WIPRO net up 58%, splits shares 1:5
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Performance Highlights 1997-98
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Our Bangalore Bureau
30 April
(Source:Economic Times-http://www.economictimes.com/010599/01lead02.htm )
THE board of directors of Wipro Ltd, which met here today, has recommended splitting every share into five shares. This will result in the face value changing from Rs 10 to Rs 2 per share, making it more affordable and liquid.
A H Premji, chairman, Wipro Ltd said the move aims to increase the liquidity of the stocks and make them affordable to the retail investors. The proposal now awaits shareholder approval along with the board's recommendation on merger of Wipro Acer Ltd with Wipro Ltd. Wipro has posted a 58 per cent rise in net profit on a turnover that has gone up by 31 per cent in 1998-99. Profit after tax (before extraordinary charge) has risen to Rs 170 crore (Rs 108 crore). Sales stood at Rs 1,804 crore (Rs 1,380 crore).
Wipro has enhanced the rate of depreciation on computers from 33 per cent to 50 per cent, on pieces of furniture and fixtures from 9.5 to 19 per cent and on office equipment from 4.75 per cent to 19 per cent. The change in the rate of depreciation has resulted in an additional charge of Rs 19 crore for the year.
Wipro Ltd's compounded annual growth rate over the last 10 years has been 39 per cent in net profits and 23 per cent in sales. Wipro hopes to maintain over 25 per cent growth in all the segments of its operation. It is also open to acquisitions in the domestic market, too, Mr Premji said.
On the company's ADR issue, he ruled out commit to a definite time-frame.
Wipro earned Rs 4.4 crore from its 6 Sigma quality initiatives in its first full year of implementation. It plans to triple the benefits of 6 sigma savings in 1999-2000, while retaining the investments in quality at about Rs 3 crore.
Wipro's software exports business grew by 61 per cent to Rs 633 crore in sales in 1998-99 with Y2K accounting for less than 7 per cent of software revenues. PBIT grew 56 per cent to Rs 165 crore, generating a return on capital employed (ROCE) of 71 per cent. This is after an additional charge of depreciation of Rs 14 crore.
Wipro's systems and services business, the domestic industry leader in networking solutions, customer services, computers and peripherals grew by 22 per cent to Rs 712 crore, generating 20 per cent ROCE.
In 1998-99, Wipro's enterprise solutions received the SEI Level 5 rating, making it the world's first and largest software services company to achieve this quality distinction. It has also re-launched Wipro Super genius computers and spun off its communication services business into Wipro Net Ltd as a 100-per cent subsidiary. ''We will go in for an aggressive branding strategy,'' said Mr Premji.
Wipro Consumer Care and Lighting Group, grew by 16 per cent to Rs 379 crore generating 64 per cent ROCE. Wipro Consumer Care has outperformed the sector's growth in 1998-99. Wipro Lighting has turned around with consistent monthly profits in the later half of the year.
Wipro GE Medical Systems, its joint venture with GE, has become the ace healthcare technology and services company in South Asia. It is the largest exporter of medical systems and software services from India and its medical software development centre was the first of its kind to receive SEI Level 5 certification.
On Friday at the NSE, the scrip opened at Rs 3,597 and went up to Rs 3,696.85, fell to Rs 3,515 and closed at Rs 3,696.85. |
