Wipro Q4 net profit touches Rs1,209 crore, up by 21%

In a visible indication that the business environment was returning to normalcy, Wipro, third largest software exporter, today announced that it had registered a net profit of Rs1,209 crore for quarter-ended March 2010, up by 21% over the same period last year.

Total revenues were Rs6,983 crore for the March quarter, up by 8% for the corresponding quarter the previous fiscal, the company said.

The software major delivered close to the upper end of its guidance with IT service revenues being dollar 1,180 million in constant currency, a sequential increase of 4.7%.

On a year-on-year basis, the constant currency revenue increase was 7.8%.

The company announced a bonus issue in 2:3 ratio, or 2 equity shares of face value of Rs 2 each for every 3 held. The proposal is subject to shareholders' approval.

In addition, a dividend of Rs6 per share on the face value of Rs2 each to shareholders has also been announced.

For the year ended March 31, 2010, the company posted a consolidated net profit of Rs4,593 crore, up 18.49% from an year ago.

On a standalone basis, the company reported a growth of 46.85% in net profit at Rs1,236 crore for the fourth quarter.

IT service revenue in dollar terms was dollar 1,166 million, a sequential increase of 3.5% and a year-on-year growth of 11.5%.

IT service revenues in rupee terms for the fourth quarter was Rs5260 crore, indicating a seven per cent year-on-year growth.

"We have seen another strong quarter of broad based volume-led growth. We saw a good recovery in our challenged verticals of technology and telecom. The business environment is returning tonormal. For the quarter ending June 30, 2010, we expect revenues from our IT services businesses to be in the range of dollar 1,190 million to dollar 1,215 million", Azim Premji, Chairman of Wipro, told media.