India’s third largest Information technology services provider Wipro, on Tuesday, posted a 2 per cent rise in its net income for the fourth quarter ended March 31, 2015. The company’s overall profitability during the January-March period was hit by cross-currency fluctuations and softness in its energy verticals. The IT major’s net income for the March quarter stood at Rs.2,272 crore.
For the January-March quarter, the total revenue of company was Rs.12,142 crore up 4 per cent. The company’s flagship IT services business revenue grew 6 per cent Y-o-Y to Rs.11,241 crore, while operating profit for IT services stood at Rs.2,478 crore, down 5 per cent. During the quarter, IT services margin was 22 per cent, an expansion of 23 basis points from the preceding third quarter.
In dollar terms, the IT services revenue stood at $1,774.5 million witnessing a Y-o-Y increase of 3.2 per cent and Q-o-Q decline of 1.2 per cent.
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Commenting on the company’s performance T. K.. Kurien, Member of the Board and CEO, Wipro, said: “On an overall basis, the demand environment remains stable. However, we see uncertainty in two industry sectors. From a portfolio mix, we have been relatively overweight in energy and the sharp cutbacks in capex have impacted us close to $100 million in revenues in FY15.”
For the whole year, the company’s total income from operations net (standalone) stood at Rs.41,635 crore against Rs.39,133 crore an increase of 8 per cent when compared to the same period last year. The net income for FY15 witnessed a growth of 11 per cent and was at Rs.8,193 crore when compared with Rs.7,387 crore of last year. IT services revenue for the whole year was Rs.44,018 crore.
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“We continue to maintain our focus on operational improvements and productivity enhancements. This has resulted in margin expansion despite cross currency movements,” said Jatin Dalal, Chief Financial Officer, Wipro.
Dividend
The company announced a dividend of Rs.7 per share taking the total dividend to Rs.12 per share.
During the quarter, the company added 65 new customers to its kitty taking the total number of active clients to 1,054. The $100 million clients increased to 11. Wipro made a net headcount addition of 1,351 people in the quarter taking the total to 1.58 lakh people.
On a sectorial basis, healthcare, life sciences grew 18.2 per cent while manufacturing and hi-tech grew 10.3 per cent on a constant currency basis. On BSE, the shares of the company closed at Rs.578.80 up 0.67 per cent.