Wipro

The market has given a big thumbs-down to the Q4 performance of Wipro but actually, the numbers are good. Maybe it is profit booking forces at work on the counter but operationally, the company did well, beating most estimates.  It ended Q4FY15 with a consolidated net profit of Rs.2272 crore, up 4% (QoQ).  

Its Non-GAAP constant currency IT Services Revenue in dollar terms grew 1.2% to $1,817.8 million, within its guidance range of $1,814 million to $1,850 million. IT Services Revenue was $1,774.5 million, a sequential decrease of 1.2% and YoY increase of 3.2%. And in rupee terms, it was down 0.8% at Rs.11242 crore. Its EBIT for the quarter came in at Rs.2478 crore, which was flat sequentially. On the other hand, EBIT margins expanded 23 bps at 22%.

The company gives a guidance and for Q1FY16, expects IT services revenue in the range of $1765 – 1793 million. This guidance is based on the following exchange rates : GBP/USD at 1.49, Euro/USD at 1.07, AUD/USD at 0.77, USD/INR at 62.10 and USD/CAD at 1.27.

In terms of verticals, all except Finance solutions saw a sequential dip with energy and telecom leading the fall. In terms of geography, it was only India which grew 10%, rest all fell – Americas was down 0.6%, Europe was down 5.7% and APAC and other emerging markets fell 2%. During the quarter, it added 65 new customers which was higher than normal run rate. Total headcount as at end of FY15 stood at 1,58,217 employees, adding 1351 new employees during the quarter. Net utilization (excl trainees) improved to 80.5% v/s 78.8% in Q3. The company expects FY16 to be much better than FY15.