Wipro Q4 profit rises 29%, beats estimates

Wipro on Thursday posted a 28.8 per cent increase in profit to Rs 2,226.5 crore (Rs 22.26 billion) in the quarter ended March 31 on the back of improving global economic sentiment and cost optimisation.

The Bengaluru-based firm had registered a profit of Rs 1,728.7 crore (Rs 17.28 billion) in the fourth quarter ended March 31, 2013, Wipro said in a statement.

The results are under International Financial Reporting Standards.

Net sales grew 21.7 per cent to Rs 11,703.6 crore (Rs 117.03 billion) in the quarter from Rs 9,613.1 crore (Rs 96.13 billion) a year earlier.

Revenue from IT services stood at Rs 10,620 crore (Rs 106.2 billion), up 24 per cent year-on-year.

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In dollar terms, the segment's revenue was at $1.72 billion, up 8.5 per cent year-on-year. This is in line with its projection of $1.712 billion to $1.745 billion for January-March 2014.

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

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For 2013-14, profit rose 17.5 per cent to Rs 7,796.7 crore (Rs 77.96 billion), while revenue climbed 16.1 per cent to Rs 43,754.9 crore (Rs 437.54 billion).

The company added 59 customers during the quarter.

IT services revenue for the year was at $6.62 billion (up 6.4 per cent y-o-y) or Rs 39,950 crore or Rs 399.5 billion (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.

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

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

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

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