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Wipro net profit rises 8% to Rs 9,772 crore in FY20; suspends revenue guidance on coronavirus uncertainty

Wipro net profit rises 8% to Rs 9,772 crore in FY20; suspends revenue guidance on coronavirus uncertainty

On quarterly basis, Wipro reported a 5.3 per cent decline in consolidated profit at Rs 2,326 crore in the March quarter of 2020

On the yearly basis, Wipro reported a 6 per cent decline in profit at Rs 2,345.20 crore during the March quarter On the yearly basis, Wipro reported a 6 per cent decline in profit at Rs 2,345.20 crore during the March quarter

IT major Wipro on Wednesday reported a 8.3 per cent year-on-year growth in its net profit at Rs 9,772 crore for the financial year ended March 31, 2020, and suspended revenue growth guidance for April-June quarter due to uncertainty amid coronvirus pandemic.

The Bengaluru-based company had posted net profit at Rs 9,017 crore in the financial year 2018-19.

The company posted 4.2 per cent growth in revenue at Rs 61,023.2 crore in FY20 as compared to Rs 5,8584.5 crore in FY19.

On the quarterly basis, the company reported a 5.3 per cent decline in consolidated profit at Rs 2,326 crore in the March quarter of 2020. In the quarter ended December 2019, Wipro had reported a profit of Rs 2,456 crore.

The IT company, however, reported a 1.3 per cent rise in revenue at Rs 15,296 crore compared to Rs 15,100 in the last quarter.

On the yearly basis, Wipro reported a 6 per cent decline in profit at Rs 2,345.20 crore during the March quarter compared with Rs 2,493.90 crore in the corresponding quarter last year. Revenue was up 4.7 per cent YoY at Rs 15,711 crore from Rs 15,006 crore in the year-ago period.

It's the first time ever that Wipro announced the quarterly earnings before its larger peers namely Tata Consultancy Services (TCS) and Infosys. Wipro has not given revenue guidance for the April-June quarter due to uncertainty over coronavirus outbreak.

The revenue from operations was recorded at Rs 15,711 crore. IT services segment revenue was at $2,073.7 million, a fall of 1 per cent sequentially, while IT Services operating margin stood at 17.6 per cent, down 0.8 per cent on quarterly basis.

The company said that its board has not recommended any final dividend. The interim dividend of Rs 1 declared by the board at its meeting held on January 14, 2020 will be considered as the final dividend for the financial year 2019-20. Thus, the total dividend for the financial year 2019-20 remains Rs 1 per equity share, it said.

In December quarter, Wipro reported a year-on-year fall of 3.2 per cent in consolidated profit to Rs 2,462.90 crore. However, its revenue rose 2.73 per cent to Rs 15,470.50 crore from Rs 15,100.60 crore in the corresponding period of last year. The operating margin in the third quarter was at 18.4 per cent, an increase of 0.3 per cent sequentially.

Also Read: Wipro Q4FY20 earnings preview: Coronavirus impact, update on CEO search among key things to watch out