<p>Bengaluru-based IT services company Wipro on Tuesday reported 37.7% rise in consolidated net profit at Rs 2,483.5 crore for the fourth quarter ended March 2019. During the corresponding quarter last year, the company reported a net profit of Rs 1,803 crore (under Ind AS).<br /><br />The company, however, reported 11.3% growth in total income at Rs 15,915 crore as against Rs 14,304 crore in the year-ago quarter. On a sequential quarter basis, the company's net profit dropped by 1.05% compared to Rs 2,510 crore in the third quarter ended December 2018. The revenues went up marginally by 1.45% on a sequential quarter basis compared to Rs 15,686 crore in the third quarter ended December 2018, the company said in a regulatory filing.<br /><br />“Our teams have executed well on our strategy which has resulted in consistent improvement of YoY growth each quarter. We have built a strong foundation for growth on the back of healthy order book and continued investments in big bet areas of Digital,<br /><br />Cybersecurity, Engineering services and Cloud. Our customers find these investments relevant as part of their digital transformation and IT Operations landscape modernisation, enabling us to win in the market”, Abidali Z Neemuchwala, CEO & Executive Director, Wipro said in a statement.<br /><br />The board of directors has approved buyback proposal of Rs 10,500 crore at a buyback price of Rs 325 per share. The board approved the purchase of up to 323.1 million equity shares of Rs 2 each representing 5.35% of total paid-up equity capital from the shareholders of the company on a proportionate basis by way of a tender offer. However, the board has not recommended any final dividend. The interim dividend of Re 1 declared by the board at its meeting held on January 18, 2019 shall be considered as the final dividend for the financial year 2018-19. Thus, the total dividend for the financial year 2018-19 remains at Re 1 per equity share.<br /><br />The operating margin during the quarter improved by 4.4% year on year to 19%.<br /><br />Jatin Dalal, Chief Financial Officer said, “Our rigor in execution and focus on improved quality of revenues has resulted in Operating Margins expansion of 1.8% for the year. Our Operating Cash Flows was robust and 129.2% of our Net Income for the year. The announcement to buyback equity shares is part of our philosophy to deliver efficient returns to shareholders,” Jatin Dalal, Chief Financial Officer said.<br /><br />The company expects revenue from IT services business to be in the range of $2,046 million to $2,087 million during the first quarter of 2019-20. This translates to a sequential growth of negative 1% to 1% growth excluding the impact of the divestment of Workday and Cornerstone On Demand business, which was concluded in the quarter ended March 2019, the company said.<br /><br />Digital services contribute 34.8% of the company's total revenues. During the fourth quarter ended March 2019, Wipro added 3 accounts to $75 revenue bucket.<br />Wipro shares closed 2.45% lower at Rs 281.10 per share on BSE on Tuesday.<br /> </p>
<p>Bengaluru-based IT services company Wipro on Tuesday reported 37.7% rise in consolidated net profit at Rs 2,483.5 crore for the fourth quarter ended March 2019. During the corresponding quarter last year, the company reported a net profit of Rs 1,803 crore (under Ind AS).<br /><br />The company, however, reported 11.3% growth in total income at Rs 15,915 crore as against Rs 14,304 crore in the year-ago quarter. On a sequential quarter basis, the company's net profit dropped by 1.05% compared to Rs 2,510 crore in the third quarter ended December 2018. The revenues went up marginally by 1.45% on a sequential quarter basis compared to Rs 15,686 crore in the third quarter ended December 2018, the company said in a regulatory filing.<br /><br />“Our teams have executed well on our strategy which has resulted in consistent improvement of YoY growth each quarter. We have built a strong foundation for growth on the back of healthy order book and continued investments in big bet areas of Digital,<br /><br />Cybersecurity, Engineering services and Cloud. Our customers find these investments relevant as part of their digital transformation and IT Operations landscape modernisation, enabling us to win in the market”, Abidali Z Neemuchwala, CEO & Executive Director, Wipro said in a statement.<br /><br />The board of directors has approved buyback proposal of Rs 10,500 crore at a buyback price of Rs 325 per share. The board approved the purchase of up to 323.1 million equity shares of Rs 2 each representing 5.35% of total paid-up equity capital from the shareholders of the company on a proportionate basis by way of a tender offer. However, the board has not recommended any final dividend. The interim dividend of Re 1 declared by the board at its meeting held on January 18, 2019 shall be considered as the final dividend for the financial year 2018-19. Thus, the total dividend for the financial year 2018-19 remains at Re 1 per equity share.<br /><br />The operating margin during the quarter improved by 4.4% year on year to 19%.<br /><br />Jatin Dalal, Chief Financial Officer said, “Our rigor in execution and focus on improved quality of revenues has resulted in Operating Margins expansion of 1.8% for the year. Our Operating Cash Flows was robust and 129.2% of our Net Income for the year. The announcement to buyback equity shares is part of our philosophy to deliver efficient returns to shareholders,” Jatin Dalal, Chief Financial Officer said.<br /><br />The company expects revenue from IT services business to be in the range of $2,046 million to $2,087 million during the first quarter of 2019-20. This translates to a sequential growth of negative 1% to 1% growth excluding the impact of the divestment of Workday and Cornerstone On Demand business, which was concluded in the quarter ended March 2019, the company said.<br /><br />Digital services contribute 34.8% of the company's total revenues. During the fourth quarter ended March 2019, Wipro added 3 accounts to $75 revenue bucket.<br />Wipro shares closed 2.45% lower at Rs 281.10 per share on BSE on Tuesday.<br /> </p>
