Wipro net zooms 77% to Rs 300.6 cr

MUMBAI, APR 26: Wipro Ltd has joined other infotech majors in staging a sterling performance for the year ended March 2000. Wipro's total ...

MUMBAI, APR 26: Wipro Ltd has joined other infotech majors in staging a sterling performance for the year ended March 2000. Wipro’s total income has gone up 28 per cent from last fiscal’s Rs 1,804 crore to Rs 2,312 crore while the net profit zoomed 77 per cent from Rs 170.2 crore in 1998-99 to Rs 300.6 crore. The company is all set to go in for an American Depository Receipt (ADR) issue with shareholders approving the proposal at its extraordinary general meeting in Bangalore on Wednesday. However, the time-frame for the overseas listing has not yet been fixed.

Briefing the media, Wipro chairman Azim Premji said the profit target of tenfold growth in five years (set in 1995 when the net profit was Rs 32.2 crore) had been achieved.

IT brought home the bacon for Wipro with Wipro Technologies chipping in with Rs 1,042 crore in total income, up 65 per cent from last year and Wipro Infotech grossing Rs 825.1 crore, a growth of 20 per cent. Profit before interest and tax stood at Rs 288.7 crore, a growth of 75 per cent over the previous year.

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Wipro’s technology division, Global R&D and Telecom Solution together have contributed 46 per cent of the software revenue, while the balance was accounted by its enterprise solution business.

The operating margin of Wipro Consumer Care & Lighting division has grown by 13 per cent to Rs 51.9 crore while the sales and other income at Rs 329.2 crore was lower by 13 per cent against the previous year. Due to the substantial decline in the edible oil prices, the company’s vanaspati sales have fell by 44 per cent while its Toilet Soaps division has recorded a 10 per cent growth in sales.

Premji said for the next three years, the company would focus on consumer care and lightings at the domestic level, while IT services would be the main area for overseas operations. The company would also focus on building B2B businesses and customer service infrastructure.

On the company’s acquisition plans, Wipro Technologies vice-chairman Vivek Paul said the company was still considering the matter seriously. However, he said it was a difficult proposition to take a decision as of now. “We are opportunists and we will make a move at the appropriate time,” he said.

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The company has decided to invest Rs 15 crore to upgrade its existing server and PC manufacturing facility in Pondicherry. The plant will manufacture 1,00,000 units of PCs and servers a year meant for domestic market.

Premji said the company had recently requested the government for permission to operate direct flights connecting Mumbai and Mysore.