Wipro Q4 numbers show decent gains, steady pace
The IT industry's growth trajectory, as reflected by Q4 results of TCS and Infosys, has been an uninspiring one. However, Wipro's 20% hike in net-profit on Q-o-Q basis, beating estimates is a breath of fresh air to an otherwise ailing IT sector. The IT major also appears to be better equipped at handling the H-1B visa fiasco than its counterparts. Here's all about it.
IT major's net profit and total income
Wipro's consolidated net profit stands at Rs. 2,267 crore marking a 7.19% jump on Q-o-Q basis from the Rs. 2,114 crore it had managed to rake in the previous quarter. Firm's consolidated total income is Rs. 15,033 crore marking a 4.87% hike from Rs. 14,336 crore in the previous quarter.
Shares to be issued and estimates for the next quarter
Wipro's board recommended issuing bonus share on 1:1 basis and will consider buyback of shares in July. For the upcoming quarter, the company is expecting that its IT services revenue would hover between $1,915 million to $1,955 million. CEO Neemuchwala is confident that all Wipro-specific issues will get sorted by next March and the firm would be able to return to industry growth levels.
Reflections on the Q4 results
CEO Abidali Neemuchwala said, "We delivered revenues within the guidance range in the fourth quarter. We are confident that the recovery in energy and utilities and our demonstrated strength in digital will help us improve growth trajectory during the course of this financial year." Furthermore, "We anticipate growth momentum will return in Q2 and expect to be at industry growth rates by Q4 FY18."
Bypassing Trump's H-1B visa policy
While its IT counterparts are being pointed out by the White house and are anticipating a dip in profits due to the present US policy, Wipro seems to be unfazed by it and has accepted the ramifications. Wipro CEO said, "In Q1, we expect to have more than 50% of employees to be locals in our biggest market which is the US."
Wipro's massive lay off citing performance issues
The Bengaluru-based company has reportedly fired 600 employees during its yearly "performance appraisal." When contacted by BT it said that they had a "rigorous performance appraisal process" and therefore "the performance appraisal may also lead to the separation of some employees from the company and these numbers vary from year to year," while refusing to divulge the actual number of people who were fired.
