Wipro Q4 profit up 14 percent

Apr 27, 2011 |

Bengaluru

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Wipro

India's third-largest software company Wipro on Wednesday said fourth-quarter net profit rose nearly 14 per cent year on year, roughly in line with estimates.

Net profit for the quarter ending March was 13.75 billion rupees ($309 million) compared with 12.09 billion rupees in the same period last year, the company said in a statement to the Bombay Stock Exchange.

Total revenue for the three months increased to 83.02 billion rupees, an 18 per cent rise year on year, it added.

The figures were only slightly down on industry expectations. Analysts had expected net profits to be 13.77 billion rupees on revenues of 83.34 billion rupees.

Company shares fell 15.30 rupees to 448.7 rupees on the Bombay Stock Exchange on opening - a drop of 3.30 per cent.

Wipro, based in India's southern IT hub of Bengaluru, also posted full-year earnings.

The firm made a net profit of 52.98 billion rupees on a total revenue of 310.99 billion rupees. More than 90 per cent of the company's income came from its IT services business.

India's largest software exporter Tata Consultancy Services (TCS) last week also reported healthy fourth-quarter profits on robust demand for outsourcing, although number two firm Infosys saw margins hit by rising staff costs.

Wipro said it recruited nearly 3,000 more people for its IT services business and added 68 new customers in the fourth-quarter and 155 over the whole year.

Projected revenues from the division are expected to be between $1.39 billion to $1.42 billion in the first quarter of the current financial year, it added in the statement.

Wipro chairman Azim Premji said: "We have made good progress in creating a leaner, simpler and more customer-centric organization structure.

"We believe our business strategy along with the new structure will deliver industry-leading growth."

Suresh Senapaty, executive director and chief financial officer, said the business environment was "positive", although salary increases from June 1 will impact on operating margins.

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