Board of Directors recommends final dividend of Rs 6 per share and a Bonus Issue of 2:3
Results for the quarter and year ended March 31, 2010 under IFRS
Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for its fourth fiscal quarter and year ended March 31, 2010.
Highlights of the Results:
Results for the Quarter ended March 31,
2010
- IT Services Revenue in constant currency was $1,180
million, with a sequential increase of 4.7%. On a YoY basis, the
constant currency revenue increase was 7.8%. - Total Revenues were Rs. 69.83 billion ($1.55
billion), representing an increase of 8% over the same period last
year. - IT Services Revenue in dollar terms was $1,166
million, a sequential increase of 3.5% and YoY increase of 11.5%. - Net Income was Rs. 12.09 billion ($269
million) on a GAAP basis, representing an increase of 21% over the
same period last year. - Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization
of stock based compensation) was Rs. 12.12 billion ($270
million), representing an increase of 21% over the same period last
year. - IT Services Revenues were Rs. 52.60 billion ($1,170
million), representing an increase of 7% over the same period last
year. - IT Services Earnings Before Interest and Tax (EBIT) was Rs. 12.72 billion
($283 million), representing an increase of 20%
over the same period last year. - IT Services added 27 new clients in the quarter.
- Net addition of 5,325 employees in the current quarter.
- Local Nationals overseas have increased by 10% to 39% over the same period
last year. - IT Products recorded a 2% growth in Revenues over the same period last year.
- Consumer Care and Lighting Revenue grew 27% over the same period last year
and EBIT grew 16%
Results for the year ended March 31,
2010
- Total Revenues were Rs. 271.24 billion ($6.03
billion), representing an increase of 6% over the same period last
year. - IT Services Revenues were $4,390 million, an
increase of 1.6% YoY and 1.8% in constant currency. - Net Income was Rs. 45.93 billion ($1.02
billion), representing an increase of 18% over the same period last
year. - Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization
of stock based compensation) was Rs. 45.86 billion ($1.02
million), representing an increase of 18% over the same period last
year. - IT Services Revenues were Rs. 202.49 billion ($4.50
billion), representing an increase of 6% over the same period last
year. - IT Services Earnings Before Interest and Tax (EBIT) was Rs. 47.41 billion
($1.05 Billion), representing an increase of 18%
over the same period last year. - IT Services added 121 new clients in the year.
- IT Products Revenue grew 11% over the same period last year and EBIT grew by
29%. - Consumer Care and Lighting Revenue grew 17% over the same period last year,
and EBIT grew 19%. - Our Board of Directors recommends a final cash dividend of Rs. 6 per
share/ADS, subject to shareholder approval at the Annual General Meeting
scheduled in July 2010. - Board of Directors recommends issue of bonus shares to shareholders
(including to ADS holders) in the ratio of two additional shares for every three
shares held subject to shareholder approval in the Annual General Meeting
scheduled in July 2010.
Performance for the year ended March 31,
2010 and Outlook for our Quarter ending June 30,
2010
Azim Premji Chairman of Wipro, commenting on
the results said –
"We have seen another strong quarter of broad based, volume led growth. We
saw good recovery in our challenged verticals of Technology and Telecom. The
business environment is returning to normal. For the quarter ending June 30, 2010, we expect revenues from our IT Services
business to be in the range of $1,190 million to $1,215
million."
Suresh Senapaty, Executive Director & Chief Financial Officer of
Wipro, said –
"We had a satisfying quarter. We delivered close to the upper end of our
guidance with revenues of $1,180 million in constant
currency. We have driven up margins by 60 basis points despite headwinds of wage
increases, rupee appreciation and the impact of cross currency."
Wipro Limited
Total Revenue for our year ended March 31, 2010
was Rs. Rs. 271.24 billion ($6.03
billion), representing an increase of 6% over the same period last
year. Net Income for our year ended March 31, 2010
was Rs. 45.93 billion ($1.02 billion),
representing an increase of 18% over the same period last year. Non-GAAP
Adjusted Net Income (excluding impact of accelerated amortization of stock based
compensation) for the year ended March 31, 2010 was
Rs. 45.86 billion ($1.02 million), representing
an increase of 18% over the same period last year. Earnings Per Share for our
year ended March 31, 2010 was Rs. 31.52 ($0.70), representing an increase of 18% over the same
period last year. Non-GAAP Adjusted Earnings Per Share (excluding the impact of
accelerated amortization of stock based compensation) for our year ended March 31, 2010 were Rs. 31.5 ($0.7), representing an increase of 18% over the same
period last year.
Total Revenue for our quarter ended March 31,
2010 was Rs. 69.83 billion ($1.55
billion), representing an increase of 8% over the same period last
year. Net Income for our quarter ended March 31,
2010 was Rs. 12.09 billion ($269 million),
representing an increase of 21% over the same period last year. Non-GAAP
Adjusted Net Income (excluding impact of accelerated amortization of stock based
compensation) for our quarter ended March 31, 2010
was Rs. 12.12 billion ($270 million),
representing an increase of 21% over the same period last year. Earnings Per
Share for our quarter ended March 31, 2010 were Rs.
8.29 ($0.18). Non-GAAP Adjusted Earnings Per
Share (excluding the impact of accelerated amortization of stock based
compensation) for our quarter ended March 31, 2010
were Rs. 8.3 ($0.18), representing an increase of
21% over the same period last year.
Reconciliation between IFRS net income and Non-GAAP adjusted net income
(excluding impact of accelerated stock based compensation) is provided in the
table on page 9.
IT Services (75% of Total Revenue and 92% of
Operating Income for our year ended March 31,
2010)
Our IT Services business segment recorded Revenue of Rs. 202.49 billion
($4.5 billion) for our year ended March 31, 2010, representing an increase of 6% over the
same period last year. EBIT for this segment was Rs. 47.41 billion ($1.05 billion) for our year ended March 31, 2010, representing an increase of 18% over the
same period last year.
Our Operating Income to Revenue for this segment was 23.4% for year ended
March 31, 2010.
Our IT Services business segment recorded Revenue of Rs. 52.60 billion
($1,170 million) for our quarter ended March 31, 2010, representing an increase of 7% over the
same period last year. EBIT for this segment was Rs. 12.72 billion ($283 million) for our quarter ended March 31, 2010, representing an increase of 20% over the
same period last year.
Our Operating Income to Revenue for this segment was 24.2% for our quarter
ended March 31, 2010.
We had 108,071 employees as of March 31, 2010, an
increase of 5,325 people this quarter.
Wipro’s capability to be a transformational partner to our clients coupled
with global domain expertise helped us secure several large deals this
quarter.
In the insurance space, Wipro entered into a seven year strategic agreement
with The Main Street America Group, a leading provider of commercial, personal
and surety insurance products exclusively sold through independent agents to
individuals, families and small businesses in 24 US states. Wipro will
supplement Main Street America’s IT organization in its endeavor to support its
present and future business needs.
Wipro has signed a multi-year, strategic partnership with consumer
electronics retailer Best Buy Co., Inc. As part of the deal Wipro will provide a
comprehensive range of technology and business services to the retailer across
the globe. The expansion of the relationship aims to leverage mutual strength
and make this a very strategic and large relationship for both parties. As part
of the relationship, Wipro will also setup a lab store focused on innovation and
enhancing customer experience.
Wipro signed a 6-year deal with a large Consumer Product company. As part of
this strategic deal Wipro will manage end to end Infrastructure for setting up
centralized Global IT operation that includes data center consolidation,
hosting, assets, contracts and human capital within an overarching service
management framework across 15 countries in Americas, Europe, LATAM and Asia
Pacific.
A large US-based pharmaceutical company is leveraging Wipro’s understanding
of the pharmaceutical domain and it’s proven delivery capability in the
application management space for their strategic initiative aimed at process
standardization across the various units and help them achieve significant
benefits.
Awards and Recognition
Wipro’s innovative application services model, CIGMA (Centre for Integrated
Global Management of Applications) won the NASSCOM IT Innovation Award in the
Process Innovation category for the year. This award recognizes innovation in a
company’s business processes, models, inputs, go-to-market strategies, delivery
models to realize significant business value.
Strategy and globalization
In recognition of our efforts to create job opportunities in the local
community in Atlanta, we received the 2010 Global
Impact Award from Metro Atlanta Chamber of Commerce under the category of
Economic Development – Foreign Direct Investment – for success in job creation
and positive impact on Atlanta‘s economy in 2009.
During this quarter, Wipro also announced the launch of two cloud based
strategic retail solutions, Digital Customer Experience Platform and Loss
Prevention Platform at the National Retail Federation Conference. These
solutions help integrate social media, community features and personalization to
provide an engaging customer experience and help retailers cut "time to value"
by half with minimal capital spend and a pay-by-drink model. We also launched
IT Cloud Advisory and Assessment Services for customers to help them leverage
the adoption of Cloud Computing into their IT environments.
Thought Leadership
Wipro and Knowledge@Wharton teamed up to conduct a global "Innovation
Tournament", a tournament which concluded during this quarter and received over
120 nominations from across the globe. The tournament conducted in three phases
ended with the selection of 10 finalists through a voting system. A panel of
eminent judges selected three winners for developing and presenting the most
innovative managerial "tools" that companies could use to improve their business
by increasing revenues, reducing expenditures and improving customer
experience.
Wipro also released its second ‘Sustainability Report’, detailing various
sustainability-related activities and achievements through financial year
2008-09. The report is prepared in line with the GRI framework (Global Reporting
Initiative) and has been rated A+ by GRI and audited by Det Norske Veritas
(DNV). Highlights include a 19% improvement in energy efficiency over the last
5 years and 32% of water requirements met through water recycling and
harvesting.
IT Products (14% of Total Revenue and 3% of Operating Income for our year
ended March 31, 2010)
Our IT Products segment recorded Revenue of Rs. 38.21 billion ($850 million) for our year ended March 31, 2010, representing an increase of 11% over the
same period last year. EBIT for this segment was Rs. 1.76 billion ($39 million) for our year ended March 31, 2010, representing an increase of 29% over the
same period last year.
The ratio of Operating Income to Revenue for this segment was 4.6% for our
year ended March 31, 2010
Return on Average Capital Employed (ROCE) for our IT Services and Products
segment was 39% for our year ended March 31,
2010.
Our IT Products segment recorded Revenue of Rs. 8.90 billion ($198 million) for our quarter ended March 31, 2010, representing an increase of 2% over the
same period last year. EBIT for this segment was Rs. 262 million ($6 million) for our quarter ended March 31, 2010.
The ratio of Operating Income to Revenue for this segment was 2.9% for our
quarter ended March 31, 2010.
Return on Average Capital Employed (ROCE) for our IT Services and Products
segment was 41% for our quarter ended March 31,
2010
Consumer Care and Lighting (8% of Total Revenue and 6% of Operating Income
for our
year ended March 31, 2010)
Our Consumer Care and Lighting business segment recorded Revenue of Rs. 22.58
billion ($502 million) for our year ended March 31, 2010, representing an increase of 17% over the
same period last year. EBIT for this segment was Rs. 3,080 million ($69 million) for our year ended March 31, 2010, representing an increase of 19% over the
same period last year.
Our Operating Income to Revenue for this segment was 13.6% for our year ended
March 31, 2010. ROCE for this segment was 16% for
our year ended March 31, 2010, compared to 14% for
the same period last year.
Our Consumer Care and Lighting business segment recorded Revenue of Rs. 6.08
billion ($135 million) for our quarter ended
March 31, 2010, representing an increase of 27% over
the same period last year. EBIT for this segment was Rs. 807 million ($18 million) for our quarter ended March 31, 2010, representing an increase of 16% over the
same period last year.
Our Operating Income to Revenue for this segment was 13.3% for our quarter
ended March 31, 2010. ROCE for this segment was 16%
for our quarter ended March 31, 2010, compared to
15% for the same period last year.
