India's third-largest Information Technology (IT) services exporter, Wipro Limited, registered a 29 percent rise in its fourth-quarter net profit beating expectations helped by increased IT spending by its customers.
Like its rivals Infosys Ltd (INFY.NS) and Tata Consultancy Services Ltd (TCS.NS), Wipro is banking on a revival in demand for IT services in the industry's biggest markets as the economies of the United States and Europe improve.
"The year performance has been 437 billion rupees which is about 16 per cent year-on-year growth and the operating profit is 89 billion rupees, which is about 28 per cent year-on-year growth and net income 77.9 billion rupees to 27 per cent year-on-year growth. If we look at segment perspective, the IT services 399 billion to 400 billion rupees with an 18 per cent year-on-year growth and if we look at operating profit in IT service, 90 billion with a 29 per cent year-on-year growth", said Chief Financial Officer of Wipro Suresh Senapaty.
For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.
"Quarter four has gone off well for us as planned. We have achieved a sequential revenue growth of 2.5 per cent for the quarter in line with our guidance. Our investment in area of automations, platform based delivery have helped us expand our margin by 430 basis points year-on-year to a 20.5 per cent, our highest margin in last 15 quarters," said Wipro Chief Executive Officer, T. K. Kurien.
That compares with average analyst estimates of 21.06 billion rupees in net profit, according to Thomson Reuters I/B/E/S.
