• ICF: Changed to C11,694 million generated from investing activities for the year ended March 31, 2024 from C(84,627) million used in investing activites in the prior year, mainly due to increase in Proceeds from sale of investments, and decrease in Payment for purchase of investments and Payment for business acquisitions.
• FCF: Not directly provided, but OCF less Capex can imply trends.

Working Capital Management Efficiency #

• Trade Receivables Turnover Ratio: Slightly improved, showing a change from 2.70% for the year ended March 31, 2023, to 2.78% for year ended March 31, 2024.
• Trade Payables Turnover Ratio: Decreased from the previous year ended March 31, 2023, to 16.39% for the year ended March 31, 2024.

Capex Analysis #

Data during the year ended March 31, 2024:

• Additions: 9,476 million.
• Additions through Business Combination: negligible.

Data during the year ended March 31, 2023:

• Additions: 24,388 million.
• Additions through Business Combination: negligible.

Dividend and Share Buyback Trends #

• Dividends Paid: C5,487 million paid during the year ended March 31, 2024, decreased from C32,804 million in the prior year.
• Interim dividend of C1 was declared and paid during the year ended March 31, 2024.
• Share Buyback: C145,233 million (including tax and transaction cost) was paid for the buyback of equity shares during the year ended March 31, 2024.

Debt Service Coverage #

• Debt service coverage ratio calculation shows change in debt service coverage ratio from 15.85 for the year ended March 31, 2023 to 15.26 for the year ended March 31, 2024.

Liquidity Position and Cash Conversion Cycle #

• Liquidity Position: Cash and cash equivalents increased to C96,953 million as of March 31, 2024, from C91,880 million in the prior year. Current investments also indicate a strong position.
• Cash Conversion Cycle: Not directly provided, but changes in trade receivables, unbilled receivables, and trade payables turnover ratios can imply effects on the cash conversion cycle.

Financial Ratio Analysis: A 3-Year Trend #

Profitability Ratios #

Return on Equity (ROE) #

• FY22: 19.75%
• FY23: 15.67%
• FY24: 15.13%
• ROE has declined over the three-year period.

Return on Assets (ROA) #

• FY22: 11.65% (122,229 / 1,048,808)
• FY23: 9.70% (113,665 / 1,171,477)
• FY24: 9.58% (110,452/1,152,490)
• ROA has been declining over the three-year period.

Return on Invested Capital (ROIC) #

Assuming Capital Employed = Total Assets - Current Liabilities

• FY22: 15.64% (151,275 / (1,048,808-81,925))
• FY23: 18.75%
• FY24: 21.09%
• ROIC has increased, indicating improved efficiency in capital use after a decrease.

Profit Margins #

Operating Profit Margin #

(Results from operating activities / Revenue)

• FY22: 17.74%
• FY23: 15.44%
• FY24: 15.22%
• The Operating margin has marginally declined.

Net Profit Margin #

(Profit for the year / Revenue)

• FY22: 15.46%
• FY23: 13.54%
• FY24: 13.65%
• Net Profit Margin has fluctuated, showing a slight increase in the current year after a previous decline.

Liquidity Metrics #

Current Ratio #

(Current Assets / Current Liabilities)

• FY23: 2.47
• FY24: 2.57
• The current ratio is above 2 in both years, which indicates good short-term liquidity.

Cash Ratio #

(Cash and Cash Equivalents / Current Liabilities)

• FY23: 0.34
• FY24: 0.38
• The cash ratio is increasing, meaning improved ability to cover immediate liabilities.

Efficiency Ratios #

Asset Turnover #

(Revenue / Average Total Assets)

• FY22: 0.80 (790,934 / ((1,048,808+936,023)/2)
• FY23: 0.81
• FY24: 0.77
• Asset turnover has decreased.

Inventory Turnover #

(Cost of Goods Sold / Average Inventory)

Only applicable to sale of Products

• FY24: 3.36
• FY23: 4.35
• Decreased, which suggests there have been less sales.

Receivables Turnover #

(Revenue / Average Trade Receivables)

• FY22: 6.96
• FY23: 7.60
• FY24: 7.40
• Receivables turnover has slightly decreased, suggesting there has been less sales.

Leverage Metrics #

Debt-to-Equity Ratio #

(Total Debt / Total Equity) Total Debt=Borrowings + Lease Liabilities

• FY23: 0.22
• FY24: 0.22
• The debt-to-equity ratio is stable, showing a low reliance on debt financing.

Interest Coverage Ratio #

(Earnings Before Interest and Taxes / Finance Costs)

• FY22: 27.34
• FY23: 14.85
• FY24: 11.84
• The ratio decreased, which suggests a lower ability to meet the interest obligations.

Segment-wise ROIC #

Assuming Capital Employed = Segment Result / Total Assets

IT Services #

• FY23: 21.87%
• FY24: 23.10%
• The ROIC for IT services has shown improvement

IT Products #

• FY23: -0.87%
• FY24: -3.37%
• IT product has negative ROIC.

Summary #

• ROE, ROA, Margins, and asset turnover are declining, indicating decreasing profitability and efficiency over time.
• Liquidity metrics (current and cash ratios) are stable and show good liquidity.
• Leverage is low and stable, while the interest coverage ratio is high but decreasing.
• IT Services segment shows a healthy ROIC, whereas IT Products segment has a negative.

Business Segments Performance Analysis #

Revenue and Profitability Metrics with Growth Rates #

IT Services: #

• FY24 Revenue: ₹893,476 million; FY23: ₹898,829 million. Growth rate: -0.6%
• FY24 Segment Result: ₹164,361 million; FY23: ₹159,529 million. Growth Rate: 3.03%
  • Americas 1: FY24 revenue: ₹268,230 million, FY23 revenue: ₹261,270 million. Growth rate: 2.66%
  • Americas 2: FY24 revenue: ₹269,482 million. FY23 revenue: ₹278,374. Growth rate: -3.19%.
  • Europe: FY24 revenue: ₹253,927 million. FY23 revenue: ₹256,845.Growth rate: -1.14%.
  • APMEA: FY24 revenue: ₹102,177 million. FY23 revenue: ₹106,812. Growth rate: -4.34%.

IT Products: #

• FY24 Revenue: ₹4,127 million. FY23: ₹6,047 million. Growth rate: -31.75%
• Segment not profitable

Market Share and Competitive Position #

• The document provides recognitions from analysts such as Gartner, ISG Provider Lens™, Forrester Wave™, and IDC MarketScape, positioning Wipro as a “Leader” in various service categories (e.g., Public Cloud IT Transformation, Intelligent Automation, Application Modernization, Google Cloud Partner Ecosystem, Sustainability, and Managed Network Services). These recognitions suggest a strong competitive position in those specific segments.

Key Products/Services Performance #

IT Services - Nature of Contract: #

• Fixed price and volume-based contracts: ₹501,947 million in FY24, ₹501,204 million in FY23. Growth rate: 0.15%.
• Time and materials contracts: ₹391,529 million in FY24,₹397,625 million in FY23. Growth rate: -1.53%.

IT Services - Business line: #

• Wipro FullStride Cloud : No specific numerical performance provided, only descriptive details of ai360 launch, training, partnerships. *Wipro Enterprise Futuring: No specific numerical value, described as offering “AI-powered solutions for large-scale enterprise transformation”. *Wipro Engineering Edge: No specified numerical value. *Wipro Consulting: No specified value, Capco is stated to specilize in the financial services, and energy industries.

Geographic Distribution and Market Penetration #

IT Services Revenue by SMU: #

• Americas 1: ₹268,230 million (29.9% of total IT services).
• Americas 2: ₹269,482 million (30.0% of total).
• Europe: ₹253,927 million (28.3% of total).
• APMEA: ₹102,177 million (11.4% of total).

Overall Company Revenue (not segmented): #

• India: 23,484 million
• United States: ₹512,572 million (Majority, not segmented)
• United kingdom: ₹108,896 million.

Growth Initiatives #

• AI (ai360): Significant investment and focus on AI across all service lines. Training of over 225,000 employees on GenAI fundamentals.
• Partnerships: Collaboration with major technology providers (AWS, Google, IBM, Microsoft, Nvidia) for AI solutions.
• Wipro FullStride Cloud: Integration of cloud expertise and capabilities.
• Wipro Enterprise Futuring: Focus on large-scale enterprise transformation solutions.
• Wipro Engineering Edge: Focus on emerging technologies like Data, AI, 5G, IoT.
• Strategic acquisitions, such as Desjardins, RSA and ManpowerGroup

Risk Framework #

IT Services Segment #

Strategic Risks #

• Severity: High. Competitive landscape and fast-evolving technologies like AI.
• Likelihood: High. Pace of technological change and client demands.
• Trend: Increasing. Growing investments in AI and cloud services by Wipro and its competitors.
• Mitigation Strategies: Wipro’s ai360 initiative, investments in R&D, upskilling/reskilling employees, and cloud partnerships (AWS, Google, IBM, Microsoft, Nvidia).
• Control Effectiveness: Partially Effective. Proactive approach demonstrated by investments and training programs, but rapid AI evolution presents ongoing challenges.
• Potential Financial Impact: Significant. Failure to adapt could lead to loss of market share, reduced revenue, and lower profit margins.

Operational Risks #

• Severity: Moderate to High. Cybersecurity threats and the need for skilled talent.
• Likelihood: High. Cybersecurity incidents are frequent, and the demand for AI/ML skills is intense.
• Trend: Increasing, as reflected in cybersecurity recognitions.
• Mitigation Strategies: Cybersecurity and Risk Services (CRS), employee training programs, partnerships for specialized learning.
• Control Effectiveness: Moderate. Established cybersecurity services and training, but the ever-evolving nature of threats requires constant vigilance.
• Potential Financial Impact: Moderate. Reputational damage and increased expenses from cybersecurity, while training costs impact operational efficiency.

Financial Risks #

• Severity: Moderate. Exposure to foreign currency fluctuations.
• Likelihood: High. Currency markets are inherently volatile.
• Trend: Stable. Mix of currencies creates a natural hedge.
• Mitigation Strategies: Use of derivative financial instruments, established risk management policies.
• Control Effectiveness: Moderate. Hedging provides partial protection, but volatility can still impact results.
• Potential Financial Impact: Moderate. A 1 Rupee increase/ decrease in the spot exchange rate of the Indian rupee with US dollar would result in approximately 2,801 INR Million decrease/increase.

Compliance/Regulatory Risks #

• Severity: Moderate. Exposure to changing regulations in multiple jurisdictions, including tax laws.
• Likelihood: Moderate. Regulatory changes are common, especially in areas like data privacy.
• Trend: Stable. The Company is monitoring and is generally compliant.
• Mitigation Strategies: The Company assess whether each uncertain tax position is to be considered separately or together.
• Control Effectiveness: Moderate.
• Potential Financial Impact: Income Tax claims reported against the Company is 95,390 INR Million.

Emerging Risks #

• Severity: High. Rapid advancements in Generative AI and evolving client needs.
• Likelihood: High. AI is developing at a rapid pace.
• Trend: Increasing. AI as a transformative ability.
• Mitigation Strategies: Wipro’s ai360 initiative, substantial investments in training (over 225,000 employees trained in GenAI fundamentals), strategic partnerships, and infusing AI into all processes.
• Control Effectiveness: Moderate. Actively investing, but the long-term success of these strategies is uncertain.
• Potential Financial Impact: Failure to leverage and implement GenAI could lead to significant revenue loss, reduced competitiveness.

IT Products Segment #

Strategic Risks #

• Severity: High. Dependence on third-party product sales and rapid technological obsolescence.
• Likelihood: High. The IT product market is highly dynamic.
• Trend: Stable, as it is an ongoing characteristic of the segment.
• Potential Financial Impact: Revenue from product sales can impact the result.

Financial Risks #

• Severity: Moderate. The segment’s smaller revenue contribution reduces overall risk.
• Likelihood: Moderate. Currency fluctuations could affect product pricing.
• Potential Financial Impact: Moderate.

Emerging Risks #

• Severity: High. The shift towards cloud-based services (SaaS) could make traditional product reselling obsolete.
• Likelihood: High. The cloud market is growing rapidly.
• Trend: Increasing. The report mentions “cloud” many times.
• Mitigation Strategies: Expansion into cloud-based offerings and services.
• Potential Financial Impact: Significant. Revenue impact due to shift.

Strategic and Management Analysis: IT Services #

Long-Term Strategic Goals and Progress #

The segment is shifting towards strategic areas, focusing on “One Wipro” to meet client goals. The re-organized structure into four Global Business Lines (GBLs) – Wipro FullStride Cloud, Wipro Enterprise Futuring, Wipro Engineering Edge, and Wipro Consulting – is intended to drive focused growth. Progress is indicated by initiatives like ai360 and training over 225,000 employees on GenAI fundamentals.

Competitive Advantages and Market Positioning #

Wipro is positioning itself as a leader in AI-powered solutions, cloud services, and engineering, particularly in emerging technologies like 5G, IoT, and silicon chip design. Analyst recognitions (Gartner, ISG, Forrester, IDC) place Wipro as a “Leader” in multiple service categories, supporting a strong market position.

Innovation Initiatives and R&D Effectiveness #

Wipro’s ai360 ecosystem, along with Lab45, emphasizes AI, data, and analytics solutions. Collaborations with major technology partners (AWS, Google, IBM, Microsoft, Nvidia) are central to its R&D. The training of over 30,000 employees on advanced AI demonstrates a commitment to infuse AI into all processes and tools. Specific AI solutions like InspectAI and Intelligent Data Processing (IDP) platform are deployed.

M&A Strategy and Execution #

Wipro’s Consulting GBL includes acquisitions like Capco and Designit, aiming to enhance consulting and domain expertise. Recent acquisitions (Desjardins, RSA, ManpowerGroup) indicate a strategy focused on cloud migration, modernization, and digital transformation services.

Management’s Track Record in Execution #

The successful cloud transformation for ManpowerGroup within a year indicates efficient execution. Extension of partnerships (Hanesbrands Inc.) suggests client satisfaction and successful delivery.

Capital Allocation Strategy #

Investments is being made on talent that can wield AI technologies.

Organizational Changes and Their Impact #

The GBL model, introduced to improve speed to market and streamline decision-making, reflects a significant organizational shift. Merging ISRE segment as a part of its APMEA reflects a strategic consolidation.

ESG Framework #

ESG and Sustainability Analysis #

Environmental Metrics and Targets #

• Energy Consumption: Total energy consumed decreased from 732,124,678 MJ (FY23) to 721,130,435 MJ (FY24). Renewable energy sources accounted for 531,228,352 MJ (FY24), up from 420,646,024 MJ (FY23).
• Emission Reduction: Scope 1+2 reduction was 80% from the baseline year (2017). Scope 3 reduction was 59% from baseline.
• Water Usage: Total water withdrawal decreased from 1,033,818 kl in FY23 to 890,243 kl in FY24. Water consumption followed a similar decreasing trend.
• Waste Management: Total waste generation decreased from 5,563 metric tonnes (FY23) to 4,618 metric tonnes (FY24).

Targets #

• Net-Zero GHG emissions by 2040 (Scope 1 and 2 by 2030).
  • 75% reduction in Scope 1 and 2 emissions by 2030 (from 2017 baseline).
  • 60% reduction for Scope 3 on 2020 baseline
  • 65% improvement in freshwater use efficiency by 2030 (from 200 liters/employee/day in FY23 to 70 liters).

Social Responsibility Programs #

• Wipro has a range of programs that include, but not limited to: system reforms in education, access to education for the underprivileged and children with disabilities, sustainability education, higher education skills building, sustainability initiatives and healthcare.
• Community Engagement: Focus areas include education, primary health, disaster response, and the environment.
• CSR Spending: ‘2,085 million was spent on CSR activities in the current financial year.
• CSR Project Beneficiaries: Impacts touch over 2 million people.
• Employee Engagement: The provided document does not specify metrics related to employee engagement in social responsibility programs, only that employee engagement exists.

Governance Structure and Effectiveness #

• Board Oversight: ESG risks are integrated into Wipro’s Enterprise Risk Management system, with review at the leadership and board level. Board committees review performance against policies.
• Code of Business Conduct (COBC): 91.21% of employees completed annual training and certification, which includes Ombuds.
• Independent assessment: A part of the Business Responsibility and Sustainability Reporting, included within the Integrated Annual Report, has obtained external assurance.
• Stakeholder Engagement: The company has an ongoing process and conducts independent stakeholder engagement and materiality refresh.
• ESG Governance Wipro maintains leadership in ESG ratings.
• Ombuds Process: Close to 95% of logged cases are closed within 60 days of reporting.

Sustainability Investments and ROI #

• R&D and Capex: In FY24, 54.14% of R&D and 75.09% of capital expenditure investments were in technologies to improve environmental and social impacts.
• Specific Investments: Investments are directly mentioned including, but not limited to, green buildings in Kodathi, Gopannapally, and Kolkata.
• No specific ROI mentioned in the data.

ESG Ratings and Peer Comparison #

• ESG Ratings: Wipro states that they continue to maintain leadership.

Specific Ratings Mentioned: #

• Dow Jones Sustainability Indices (DJSI): Listed for the 14th consecutive year.
• Bloomberg Gender-Equality Index (GEI): Included for five consecutive years.
• Human Rights Campaign Foundation’s Corporate Equality Index: Included for the fourth time.
• No explicit, direct comparison in the financial numbers.

Regulatory Compliance and Future Preparations #

• Compliance: The Company states compliance with applicable environmental laws/regulations/ guidelines in India (Water Act, Air Act, Environment Protection Act).
• Future Preparations: Assessing the impact of the Code on Social Security, 2020 (India).
• Pillar Two model rules: Company has applied the temporary exception from the accounting requirements. No material impact is declared.