Wipro joins bn dollar club, offers 2:1 bonus

After Infosys and TCS, Wipro on Friday became a US$1 billion firm in the infotech services business with market beating results for 2003-04 ...

After Infosys and TCS, Wipro on Friday became a US$1 billion firm in the infotech services business with market beating results for 2003-04 and rewarded its shareholders with two bonus shares for each share held (2:1 bonus issue) and a total dividend of Rs 29 per share.

‘‘Our combined IT products and services business achieved a significant landmark by recording a revenue of $1.2 billion. Revenue from our IT services businesses alone was $1 billion,’’ Wipro Chairman Azim Premji said. Wipro is the second listed Indian IT firm after Infosys to reach the billion dollar sales mark.

Wipro’s flagship division — global IT services and products — posted a revenue of Rs 4,357 crore, up by 41 per cent over Rs 3,048 crore during 2002-03.

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Infosys reported revenues of $1.06 billion (Rs 4,760.89 crore) early this week, while India’s largest unlisted IT firm TCS (belonging to the Tatas) crossed the mark last fiscal. The NYSE-listed Wipro’s consolidated sales for 2003-04 stood at Rs 5,881 crore, up by 36 per cent, as against Rs 4,338 crore reported last fiscal. Net profits stood at Rs 1,031 crore, a jump of 26 per cent over Rs 820 crore in 2002-03.

‘‘We have to manage newer challenges such as growing scale and a firm rupee,’’ Premji said. The Wipro chairman, who holds 84 per cent stake in the company, is the richest person in India in view of his holding in the company. Celebrating the occasion, the company cheered its investors with a hefty dividend. The 29 per cent dividend includes a Rs 25 cash dividend to celebrate the firm joining the Indian IT billion dollar club.

Shares of Wipro, which employs 28,502 people, have fallen nine per cent in the past three months, in line with a nearly 10 per cent decline in BSE infotech index and a six per cent loss in the Sensex. On Friday, Wipro stock rose by 1.68 per cent to Rs 1,624.50 — but off its day’s high of Rs 1,674 — on selling at higher levels after early gains.

The Wipro stock opened firm and rose as much as 4.77 per cent to Rs 1,674 in early trades after the company announced impressive quarterly results.