Wipro resisted meltdown last fiscal but yields in new fiscal (Lead)

April 22nd, 2009 - 2:31 pm ICT by IANS  

Bangalore, April 22 (IANS) India’s third largest IT bellwether Wipro Ltd, which resisted global meltdown to post double-digit growth in fiscal 2008-09, has succumbed in the beginning of the new fiscal (2009-10) to project lower revenue guidance from its global IT services business.
“Flat sequential growth and uncertainty in a subdued environment have made us project lower revenue guidance from global IT services in the range of $1-1.03 billion for first quarter (April-June) of FY 2010,” Wipro chief financial officer Suresh Senapaty told IANS here Wednesday.

This is the second time the global software major has projected a lower guidance sequentially from the previous or fourth quarter (January-March) of FY 2009 when it posted $1.05 billion, barely meeting its guidance figure for global IT services business.

“We had a marginal revenue growth of 1.4 percent YoY from global IT services at $1.05 billion in fourth quarter of FY 2009. Sequentially, it’s a decline of 4.9 percent from third quarter (October-December) at $1.10 billion,” Senapaty admitted.

Under the Indian accounting standard, revenue from global IT services is Rs.49.3 billion (Rs.4,932 crore), a growth of 20 percent YoY.

For fourth quarter (Q4) of FY 2009, the company posted net profit of Rs.10.1 billion (Rs.1,010 crore), registering 15 percent year-on-year (YoY) growth under the Indian accounting standard.

Similarly, consolidated revenues for the quarter under review (Q4) of FY 2009 rose to Rs.64.52 billion (Rs.6,452 crore), posting 13 percent growth YoY under the Indian accounting standard.

Under the US accounting standard, net income for Q4 is $178 million and revenue $1.3 billion.

For entire fiscal 2009, net profit grew by 19 percent YoY to Rs.38.99 billion (Rs.3,899 crore) and consolidated revenue by 28 percent YoY to Rs.255.44 billion (Rs.25,544 crore) under the Indian accounting standard.

Under the US accounting standard, net income for FY 2009 is $677 million and consolidated revenue $5 billion.

Revenue from global IT services grew by 18.5 percent YoY to Rs $4.3 billion under the US accounting standard and by 31 percent YoY to Rs.191.66 billion (Rs.19,166 crore) under the Indian accounting standard.

The IT services business added 110 new clients for fiscal 2009, including 20 in fourth quarter.

The company’s IT products business grew by 11 percent YoY to Rs.8.7 billion (Rs.870 crore) in fourth quarter and by 31 percent YoY to Rs.34.55 billion (Rs.3,455 crore) for entire fiscal.

Consumer Care & Lighting, however grew only by seven percent YoY to Rs.1.47 billion (Rs.147 crore) and by 37 percent YoY to Rs.20.83 billion (Rs.2,083 crore) for entire fiscal.

The company’s board has recommended a final cash dividend of Rs.4 per share for the fiscal under review.

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