Wipro Announces Q4FY14 Result

Wipro, the third largest Indian IT company, announced its financial results for the quarter and year ended 31 March, 2014 yesterday (April 17, 2014) after market hours. The results were in line with the street estimates. 

On sequential basis, Wipro's topline reported a growth of 3% to reach Rs 11703 crore, whereas the bottomline jumped by 10.5% to Rs 2226.5 crore. The company's IT services revenue, which contributes almost 90% of the total income, showed a growth of 3% to reach Rs 10619 crore during the quarter. Income from sale of IT products grew by 9% to Rs 1109 crore.   Further, WL's EBITDA increased to Rs 2869 crore, registering a growth of 8% on sequential basis.

Talking about segment-wise performance, except the manufacturing segment, which is the second largest revenue contributor to the business, all the segments showed growth during the quarter. BFSI, the biggest revenue contributor to the business, reported a Q-o-Q growth of 4%, bringing in Rs 2847 crore. The improvement in margins also contributed to the healthy performance of the company during the quarter.  The operating margin and net margin expanded by 110 basis points to 24.5% and 124 basis points to 19% respectively on sequential basis. Moreover, Wipro added 59 new customers for the IT services business segment during the quarter. The employee strength for the segment stood at 146053.

For the complete year, Wipro's topline and bottomline jumped by 16% to Rs 43755 crore and 17.5% to Rs 7797 crore respectively.

Commenting on the performance, Suresh Senapaty, ED & CFO of Wipro said, “We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT Services operating margins by 195 basis points.” During the result announcement, Wipro's management also declared a final dividend of Rs 5 per equity share. The full year dividend of the company was Rs 13 per equity share and the dividend yield stood at 2.2%.

Looking forward for the quarter ending June 30, 2014, Wipro's management expects the business revenue to be in range of USD 1715 million to USD 1755 million (Rs 10290 crore – Rs 10530 crore). The guidance is based on the conversion rate of 61.62 for one dollar.