Bengaluru-based IT major Wipro on Tuesday reported a 37.74 per cent year-on-year (YoY) growth in consolidated net profit at Rs 2,483 crore for the fourth quarter ended March 31, 2018, driven by robust performance from its banking, financial services and insurance segment.
"The country's third largest IT company had posted the consolidated net profit of Rs Rs 1,803 crore in the same period a year earlier," Wipro said in a filing to the Bombay Stock Exchange.
Consolidated revenue of the company rose 8.98 per cent to Rs 15,006.30 crore in March quarter from Rs 13,768.60 crore in the year ago period, helped by 11.1 per cent growth in IT services business.
The board of Wipro also approved a share buyback of 3.23 crore shares at Rs 325 apiece, aggregating Rs 10,500 crore.This would be its third buyback programme as it had undertaken Rs 2,500 crore and Rs 11,000 crore buyback offer in 2016 and 2017, respectively.
"The board has not recommended any final dividend," the company said in the filing to the exchange. The company, however, mentioned that the interim dividend of Rs 1 declared by the board at its meeting on January 18, 2019 shall be considered as the final dividend for the financial year 2018-19. Thus, the total dividend for the financial year 2018-19 remains Rs 1 per equity share, it added.
Commenting on Q4 earnings, Wipro CEO and Executive Director Abidali Z Neemuchwala said: "Our teams have executed well on our strategy, which has resulted in consistent improvement of YoY growth each quarter. We have built a strong foundation for growth on the back of healthy order book and continued investments in big bet areas of digital, cyber security, engineering services and cloud. Our customers find these investments relevant as part of their digital transformation and IT operations landscape modernisation, enabling us to win in the market."
During the March quarter, IT services segment reported revenue at USD 8,120.3 million and grew at Adjusted YoY growth of 3.8 per cent. IT services operating margin for the year was 17.9 per cent, an expansion of 1.8 per cent YoY.
Looking forward, the company expects revenue from IT services business to be in the range of USD 2,046 million to USD 2,087 million in June quarter.
Jatin Dalal, Chief Financial Officer said, "Our rigor in execution and focus on improved quality of revenues has resulted in Operating Margins expansion of 1.8% for the year. Our Operating Cash Flows was robust and 129.2% of our Net Income for the year. The announcement to buyback equity shares is part of our philosophy to deliver efficient returns to shareholders."
Wipro's larger rival Tata Consultancy Services (TCS) and Infosys kicked off the earnings season by releasing their fourth quarter earnings on Friday. TCS reported a 17.7 per cent year-on-year growth in its consolidated net profit at Rs 8,126 crore, while revenue for the quarter climbed 18.5 per cent to Rs 38,010 crore. Infosys reported consolidated net profit of Rs 4,078 crore during March quarter, while its net sales rose 19.1 per cent to Rs 21,539 crore.
Meanwhile, shares of Wipro closed trade at Rs 281.10, down 2.45 per cent, on the Bombay Stock Exchange on Tuesday.
Edited by Chitranjan Kumar