Wipro Management Discusses F4Q 2012 Results - Earnings Call Transcript

Wipro Limited (WIT)

F4Q 2012 Earnings Conference Call

April 25, 2012 9:15 AM ET

Executives

Sridhar Ramasubbu – IR

Azim Premji – Chairman

Suresh Senapaty – CFO

TK Kurien – CEO, IT Business and Executive Director

Soumitro Ghosh – SVP, Finance Solutions

Sangita Singh – SVP, Healthcare & Life Sciences

Jatin Dalal – CFO, IT Business

Bhanumurthy Ballapuram – SVP and Chief Business Operations Officer

Aravind

Balla

Rishabh Goel

Analysts

Joseph Foresi – Janney Montgomery Scott

Jeff Ulin – Pacific Crest

Trip Chowdhry – Global Equities Research

Edward Caso – Wells Fargo

Avishai Kantor – Cowen & Company

Shashi Bhushan – Prabhudas Lilladher

Swami Shanmugasundaram – Morningstar

Keith Bachman – Bank of Montreal

Presentation

Operator

Ladies and gentlemen, good day, and welcome to the Wipro Limited Earnings Conference Call for the period ended March 31, 2012. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today’s presentation. (Operator Instructions) Please note that this conference is being recorded.

I would now like to hand the conference over to Mr. Sridhar Ramasubbu. Thank you, and over to you, sir.

Sridhar Ramasubbu

Thanks, Marina. Good day to all of you. This is Sridhar, and I’m joined by, Manoj and Aravind from IR team in Bangalore, and on behalf of the entire Wipro team, a very warm welcome to all of you. We are pleased to host Wipro’s 4Q FY’12 earnings call. Regarding the materials for this call, we issued the press release yesterday late night EST, and we will have time for Q&A at the end.

Before we start the call an announcement, we are holding our Analysts Day event on May 18 in New York, Midtown and the invites have been sent to all investors in our database. If any of you have not got the invites please reach out to us, we are looking forward to seeing you on May 18 in New York.

The format for today’s earnings call is as follows. Azim Premji, Chairman, will give us an overview of our Wipro business, TK Kurien, TK as he is known will share his perspectives on the IT Business side. Suresh Senapaty, CFO, will comment on the IFRS financial results for the quarter ended March 31, 2012. They have joined by BU heads and other senior members of the Wipro management team who will be happy to answer your questions.

As always, elements of this call and the management’s view may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and are associated with uncertainty and risks, which could cause the actual results to differ materially from those expected. These uncertainties and risk factors have been explained in detail in our filings with Securities and Exchange Commission in the U.S. We do not undertake any obligations to update forward-looking statements to reflect events or circumstances after the date of filing thereof.

The call is scheduled for an hour. The presentation of the 4Q FY ‘12 results will be followed by Q&A. The operator will walk you through the Q&A process. The entire earnings call proceedings are being archived and transcripts will be made available after the call at our company’s website. The replay of today’s earnings call proceedings will also be available via telephone post the call.

During this call, I’m also available on email and through mobile, as well to take any questions and table it to the Wipro team in case you are unable to ask questions for any technical reasons.

Ladies and gentlemen, over to Mr. Azim Premji, Chairman of Wipro.

Azim Premji

Good afternoon to all of you all. Just let strictly summarize some financial results of Wipro Corporation consolidated results. We recorded revenues in quarter four of financial ‘12 of INR99 billion, a year-on-year growth of 19%. For financial year ‘12, Wipro recorded revenues of 375 billion, a year-on-year growth of 21%.

Net income for the quarter at INR14.8 billion, a year-on-year growth of 8% and net income for the year at 55.7 billion, a year-on-year growth of 5%. IT Services Business delivered sequential growth in line with our guidance.

A quick summary on our assessment to the macro environment. Overall macroeconomic environment continues to be volatile. While we have seen signs of volatility in the environment in the last three months, customers continue to be cautious.

In our discussions with business leaders we are seeing customers focused on globalization and productivity. Since clients want to identify newer growth opportunities, what they seek from us as a service provider is collaborative innovation and solutions which can change the way they do business, bring in more revenue and improve customer insight. This approach is changing the nature of demand we are seeing and it is reflected in our stronger pipeline. However, these programs have a long cycle time approaches.

Some highlights on our Wipro Consumer Care & Lighting business. In Consumer Care & Lighting we saw another quarter of 20% plus growth. Santoor revenues have crossed rupees INR10 billion milestone, coinciding with the completion of the 25 year of its existence. Since our business continues to do well, with the Enchanteur brand crossing the milestone of $100 million of revenues.

Wipro Infrastructure Engineering. We continue to see a strong growth in the Wipro Infrastructure Engineering business with India doing well and Europe stabilizing. Successful entry in two key growth markets Brazil integration is on track, strong signs of synergy from the global OEMs and sourcing from low cost country.

Read the rest of this transcript for free on seekingalpha.com

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