This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Wipro Ltd. (WIT) on April 18, 2008.
Management:
IR: Sridhar Ramasubbu
Chairman: Azim H. Premji
Corporate EVP, Finance and CFO: Suresh C. Senapaty
President, Finance Solutions: Girish S. Paranjpe
EVP, Human Resources: Pratik Kumar
President, IT Practices - Wipro Technologies; President, Wipro Infotech: Suresh Vaswani
Chief Executive, Telecom & Product Engineering Solutions: Sudip Nandy
CEO Infocrossing: Zach Lonstein
President of Wipro Consumer Care: Vineet Agarwal
Chief Executive, Wipro BPO T.K. Kurien: T.K. Kurien
Key Investors Issues
- Net profit rose 1.7% to Rs.8.75 billion ($220 million) from Rs.8.6 billion a year ago.
- Total revenue was Rs.55.96 billion ($1.4 billion), representing an increase of 29% over the same period last year.
- Global IT Services and Products revenue was Rs.38.27 billion ($956 million), representing an increase of 26% over the same period last year.
Fourth Quarter Highlights
Total revenue was Rs.55.96 billion ($1.4 billion), representing an increase of 29% over the same period last year.
Net income was Rs.8.75 billion ($219 million), representing an increase of 2% over the same period last year.
Global IT Services and Products revenue was Rs.38.27 billion ($956 million), representing an increase of 26% over the same period last year.
- Global IT Services and Products EBIT was Rs.7.78 billion ($194 million), representing an increase of 9% over the same period last year.
- Global IT Services and Products business added 29 new clients.
- Wipro IT Business won 3 multi-year multi-million dollar deals.
India, Middle East & Asia Pac business recorded 29% year-over-year growth in revenues to Rs.10 billion ($250 million).
- EBIT grew 23% to Rs.0.90 billion ($22 million).
- Wipro Consumer Care and Lighting business revenue grew 128% year-over-year and PBIT grew 87% year-over-year.
The company had 82,122 employees as of March 31, 2008, which included 61,844 employees in IT Services business and 20,278 employees in BPO business.
- This represents a net addition of 2,290 employees comprised of 1,919 in IT Services business and 371 people in BPO business.
- As a part of the strategy of building global delivery capabilities, Wipro opened a BPO center in Cebu, Philippines and Wroclaw, Poland. The center will deliver Customer Service Support, Technical Support, HR Services, Financial & Accounting and Procurement Services to customers.
- Wipro won a large deal from a leading Consumer Electronics company in US. It is a 5 year engagement which includes Application Management Services covering all applications of the enterprise.
- Wipro was selected by NEC Electronics for rendering semiconductor design services and establishing a dedicated engineering development center. The development centre will provide front-end and back-end design services and IP to NEC Electronics for Application Specific Integrated Circuits (ASICs) and microcontrollers in the Digital Consumer and Automotive areas.
Fiscal 2007 Highlights
- Total revenue was Rs.197.43 billion ($4.93 billion1), representing an increase of 32% over the same period last year.
- Net income was Rs.32.24 billion ($806 million1), representing an increase of 11% over the same period last year.
- Global IT Services and products revenue was Rs136.28 billion ($3.41 billion1), representing an increase of 23% over the same period last year.
- Technology business in Global IT Services segment crossed a landmark of $1 billion of annual revenue and business from the Americas and Europe crossed $2 billion and $1 billion respectively.
- Global IT Services and Products Earnings Before Interest and Tax (EBIT) was Rs.28.62 billion ($715 million1), representing an increase of 8% over the same period last year.
- Global IT Services and products added 166 new clients during the year.
- Return on capital employed (ROCE) for Global IT Services and Products business segment was 40% for year ended March 31, 2008, compared to 58% for the same period last year.
- Revenue from each of India, Middle East and Asia Pacific businesses grew by 45% to Rs.34.60 billion ($865 million1).
- EBIT grew by 34% to Rs.2.74 billion ($68 million1)
- Wipro Consumer Care and Lighting business revenue grew 93% year-over-year and EBIT grew 72% year-over-year.
- Fresh Restricted Stock Award granted for employees effective 1st April as part of long-term talent retention strategy.
- Board of Directors recommends a final cash dividend of Rs.4 per share/ADS (10 cents per share/ADS1), subject to shareholder approval in the Annual General Meeting scheduled in July 2008. This, coupled with an interim dividend of Rs.2 per share (5 cents per share/ADS1), will take total dividend to 300% at Rs.6 per share (15 cents per share/ADS1).
