Date:20/04/2006 URL: http://www.thehindubusinessline.com/2006/04/20/stories/2006042005080100.htm

Back Wipro revenues cross Rs 10,000 cr, Q4 net up 43 pc

Our Bureau

Dividend at Rs 5; Premji looks forward with enthusiasm

GETTING IT RIGHT: Mr Azim Premji, Wipro Chairman, at a press conference in Bangalore on Wednesday. — G R N Somashekar

Bangalore, April 19

Soap-to-software maker Wipro Ltd posted better-than-expected earnings growth for the fourth quarter ended March 31, 2006, even as its revenues crossed the Rs 10,000-crore mark for the financial year 2006.

The company announced a cash dividend of Rs 5 per share (250 per cent on par value of Rs 2 each). Net profits for the financial year 2006 grew by 27 per cent to Rs 2,067 crore on revenues of Rs 10,626 crore compared to last year's net of Rs 1,628.5 crore on revenues of Rs 8169.8 crore.

Wipro's combined IT revenues crossed the $2-billion mark as its global IT business grew by 33 per cent, while the domestic business was up 22 per cent. Net profits for the fourth quarter ended March 2006 was up by 43 per cent to Rs 618 crore, while revenues were up by 35 per cent to Rs 3,113 crore over corresponding last quarter. Sequentially, the net profits were up 14 per cent and revenues grew by 13 per cent over the previous quarter.

Wipro expects its global IT business to grow by 34 per cent on an annualised basis for the first quarter in the financial year 2007 to $533 million over the corresponding period in 2006. On sequential basis, the first quarter projections translate to a 4 per cent growth over the fourth quarter in the financial year 2006.

Post-results, Wipro stocks edged up on the BSE to an intra-day high of Rs 598 before closing at Rs 559, a decline of 1.80 per cent over previous close. Analysts termed the performance as pretty strong and above market expectations but said the first quarter financial year 2007 revenue guidance was `muted'.

BPO back on track

Wipro's global IT business grew 8.2 per cent sequentially ahead of its own projections to clock revenues of Rs 2,317 crore for the fourth quarter in the financial year 2006"Given the exciting prospects in all our business segments and combined with our growth-oriented strategic roadmap, we look forward to 2006-07 and beyond with excitement and enthusiasm," said the Chairman, Mr Azim Premji.

Operating margins UP

The company's Chief Financial Officer, Mr Suresh Senapaty, said the operating margins improved by 30 basis points despite a 3 per cent onsite salary hike as the company saw a volume growth of 7.4 per cent and 0.6 per cent improvement in realisations.

The billing rates were stable with an upward bias, Mr Senapaty said.

The currency volatility had a positive impact of one per cent on the margins and the company had a forex gain of Rs 36 crore due to safe hedging, he said.