Wipro revenue grows 26% year on year; PAT comes down 4%

Bangalore: Wipro Ltd has announced its audited results approved by the board of directors for the quarter ended March 2003.

Highlights of the results For the year ended 31 March 2003:

• Revenue for the year was Rs 43 billion, an increase of 26 per cent year on year. Wipro Technologies' revenue for the year increased 25 per cent year on year to Rs 28 billion.
• The profit after tax (PAT) for the year at Rs 8.6 billion represents a marginal decrease of 4 per cent over last year, primarily on account of share of losses in affiliate Wipro GE Medical Systems Ltd of Rs 371 million.
• Wipro Technologies' profit before interest and tax (PBIT) at Rs 8.1 billion was 28 per cent of the revenue. Investments in sales and marketing and lower price realisation contributed to the decline in the operating margin.
• The board of directors has recommended a dividend of Rs 1 per share subject to approval of shareholders in the annual general meeting scheduled in July 2003.

For the quarter ended 31 March 2003:

• Wipro Technologies' revenue for the quarter increased 36 per cent year on year to Rs 7.9 billion ($167 million).
• Wipro Technologies' volume increased 5.6 per cent over the quarter ended 31 December 2002; onsite pricing increased marginally by 0.8 per cent and offshore pricing decreased by 2.3 per cent over the quarter ended 31 December 2002.
• Forty-four new customers were added in global IT services during the quarter, including six added consequent to the integration of global energy practice of AMS Inc.
• Wipro Spectramind recorded a revenue of Rs 660 million ($14 million) and a PBIT of Rs 168 million, which is 25 per cent of the revenue.

Acquisitions:

• Wipro's consumer care and lighting group entered into a definitive agreement with Hindustan Lever Ltd for the acquisition of the Glucovita brand. The transaction is expected to be completed in the quarter ending June 2003.

Outlook for the quarter ending 30 June 2003: Wipro chairman Azim Premji says: "The year 2002-03 was a year of bold initiatives. We successfully integrated and grew three acquisitions — Spectramind, Global Energy Practice of AMS Inc and R&D labs of Ericsson. We will look for opportunities to create sustainable competitive advantage through future acquisitions. Looking ahead, for the quarter ended June 2003, we expect our revenue from Wipro Technologies and Wipro Spectramind to be approximately $172 million and $16 million, respectively."

Wipro chairman Vivek Paul says: "Our strategic initiatives enabled us to close this financial year with the highest-ever growth in billed man-months. This quarter we integrated the team acquired from AMS with complete continuity of customers and employees, and some quick wins on cross selling. We saw sustained revenue growth in each of our IT, R&D and BPO businesses. Margins expanded in the BPO business, but came under pressure in IT services as we absorbed acquisition costs and pricing pressures, along with a rising rupee."

Says Suresh Senapaty, corporate executive vice-president (finance): "Our profits for the year in Wipro were lower by Rs 371 million on account of our share of losses in Wipro GE Medical Systems Ltd, our joint venture in medical systems business. We are working with our JV partner to bring that business back to its track record of consistent profitability.

"For the quarter, the PBIT to revenue in Wipro Technologies was lower at 25 per cent. Wipro Technologies' results for the quarter include a revenue of Rs 228 million and a loss of Rs 73 million in our energy and utilities consulting division, acquired from AMS Inc. This contributed to a 2-per cent drop in the PBIT margin as compared to the previous quarter. The losses were primarily due to provisions for integration bonus."