Wipro Q4 FY2012 and FY 2012 Results - First Cut

[RAJESH DESAI]

 

Dear Sir/Madam,

 

Wipro Ltd announced its Q4 FY2012 and FY2012 results on 25 April 2012. A quick look of the same is as follows:

 

 

The company’s top line declined 1.3% sequentially to `9,836.3 Crores while its bottom line increased 1.7% q-o-q to `1,480.9 Crores in Q4 FY2012. However, performance of IT Services business remained better than its larger peer Infosys and in line with TCS. Revenues from the business grew 0.2% sequentially to `8,526.7 Crores during the quarter vis-à-vis negative 1.9% for Infosys and 0.4% for TCS. Nevertheless, similar to performance of its peers, Wipro’s operating income growth from IT services segment remained in red. The segment registered 0.8% sequential decline in operating income to `1,616.9 Crores in Q4 FY2012.

 

For FY2012, Wipro reported 20.7% y-o-y growth in sales to `37,404.4 Crores whereas its net profit expanded 5.2% to `5,573.0 Crores. Revenues from IT services jumped 18.8% to `32,274 Crores while operating income from the segment increased 11.0% y-o-y to `6,105.2 Crores in FY2012.  

 

Current quarter IT Services revenue performance of Wipro came better than its peers Infosys and HCL Technologies. However, the company has provided a muted guidance for Q1 FY2013 with revenues ranging between $1,520 and $1,550 Mn compared with revenues of $1,536 Mn in Q4 FY2012.

 

In the top four listed companies in the IT space, TCS outperformed all its peers and remains our top pick in the sector.

 

 

Regards,

 

Team Microsec Research

 

 

 

--
CA. Rajesh Desai