India's Wipro shares tumble as revenue lags

Oct 23, 2013

Shares in India's third largest IT outsourcer Wipro slumped more than eight percent on Wednesday, a day after it announced modest revenue growth that lagged rivals, analysts said.

Wipro hit a day's low of 471.55 rupees at the Bombay Stock Exchange, down 8.41 percent before paring their losses to sit at 491.30 rupees in late morning trade.

The firm said Tuesday that rose 29 percent year-on-year to 19.32 billion rupees ($309 million) in July-September.

But it reported IT services revenues of $1.63 billion for the three months, a 2.7 percent rise from the previous quarter—weaker than rivals such as Tata Consultancy Services (TCS), Infosys and HCL Technologies.

"I am not too enthused by Wipro's IT . They may take a while to catch up to the industry levels," said Ankita Somani, analyst with Mumbai's Angel Broking.

In the same quarter, TCS reported a near six percent jump in dollar-based revenues from the previous three months, Infosys saw 3.8 percent growth and HCL around 3.6 percent.

Somani said the next two quarters could see "soft" earnings growth for most IT firms owing to international holidays at the year-end and delays by US and Britain-based clients in fixing new budgets for IT-related services for 2014.

Investors have therefore started to sell shares in most of India's IT firms.

Wipro has forecast a rise of between 1.8 and 3.6 percent in IT revenues for the current three months to December.

India's outsourcing industry carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and developing software.

Explore further: Judge approves $450 mn deal in Apple ebook suit

add to favorites email to friend print save as pdf

Related Stories

India's Wipro Q2 profit up 29%, beats forecasts

Oct 22, 2013

India's third-largest software firm Wipro on Tuesday reported quarterly net profit climbed 29 percent year-on-year, led by a jump in outsourcing orders as global business conditions improved.

India's HCL profit soars 64%, beats forecasts

Oct 17, 2013

HCL Technologies, India's fourth largest IT services provider, on Thursday said net profit soared 64 percent in July-September as an economic recovery in developed markets spurred demand.

India's Wipro shares slump 11% on weak forecast

Apr 22, 2013

Shares of Wipro, India's third-largest software firm, slumped as much as 11 percent intraday Monday after it projected weak revenue growth last week owing to global uncertainty.

Net profit of India's largest IT firm TCS up 23%

Jan 14, 2013

India's biggest IT outsourcer, Tata Consultancy Services, said on Monday that net profit beat forecasts to rise 23 percent in the third quarter despite economic woes in its main markets.

Recommended for you

Dish restores Turner channels to lineup

Nov 21, 2014

Turner Broadcasting channels such as Cartoon Network and CNN are back on the Dish network after being dropped from the satellite TV provider's lineup during contract talks.

'Call of Duty' blasts past $10 bn in sales

Nov 20, 2014

Blockbuster military shooter video game "Call of Duty" has blasted past $10 billion in lifetime sales, propelled by demand for the latest installment in the 11-year-old franchise.

Square's point-of-sale service goes global

Nov 20, 2014

Financial services startup Square is taking aim at cash registers across the globe, making its point-of-sale software available internationally in English, Spanish, French and Japanese.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.