Wipro net up for quarter, fiscal; sees flat IT growth (Lead)

April 27th, 2011 - 1:50 pm ICT by IANS  

Bangalore, April 27 (IANS) Like its peers, Indian software major Wipro posted double- digit growth in net profit and revenue in the fourth quarter and fiscal 2010-11 but projected flat revenue growth from its global IT services for the first quarter (April-June) of the new fiscal (2011-12).

Net profit for fourth quarter (Q4) under review at Rs.1,375 crore (Rs.1.4 billion) was 14 percent higher year-on-year (YoY) and total revenue at Rs.8,302 crore (Rs.83 billion) was 18 percent up YoY.

Under the International Financial Reporting Standards (IFRS), net income was $309 million and total revenue $1.86 billion.

Revenue from global IT services business was Rs.6,289 crore (Rs.62.9 billion/$1.4 billion), up 20 percent YoY and 4.2 percent higher sequentially.

Similarly, net profit for fiscal under review (FY 2011) was Rs.5,298 crore (Rs.5.3 billion), an increase of 15 percent YoY and total revenue Rs.31,099 crore (Rs.311 billion), up 15 percent YoY.

Under IFRS, net income for FY 2011 was $1.2 billion and total revenue $6.98 billion).

Revenue from global IT services business was Rs.23,485 crore (Rs.23.49 billion), up 16 percent YoY.

Under IFRS, revenue from IT services for FY 2011 was $5.27 billion.

“We have made good progress in creating a linear, simpler and more customer centric organization structure. We believe our business strategy along with the new structure will deliver industry leading growth,” Wipro chairman Azim Premji said in a statement here Wednesday.

The company, however, projected $1.4 billion from its global IT services for first quarter (Q1) of FY 2012, indicating a flat growth sequentially from fourth quarter (January-March) of last fiscal (2010-11).

“Our revenue from IT services business would be in the range of $1,394-1,422 million or $1.4 billion in the first quarter (Q1) of FY 2012,” the statement noted.

Revenue ($1.4 billion) from IT services business for Q4 of FY 2011 was as projected and four percent higher sequentially from third quarter (October-December) at $1.3 billion and 20 percent up year-on-year (YoY).

“The business environment is positive and we are focusing our growth by directing investments on momentum verticals. We have announced wage hikes effective June 1, 2011, which would have an impact on the operating margins,” company chief financial officer (CFO) Suresh Senapaty said.

Operating margin from IT services for Q4 was 22.1 percent and 22.7 percent for FY 2011.

IT services accounted for 76 percent of the total revenue and 93 percent of operating income.

“Our journey of building the new Wipro is based on the foundation of customer focus, domain and technology leadership directed towards the customer needs and providing enriching career opportunities for our employees,” chief executive T.K. Kurien said.

The company added 68 new clients in fourth quarter and 155 through fiscal.

The IT services division hired 2,894 people in the fourth quarter, taking the total headcount to 122,385 at the end of March 31.

Attrition rate jumped to 23 percent in FY 2011 from 12 percent in 2010.

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