Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 12

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 3
Chunk 12
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 regulations proposed, and in certain cases enacted, in numerous U.S. states and new applications of data protection, privacy, consumer protection, intellectual property and other laws and regulations. Adopting new and proposed legislation and regulations relating to the development and use of AI could require us to make significant changes to our policies and practices, necessitating expenditure of significant time, expense, and other resources. Customers may require adherence to these laws and regulations and we may need to offset some risks through upskilling of technical teams. This is complex for a company like ours where the AI talent pool is dispersed. Equally, the increase in regulatory scrutiny means that we must enhance our due diligence and quality assurance in our AI related engagements and produce a detailed and reproducible inventory of all the AI systems we develop and deploy with clients.
Additionally, many of the foregoing risks may lead to reduced demand for our services or harm our ability to obtain favorable pricing or other terms for our services, which could have a material adverse effect on our business, results of operations and financial condition.
We are making substantial investments in new facilities and physical infrastructures, and our profitability could be reduced if our business does not grow proportionately.
We have invested substantially in construction or expansion of software development facilities and physical infrastructure in anticipation of growth in our business. The total amount of cash outflow towards investment in property, plant and equipment in fiscal year 2025 was ₹ 14,737 million (U.S.$ 173 million). Additionally, as of March 31, 2025, we had contractual commitments of ₹ 8,719 million (U.S.$ 102 million) related to capital expenditures on construction or expansion of our software development and other facilities. We may encounter cost overruns or project delays in connection with new facilities and these expansions may increase our fixed costs. If we are unable to grow our business and revenues to sufficiently offset the increased expenditures, our profitability could be reduced.
We may invest in companies for strategic reasons that may not be successful or meet our expectations.
We make non-controlling investments in companies which are important to our business strategy and to complement some of our business initiatives. These may include investments in non-marketable securities of early stage companies that carry a significant degree of risk and may not become liquid for several years from the date of investment. These investments may not generate financial returns or may not yield the desired business outcome. The success of our investment in a company is sometimes dependent on the availability of additional funding on favorable terms or a liquidity event such as an initial public offering