Operating profit margin has slumped from 26.28% to 24.79%, leading to 2.18% decline in operating profit to Rs 4,027.60 crore. Purchase of finished goods cost rose from 0.93% to 1.27%. Employee cost increased from 52.74% to 53.06%. Other expenses rose from 20.09% to 20.88%.
Other income fell 18.47% to Rs 533.3 crore. Profit before interest, tax and other Unallocable items (PBIT) has jumped 0.92% to Rs 3,413.00 crore. PBIT of IT Services segment rose 0.38% to Rs 3,339.80 crore (accounting for 97.86% of total PBIT). PBIT of IT Products segment rose 85.90% to Rs 14.50 crore (accounting for 0.42% of total PBIT). PBIT of India State Run Enterprise segment rose 24.63% to Rs 58.70 crore (accounting for 1.72% of total PBIT).
PBIT margin of IT Services segment fell from 21.70% to 21.02%. PBIT margin of IT Products segment rose from 4.99% to 6.85%. PBIT margin of India State Run Enterprise segment rose from 19.72% to 25.50%. Overall PBIT margin fell from 21.51% to 20.90%.
Provision for interest fell 19.86% to Rs 112.2 crore. Loan funds remained nil. Provision for depreciation fell 11.63% to Rs 699.2 crore.
Profit before tax down 2.36% to Rs 3,749.50 crore. Share of profit/loss was 96.04% lower at Rs 0.4 crore.
Provision for tax was expense of Rs 775.60 crore, compared to Rs 852.60 crore. Effective tax rate was 20.68% compared to 22.14%. Minority interest decreased 93.29% to Rs 2.00 crore. Net profit attributable to owners of the company increased 0.14% to Rs 2,972.30 crore.
Promoters' stake was 73.04% as of 31 March 2021 compared to 74.01% as of 31 December 2020 and 74.04% as of 31 March 2020.
Management Comments:
Thierry Delaporte, CEO and Managing Director said, I am delighted with the way we have finished the financial year. We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates.
Jatin Dalal, Chief Financial Officer said, We delivered a 340 bps expansion YoY in operating margins for the quarter after absorbing the impact of wage hike. On a full year basis we increased margins by 220 bps with a consistent improvement in operating metrics. Led by disciplined execution, we generated strong operating cash flows at 136.7% of our net income for the full year. We successfully completed the share buyback program returning $1.3 billion to our shareholders.
Outlook by the management for the quarter ending June 30, 2021
We expect revenue from our IT Services business to be in the range of $2,195 million to $2,238 million*. This translates to a sequential growth of 2.0% to 4.0%. This does not include revenue from our recently announced acquisitions of Capco and Ampion
Quarter ended March 2021 compared with Quarter ended March 2020.
Net sales (including other operating income) of Wipro has increased 3.14% to Rs 16245.4 crore. Sales of IT Services segment has gone up 3.94% to Rs 15,891.70 crore (accounting for 97.29% of total sales). Sales of IT Products segment has gone down 35.18% to Rs 211.70 crore (accounting for 1.30% of total sales). Sales of India State Run Enterprise segment has gone up 19.21% to Rs 230.20 crore (accounting for 1.41% of total sales).
Operating profit margin has jumped from 19.81% to 24.79%, leading to 29.11% rise in operating profit to Rs 4,027.60 crore. Purchase of finished goods cost fell from 1.87% to 1.27%. Employee cost decreased from 54.32% to 53.06%. Other expenses fell from 23.98% to 20.88%.
Other income fell 9.61% to Rs 533.3 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 28.41% to Rs 3,413.00 crore. PBIT of IT Services segment rose 23.96% to Rs 3,339.80 crore (accounting for 97.86% of total PBIT). PBIT of India State Run Enterprise reported profit of Rs 58.70 crore compared to loss of Rs 51.00 crore.
PBIT margin of IT Services segment rose from 17.62% to 21.02%. PBIT margin of IT Products segment rose from 4.44% to 6.85%. PBIT margin of India State Run Enterprise segment rose from negative 26.41% to 25.50%. Overall PBIT margin rose from 16.81% to 20.90%.
Provision for interest fell 32.12% to Rs 112.2 crore. Loan funds rose to Rs 8,900.30 crore as of 31 March 2021 from Rs 7,805.80 crore as of 31 March 2020. Inventories declined from Rs 186.50 crore as of 31 March 2020 to Rs 106.40 crore as of 31 March 2021. Sundry debtors were lower at Rs 9,429.80 crore as of 31 March 2021 compared to Rs 10,447.40 crore as of 31 March 2020. Cash and bank balance rose to Rs 16,979.30 crore as of 31 March 2021 from Rs 14,449.90 crore as of 31 March 2020. Investments declined from Rs 20,032.00 crore as of 31 March 2020 to Rs 18,776.30 crore as of 31 March 2021.
Provision for depreciation rose 20.63% to Rs 699.2 crore. Fixed assets increased to Rs 11,378.80 crore as of 31 March 2021 from Rs 11,253.80 crore as of 31 March 2020. Intangible assets increased from Rs 12,689.40 crore to Rs 13,514.70 crore.
Profit before tax grew 26.48% to Rs 3,749.50 crore. Share of profit/loss was 69.23% lower at Rs 0.4 crore. Provision for tax was expense of Rs 775.60 crore, compared to Rs 620.60 crore. Effective tax rate was 20.68% compared to 20.93%.
Minority interest decreased 89.53% to Rs 2.00 crore. Net profit attributable to owners of the company increased 27.78% to Rs 2,972.30 crore.
Performance for year ended March 2021
Net sales of Wipro increased 1.30% to Rs 61934.9 crore. Sales of IT Services segment has gone up 2.02% to Rs 60,581.50 crore (accounting for 97.33% of total sales). Sales of IT Products segment has gone down 34.07% to Rs 768.50 crore (accounting for 1.23% of total sales). Sales of India State Run Enterprise segment has gone up 12.10% to Rs 891.20 crore (accounting for 1.43% of total sales).
Operating profit margin has jumped from 20.19% to 23.85%, leading to 19.68% rise in operating profit to Rs 14,771.40 crore. Purchase of finished goods cost fell from 1.54% to 1.12%. Employee cost increased from 53.59% to 53.69%. Other expenses fell from 24.62% to 21.32%.
Other income fell 12.27% to Rs 2390.7 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 17.49% to Rs 12,395.60 crore. PBIT of IT Services segment rose 14.10% to Rs 12,285.00 crore (accounting for 99.11% of total PBIT). PBIT of IT Products reported profit of Rs 4.50 crore compared to loss of Rs 32.30 crore. PBIT of India State Run Enterprise reported profit of Rs 106.10 crore compared to loss of Rs 184.90 crore.
PBIT margin of IT Services segment rose from 18.13% to 20.28%. PBIT margin of IT Products segment rose from negative 2.77% to 0.59%. PBIT margin of India State Run Enterprise segment rose from negative 23.26% to 11.91%. Overall PBIT margin rose from 17.20% to 19.92%.
Provision for interest fell 30.57% to Rs 508.8 crore. Loan funds rose to Rs 8,900.30 crore as of 31 March 2021 from Rs 7,805.80 crore as of 31 March 2020. Inventories declined from Rs 186.50 crore as of 31 March 2020 to Rs 106.40 crore as of 31 March 2021. Sundry debtors were lower at Rs 9,429.80 crore as of 31 March 2021 compared to Rs 10,447.40 crore as of 31 March 2020. Cash and bank balance rose to Rs 16,979.30 crore as of 31 March 2021 from Rs 14,449.90 crore as of 31 March 2020. Investments declined from Rs 20,032.00 crore as of 31 March 2020 to Rs 18,776.30 crore as of 31 March 2021.
Provision for depreciation rose 32.51% to Rs 2763.4 crore. Fixed assets increased to Rs 11,378.80 crore as of 31 March 2021 from Rs 11,253.80 crore as of 31 March 2020. Intangible assets increased from Rs 12,689.40 crore to Rs 13,514.70 crore.
Profit before tax grew 13.40% to Rs 13,889.90 crore. Share of profit/loss was 348.28% higher at Rs 13 crore. Provision for tax was expense of Rs 3,034.90 crore, compared to Rs 2,480.10 crore. Effective tax rate was 21.83% compared to 20.24%.
Minority interest increased 44.65% to Rs 71.60 crore. Net profit attributable to owners of the company increased 11.05% to Rs 10,796.40 crore.
Other developments
In the quarter ended March 31, 2021, the company has concluded the buyback of 237.5 million equity shares as approved earlier by the Board of Directors at their meeting held on October 13, 2020 for an aggregate amount of Rs 95 billion ($1.3 billion1), excluding buyback tax
The interim dividend of Rs1 declared by the Board at its meeting held on January 13, 2021 shall be considered as the final dividend for the financial year 2020-21
The stock trades at Rs 431.
Wipro: Consolidated Financial result
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