Wipro

The company posted, for Q4FY16, a flat set of numbers but what was truly exciting was its buy back offer, which was at a premium of almost 4% to yesterday’s closing price. The Board of Wipro approved buy back of 4 crore shares at Rs.625/share. Yesterday, the stock closed at Rs.601.35. This is expected to boost the stock price and not the lackluster numbers.

On the numbers front, its consolidated net profit for Q4FY16 was at Rs.2235 crore, almost unchanged from previous (Q3) net profit of Rs.2234 crore. Topline rose 6% (QoQ) at Rs.13,742 crore. IT services revenue rose 4% at Rs.12,797 crore, thanks to its acquisition of two US companies and one German company during the quarter. EBIT was up 4% at Rs.2566 crore though margins declined from 20.15% t0 20.1%.

The company added 4 clients in the US$20 million range and 6 in the US$10 million, taking the total tally of active customers to 1223 v/s 1105 (QoQ). In terms of employee parameters, total headcount at end of FY16 was at 1,72,912 v/s 1,58,217 in FY15. Voluntary (trailing twelve months) attrition rate in IT services business declined to 16.1% from 16.3% and that for the quarter dropped from 16.3%  to 14.9% (QoQ). Net utilisation rate (ex-trainee) declined to 77.5% v/s 78%.

In terms of geography, America’s grew 1.8%, Europe by 5.8% and India with Middle east grew 1.7%.

The company ended FY16 with a consolidated net profit at Rs.8892 crore, up 3% on a 9% rise in revenue at Rs.51,631 crore.

For the June quarter, Wipro forecast revenue in the range of $1.901 billion to $1.939 billion.