Bangalore: Wipro Ltd, India’s third-biggest software company, on Friday said net profit growth eased to 3% in the fiscal fourth quarter as it battled the impact of a U.S economic slowdown.
After-tax profit rose to Rs8.8 billion in the three months ended 31March, from Rs8.561 billion a year earlier, the firm said in a statement. Growth eased from 12% in the Q3.
The market had expected Wipro to report net profit of as much as Rs8.9 billion for the quarter. The Bangalore-based company’s fourth-quarter revenue expanded 32% to Rs57 billion.
Wipro and other Indian software firms are faced with a decrease in the technology budgets of U.S companies in the wake of the credit crunch in the world’s biggest economy.
“The global economic outlook has changed significantly since the beginning of this calendar year,” Wipro chairman Azim Premji said. “It poses challenges and at the same time, opens up new opportunities. “Given the uncertainty in the environment we remain cautious but resilient,” he added.
Chief financial officer Suresh Senapaty said the company expected clients in the U.S, which accounts for two-thirds of the revenue earned by Indian software firms, to send more work to India to cut costs as they come to grips with the U.S slowdown.
“We expect more and more offshoring as the uncertainty disappears,” Senapaty said. For the quarter ending June, Wipro expects revenue from its information technology business to reach Rs1.06 billion, from Rs779.1 million a year earlier.