Wipro betters TCS, Infosys in Q4 results

Wipro Limited reported IT services revenue of $1,720.2 million, a sequential increase of 2.5% and YoY increase of 8.5%.

IT Services revenues in rupee terms was 106.2 billion ($1.8 billion1), an increase of 24% YoY.

The numbers are better than those of Tata Consultancy Services and Infosys. TCS had reported growth of 1.9% and Infosys a decline for the quarter.

IT Services Earnings Before Interest and Tax (EBIT) was Rs 26.1 billion ($434 million1), an increase of 51% YoY. IT Services Operating Margins was 24.5%, up 150 basis points sequentially.

TCS margin declined while Infosys reported a margin expansion of 50 basis points.

“The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.” Azim Premji, Chairman of Wipro, commenting on the results.

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, “Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT Services operating margins by 195 basis points.”

Wipro expects revenue from IT Services business to be in the range of $ 1,715 million to $ 1,755 million in the current quarter.

Wipro’s IT Services segment had 146,053 employees as of March 31, 2014 and it added 59 new customers for the quarter.

Wipro said it has won a five-year infrastructure managed services contract with a Fortune 500 global leader in specialty chemicals.