IT major Wipro on Friday announced financial results under International Financial Reporting Standards for its fourth fiscal quarter and year ended March 31, 2010.
Highlights of the results:
Results for the Quarter ended March 31, 2010
- IT Services Revenue in constant currency was $1,180 million, with a sequential increase of 4.7%. On a
- YoY basis, the constant currency revenue increase was 7.8%.
- Total Revenues were Rs 6,983 crore ($1.55 billion), representing an increase of 8% over the same period last year.
- IT Services Revenue in dollar terms was $1,166 million, a sequential increase of 3.5% and YoY increase of 11.5%.
- Net income was Rs 1,209 crore ($269 million) on a GAAP basis, representing an increase of 21% over the same period last year.
- Non-GAAP Adjusted Net Income (excluding impact of accelerated amortisation of stock based compensation) was Rs 1,212 crore ($270 million), representing an increase of 21% over the same period last year.
- IT Services Revenues were Rs 5,260 crore ($1,170 million), representing an increase of 7% over the same period last year.
- IT Services Earnings Before Interest and Tax (EBIT) was Rs 1,272 crore ($283 million1), representing an increase of 20% over the same period last year.
- IT Services added 27 new clients in the quarter.
- Net addition of 5,325 employees in the current quarter.
- Local Nationals overseas have increased by 10% to 39% over the same period last year.
- IT Products recorded a 2% growth in Revenues over the same period last year.
- Consumer Care and Lighting Revenue grew 27% over the same period last year and EBIT grew 16%
Results for the year ended March 31, 2010
- Total revenues were Rs 27,124 crore ($6.03 billion), representing an increase of 6% over the same period last year.
- IT Services Revenues were $4,390 million, an increase of 1.6% YoY and 1.8% in constant currency.
- Net Income was Rs 4,593 crore ($1.02 billion), representing an increase of 18% over the same period last year.
- Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock based compensation) was Rs 4,586 crore ($1.02 million), representing an increase of 18% over the same period last year.
- nIT Services Revenues were Rs 20,249 crore ($4.50 billion), representing an increase of 6% over the same period last year.
- IT Services Earnings Before Interest and Tax (EBIT) was Rs 4,741 crore ($1.05 billion), representing an increase of 18% over the same period last year.
- IT Services added 121 new clients in the year.
- IT Products Revenue grew 11% over the same period last year and EBIT grew by 29%.
- Consumer Care and Lighting Revenue grew 17% over the same period last year, and EBIT grew 19%.
The Board of Directors recommends a final cash dividend of Rs. 6 per share/ADS, subject to shareholder approval at the Annual General Meeting scheduled in July 2010.
Board of Directors recommends issue of bonus shares to shareholders (including to ADS holders) in the ratio of two additional shares for every three shares held subject to shareholder approval in the Annual General Meeting scheduled in July 2010.
Azim Premji chairman of Wipro, commenting on the results said, "We have seen another strong quarter of broad based, volume led growth. We saw good recovery in our challenged verticals of Technology and Telecom. The business environment is returning to normal. For the quarter ending June 30, 2010, we expect revenues from our IT Services business to be in the range of $1,190 million to $1,215 million."
Suresh Senapaty, executive director and chief financial officer of Wipro, said, "We had a satisfying quarter. We delivered close to the upper end of our guidance with revenues of $1,180 million in constant currency. We have driven up margins by 60 basis points despite headwinds of wage increases, rupee appreciation and the impact of cross currency."