Wipro (WIPRO) Q4 99/00 earnings summary

Executive summary

• FY00 sales and other income Rs23,129m, up 28% YoY; PAT before non-recurring items Rs3,006m, up 77%, exceeding the Rs3,000m target set in 1995.

• Consolidated US GAAP revenue rose 28% to Rs22,991m; operating income increased 93% to Rs3,492m and net income reached Rs3,552m.

• Strategy centered on expanding services, sustaining quality leadership, investing in people and capturing demand from the knowledge economy and dotcom shift.

Financial highlights

• Indian GAAP sales and other income Rs23,129m versus Rs18,040m; profit before tax Rs3,507m versus Rs1,764m; PAT before non-recurring items Rs3,006m versus Rs1,702m.

• Reported Indian GAAP profit for the year was Rs2,483m after Rs523m in non-recurring/prior-period items, compared with Rs1,121m after Rs581m in FY99.

• Exports reached Rs10,506m, up 61% YoY; consolidated US GAAP cost of revenue fell to 68% of revenue from 70%, while SG&A rose 9% to Rs3,820m.

• Consolidated US GAAP net income was Rs3,552m; basic EPS Rs15.59 and diluted EPS Rs15.54. SFAS 123 adjusted pro forma net income was Rs3,317m and basic EPS Rs14.56.

Outlook and guidance

• Expected continued IT-services demand, customer trust and business momentum; growth priorities included expanding services and using products to add value to service offerings.

• Future investment decisions to be measured against profitability and cash generation; primary funding needs expected to be capital expenditure and working capital for growth.

• Indian IT services strategy aimed to lift service contribution to profits; services already generated more than one-third of Infotech profits in FY00.