Wipro Q4 Results: 9.6 pc profit! Key takeaways from buyback proposal, bonus, IT services to Cloud Application Services
Wipro Q4 Results: The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 323.1 million equity shares of Rs 2 each from the shareholders of the company.
Wipro Q4 Results: Wipro Limited today announced its Q4 financial results (Ending March 31, 2019) confirming the company Q4 net profit up 38.4 pc to Rs 2,493.9 cr, while revenue growth from operations increased 8.9 pc to Rs 15,006.3 cr YoY. According to the company statement, Wipro FY19 net profit rises 12.6 pc to Rs 9,017.9 crore, while revenue growth from operations stood 7.5 pc high to Rs 58,584.5 crore.
Talking about Wipro's performance for the quarter and year ended March 31, 2019, Abidali Z. Neemuchwala, CEO and Executive Director said, “Our teams have executed well on our strategy which has resulted in consistent improvement of YoY growth each quarter. We have built a strong foundation for growth on the back of healthy order book and continued investments in big bet areas of Digital, Cyber security, Engineering services and Cloud. Our customers find these investments relevant as part of their digital transformation and IT Operations landscape modernization, enabling us to win in the market."
According to Wipro report submitted with BSE, key takeaways of the company's Q4 results are:
1. Outlook for the Quarter ending June 30, 2019
a-We expect Revenue from our IT Services business to be in the range of $2,046 million to $2,087 million. This translates to a sequential growth of -1.0% to 1.0% excluding the impact of the divestment of our Workday and Cornerstone On Demand business which was concluded in the quarter ended March 31, 2019.
b. The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 323.1 million equity shares of Rs 2 each (representing 5.35% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. The buyback price is Rs 325 ($4.71) per equity share payable in cash for an aggregate amount not exceeding Rs 105 billion ($1.5 billion).
c. Further to the announcement on January 18, 2019, the Company, during the quarter ended March 31, 2019,
allotted Bonus equity shares of Rs 2/- each in the ratio of 1:3 (one bonus share for every three shares held) to the shareholders of the Company who were on the Register of Members of the Company as on March 7,
2019, which was the Record Date fixed by the Board of the Directors for this purpose.
d. The Board has not recommended any final dividend. The interim dividend of Rs1 declared by the Board at its meeting held on January 18, 2019 shall be considered as the final dividend for the financial year 2018-19. Thus, the total dividend for the financial year 2018-19 remains Rs1 per equity share.
2. IT Services
a. A leading North American financial services company has awarded a contract to Wipro to transform its security products suite. The multi-year engagement, powered by Wipro HOLMESTM , will help the client achieve operational agility for the adoption of new-age cyber security tools and enhance its security compliance framework.
b. A global technology company has selected Wipro to design and deliver a new level of experience for
support services enterprise agility and modernizing core IT systems by leveraging Wipro HOLMESTM and third party cloud provider.
c. A leading Europe-headquartered manufacturer has awarded a multi-year digital workplace transformation contract to Wipro to drive employee productivity and cost optimization. The engagement will leverage Wipro’s LiVE WorkspaceTM platform and automation and AI capabilities to enable next-generation digital workplace services for the client.
d. Wipro has won an applications management contract from a European power company. The multiyear engagement will help the client carry out secure and efficient electricity trade.
e. A global consumer packaged goods company has awarded a cloud and IT infrastructure services contract to Wipro encompassing cloud hosting, applications, desktop virtualization, end user computing and cloud service integration and management.
3. Digital & Cloud Application Services Highlights
a. Wipro's design-led value proposition, anchored by Wipro Digital and Designit, has secured a multiyear contract from a large North American healthcare company to reimagine their IT service desk and employee experience. The engagement will also leverage the Wipro HOLMESTM platform.
b. Wipro Digital has been selected to modernize a software-as-a-service e-mail security solution for a
global technology company by rebuilding its user interface and other components.
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c. Drawing on Wipro's agile way of working and no-shore delivery model, a US retailer has awarded Wipro Digital a contract to build their next generation enterprise content management system that will allow them to create and scale customer experience, across channels through effective digital asset management.
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