Wipro sees 38% in Q4FY19 profit: Heres a list of key things to note
The company bagged consolidated net profit of Rs 2,484 crore in Q4F1Y9, higher by 37.74% compared to profit of Rs 1,808 crore a year ago same period. But, Q4FY19 PAT plunged by 1.07% as against Rs 2,510.4 crore in Q3FY19.
The Azim Premji led Wipro has posted a stellar March 2019 quarter (Q4FY19) result, with both topline and bottom line recording growth on yearly basis. However, on quarterly basis, Wipro’s revenue and profit has seen some gradual decline. The company bagged consolidated net profit of Rs 2,484 crore in Q4F1Y9, higher by 37.74% compared to profit of Rs 1,808 crore a year ago same period. But, Q4FY19 PAT plunged by 1.07% as against Rs 2,510.4 crore in Q3FY19. The performance is in line with analysts' estimates. A Bloomberg poll of analysts had predicted net profit Rs 2,489 crore in Q4FY19. On the other hand, revenue from operations stood at Rs 15,006.3 crore in Q4FY19, up by 8.98% from Rs 13,768.6 crore in Q4FY18 but down by 0.35% versus Rs 15,059.5 crore in Q3FY19. On Tuesday, Wipro shares witnessed heavy selling pressure from investors, as the stock ended at Rs 281.90 per piece down by 2.45% on Sensex.
Talking about the result, Abidali Z. Neemuchwala, CEO and Executive Director 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 modernization, enabling us to win in the market.”
Here’s a list of key highlights from the result:
Q4FY19 result!
- IT Services Segment Revenue was $2,075.5 million, a growth of 1.4% QoQ
- Non-GAAP constant currency IT Services Segment Revenue grew by 1.0% QoQ. Adjusted Non-GAAP constant currency IT Services Segment Revenue grew 6.9% YoY
- IT Services Operating Margin for the quarter was at 19.0%, an increase of 4.4% YoY
- EPS for the quarter was Rs 4.13 per share, a growth of 37.7% YoY
FY19 result!
- Gross Revenue was Rs 585.8 billion ($8.5 billion1 ), an increase of 7.5% YoY IT Services Segment Reported Revenue was $8,120.3 million and grew at Adjusted YoY growth of 3.8%
- Adjusted Non-GAAP constant currency IT Services Segment Revenue grew 5.4% YoY
- IT Services Operating Margin for the year was 17.9%, an expansion of 1.8% YoY
- Net Income was Rs 90.0 billion ($1.3 billion1 ), an increase of 12.4% YoY
- EPS for the year was Rs 14.99 per share, a growth of 18.6% YoY
- Board approves Buyback proposal of Rs 105 billion ($1.5 billion1 ) at a buyback price of Rs 325 ($4.71)
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For going Q1FY20, Wipro said, “We expect Revenue from our IT Services business to be in the range of $2,046 million to $2,087 million*. This translates to a sequential growth of -1.0% to 1.0% excluding the impact of the divestment of our Workday and Cornerstone On Demand business which was concluded in the quarter ended March 31, 2019.”
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