Wipro ups IT revenue forecast for first quarter
India's third largest software exporter Wipro Thursday projected higher average revenue of $1,735 million ($1.74 billion) from its flagship IT services business for first quarter (April-June) of the new fiscal (2014-15) as per the International Financial Reporting Standard (IFRS).
"We expect revenues from our IT Services business to be in the range of $ $1,715-1,755 million or an average of $1.74 billion in first quarter ending June 30," Wipro chief financial officer Suresh Senapaty said here.
The upward guidance is based on the revenue target of $1.72 billion achieved in fourth quarter (January-March) of just-concluded fiscal 2013-14, which is an increase of 8.5 percent year-on-year (YoY) and 2.5 percent sequentially.
"The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their markets," Wipro chairman Azim Premji said in a statement here.
Earlier, the IT bellwether reported net profit of Rs.2,230 crore for fourth quarter (Q4) under review, registering an increase of 41 percent YoY as per Indian accounting standard.
Similarly, revenue for fourth quarter grew 22 percent YoY to Rs.11,700 crore, as per Indian accounting standard.
As per Indian accounting standard, revenue from IT services is Rs.10,620 crore, an increase of 24 percent YoY.
Under the International Financial Reporting Standard (IFRS), net income for fourth quarter is $371 million and revenue $2 billion.
For fiscal under review (FY 2014), net profit increased 27 percent YoY to Rs.7,800 crore and revenue increased 16 percent YoY to Rs.43,760 crore, as per Indian accounting standard.
Revenue from IT services business is Rs.39,950 crore, an increase of 18 percent YoY.
Under IFRS, net income for fiscal (FY 2014) is $1.3 billion and revenue $7.3 billion.
Revenue from IT services under IFRS is $6.7 billion for FY 2014.
"Our focus on process simplification, automation and platform-based delivery continues to deliver results. We are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility," Wipro chief executive T.K. Kurien told reporters later.
Operating margins for IT services increased 1.95 percent YoY to 22.6 percent for fiscal under review and 24.5 percent for fourth quarter, which is 1.5 percent up sequentially (23 percent) and 4.5 percent up YoY (20 percent).
"We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT services operating margins by 195 basis points," Senapaty added.
The IT services business added 59 new customers during the fourth quarter, taking total number of new clients for fiscal to 174 as against 192 year ago.
Number of active clients at end of fiscal (2013-14), however, increased to 986 from 978 at the end of previous fiscal (2012-13).
The company had 146,053 employees at the end fiscal as against 145,812 year ago.
(Posted on 17-04-2014)