Wipro (WIPRO) Q4 02/03 earnings summary

Executive summary

• FY03 consolidated revenue reached Rs. 43,383 million; Indian GAAP profit after tax was Rs. 8,205 million, down 7% YoY, reflecting acquisition growth, pricing pressure and the ISP exit.

• Under US GAAP, revenue was Rs. 42,850 million, operating income Rs. 9,486 million and net income Rs. 8,099 million; net income declined 3% YoY.

• Global IT Services and Products remained the main earnings engine; expansion into BPO, healthcare IT and energy consulting broadened services through acquisitions.

Financial highlights

• Consolidated Indian GAAP sales and other income were Rs. 43,383 million versus Rs. 34,926 million; PBT was Rs. 10,136 million versus Rs. 9,583 million.

• Consolidated Indian GAAP PAT before extraordinary items was Rs. 8,860 million versus Rs. 8,854 million; after ISP discontinuance and affiliate/minority items, PAT was Rs. 8,205 million.

• US GAAP revenue rose to Rs. 42,849.9 million from Rs. 33,473.5 million; net income was Rs. 8,099 million versus Rs. 8,330 million.

• Operating cash flow under US GAAP was Rs. 7,663 million; cash and cash equivalents rose to Rs. 14,096 million at March 31, 2003.

Outlook and guidance

• Priorities included expanding consulting, BPO and infrastructure services, growing global delivery capability, and deepening existing customer relationships.

• Management emphasized higher-value services, cost management, aligning resources with demand and improving utilization in response to pricing pressure and wage increases.

• The stated ambition was to become a top-10 global IT services provider, with broader geographic reach and a more global workforce.