Wipro Ltd. (NYSE: WIT) released impressive 4th quarter numbers on Wednesday, but the stock nonetheless got punished for not meeting expectations. Profit jumped 42.7 percent driven by strong outsourcing orders from American and European clients.
• Net profit for the January-March quarter rose to rupees 6.18 billion ($138.8 million) from rupees 4.33 billion a year earlier.
• Revenues grew 35 percent to 31.1 billion rupees ($699 million).
• Added 42 new clients during the period.
• For the fiscal year that ended March 31, the company said net profit rose 27 percent to rupees 20.67 billion ($464.5 million) with revenue growing 30 percent to rupees 106.26 billion ($2.38 billion).
• Europe contributes 23 percent to the company’s total revenue, up from 20 percent a year ago.
• U.S. contribution slipped to 49 percent from 50 percent year earlier.
• Wipro Chief Financial Officer Suresh Senapaty was upbeat about the company’s future, assuring investors it would continue to outpace industry growth.
With a Market Cap of about $20 Billion, I just don’t see a lot of upside with Wipro in the near term. They didn’t even raise dividends which might have helped seeing how Infosys rewarded its stockholders.