WIPRO reports 6% drop in Q4 Net Profit, Refrains from providing Apr-June Revenue guidance

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Bengaluru : Leading Indian IT services company Wipro has reported 6 % drop (Y-o-Y) in Net profit at Rs.2345 Crore in the fourth quarter of FY20 as against Rs.2493 Crore in the Q4 of FY19. Sequentially, the Net Profit has dropped by 4.7 % as compared to Rs. 2462 crore in the December’19 quarter.

Gross Revenue of the company has increased by 4.7% YoY to Rs.15,711 crore in the January-March quarter. However, IT services revenue of the company has dropped by 1% to USD 2073 million. Earnings per share (EPS) for the quarter has dropped by 1.1% to Rs.4.09 (USD 0.051) per share.

Results for the Year ended March 31, 2020:

  • Gross Revenue was 610.2 billion ($8.1 billion1 ), an increase of 4.2% YoY
  • IT Services Segment Revenue was at $8,256.2 million, grew at 1.7% YoY
  • Non-GAAP2&3 constant currency IT Services Segment Revenue increased by 3.9% YoY
  • IT Services Operating Margin4 for the year was at 18.1%, an expansion of 0.2% YoY
  • Net Income for the year was 97.2 billion ($1.3 billion1 ), an increase of 8.0% YoY
  • EPS for the year was 16.67 ($0.221 ) per share and grew 11.2% YoY

Results for the Quarter ended March 31, 2020:

  • Gross Revenue was 157.1 billion ($2.1 billion1 ), an increase of 4.7% YoY
  • IT Services Segment Revenue was at $2,073.7 million, a decrease of 1.0% QoQ
  • Non-GAAP3 constant currency IT Services Segment Revenue increased by 0.4%QoQ
  • IT Services Operating Margin4 for the quarter was at 17.6%, a decrease of 0.8% QoQ
  • Net Income for the quarter was 23.3 billion ($308.5 million1 ), a decrease of 6.3% YoY
  • EPS for the quarter was 4.09 ($0.051 ) per share, a decrease of 1.1% YoY

“The quarters ahead seem challenging and require a tremendous response on costs. We also anticipate our working capital to increase, but our strong balance sheet provides us the confidence that we will emerge stronger and better. Further, due to the volatility in the external environment, we have decided not to provide a quarterly guidance on revenues” Jatin Dalal, Chief Financial Officer said.

The Board of the company has not recommended any final dividend. The interim dividend of Rs.1 declared by the Board at its meeting held on January 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.

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