Wipro Profit Decline In Fourth-Quarter

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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.

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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.