Wipro's Q4 cons profit up 3.6%, IT revenue misses estimates

Wipro said its non-GAAP constant currency IT services revenue in dollar terms grew 1.2 percent to USD 1.82 billion in Q4, which was within its guidance range of USD 1.81-1.85 billion. However, this was lower compared its peers TCS (1.6 percent) and HCL Technologies (2.7 percent).

"We are well-positioned to take advantage of the opportunities in the market, while tackling headwinds in certain areas. We see digital, open source and artificial intelligence as key levers for driving business change and reshaping the delivery model for the future," said T K Kurien, member of the board & chief executive officer of Wipro.

For the Q1FY15 (April-June quarter), Wipro expects IT services revenues in the range of USD 1.76-1.79 billion, a growth of negative 0.5 percent to positive 1 percent over March quarter.

“We continue to maintain focus on operational improvements and productivity enhancements. This has resulted in margin expansion despite adverse cross currency movements," said Jatin Dalal, chief financial officer.

IT services earnings before interest and tax grew by 0.3 percent sequentially to Rs 2,478 crore and margin improved by 23 basis points to 22 percent during January-March quarter. Analysts had expected EBIT at Rs 2,365 crore and margin at 20.74 percent for the quarter.

The IT Services segment had a headcount of 158,217 as of March 31, 2015, said the company in its filing. It added 65 new customers during the quarter, including Allied Irish Bank in Ireland, Symetra Life Insurance Company, T-Mobile Polska SA.

While interacting with reporters in a press conference, Kurien said he sees uncertainty in 2 sectors - energy and BFSI. Sharp capex cut in energy has impacted company's dollar revenues by USD 100 million in FY15.

Wipro saw slowness in spending in BFSI but saw strong growth in 3 out of 6 areas – manufacturing, healthcare and retail. Kurien sees momentum picking up in infra and product engineering.

Attrition rate in Q4 remained unchanged at 16.5 percent on sequential basis.

For FY15, Wipro's IT services segment revenues in rupee terms climbed 10 percent to Rs 44,020 crore and (in dollar terms) increased by 7 percent to USD 7.08 billion compared to FY14.

Meanwhile, the IT firm has appointed Rishad Azim Premji as its whole-time director with effect from May 01, 2015.

Jatin Pravinchandra Dalal, who is currently chief financial officer of the company will act as the compliance officer with effect from April 23, 2015 after V Ramachandran has resigned as company secretary.

Wipro today approved declaration of final dividend of Rs 7 per share and the payout date for final dividend has fixed as July 31, 2015.

The scrip of Wipro (which announced earnings post market hours) closed at Rs 578.80, up Rs 3.85, or 0.67 percent on the Bombay Stock Exchange.