Wipro Q4 Revenues Soar 6 per cent; Company Announces Buyback
DSIJ Intelligence / 20 Apr 2016
Wipro, the third largest software giant by market capitalisation, announced its Q4FY16 results on Wednesday, April 20, 2016. Wipro has been giving consistent but gradual rise in its quarter on quarter revenues.
Wipro, the third largest software giant by market capitalisation, announced its Q4FY16 results on Wednesday, April 20, 2016. Wipro has been giving consistent but gradual rise in its quarter on quarter revenues. However, the company failed to give similar growth in operating income amid rising interest expenditure which is unusual in the software segment.
On financial front, Wipro has posted better than expected Q4 results. Company’s consolidated revenues from operations came in at Rs 13741.7 crore this quarter as against Rs 12951.6 crore in Q3FY16 an increase of 6.1 per cent Q-O-Q (Quarter on Quarter). EBITDA of company stood at Rs 2914 crores this quarter compared to Rs 2763.8 crores in Q3FY16 an increase of 5 per cent QoQ. EBITDA margin stood at 21.2 per cent this quarter that was in line with the last quarter at 21.3 per cent. Employees cost rose by 4 per cent from 6146 crores in Q3FY16 to 6374.8 crores in this quarter.
The net profit (PAT) stood at Rs 2235 crore in Q4FY16 as against Rs 2234.1 crore last quarter i.e. almost in line with the previous quarter. PAT did not rise in proportion to the revenues amid hike in tax expenses by 6 per cent to Rs 662.6 crores and fall in minority interest by 117 per cent to Rs 19.3 crores.
On yearly basis Wipro group posted consolidated revenues from operations of Rs 51630.7 crore for the year ended March 2016 compared to Rs 47318 crore in March 2015 an increase of 9.1 per cent. Net profit too grew from Rs 8892.2 crore in FY15 to 8652.8 crore in FY16.
The company recently announced buyback of shares worth 2,500 crores at 625/share. The company also recommended final dividend of Re.1/share on face value of Rs. 2/ share. The stock closed at 602.35 i.e. just below its 52 week high of 613.30 on Wednesday. The stock gained 2.34 per cent as compared to its previous close.
Wipro is a global Information Technology service provider that deals into IT and IT enabled services that consists of IT consulting, application design, Hardware software design, Re-engineering and maintenance etc. It is also engaged in products that consist of computing, storage, networking, security and software products that include database and OS.
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