Wipro net 6% down quarterly, 8% up yearly

Software major Wipro on Wednesday reported Rs 2,330 crore net profit for the fourth quarter of FY20, registering a 6.3 per cent annual decline.

For FY20, net profit grew 8 per cent annually to Rs 9,720 crore.

AIn a regulatory filing on the BSE, the city-based IT firm said revenue for the fourth quarter rose 4.2 per cent to Rs 15,711 crore from Rs 15,006 crore in the year-ago quarter.

Revenue from IT services declined 1 per cent sequentially to $2,074 million from $ 2,095 million a quarter ago and flat at $ 2,076 million a year ago.

IT services revenue was also less than the guidance range of $2,095-2,137 million given on January 14, as Covid-19 disrupted its operations and impacted its revenue by $14-16 million during the quarter under review.

Under the International Financial Reporting Standards (IFRS), net income for Q4 was $309 million and gross income $2,100 million.

For FY20, gross revenue rose 4.2 per cent yearly to Rs 61,020 crore while IT services revenue grew 1.7 per cent to $8,256 million ($8.3 billion) YoY.

In dollar terms, net income for FY20 was $1,300 million ($1.3 billion) and gross income $8,100 million ($8.1 billion).

"In these unprecedented times, we came together and worked to ensure the safety and well-being of each other while continuing to serve our clients," said outgoing chief executive Abidali Z Neemuchwala in a statement here.

Neemuchwala resigned on January 31, citing family commitments but would continue till the company finds a successor.

"We hope all of us stay safe and strong during these tough times. We are confident our broad portfolio of services and ability to execute commitments makes us well-positioned to gain market share.," asserted Neemuchwala in a statement here.

The operating margin, however, declined to 17.6 per cent from 18.4 per cent a quarter ago and 19 per cent a year ago.

"The quarters ahead seem challenging and require a tremendous response on costs. We also anticipate our working capital to increase, but our strong balance sheet provides us the confidence that we will emerge stronger and better,a said Chief Financial Officer Jatin Dalal on the occasion.

The outsourcing major, however, did not give revenue guidance for the first quarter (April-June) of the new fiscal - 2020-21 due to uncertainty over the impact of coronavirus that has disrupted normal life the world over.

"Due to the volatility in the external environment, we have decided not to provide quarterly guidance on revenue for the fist quarter of the new fiscal (2020-21)," Dalal said on the occasion.

The IT services division acquired 65 customers during the quarter, as against 77 a quarter ago and 63 a year ago, taking its total to 1,074 at the end of fiscal as against 1,070 a quarter ago and 1,115 a year ago.

With the exit of 4,432 techies during the quarter, the company's headcount declined to 182,886 at the end of fiscal from 187,318 quarter ago but up 11,461 a year ago from 171,425.

The board has not recommended final dividend for FY20.

"An interim dividend of 50 per cent or Rs 1 per share of Rs 2 face value, declared on January 14, shall be considered as the final dividend for the fiscal," the company said in the regulatory filing.

The company's blue chip scrip lost Rs 2 .90 per share to trade at Rs 186.55 at the end of Wednesday's trading on the BSE as against Rs 189.45 on Tuesday and the opening price of Rs 190.80.-IANS