Wipro on Wednesday announced that it had posted consolidated revenues of Rs.31,099 crore, an increase of 15 per cent over the previous year. The company posted a net profit of Rs.5,298 crore, an increase of 15 per cent over the previous year.
The company's mainstay, IT services, generated revenues amounting to Rs.23,485 crore, an increase of 16 per cent over the previous year. Revenues from IT products were more muted — Rs.3,691 crore, which was 3 per cent lower than in the previous year.
The consumer care and lighting business earned revenues of Rs.2,726 crore, 21 per cent higher than in 2009-10. The company has declared a final dividend of Rs.4 a share/ADS.
Announcing the results, Wipro Chairman Azim Premji said the company's focus would be on key areas such as analytics, mobility and cloud-based services for the BPO segment. “Our strategy is to deepen client mining by presenting clients with a full range of services,” Mr. Premji said.
Mr. Premji said the acquisition of the global oil and gas information technology practice of the commercial business services unit of Science Applications International Corporation would give Wipro's energy business a sharper focus. “The acquisition makes us an end-to-end player in the oil and gas space and compliments our skill sets,” Mr. Premji said.
The company has projected revenues ranging from $1.394 billion to $1.422 billion in the first quarter of the current year, compared to $1.400 billion in the last quarter of 2010-11.
Chief Financial Officer Suresh Senapaty attributed the flat revenue guidance to the fact that revenues from the Middle East and India were generally bunched together during the last quarter of the year. “Revenues from these two markets are generally lower in the first quarter,'' he remarked.
Mr. Senapaty admitted that the wage hike effective from June 1, 2011 “would have an adverse impact on margins.” The dip in revenues from IT products, he said, was ‘an aberration.' “Our focus is now on selling services along with equipment,” he added.
Mr. Senapaty said the company's currency hedges amounted to $1.6 billion at the end of the last fiscal.