Backed by improving global economic sentiment cost optimisation, country’s third-largest software services firm Wipro posted a rise of 28.8 per cent in its net profit for the fourth quarter. Company’s net profit rose to Rs 2,226.5 crore as against Rs 1,728.7 crore in the same period last fiscal. In anticipation of robust results, shares of Wipro trading on Bombay Stock Exchnages rose by 2.39 per cent and closed at Rs 585.55 per share.
Company in its statement issued results under the International Financial Reporting Standards (IFRS). Company’s net sales also grew 21.7 per cent to Rs 11,703.6 crore in the quarter from Rs 9,613.1 crore a year earlier. Revenue from IT services stood at Rs 10,620 crore, up 24 per cent YoY (YoY) basis.
In dollar terms, IT service’s revenue was at $ 1.72 billion, up 8.5 per cent YoY. 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.
Commenting on the Q4 results, Wipro’s Chairman Azim Premji said, “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.”
For the financial year 2014, profit rose 17.5 per cent to Rs 7,796.7 crore, while revenue climbed 16.1 per cent to Rs 43,754.9 crore. 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 (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.
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).