Wipro Q3 net profit rises 11% to Rs826 crore; lags forecast

Wipro Q3 net profit rises 11% to Rs826 crore; lags forecast
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First Published: Fri, Jan 18 2008. 10 14 AM IST
Updated: Fri, Jan 18 2008. 10 14 AM IST
Bangalore: Wipro Ltd, India’s No. 3 software services exporter, said its quarterly profit rose 11%, lagging forecasts, as it won more outsourcing deals but wage increases pinched margins.
New York-listed Wipro, which counts telecoms gear makers Cisco and Nortel among key clients, said on 18 January 2008 its net profit rose to Rs826 crore in the third quarter ended 31 December under US accounting standards, up from Rs745 crore in the year-ago period.
A Reuters poll had forecast a net profit of Rs865 crore for Wipro, which provides IT solutions and services such as system integration, software application development and maintenance and research services.
Comparatively lower wages and competent English-speaking workers have helped Indian services firms grab outsourcing deals from overseas firms, but a strong rupee, soaring salaries and prospects of a US recession are worries.
Shares of Wipro were trading down 1.29% at Rs454.50 in the early morning trade on the BSE.
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First Published: Fri, Jan 18 2008. 10 14 AM IST
More Topics: Wipro | Q3 results | Net profit | IT Sector | Infosys |