Indian software services exporter Wipro Ltd missed analyst estimates for fourth-quarter profit on Tuesday, partly hurt by a rise in expenses and forecast weak growth at its biggest business segment.
The Bengaluru-based company, which competes with larger rivals Tata Consultancy Services Ltd and Infosys Ltd , said it expected first quarter revenue from its IT services business to be in the range of $2.05 billion to $2.09 billion.
The lower end of that forecast translates in a drop of 1 per cent sequentially, the company said.
“Although the first quarter is seasonally weak, the forecast given by the company is softer than expected,” said Harit Shah, analyst at Reliance Securities in Mumbai. He was expecting revenue in the IT services segment to be in the range of flat to up 2 per cent.
Net profit in the quarter rose to Rs 2,484 cr ($356.54 million) in the three months to March 31, from Rs 1,803 cr in the same period a year earlier. However, the company missed analyst estimates of Rs 2,570 cr, according to Refinitiv data.
Revenue from its mainstay IT services business grew 11.1 per cent over the year, driving the company's total revenue to Rs 15,038 cr from Rs 13,824 cr last year.
Earlier in the day, Wipro said some of its employee accounts may have been hacked due to an advanced phishing campaign without revealing which clients had been affected.
The company also said it will buy back shares worth up to Rs 10,500 cr.
Tata Consultancy Services and Infosys Ltd reported results on Friday, saying they expect continued strong growth in the new financial year after posting strong fourth-quarter numbers.
Wipro's shares closed down 2.4 per cent at Rs 280.9 ahead of the results.
($1 = 69.6700 Indian rupees)