Wipro (WIPRO) Q4 96/97 earnings summary

Executive summary

• FY ended Mar. 31, 1997 consolidated sales Rs. 16,149 million, up 12% YoY; PAT net of minority interest Rs. 662 million, up 6%.

• Standalone PAT rose 33% to Rs. 635 million; software exports reached Rs. 2,734 million, up 57% YoY.

• Five businesses served markets growing at over 25% annually; software exports for 1997-98 were planned at Rs. 4,000 million.

Financial highlights

• Standalone sales and other income were Rs. 12,814.9 million versus Rs. 11,716.2 million in 1995-96; profit before tax was Rs. 629.1 million versus Rs. 520.4 million.

• Standalone PAT was Rs. 635.3 million, including a Rs. 6.2 million net tax provision write-back; proposed dividend was Rs. 2.50 per equity share.

• Standalone R&D expenditure was Rs. 269.47 million, including Rs. 42.85 million of capital expenditure; foreign-exchange earnings were Rs. 2,899.18 million.

• Operating cash flow was Rs. 1,261.3 million versus Rs. 204.6 million in 1995-96; investing cash outflow was Rs. 690.4 million.

Outlook and guidance

• Software exports for 1997-98 were planned at Rs. 4,000 million, following 57% YoY growth in 1996-97.

• Consumer and Lighting planned continued brand investment and targeted significant growth; growth strategy emphasized Indian-ingredient brands and distribution reach.

• Finance planned to step up car financing and extend factoring in 1997-98; management expected difficult market conditions to improve after October 1997.

• Six Sigma was targeted by 2002, with 25 projects underway in 1997-98 and employee training planned over the following 18 months.