Wipro's net profit falls 6% in Q1 FY2017; sets services revenue target of $1.95 billion for Q2. The Wipro campus is seen in Bangalore June 23, 2009.Reuters file

Wipro, Indian IT software services company, reported a 1.62 percent decline in consolidated net profit to Rs. 2,235 crore for the fourth quarter ended March 2016, as compared to Rs. 2,272 crore in the corresponding quarter ended March 2015.

The company's IT revenues for the quarter in constant currency came at $1,887 million, closer to the lower end of the guidance of $1,875 million to $1,912 million given by the company.

Guidance for first quarter ended June 2016

India's third-largest software services exporter expects revenues from the IT services business to be in the range of $1,901 million to $1,939 million in constant currency.

Dividend, share buy-back

Wipro proposed a final dividend of Re. 1 per share, taking the total dividend for 2015-16 to Rs. 6 per share, according to the company's regulatory filing to the Bombay Stock Exchange (BSE) on Wednesday.

The company also announced a proposal to buy back up to 40 million shares at a price of Rs. 625 ($9.431) per equity share for an aggregate amount not exceeding Rs. 2,500 crore ($377 million).

Detailed Q4 results and management comments

Wipro's fourth-quarter revenues stood at Rs. 13,741.7 crore, up 12.9 percent year-on-year (YoY) from Rs. 12,171.4 crore. Net profit declined to Rs. 2,235 crore.

In dollar terms, the revenues rose to $2.1 billion and net profit declined to $337 million. The IT revenues of the company rose 2.4 percent sequentially to $1,887 million in constant currency and within the guidance range. The IT services segment's profit was $387 million. The operating margin was 20.1 percent for the IT business segment, down 10 basis points.

"We have maintained our margins in the quarter, with benefits from utilisation and operational efficiencies largely offsetting the margin impact from our inorganic investments," said Jatin Dalal, chief financial officer of Wipro, in a statement.

Also read: TCS Q4 net profit rises 64.4%, revenues up 17.5% 

Full-year net profit and revenues (IFRS figures)

Wipro reported a net profit of Rs. 8,892 crore for the financial year 2015-16, up 2.76 percent from Rs. 8,653 crore in the previous financial year, while consolidated revenues rose 9 percent YoY to Rs. 51,240 crore. 

In dollar terms, net profit for 2015-16 was $1.3 billion and revenues $7.7 billion.

"Our focus is to drive significant growth in our 'run' business through integrated services and hyper-automation while gaining leadership in the 'change' business through investments in Digital and Consulting capabilities, IP-based platforms & products and creating differentiated domain solutions for non-linear growth," said Abidali Z Neemuchwala, chief executive officer and member of the Board of Directors at Wipro.


The IT Services segment had a headcount of 172,912 as of March 31, 2016.

Deal wins

The company said it added 119 new customers during the fourth quarter (including the customers of Cellent and HealthPlan Services).

Cash in hand

The company's cash and cash equivalents as of March 31, 2016, stood at Rs. 9,904.9 crore, down from Rs. 15,894 crore.

Wipro stock price

The Wipro stock closed at Rs. 601.35, up 2.07 percent from its previous close. The financial results were declared after trading hours.

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