Wipro Posts 14 Pc Rise In Q4, 200 Pc Dividend Announced

The country's third largest software exporter Wipro Wednesday reported a growth of 13.77 percent of consolidated net income for the quarter ended March 31, 2011 R 1,375.4 crore.

Last year, the company posted a net profit of Rs 1208.9 crore for the fourth quarter, according to a report by the Economic Times. "We have made good progress in creating a slimmer, simpler and more customer-oriented organizational structure. We believe our business strategy with the new structure will ensure the growth of the tech industry, "Chairman Azim Premji, Wipro said in a statement.

IT services, which contributed 76 per cent of its turnover in 1400 amounted to FY'11 million, a sequential increase of 4.2 percent and an increase from year to year 20, 1 percent.

The company said it expects its revenue from IT services business to be in the order of 1,394 million to 1.422 million dollars for the first quarter ended June 30, 2011. IT revenue forecast is based on a price of 44.29 rupees per dollar, according to the charges.

The revenue forecast, reflecting a decline of 0.4 percent in the lower end with an increase of 1.6 percent in the upper compared with the fourth fiscal quarter ended March 31.

"I am disappointed with their advice. They expected no growth in the first quarter against expectations of around 2.5 to 3 percent growth," said Shradha Agrawal, an industry analyst with Batlivala & Karani Securities in Mumbai. "This will make the task of matching the growth rate of the most difficult opponents for them."

Wipro's IT business, which develops applications, integrates and manages information systems for customers such as telephone Citi, Cisco and Credit Suisse, account for about three quarters of revenues.

The IT services segment employed 2894 people this quarter and 14 314 persons during the year, bringing the total number of 1,22,385 employees March 31, 2011. It added 68 new customers during the reporting quarter and 155 new customers during the year.

"The economic environment is positive, and we invest in growth rate with investment. We have said wage increases in force on 1 June 2011, which would affect the operating margin" Wipro President and Chief Financial Officer Suresh Senapaty said.

Net sales for the quarter stood at Rs 8302.4 crore from Rs 7016.1 reports crore in fiscal 2009 Q4-10, an increase of 18.33 percent.

For tax administration ended in March 2011, the company recorded a net profit of Rs 5297.7 crore versus Rs 4593.1 crore previous fiscal, an increase of 15.34 percent.

Net revenue for 2010-1911 income tax grew by 14.51 per cent of R to R 31,098.7 27,157.4 crore in the previous fiscal year. Separately, the company announced a net profit of Rs 1,337.6 crore for the quarter, an increase of 8.15 per cent expected in relation to the same period last year.

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