India's third largest software services exporter Wipro 's IT services revenues met analysts' expectations and margin beat forecast but the guidance for June quarter is muted. Net profit of the company grew 10.5 percent sequentially to Rs 2,226.5 crore on revenue of Rs 11,703.6 crore (3.3 percent Q-o-Q) during the quarter. IT services revenue in rupee terms rose 2.8 percent Q-o-Q (up 24 percent Y-o-Y) to Rs 10,619 crore and dollar revenue increased 2.5 percent (up 8.5 percent Y-o-Y) to USD 1.72 billion during the quarter.
The guidance range for Q4FY14 dollar revenue was USD 1.712 billion to USD 1.745 billion and analysts had expected it at USD 1.720 billion and rupee revenue at Rs 10,541 crore. "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," says TK Kurien, executive director & chief executive officer. Wipro expects revenues from IT services business to be in the range of USD 1.715 billion to USD 1.755 billion during April-June quarter of financial year 2014-15. It says this guidance is based on conversion rate of 61.62 a dollar. Operational performance was very strong. Earnings before interest and tax (EBIT) grew 9.5 percent on sequential basis to Rs 2,605.4 crore and margin expanded 150 basis points to 24.5 percent in the quarter gone by. Analysts had expected both at Rs 2,409 crore and 22.85 percent, respectively.
For the year ended March 2014, EBIT came in at Rs 9,030 crore, up 29 percent compared to previous year and margin jumped 195 basis points to 22.6 percent. "We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT services operating margins by 195 basis points," says Suresh Senapaty, executive director & chief financial officer. Full year IT services revenue rose 18 percent to Rs 39,950 crore and dollar revenue jumped 6.4 percent to USD 6.618 billion. Wipro says it added 59 new customers in Q4. Some of the deals won during the quarter were: 1) Five-year infrastructure managed services contract with a Fortune 500 global leader in specialty chemicals. 2) Seven-year engagement with Xoserve, an organization which is an integral part of the restructured gas distribution market in Britain. 3) A leading apparel and footwear company has renewed its multi-year engagement with Wipro, for application support services in a managed services model. 4) Deal from a multinational telecommunications company to manage IT and network operations for enterprise business in India. 5) Large deal in the Basel II risk & compliance domain from a large state owned bank in India. Wipro, which has announced earnings after market hours, has declared a final dividend of Rs 5 per equity share for the year ended March FY14.
The payout date for final dividend is fixed as July 31, 2014. Meanwhile, the company says its IT products segment delivered revenue of Rs 1,111 crore for the quarter, up 3 percent compared to a year-ago period and revenue was Rs 3,880 crore, down 1 percent Y-o-Y. Wipro's stock closed at Rs 585.55, up 2.39 percent on the Bombay Stock Exchange.
The guidance range for Q4FY14 dollar revenue was USD 1.712 billion to USD 1.745 billion and analysts had expected it at USD 1.720 billion and rupee revenue at Rs 10,541 crore. "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," says TK Kurien, executive director & chief executive officer. Wipro expects revenues from IT services business to be in the range of USD 1.715 billion to USD 1.755 billion during April-June quarter of financial year 2014-15. It says this guidance is based on conversion rate of 61.62 a dollar. Operational performance was very strong. Earnings before interest and tax (EBIT) grew 9.5 percent on sequential basis to Rs 2,605.4 crore and margin expanded 150 basis points to 24.5 percent in the quarter gone by. Analysts had expected both at Rs 2,409 crore and 22.85 percent, respectively.
For the year ended March 2014, EBIT came in at Rs 9,030 crore, up 29 percent compared to previous year and margin jumped 195 basis points to 22.6 percent. "We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT services operating margins by 195 basis points," says Suresh Senapaty, executive director & chief financial officer. Full year IT services revenue rose 18 percent to Rs 39,950 crore and dollar revenue jumped 6.4 percent to USD 6.618 billion. Wipro says it added 59 new customers in Q4. Some of the deals won during the quarter were: 1) Five-year infrastructure managed services contract with a Fortune 500 global leader in specialty chemicals. 2) Seven-year engagement with Xoserve, an organization which is an integral part of the restructured gas distribution market in Britain. 3) A leading apparel and footwear company has renewed its multi-year engagement with Wipro, for application support services in a managed services model. 4) Deal from a multinational telecommunications company to manage IT and network operations for enterprise business in India. 5) Large deal in the Basel II risk & compliance domain from a large state owned bank in India. Wipro, which has announced earnings after market hours, has declared a final dividend of Rs 5 per equity share for the year ended March FY14.
The payout date for final dividend is fixed as July 31, 2014. Meanwhile, the company says its IT products segment delivered revenue of Rs 1,111 crore for the quarter, up 3 percent compared to a year-ago period and revenue was Rs 3,880 crore, down 1 percent Y-o-Y. Wipro's stock closed at Rs 585.55, up 2.39 percent on the Bombay Stock Exchange.
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