Wipro Q3 net profit up 8 pct at Rs 2,192.8 cr; CFO Suresh Senapathy to retire

By: |
New Delhi | Updated: January 16, 2015 6:56:27 PM

Azim Premji-led Wipro's profit rises 9 pc to Rs 2,192.8 cr in Q3; revenue up 7 pc at Rs 12,085 cr.

Wipro, Wipro results, Wipro profit, Wipro quarter, Wipro quarterly result, Azim premji, azim premji WiproAzim Premji, Chairman of Wipro, said, “Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms.”

IT services major Wipro today reported a 8 per cent growth in its consolidated net profit at Rs 2,192.8 crore for the quarter ended December 31, 2014 led by growth in healthcare and infrastructure services.

The country’s third largest software services firm had posted a net profit of Rs 2,014.7 crore in the year-ago period, it said in a BSE filing.

Consolidated revenue was up 7 per cent at Rs 12,085.1 crore in the October-December quarter this fiscal from Rs 11,327.4 crore in the same quarter of 2013-14 fiscal. The figures are on IFRS basis.

IT services revenue rose by 7 per cent to USD 1.79 billion in the third quarter compared to the year-ago period. Quarter-on-quarter, the revenue was up by 1.3 per cent.

Wipro had indicated that it expected its December quarter revenues to be in the range of USD 1.8-1.84 billion.

The city-headquartered firm has projected IT services revenues to be in the range of USD 1.81-1.85 billion in the January-March quarter of 2014-15 fiscal.

Commenting on the performance, Wipro Chairman Azim Premji said: “Developments in the global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms.”

The IT services segment had a headcount of 156,866 as of December 31, 2014 and the company added 44 new clients during the third quarter.

Wipro CEO TK Kurien said: “We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business.”

The company declared an interim dividend of Rs 5 per share of par value Rs 2 each.

Wipro CFO Suresh Senapathy: “During the quarter, we saw all round growth led by growth in our Healthcare & Life Sciences business and Global Infrastructure Services.”

The company also announced that Senapaty will retire from the company on March 31, 2015, after attaining the age of superannuation.

Wipro Senior VP (Finance) Jatin Dalal will take over the role of Senapathy, effective April 1, 2015.

Scrips of the company today closed at Rs 555.25, down by 0.79 per cent from their previous close on the BSE.

Read Full Company Statement

Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2014.

Highlights of the Results for the Quarter ended December 31, 2014:

* Total Revenues were `119.9 billion ($1.9 billion1), an increase of 6% YoY.

* Net Income2 was `21.9 billion ($348 million1), an increase of 9% YoY.

* Non-GAAP constant currency IT Services Revenue in dollar terms grew 3.7% to $1,836.2 million, within our guidance range of $1,808 million to $1,842 million.

* IT Services Revenue was $1,795.4 million, a sequential increase of 1.3% and YoY increase of 7.0%.

* IT Services Margins was 21.8%.

* Wipro declared an interim dividend of `5 ($0.081) per share /ADS.

Performance for the quarter ended December 31, 2014

Azim Premji, Chairman of Wipro, said, “Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms.”

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, “We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “During the quarter, we saw all round growth led by growth in our Healthcare & Life Sciences business and Global Infrastructure Services. The share of fixed price contracts increased to over 55% of engagements – a reflection of the maturity of Wipro’s customer engagement model.”

Outlook for the Quarter ending March 31, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,814 million to $ 1,850 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.56, Euro/USD at 1.23, AUD/USD at 0.84, USD/INR at 62.90 and USD/CAD at 1.15

IT Services

* IT Services Segment Revenues in Rupee terms was `113.4 billion ($1.8 billion1), an increase of 10% YoY.

* IT Services Segment Result was `24.7 billion ($392 million1), an increase of 4% YoY.

* Non-GAAP constant currency IT Services Revenue in dollar terms grew 3.7% to $1,836.2 million, within our guidance range of $1,808 million to $1,842 million.

* IT Services Revenue was $1,795.4 million, a sequential increase of 1.3% and YoY increase of 7.0%.

The IT Services segment had a headcount of 156,866 as of December 31, 2014. We added 44 new customers during the quarter.

Wipro continued its momentum in winning Large Deals globally as listed below:

Wipro was selected by Levi Strauss & Co. (LS&Co), one of the world’s largest brand-name apparel companies and global leader in Jeanswear, as its primary partner for global applications maintenance and development, infrastructure and BPO services. The five-year contract is geared towards bringing cost

efficiencies and enabling enhanced optimization of applications, infrastructure, and BPO services within HR, Finance, IT, Customer Service, and Consumer Relations areas, thereby helping Levi Strauss & Co with their ongoing efficiency and cost saving measures to improve profitability.

Wipro has been selected by a large global food company as its partner for all its infrastructure and hosting needs. Wipro will leverage its US-based data centers and industry leading ServiceNXT Framework to enable world class Infrastructure services to support the customer’s evolving business needs. The five-year contract will optimize applications and infrastructure across the entire enterprise, thereby helping the client with its ongoing business and technology needs.

Wipro has won a multi-year payments transformation and platform management deal with a top 10 bank and card issuer in the US. The deal further enhances Wipro’s leadership position in the growing payments space and strengthens its consulting and delivery capabilities in payments and cards.

Wipro has been chosen as a strategic partner by a global leader in payments technology as part of their transformation strategy. The multi-year deal will result in Wipro partnering with the payments major across application development, maintenance, testing and infrastructure services.

Advanced Technologies & Solutions continued its traction with customers in the areas of Cloud, Mobility, Analytics, Big Data, and Workplace Collaboration, across verticals. Some marquee wins in Q3 include engineering of a big data platform on public cloud for a pharma major, financial risk and compliance analytics for a leading global investment bank.

Wipro has been empaneled by one of the world’s largest providers of financial services as one of its IT services providers. Wipro was selected for its depth and breadth of services and its ability to scale and support the customer’s goal of consolidation and growth, as the latter continues to invest in IT.

Wipro has been chosen by Cairn India Limited, India’s largest independent oil and gas exploration and production company as its IT partner for a business transformation program. Through this program Cairn India limited will achieve improved service delivery and meet its expansion plans.

Wipro has been chosen by the Government of Assam to design, develop and maintain an IT Solution for the state’s National Register of Citizens (NRC). The company will support the setting-up of the NRC Data Center, ‘Seva Kendras’ and digitization of the citizen application forms for updating the data.

Wipro has been selected to provide advisory and project management services to help set-up the IT landscape of a new bank, being launched by IDFC Limited, a leading Indian infrastructure finance company.

Wipro Limited Announces Retirement of Suresh Senapaty; Appoints Jatin Dalal as CFO

Bangalore, India and East Brunswick, New Jersey, USA, January 16, 2015:  Wipro Limited (NYSE:WIT), a leading global information technology, consulting and business process services company today announced that Suresh Senapaty, the current Chief Financial Officer and Executive Director will retire on attaining the age of superannuation on March 31, 2015 after completing a distinguished career spanning over three decades with the company. Jatin Dalal, Senior Vice President – Finance will take over the role of CFO, effective April 1, 2015.

Acknowledging Suresh Senapaty’s contribution, Azim Premji, Chairman, Wipro Limited said, “Suresh has been an integral part of the company’s think-tank and has played a catalytic role in taking the company to great heights. His exemplary contribution has seen Wipro setting new benchmarks in finance, governance and strategy. He has also emerged as a key industry voice, who has championed several governance and policy issues, pertinent to the IT industry. I personally thank him and his family for his contribution to Wipro and wish him all the very best in his future plans.”

Suresh Senapaty said, “It has been an exciting, challenging and fulfilling journey for me. Wipro has been an outstanding place to work, learn and grow. Helping build Wipro’s finance function and a strong culture of corporate governance apart from being a part of the organization’s growth journey are memories that I cherish.  This has been a wonderful journey, personally and professionally. I also wish to express my gratitude to all colleagues and other stake holders for their support over the years and wish Jatin all the very best.”

A Chartered Accountant, Jatin Dalal joined Wipro in 2002. He has been instrumental in taking up diverse and challenging assignments in Wipro’s finance function including setting up of Wividus – the company’s shared services division besides strengthening the company’s Financial Planning & Analysis and Investor Relations functions.

Suresh Senapaty and Jatin Dalal will work together through quarter ending March 31, 2015 to ensure a smooth transition.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop