Bengaluru: Wipro Ltd on Friday posted revenue growth for the fourth quarter of financial year 2018-19 in line with analysts’ estimates. However, the company provided a disappointing revenue outlook of -1% to 1.0% for the first quarter of financial year 2019-20. Wipro also announced a bonus of one free share for every three shares held by shareholders while posting its fiscal fourth-quarter and full financial year results.
Wipro’s dollar revenue improved 9% year-on-year to $2.2 billion in the quarter ended 31 March. Revenue grew 7% on a quarter-on-quarter basis. In constant currency terms, revenue fell by 1% on a sequential basis. A Bloomberg survey of 31 analysts had forecast revenue of $2.18 billion, or ₹15069.40 crore, in the March quarter. They also forecast a profit of $359.31 million, or ₹2489.20 crore, in that period.
Net profit totaled to $359.1 million in Q4 compared to $366 million at the end of the September quarter (Q3 2018-19). This had an effect on the operational efficiency as the firm’s operating margin reduced marginally to 19% in Q4, compared to 19.8% in Q3. In constant currency terms, Wipro managed a 7.5% year-on-year growth in terms of revenue for the fourth quarter of 2019. Additionally, the company reported 1.0% sequential decline in revenue in terms of constant currency.
In rupee terms, Wipro’s revenue for the fourth quarter of FY19 stood at ₹15,000.63 crore, compared to ₹13,768.86 crore a year ago during the same period. For the year ended March 2019 (FY19), Wipro reported revenue of ₹58,584.5 crore, up 7.5% from ₹54,487.1 crore in the previous financial year.
Wipro's net profit increased 37.7% to ₹2,483.3 crore for the fourth quarter ended 31 March, against ₹1,802.8 crore in the same period a year ago. For the full year ended 2019, the company’s net profit increased by 12.4% to ₹9,003.1 crore.
Wipro’s revenue from clients in the banking and financial services industry (BFSI) accounted for 31.5% of its overall revenue, compared to 28.7% in the same period a year ago, in constant currency terms. The US and Europe accounted for the majority of the revenue in Q4.
The results were declared after market hours. On Tuesday, Wipro lost 2.45% to close at ₹281.10 per share on the BSE while the benchmark index Sensex gained 0.95% to close at 39,275.64 points, and the BSE IT Index gained 0.05% to close at 15,590.77 points.
