BENGALURU (dpa-AFX) - Wipro Ltd.'s (WIT, 507685) stock plunged over 7 percent on the Bombay Stock Exchange on Wednesday after the Indian software services provider continues to project sequentially flat IT Services revenues for its first quarter. For its fourth quarter, the company reported an 8 percent increase in profit with strong revenue performance.
Commenting on the results, Chief Financial Officer Suresh Senapaty said, 'Our focus on operations helped improve revenue productivity and deliver strong cash flows in a volatile environment.'
On April 13, Indian peer Infosys Technologies Ltd (INFY) reported higher profit and revenue for the fourth quarter, in what the company called 'a very difficult quarter.' The software services firm also issued a weak full year guidance, warning of challenges ahead amid a tough economy.
For its fourth quarter, Bangalore, India-based Wipro's net income attributable to equity holders, on IFRS basis, grew to 14.81 billion rupees or $291 million from last year's 13.76 billion rupees.
Earnings per share increased to 6.03 rupees or $0.12 from 5.61 rupees a year ago. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share. Analysts' estimates typically exclude special items.
Gross revenues for the quarter were 98.16 billion rupees or $1.93 billion, 19 percent higher than last year's 82.71 billion rupees. Analysts estimated revenues of $2 billion for the quarter.
IT Services revenue increased 9.7 percent from last year to $1.54 billion. IT Business CEO T K Kurien noted that the company has delivered revenues in line with its guidance in an uncertain environment.
IT Products revenue grew 3 percent to $184 million and consumer care and lighting revenues climbed 25 percent to $178 million.
For fiscal year ended March 31, net income increased 5 percent to $1.1 billion and total revenues climbed 21 percent to $7.37 billion.
Further, Wipro declared a final dividend of 4 rupees or $0.08 per share/ADS, taking the total dividend for the year to 6 rupees or $0.12 per share/ADS.
Looking ahead, the company continues to project first-quarter revenues from its IT Services business to be in the range of $1.52 billion to $1.55 billion.
In India, Wipro shares are currently trading at 409.75 rupees, down 32.65 rupees or 7.38 percent.
In the U.S., Wipro settled at $10.33 on Tuesday, up $0.20 or 1.97 percent.
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