Wipro Q4 profit up 28.8%; projects Apr-Jun revenue at $1.75 bn
18/04/2014
Bangalore: The country's third-largest software services exporter Wipro Thursday reported a 28.8 percent jump in net profit for the fourth quarter, helped by a revival in Europe, robust growth in the US and a cost optimisation drive.
Profit climbed to Rs 2,226.5 crore in the three months ended March 31 from Rs 1,728.7 crore a year earlier, the Bangalore-based company said in a statement.
Net sales grew 21.7 percent to Rs 11,703.6 crore from Rs 9,613.1 crore a year earlier. The results are under International Financial Reporting Standards (IFRS).
Wipro, which expects a strong deal pipeline in the first quarter of this financial year, projected IT services revenue of USD 1.715-1.755 billion in the three months ending June 30.
"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 market," Wipro Chairman Azim Premji said.
Revenue from IT services stood at Rs 10,620 crore, up 24 percent year-on-year.
In US dollar terms, IT services revenue was USD 1.72 billion, up 8.5 percent year-on-year and in line with its projection of USD 1.712-1.745 billion for January-March.
"Fourth quarter has gone off well as planned. We have achieved a sequential revenue growth of 2.5 percent for the quarter in line with our guidance.
"Our investments in automation, platform-based delivery and process simplification have helped us expand our margins by 430 basis points y-o-y to 24.5 percent -- our highest margin in last 15 quarters," Wipro Chief Executive Officer T K Kurien told the media here.
For 2013-14, Wipro's profit rose 17.5 percent to Rs 7,796.7 crore and revenue grew 16.1 percent to Rs 43,754.9 crore.
IT services revenue for the year was at USD 6.62 billion (up 6.4 percent y-o-y) or Rs 39,950 crore (up 18 percent).
Wipro added 59 customers in the quarter. It had 1,46,053 employees as of March 31 in its IT services business.
"We saw strong deal closure in the current quarter with our order book being one of the highest we have ever seen and we see the momentum continue in the first quarter this fiscal also and we have a strong funnel in terms of deals coming up for closure," Kurien said.
There is a seasonality with the firm's quarterly performance, which is playing out in the first quarter also, he added.
"As we enter the year, we see broad demand trends remaining stable both in terms of volume and realisations," he said.
IT products delivered revenue of Rs 1,110 crore (USD 185 million) in the quarter, up 3 percent, while for the year, it dipped 1 percent to Rs 3,880 crore (USD 646 million).
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).
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