Wipro reports muted Q4 net profit; revises Q1FY18 guidance
IT-major Wipro on Tuesday announced its financial result for the quarter ended on March 31, 2017. The company reported a consolidated net profit of Rs 2,266.9 crore, a rise of 7.2% as compared to Rs 2,114.6 crore in the previous quarter and just 0.4% during March 31, 2016 quarter.
For the full financial year, the company registered a net profit of Rs 8514.3 crore as against Rs 8956.7 crore during the same period last year.
Additionally, during the quarter ended December 31, 2016, as a result of changes in estimates of revenue and earnings over the remaining earn-out period, the fair value of earn-out liability was revalued at Rs 293 million. The revision of estimates has also resulted in reduction in the carrying value of intangibles recognised on acquisition. Accordingly, a net gain of Rs 1,032 million has been recorded in the condensed consolidated interim statement of income, the company said in a regulatory filing.
Moreover, the company also approved the issue of bonus share in the proportion of 1:1 of Rs 2 each for every 1 fully paid-up equity share held as on the record date.
Giving the guidance for the next quarter the company said, "We expect Revenues from our IT Services business to be in the range of $1,915 million to $1,955 million."
The company revenue grew by 7.4% to Rs 55040 crore on year-on-year basis. IT services segment revenue grew by 7%.
The Board of Directors will consider a proposal for buyback of equity shares around July 2017
“We delivered revenues within the guidance range in our fourth quarter,” said Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board. “We are confident that the recovery in Energy & Utilities and our demonstrated strength in Digital will help us improve our growth trajectory during the course of the current financial year.”
“We continue to maintain our focus on operational improvements and productivity enhancements,” said Jatin Dalal, Chief Financial Officer. “We sustained strong cash generation in FY17 even as the currency environment remained highly volatile.”
The employee as on March 31, 2017 stood at 165,481 as against 164,176 in Q3FY17 and 156,831 on Q4FY16.
Many analysts just like its peers had hoped for a muted Q4.
Analysts at KR Choksey said, "We expect Wipro to record a USD revenue of $1944 million, up 2.2% qoq and mainly aided by consolidation of Appririo acquisition. Expect Wipro to report an EBIT margin of 16.3%, down 66 basis point on quarter-on-quarter (QoQ) led by consolidation of acquisition and INR appreciation against USD, EURO and GBP."
On Tuesday, the shares of the company closed at Rs 496.35 per piece, up 0.93% or Rs 4.55 on BSE.