Wipro Q4 net profit rises marginally at Rs 2,267 crore, announces 1:1 bonus
The company expects revenues from its IT services business to be in the range of $1,915-1,955 million for the April-June 2017 quarter, which failed to meet analysts' estimates
Wipro, the Bengaluru headquartered software company, on Tuesday posted a marginal increase in its consolidated profit at Rs 2,267 crore for the quarter ended March.
The country's third-largest software services firm had registered a profit of Rs 2,257.3 crore in the year-ago period, as per Indian accounting norms.
The total income stood at Rs 15,033.8 crore in the said quarter compared to Rs 14,312.7 crore in the year-ago period, up over 5 per cent.
The company, which competes with the likes of TCS and Infosys, has said it will issue bonus shares in a ratio of 1:1 within the next two months.
The move comes as larger peers like TCS and Infosys have already announced mega share buybacks to offer rich returns to shareholders.
Wipro will offer one bonus share for every one share held, the company said, adding that this was done to encourage participation of small investors, increase liquidity and expand retail shareholder base.
"... the issuance of bonus shares was not part of the agenda papers for the board meeting," it stated.
For the year ended March 2017, Wipro's profit fell nearly 5 per cent to Rs 8,518 crore while total income grew 7.4 per cent to Rs 57,995 crore compared to the previous financial year.
The company expects revenues from its IT services business to be in the range of $1,915-1,955 million for the April-June 2017 quarter, which failed to meet analysts' estimates.
IT service accounts for the lion's share of Wipro's business. This grew 3.9 percent in the March quarter to $1,954.6 million from the year-ago period.
For the year, IT services revenues were up 4.9 percent at $7.7 billion from the previous fiscal.
Wipro witnessed cancellation in projects, especially, in the healthcare business, which is likely to impact the company's first quarter earnings, said Abidali Z Neemuchwala, Chief Executive Officer of the company.
However, Neemuchwala expects growth momentum to come back in the second quarter of the current financial year and expects industry leading growth rate by the fourth quarter of FY18.
During the quarter, Wipro added a client in $75 million, $50 million and $20 million categories, Moneycontrol report said.
With PTI inputs