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Wipro profit jumps 29%

Mumbai, April 17: Wipro today joined its peers to post better-than-expected numbers for the fourth quarter ended March 31, 2014.

Net profit of the Bangalore-based infotech firm rose nearly 29 per cent to Rs 2,226.5 crore from Rs 1,728.7 crore in the year-ago period.

Analysts had expected the company to report profit of about Rs 2,100 crore.

Wipro, however, gave a muted guidance for the first quarter of this fiscal. It said revenues from its IT services business would be in the range of $1,715-1,755 million. The lower-end of the guidance is below the IT services revenue of $1,720.2 million posted in the fourth quarter.

The Wipro management, however, was positive about the guidance.

“Do not read the first quarter (guidance) as a precursor to the year,” said T.K. Kurien, executive director and chief executive officer of Wipro.

Kurien said the first quarter guidance had been partly impacted by the seasonality of the business. However, Wipro is confident that 2014-15 will be a better year as the demand momentum seen in the fourth quarter will continue.

A key highlight during the quarter was the jump in margins by 150 basis points on a sequential basis to 24.5 per cent. According to Wipro, this is its highest margin over the past 15 quarters.

“Our focus on process simplification, automation and platform-based delivery continues to give results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction,” Kurien said.

During the fourth quarter, total income on a consolidated basis rose to Rs 12,099.5 crore from Rs 9,920.8 crore in the same period of last year.

For 2013-14, Wipro’s profit rose 17.5 per cent to Rs 7,796.7 crore and revenue grew 16.1 per cent to Rs 43,754.9 crore. IT services revenue for the year was up 6.4 per cent at $6.62 billion. Wipro announced a wage hike for its employees with effect from June 1.

Verticals such as global media and telecom, finance solutions, healthcare and energy performed well during the quarter. The company added 59 new customers for the quarter and had 146,053 employees in the IT services segment as of March 31.

 
 
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