Wipro Q4 profit up 8% at 1,481cr

Posts 5,573Cr Net For FY12 Gives Muted Guidance For First Qtr Of FY13

Bangalore: IT major Wipro has announced a flat revenue guidance at 0.6% for Q1 in 2012-13, below market expectations. The markets were expecting a bold guidance from the company. 

    The company also reported a flat sequential growth for fiscal 2012 at 2% in dollar terms. The company said its June ending quarter revenue from IT services are expected to be in the range of $1,520 million to $1,550 million. 

    Wipro chairman Azim Premji said despite the overall macro economic environment continuing to be volatile, Wipro had achieved 8% increase in consolidated net profit at Rs 1,481 crore for the fourth quarter ended March 31. Its total revenues grew by 19% at Rs 9,869 crore in the quarter. 

    The flagship IT services business which accounted for 76% of the company's overall revenues, posted 13% growth in operating profit at Rs 1,573 crore when compared with the same quarter in the previous fiscal. The IT services revenues in the quarter grew 21% to Rs 7,590 crore on yearon-year (YoY) basis. When compared with the previous quarter (on sequential quarter basis), the operating profit and revenues of IT services business dropped marginally by 0.63 and 0.23% respectively. 

    "We have been seeing some signs of positivity in the market in the last three months. However, customers continue to be cautious. In my discussions with business leaders. we have seen customers focusing on collaborative innovation and identify growth opportunities," Premji said. 

    During the full year, Wipro posted a net profit of Rs 5,573 crore — an increase of 5.1% compared to Rs 5,297.7 crore in the previous year. Its total revenues grew by 21% at Rs 37,525 crore as against Rs 30,998 crore in the previous fiscal. 

    Wipro's IT services revenue for fiscal 2012 has increased by 21% year-on-year to Rs 28,431 crore, while sequentially it reported a flat growth at 0.2%. It has projected a flat quarter during Q1FY13, with expected revenues in the range of $1,520 million and $1,550 million. 

    Azim Premji said, "Customers were seeking a collaborative innovation and solutions which can bring evolution in their business and improve, very importantly, the insight. This approach is changing nature and demand for tech services and its is reflected in our pipeline."