Wipro Technologies Jan-Mar quarter profit up 28.8% to Rs 2,226.5 cr, beats expectations

Written by Agencies | New Delhi | Updated: Apr 20 2014, 00:14am hrs
WiproFor the quarter ended March 31, Wipro said it earned 22.27 billion rupees. Reuters
The country's third-largest software services firm Wipro Technologies today posted a 28.8 per cent increase in profit to Rs 2,226.5 crore in the quarter ended March 31 on the back of improving global economic sentiment and cost optimisation.

The Bangalore-based firm had registered a profit of Rs 1,728.7 crore in the fourth quarter ended March 31, 2013, Wipro Technologies said in a statement. The results are under International Financial Reporting Standards (IFRS).

Net sales grew 21.7 per cent to Rs 11,703.6 crore in the quarter from Rs 9,613.1 crore a year earlier.

Revenue from IT services stood at Rs 10,620 crore, up 24 per cent year-on-year. In dollar terms, the segment's revenue was at USD 1.72 billion, up 8.5 per cent year-on-year. This is in line with its projection of USD 1.712 billion to USD 1.745 billion for January-March 2014.

For April-June, Wipro Technologies expects revenue from IT services to be in the range of USD 1,715 million to USD 1,755 million.

"The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets," Wipro Chairman Azim Premji said.

For 2013-14, profit rose 17.5 per cent to Rs 7,796.7 crore, while revenue climbed 16.1 per cent to Rs 43,754.9 crore. The company added 59 customers during the quarter.

IT services revenue for the year was at USD 6.62 billion (up 6.4 per cent y-o-y) or Rs 39,950 crore (up 18 per cent).

Wipro had 1,46,053 employees as of March 31, as part of its IT services business.

"Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility," Wipro Executive Director and Chief Executive Officer T K Kurien said.

This focus has enabled improved win ratios and has also enhanced customer satisfaction, he added.

Wipro declared a final dividend of Rs 5 (USD 0.08) per share/ADS, taking the total for the year to Rs 8 (USD 0.13).

The IT products segment delivered revenue of Rs 1,110 crore (USD 185 million) for the quarter, up 3 per cent, while for the full year, it dipped 1 per cent to Rs 3,880 crore (USD 646 million).

Shares of the company, which announced results after market hours, rose 2.39 per cent to Rs 585.55 at the close on the BSE.

Wipro Q4 profit rises 29 percent, beats estimates

(Reuters) Wipro Ltd posted 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 and Tata Consultancy Services (TCS), 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.

For the quarter ended March 31, the company said it earned 22.27 billion rupees ($368.98 million) compared with 17.29 billion rupees a year earlier.

That compares with average analyst estimates of 21.06 billion rupees in net profit.

India's outsourcing sector generates more than 90 percent of its sales from providing services, including setting up IT networks and developing software applications for overseas clients.

Shares of Bangalore-based Wipro closed at 585.85 rupees on Thursday.

($1 = 60.3550 Indian Rupees)

Full report:

Results for the Quarter ended March 31, 2014:

* Revenues from continuing operations were `117.0 billion ($2.0 billion1), an increase of 22% YoY.

* Net Income from continuing operations was `22.3 billion ($371 million1), an increase of 41% YoY.

* Non-GAAP Adjusted Net Income from continuing operations was `22.3 billion ($371 million1), an increase of 42% YoY.

* IT Services Revenue was $1,720.2 million, a sequential increase of 2.5% and YoY increase of 8.5%.

* IT Services2 Revenues in Rupee terms was `106.2 billion ($1.8 billion1), an increase of 24% YoY.

* IT Services2 Earnings Before Interest and Tax (EBIT) was `26.1 billion ($434 million1), an increase of51% YoY.

* IT Services2 Operating Margins was 24.5%, an expansion of 150 basis points sequentially.

Results for the Year ended March 31, 2014:

* Revenues from continuing operations were `437.6 billion ($7.3 billion1), an increase of 16% YoY.

* Net Income from continuing operations was `78.0 billion ($1.3 billion1), an increase of 27% YoY.

* Non-GAAP Adjusted Net Income from continuing operations was '78.0 billion ($1.3 billion1), an increase of 28% YoY.

* IT Services Revenue was $6,617.9 million, YoY increase of 6.4%.

* IT Services2 Revenues in Rupee terms was `399.5 billion ($6.7 billion1), an increase of 18% YoY.

* IT Services2 Earnings Before Interest and Tax (EBIT) was `90.3 billion ($1.5 billion1), an increase of 29% YoY.

* IT Services2 Operating Margins was 22.6% for the year an expansion of 195 basis points YoY.

* Wipro declared a final dividend of `5 ($0.08) per share /ADS, taking the total dividend declared during the year to '8 ($0.13) per share/ADS