Wipro Q4 net up 2.1%; Premji scion Rishad elevated to board

Country’s third largest software services firm Wipro on Tuesday reported 2.1 per cent rise in fourth quarter net profit to Rs 2,286.5 crore, while it elevated founder Azim Premji’s son Rishad to the board. The company had a net profit of Rs 2,239.1 crore in the quarter ended March 31, 2014. Its revenue grew by 3.9 per cent to Rs 12,171.4 crore in the January-March quarter of 2014-15, from Rs 11,703.6 crore in the year-ago period. 

The city-based firm also announced appointment of Rishad Premji, the son of Wipro founder and Chairman Azim Premji, to the company board. Revenues from its IT services business increased 6 per cent year-on-year to Rs 11,240 crore (up 3.2 per cent to USD 1.77 billion) in the reported quarter. The company has forecast its IT services revenues for the April-June 2015 quarter to be in the range of USD 1.76 billion to USD 1.79 billion. For the year ended March 31, 2015, Wipro’s net profit increased 11.03 per cent to Rs 8,705.9 crore, while revenues were up 8.14 per cent to Rs 47,318 crore. 

Meanwhile, Rishad Premji, the eldest son of IT czar Azim Premji, was on Tuesday appointed to the Wipro Board, a long-awaited move that brings the heir apparent closer to the top spot at the country’s third largest IT services firm. Rishad has for long been speculated to be a natural choice for taking over the company’s operations.

“Rishad Azim Premji is appointed as Whole-time Director of the company with effect from May 1, 2015. He has played a critical role in defining the company’s strategy and driving its mergers and acquisitions function,” a statement said. 

He is already on the Board of Wipro Enterprises, the FMCG and infrastructure engineering arm, as well as Wipro-GE (joint venture between Wipro and General Electric in Healthcare). 

He is also on the Board of the Azim Premji Foundation. “Rishad will continue to run Strategy and Mergers & Acquisitions in addition to his new responsibilities overseeing the Technology Office, Investor and Government Relations and Wipro Ventures,” it said. 

Since joining the firm in 2007, Rishad has moved from heading Special Projects in the banking and financial services vertical to Chief Strategy Officer three years later. Apart from investor and government relations, Rishad was also given the reigns of the CTO office earlier this year.