Date:23/04/2005 URL: http://www.thehindu.com/2005/04/23/stories/2005042311701600.htm

Business

Wipro net zooms 58 p.c.

Special Correspondent

Announces 1:1 bonus; cash dividend of Rs. 5 per share

"Our global IT business posted healthy growth in revenues, expanded operating margin and improved all parameters."

BANGALORE: Wipro has announced a one-for-one bonus and a cash dividend of Rs. 5 per share, including American Depository Shares (ADS) on the existing paid-up capital after notching a 58 per cent growth in net profit at Rs. 1,629 crores for 2004-05. The bonus issue and the cash dividend are subject to shareholder approval in July this year.

For the fourth quarter ended March 31 alone, the net profit rose 35 per cent to touch Rs. 433 crores on a turnover of Rs. 2,312 crores.

During the year, Wipro earned Rs. 8,170 crores, an increase of 39 per cent over the previous fiscal. Revenues from Wipro Technologies, the global IT services and products business, rose by 39 per cent to touch Rs. 6,075 crores for the fiscal while the revenues of Wipro Infotech, the IT services and products business catering to India, Middle East and the Asia Pacific, posted a growth of 43 per cent to reach Rs. 1,396 crores.

The company also earned a revenue of Rs. 472 crores from its consumer care and lighting business, clocking a growth of 29 per cent over the previous fiscal.

To merge Spectramind

The board of directors has decided to merge its business processing outfit, Spectramind Services Ltd., and ensure it functioned as a division henceforth. The merger was subject to approval of shareholders in the annual general meeting slated for July, the Chairman and Managing Director of Wipro Spectramind, Raman Roy, said.

Despite the "satisfying results" for 2004-05, Wipro cautioned that revenue growth in the first quarter of the current fiscal would be `flattish' mainly due to uncertainties on the currency front, among other things.

"During the year, our global IT business posted healthy growth in revenues, expanded operating margin and virtually improved all operating parameters. Considering the emerging opportunities in the global market and our unique business model, the future outlook looks as exciting as our journey has been so far. Looking ahead, for the quarter ending June 2005, we expect our revenues from global IT services to be $395 million," Azim Premji, Chairman, Wipro Limited, told reporters here on Friday.

"But for the currency risk, the growth for the first quarter of the current fiscal is likely to be flatish," Suresh Senapathy, Corporate Executive Vice President, Finance, said. The company added 2,520 professionals during the final quarter ended March 31, taking the total employee strength to 41,857.