Indian software services provider Wipro Ltd. (WIT) reported Thursday a profit for the fourth quarter that grew 17 percent from last year, helped by double-digit revenue growth amid client additions. Further, Wipro projected a sequential revenue decline for IT Services in the first quarter.
The company said the de-merger of its 'Diversified Business' or non-IT related businesses, in to a separate unlisted company, Wipro Enterprises Ltd., was effective March 31, 2013. The financial statements show the performance of the businesses as discontinued operations.
"The cross currencies have been volatile and impacted our financial performance in the quarter. Excluding the impact of foreign exchange, we have been able to maintain margins on a sequential basis. We have shown significant improvements in cash flow generation for the year," Executive Director and CFO Suresh Senapaty said in a statement.
The Bangalore, India-based company reported net income attributable to equity holders of 17.29 billion rupees or 7.02 rupees per share and in dollar terms $317 million or $0.13 per share, up from last year's 14.81 billion rupees or 6.03 rupees per share. Excluding items, adjusted net income was 17.22 billion rupees or $316 million. Wipro reports results on the basis of International Financial Reporting Standards.
Net Income for continuing operations was 15.76 billion rupees or 6.40 rupees per share and in dollar terms $289 million or $0.12 per share, up from 14.0 billion rupees or 5.70 rupees per share last year. Excluding the impact of accelerated amortization of stock options, adjusted Net Income from continuing operations was 15.69 billion rupees or $288 million.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.12 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Total revenues for the fourth quarter grew 12 percent to 110.26 billion rupees or $2.02 billion, from the same quarter last year, and revenues from continuing operations were 96.14 billion rupees or $1.76 billion, an increase of 13 percent from last year. Six Wall Street analysts had a consensus revenue estimate of $2.07 billion for the quarter.
IT Services revenue in rupee terms was 85.54 billion rupees, or $1.57 billion, a year-over-year increase of 13 percent. Adjusted constant currency IT services revenue in dollar terms was $1.60 billion, within the company's guidance range of $1.585 billion to $1.625 billion.
IT Products revenues grew 15 percent, and consumer care and lighting revenues, discontinued operations, also increased 15 percent from a year ago.
Wipro said its IT Services added 52 new clients in the quarter and also reported net addition of 2,907 employees in the fourth quarter in IT Services.
Wipro also declared a final dividend of 5 rupees or $0.091 per share / ADS, taking the total dividend declared during the year to 7 rupees or $0.131 per share/ADS.
Looking ahead to the first quarter, the company expects revenues from IT Services business to be in the range of $1.575 billion to $1.6105 billion.
"We have completed the demerger of the 'Diversified Business' effective March 31, 2013 to make Wipro Limited a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth," Chairman Azim Premji noted.
Wipro's Bangalore-based peer, Infosys Technologies Ltd. (INFY) reported last week a decline in profit for the fourth quarter to $444 million or $0.78 per ADS, while revenues grew 9.4 percent to $1.94 billion from last year. The group added 56 clients during the quarter. However, the company provided its revenue forecast for the full-year 2014, just below Street estimates.
WIT closed Thursday's regular trading session at $8.48, up $0.12 or 1.44% on a volume of 0.79 million shares. In the past 52-week period, the stock has been trading in a range of $6.74 to $9.23.
Wipro is currently trading in Friday's regular trading session on the Bombay Stock Exchange at 368.65 rupees, down 6.30 rupees or 1.68% on a volume of 0.22 million shares.
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