Wipro has posted 75% net profit growth in 2QFY2000. This was reported by a leading financial newspaper.
Wipro Ltd., (of Wipro Corporation) is a conglomerate dealing in the businesses of information technology (IT), financial services, healthcare systems, consumer lighting and hydraulic products. Its IT division is the premier PC and peripherals supplier and the second largest software exporter in the country. It has bagged the SEI-CMM Level 5 accreditation for software development.
As was to expected with the increasing focus on IT, the latter has pushed Wipro's 2QFY2000 net to Rs 710 m (up 75%). Revenues have appreciated 21% to Rs 5.5 bn.
Profit before Tax
Profit after Tax
Net profit margin
In future, the company plans to amalgamate the Wipro Computers (erstwhile Wipro Acer) with itself with effect from April 1, 1999. Subsequent to the split with Acer, Wipro markets its own PCs (SuperGenius), It continues to offer servers (Acer, Sun Micro), printers (Canon, Epson), and networking products (Cisco, Motorola, 3Com).
Wipro has lined up plans to invest close to Rs 2 bn per annum over the next two to three years. Not surprisingly, more than 70 per cent of this amount will be invested in the IT business, Wipro's golden goose. Its ISP venture has been spun off into a separate JV - Wipro Net, in association with KPN (Royal Dutch Telecom). It plans to corner the business-to-business segment of this lucrative emerging market. The company has also identified the Internet and e-commerce as a major thrust area and has made sizeable investments in this business.
Some analysts find Wipro''s current valuations too rich, although they don't doubt the company's strong fundamentals. Therefore, they have put the company on ''HOLD''. But some others are very impressed with its explosive 2QFY2000 net profit growth (up 75%) and flag it as a 'BUY'.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407