India’s third-largest IT services company Wipro’s consolidated net profit registered a year-on-year (y-o-y) growth of 14% for the fourth quarter ended on March 31, 2011, powered by the demand from outsourcing services from the clients.
The net revenue of the company’s flagship IT services business stood at Rs 6,289 crore an increase of 20% y-o-y. For the January-March period of the FY11, the revenues of the company stood at Rs 8,302 crore an increase of 18% y-o-y.
Soap to IT services major’s net profit for the financial year 2010-11 ended on March 31, 2011 witnessed a jump of 15% y-o-y. The IT services revenues stood at Rs 23,485 crore an increase of 16% y-o-y for the fiscal 2011. The total revenue of the company for the FY11 was Rs 31,099 crore an increase of 15%.
Azim Premji, Chairman of Wipro, said: “We have made good progress in creating a leaner, simpler and more customer centric organisation structure. We believe our business strategy along with the new structure will deliver industry leading growth.”
The IT Services business which contributed around 76% of the company’s revenue added 2,894 people this quarter taking the total employee strength to 122,385 as of March 31, 2011. According to a filing to the Bombay Stock Exchange, Wipro added 68 new customers for the quarter and 155 new customers during the year.
Wipro also informed the BSE that the Board of Directors of the company has recommended a final dividend of Rs 4 per share (200% on an equity share of par value of Rs 2 each) for the year ended March 31, 2011.
TK Kurien, Executive Director & Chief Executive Officer, IT Business, said: “Our journey of building the new Wipro is based on the foundation of customer focus, domain and technology leadership directed towards the customer needs and providing enriching career opportunities for our employees.”
Going forward for the quarter ending June 30, 2011, the company expects revenues from IT Services business to be in the range of $1,394 million to $1,422 million. According to analysts the guidance for the first quarter of FY12 of Wipro is disappointing and they also believe that it might impact the share prices of the company for a short term.
The revenue from the product business for the quarter witnessed a marginal increase of 2% to Rs 911 crore. However, the IT products business of the company for the FY11 witnessed a 3% drop in revenue to Rs 3,691 crore.
The revenue from the consumer care and lighting business segment recorded revenue of Rs 2,726 crore an increase of 21%, while the revenues for the quarter from the same was Rs 724 crore an increase of 19% y-o-y.
The shares of Wipro opened low at Rs 445, trading down by 4.02% from its earlier close on the BSE.