Wipro Ltd, 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.
Tata 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 percent 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 22.35 billion rupees ($337.6 million), compared to 22.72 billion rupees a year earlier. Analysts on average were expecting the company to report profit of 23.43 billion rupees for the three-month period, according to Thomson Reuters data. Gross revenue rose 12 percent to 136.3 billion rupees.
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