Wipro (WIPRO) Q4 00/01 earnings summary

Executive summary

• FY01 revenue grew 35% and profit after tax before extraordinary items rose 122%; Global IT Services led growth despite concerns about slowing global demand.

• Strategic priorities: diversify geographies and revenue streams, deepen existing-client business, invest in global talent, and pursue 2004 leadership goals in IT, customers, people, and brand.

Financial highlights

• Indian GAAP sales and other income reached Rs. 30,922m, up 35%; profit before tax was Rs. 7,655m and profit after tax before extraordinary items was Rs. 6,663m, up 122%.

• Profit for the year was Rs. 6,680m, including a Rs. 16m extraordinary gain on transfer of the peripherals business; prior-year profit included a Rs. 523m extraordinary loss.

• US GAAP consolidated revenue was Rs. 31,002m, gross profit Rs. 12,598m, operating income Rs. 7,170m, and net income Rs. 6,455m; basic EPS was Rs. 28.15.

• US GAAP operating cash flow was Rs. 5,078m, versus capital expenditure of Rs. 2,815m; cash and cash equivalents ended FY01 at Rs. 5,623m.

Outlook and guidance

• FY01-02 was framed as a year of change; priorities included customer alignment through innovation and quality, employee-shareholder alignment through stock options, and faster execution.

• 2004 ambitions included top-10 global IT services standing, India’s leading IT position, top-10 employer preference, and a top-five admired Indian brand.

• Global IT Services infrastructure support was expected to keep growing; Indian IT Services planned to move up the value chain and expand in Asia Pacific and the Middle East.