Wipro (WIPRO) Q4 03/04 earnings summary

Executive summary

• FY04 consolidated sales and other income rose 36% to Rs 59,716m; profit after tax increased 26% to Rs 10,315m.

• Global IT growth was led by R&D and telecom services, while India and AsiaPac and consumer businesses also expanded.

• Quarterly Global IT revenue and net income grew at compounded quarterly rates of 11% and 12%, respectively.

Financial highlights

• Consolidated PBT was Rs 12,032m, up 19%; PAT before extraordinary items was Rs 10,351m, up 17% YoY.

• Consolidated EPS was Rs 44.60 versus Rs 35.49; continuing-operations EPS was Rs 44.76.

• Operating cash flow was Rs 10,031m versus Rs 7,363m; year-end cash and bank balances were Rs 3,243m.

• Standalone sales and other income rose 28% to Rs 52,597m; PAT before extraordinary items increased 9% to Rs 9,149m.

Outlook and guidance

• FY05 prospects were characterized as exciting but challenging as the IT industry adjusted to global realities.

• Strategy emphasized customer ROI, innovation, remote infrastructure services, and continued investment in R&D and global delivery capabilities.

• Acquisition opportunities remained under consideration, subject to strategic, cultural, and financial fit.