Wipro shares fell 2.4 percent on Tuesday after India’s no. 3 software services exporter forecast subdued IT services sales for the current quarter.
Wipro said earlier consolidated net profit rose to Rs1580 crore for the fiscal first quarter ended June 30 from Rs 1335crore s a year earlier, meeting forecasts.
Wipro stock has lost 13.7 percent so far in 2012. The shares are down 14 percent in July.
Wipro’s IT Services Chief Executive TK Kurien is trying to boost market share amid economic uncertainty and currency volatility and attempting to close the narrow lead US-based Cognizant Technology Solutions Corp has established.
Wipro, whose chairman is billionaire Azim Premji, said it expects September-quarter IT services revenue of $1.52 billion to $1.55 billion, a rise of 0.3 to 2.3 percent from the June quarter.
“In today’s complex business environment, global corporations are increasingly investing in transformational technology initiatives to improve competitiveness. We see this shift as an opportunity for us to lead this change and help customers differentiate in this fast evolving market,” Wipro Chairman Azim Premji said in a statement.
Wipro’s IT services revenue, which accounted for 78 percent of the total revenues, grew 30 per cent year-on-year in rupee terms to Rs 8,314 crore.
For the quarter ending September 30, 2012, the company has maintained its revenue outlook to be in the same range, assuming that exchange rates of dollar will be at Rs 54.76. “We have seen high levels of volatility in currencies globally. We have improved profitability, while continuing to invest for growth,” Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.
Earlier this month, Infosys had slashed its revenue growth forecast for the current fiscal year, but Tata Consultancy Services beat expectations with a 38 percent rise in quarterly net profit.
Wipro said it added 37 new customers during the reported quarter. Wipro’s IT services segment has added 2,632 people during the year, taking the total head count to 1,38,552 as of June 30, 2012.