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|April 30, 1999||
Wipro's profit after tax up by 58 per cent
Wipro Limited has recorded sales of Rs 18.04 billion, up by 31 per cent from Rs 13.8 billion in 1997-98.
In 1998-99, Wipro enhanced the rate of depreciation on computers from 33 to 50 per cent, on furniture and fixtures from 9.5 to 19 per cent, and on office equipment from 4.75 to 19 per cent.
The change in depreciation rate has resulted in an additional charge of Rs 190 million for the year.
Wipro Limited's compounded annual growth rate over the last 10 years has been 39 per cent in profit after tax and 23 per cent in sales.
The Wipro board, at its board meeting held in Bangalore today, recommended a share split of five shares for every one share held, which, if approved by the shareholders, will result in the face value of share changing from Rs 10 to Rs 2 per share.
This will make the shares more affordable and increase liquidity and trade.
Wipro earned Rs 44 million from its Six Sigma Quality initiatives in its first full year of implementation. Six Sigma is achieved through quality projects that focus on what is critical to customer satisfaction, productivity and cost.
Wipro plans to triple the benefits of Six Sigma savings in 1999-2000, while retaining the investments in quality at about Rs 30 million.
Wipro's software exports business grew by 61 per cent to Rs 6.33 billion in sales in 1998-99, with Y2K accounting for less than 7 per cent of software revenue.
Profit before interest and tax grew by 56 per cent to Rs 1.65 billion, generating a return on capital employed of 71 per cent. This is after an additional charge of depreciation of Rs 140 million.
Wipro Enterprise Solutions received the highest global software quality rating of SEI Level 5, making Wipro the world's first and largest software services company to achieve this quality distinction.
Wipro also won the Department of Electronics award for 'Excellence in Electronics' for the sixth time in the seven years since the award has been instituted.
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 7.12 billion, generating 20 per cent return on capital employed. 1998-99 has seen a successful re-launch of Wipro SuperGenius computers and penetration into the corporate and banking sectors through major wins in solutions and systems integration projects and branded customer services.
The board has recommended merger of the joint venture, Wipro Acer, with Wipro Limited. This, if approved by shareholders and the high court of Karnataka, will be effective from April 1, 1999.
Wipro has spun off its communication services business into Wipro Net Limited, a 100 per cent subsidiary of Wipro Limited, at book value effective March 31, 1999.
Wipro Net, with a national license for providing Internet services, will exploit emerging Internet technologies to address the business-to-business market, followed by the consumer and residential segment.
Wipro Net will also seek participation of strategic partners.
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