Wipro Q4 cons net up 17% YoY at Rs 1,729cr

Moneycontrol Bureau

Wipro's fourth quarter consolidated net profit rose near 1 percent quarter-on-quarter (17 percent year-on-year) to Rs 1,729 crore, helped by new outsourcing deals. The India's third largest software services exporter's net sales, were however disappointing, up just 0.3 percent sequentially (13 percent YoY) to Rs 9,613 crore. The company's net profit was slightly better than street expectations of Rs 1,685 crore, according to a CNBC-TV18 poll, although revenue growth disappointed. Wipro's revenue from IT services gained 13 percent YoY to Rs 8554 crore. Its US Dollar revenue growth though disappointed. Wipro's IT service revenue rose just 0.5 percent QoQ (3 percent YoY) to USD 1,585 million, just meeting the lower end of its guidance. “The cross currencies have been volatile and impacted our financial performance in the quarter,” said Suresh Senapaty, ED and CFO. Excluding the forex impact, Senapaty said margins were stable sequentially and the company has shown significant improvement in cash flow generation for the year. GUIDANCE WEAK Wipro has guided for a revenue of USD 1,575-1,610 million from IT services in the first quarter, up just 1.6 percent at the higher end.  Analysts on average had expected Wipro to guide for 1.5-3.5 percent growth in Dollar revenue. Ankur Rudra, analyst at Ambit Capital, said the numbers disappointed on the fourth quarter as well as first quarter guidance front. The numbers indicate recovery is not yet in sight for Wipro and the brokerage may have to scale down its FY14 estimates, he added. Its local rival Infosys too disappointed the street when it last week guided for just 6-10 percent growth in US Dollar revenue for FY14, significantly lower than the 12-14 percent growth forecast by industry body NASSCOM. Tata Consultancy Services has said it is confident of beating the NASSCOM guidance. OTHER HIGHLIGHTS Bangalore-based Wipro added 52 clients last quarter. Its new deals included a contract from a large Europe-based bank and GVK-led Mumbai International Airport. It added 2,907 employees in the IT Services segment and had 1.46 lakh employees as of March 31. Among its other segments, Consumer Care & Lighting revenue rose 15 percent YoY to Rs 1,044 crore. EBIT increased 18 percent to Rs 134 crore. Wipro has already announced the demerger of this non-IT business into a separate private company Wipro Enterprises. Revenue from IT Products was up 15 percent YoY to Rs 1,075 crore, but EBIT declined 39 percent to Rs 27 crore. Wipro shares closed at Rs 369.05, down 1.5 percent on NSE on Thursday. Markets are closed on Friday. Nachiket Kelkar
nachiket.kelkar@network18online.com