Wipro profits up 18%, beating forecasts [Khaleej Times (United Arab Emirates)]
(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) India's third-largest software firm Wipro said that net profit in the third quarter rose a surprise 18 percent, thanks to new outsourcing orders despite global uncertainty.
In the October-December net profit climbed to 17.16 billion rupees ($318 million) from 14.56 billion rupees a year earlier as revenue jumped 10 percent to 110.25 billion rupees.
Analysts had forecast a third-quarter net profit of 16 billion rupees, according to a poll by Dow Jones Newswires.
But the results failed to cheer investors who sent shares of the Bangalore-based firm down 5.16 percent to 408.85 rupees as its core IT services business grew slower than expected, dealers said.
Wipro forecast revenues from IT services of $1.58 billion-$1.62 billion in the next quarter ending March in line with analysts' expectations.
The firm added 50 clients and 2,336 people to its staff in October-December.
"We have seen broad-based growth in the quarter across all sectors," its chief executive T.K. Kurien said.
Rivals Tata Consultancy Services and Infosys reported better-than-expected earnings this month, raising analysts' hopes that India's software sector is headed for a recovery after recording sluggish growth in recent years.
The outsourcer's chief financial officer Suresh Senapaty said Wipro saw "a lot of momentum in certain areas of business," without giving details.
"There is uncertainty in the market and early indicators are that IT budgets will be flattish," he told AFP.
But the deal pipeline continued to be strong, Senapaty said.
Wipro won a string of orders in the quarter, including a new multi-year deal with US-based retailer Sears and a large research and infrastructure services deal with an unnamed Europe-based telecom company.
TCS, Infosys and Wipro lead India's flagship IT outsourcing industry, which carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and software development.
India, with its large English-speaking workforce, accounts for at least 50 percent of the global outsourcing market.
Most of India's IT outsourcing firms say the outlook for the industry remains challenging because of uncertainty in their key US and European markets.
(c) 2012 Khaleej Times. All Rights Reserved. Provided by Syndigate.info an Albawaba.com company
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