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Wipro’s wonderful performance.

Apr 27, 2000

Wipro Limited has posted an increase in total income by 28% to Rs 23,129 m and an increase in net profits by 121% to Rs 2,483 m for the financial year ended 31st March 2000 over the previous financial year ended 31st March 1999

Rs m FY1999 FY2000 %change
Total Income 18,040 23,129 28%
Operating Profit (PBDIT) 2,765 4,492 62%
PBIT 2,135 3,793 78%
Profit before tax 1,764 3,507 99%
Net profit 1,702 2,483 46%

Wipro Ltd is a major multi-product company with a major presence in software and hardware, but also a marginal presence in consumer lighting, health care, vegetable oils and related activities. It enjoys one of the largest market capitalisations on Indian stock exchanges.

What is remarkable about this years profits is the fact that it has been achieved despite a non recurring charge of Rs 523 m towards the decline of the value of its investments in Enthink its US subsidiary which is not doing well and the extraordinary loss of Rs 810 m incurred on account of Wipro Finance Limited. Otherwise the profits would have been as high as Rs. 3,816m. However it must be pointed out that the company has had an extraordinary income of Rs 1095 m which is included in the above profits out of divestment in its subsidiary Wipronet where it now holds only a 47% stake.

The main growth in Wipro’s topline and bottomline growth has been fuelled by the 65% growth in its software division Wipro Technologies with income of Rs 10,420 m and profit before taxes of Rs 2,887 m. Global research and development and telecom solutions contributed 46% of revenue, enterprise resource planning 39% and e-commerce 15%.

The other major growth came from hardware and Indian information technology business which grew by 20% to Rs 8,250 m and profit before interest and tax by 27% to Rs 438 m.

The company has recently obtained the Board’s approval for its Rs 2 bn American Depository Receipt Issue (ADR) which will enable it to acquire more companies abroad and thus grow faster.

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