Wipro - Q4 FY2012 and FY 2012 Results - First Cut - Microsec Research

Wipro Ltd announced its Q4 FY2012 and FY2012 results on 25 April 2012.

The company's top line declined 1.3% sequentially to Rs.9,836.3 Crores while its bottom line increased 1.7% q-o-q to Rs.1,480.9 Crores in Q4 FY2012. However, performance of IT Services business remained better than its larger peer Infosys and in line with TCS. Revenues from the business grew 0.2% sequentially to Rs.8,526.7 Crores during the quarter vis-à-vis negative 1.9% for Infosys and 0.4% for TCS. Nevertheless, similar to performance of its peers, Wipro's operating income growth from IT services segment remained in red. The segment registered 0.8% sequential decline in operating income to Rs.1,616.9 Crores in Q4 FY2012.

For FY2012, Wipro reported 20.7% y-o-y growth in sales to Rs.37,404.4 Crores whereas its net profit expanded 5.2% to Rs.5,573.0 Crores. Revenues from IT services jumped 18.8% to Rs.32,274 Crores while operating income from the segment increased 11.0% y-o-y to Rs.6,105.2 Crores in FY2012.

Current quarter IT Services revenue performance of Wipro came better than its peers Infosys and HCL Technologies. However, the company has provided a muted guidance for Q1 FY2013 with revenues ranging between $1,520 and $1,550 Mn compared with revenues of $1,536 Mn in Q4 FY2012.

In the top four listed companies in the IT space, TCS outperformed all its peers and remains our top pick in the sector.

Source : Equity Bulls

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