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
Operating Profit (PBDIT)
Profit before tax
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.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407