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UPDATE: Wipro Q4 profit up 1.7% at Rs 1,481 cr

Cost-conscious customers bump up demand to push firm towards marginal profit

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BS Reporter Bangalore
Last Updated : Jan 20 2013 | 3:24 AM IST

Wipro Ltd, India's third-largest software services exporter, reported a 1.7% rise in quarterly net profit at Rs 1,481 crore for the quarter ended 31 March 2012.

The net profit stood at Rs 1,456 crore a quarter ago for the IT giant, which counts Citigroup Inc and Telenor ASA among its clients.The soap to software major reported a growth of 8% when compared to the corresponding period last year.

The revenues of the company for the January-March quarter stood at Rs 9,836 crore reporting an increase of 19% as against the same  period last year.

However, on a quarter on quarter basis the revenues of the company witnessed a drop of 1%.

The revenue from the flagship IT services business witnessed a growth of 21% when compared to the same period last year and stood at Rs 7,590 crore. IT Services Earnings Before Interest and Tax (EBIT) for the quarter ended March 31, 2012 was Rs 1,573 crore an increase of 13% YoY.

Operating income to revenue for IT Services was 20.7% for the last quarter of the year.

The profit of the Bangalore-based firm for the whole year ended March 31, 2011 was Rs 5,573 crore registering a marginal rise of 5% when compared to the same period last year.

The revenues for the complete year stood at Rs 37,525 crore reporting a growth of 21% as against the same period last year.

IT services revenues for the entire year was Rs 28, 431 crore a jump of 21% as against last year.

IT Services Earnings Before Interest and Tax (EBIT) was Rs 5,927 crore an increase of 11% y-o-y.

Azim Premji, Chairman of Wipro, commenting on the results said: “Corporations globally are focused on leveraging technology to drive revenues and productivity. Our strategy is aligned to deliver value to our customers by partnering with them in this journey.”

The company which provides a quarterly guidance said it expects the revenues from the IT Services business for the first quarter of FY13 to be in the range of $1,520 million to $1,550 million.

Wipro declared a final dividend of RS 4 per share/ADS, taking the total dividend declared during the year to Rs 6 per share/ADS.

The IT Services segment which contributes around 76% of the company’s revenue had 135,920 employees as of March 31, 2012, an increase of 13,535 people in the year.

The Bangalore based company also added 41 new customers for the January-March quarter taking the new client numbers to 173 for the whole year.

The IT products segment which contributes around 10% of the revenue recorded revenues of around Rs 3,844 crore for the year ended March 31, 2012 witnessing a y-o-y increase of 4%.

The EBIT of the product business was Rs 1,790 crore for the whole year registering an increase of 11% as against the same period last year.

T K Kurien, Executive  Director & Chief Executive Officer, IT Business, said: “We have delivered revenues in line with our guidance in an uncertain environment. Our restructuring journey started with us positioning  the  customer at the center of all our efforts— we have seen progress with customer satisfaction scores going up  in  each of the last four quarters and we have created better value for our clients, with seven customers contributing more than $100 million in revenues.”

The consumer care and lighting business segment of the company recorded revenue of Rs 3,340 crore for the year, registering a growth of 23%.

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First Published: Apr 25 2012 | 9:39 AM IST

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