Bengaluru: Wipro, India’s third-largest software services exporter, reported a larger-than-expected decline in fourth-quarter profit on weakness in its financial and healthcare services business and declining margins.
The Bengaluru-based company has lagged larger rivals Infosys and Tata Consultancy Services in switching to high-margin digital services at a time when growing pressure on fees for routine IT services has hurt prices in the industry.
TCS and Infosys both produced forecast-beating fourth-quarter earnings earlier this month.
Wipro’s IT services margins fell by 10 basis points to 20.1 per cent compared to the prior quarter. On a year-on-year basis Wipro’s margins fell by 2 percentage points.
For the current quarter, Wipro said it expected revenue at its IT services business to be between $1.90 billion to $1.94 billion.
For the Jan-March fourth quarter, Wipro reported a consolidated net profit of Rs 2,235 crore, compared to Rs 2,272 crore a year earlier.
Analysts on average were expecting the company to report profit of Rs 2,343 crore for the three-month period.
Gross revenue rose 12 per cent to Rs 13,630 crore.
The company separately approved a share buyback for Rs 2,500 crore.