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Wipro Q1 Net Up 7.7% YoY; Stock Tanks

India's third largest software services provider Wipro 's consolidated net profit for the fourth quarter rose 7.7% year-on-year to Rs 1,481 crore, in-line with market expectations. However, shares plunged over 7% on opening on Wednesday after the street was disappointed with its weak volume growth in Jan-March and muted guidance for the first quarter.

The Bangalore-based company expects revenue from IT services in April-June will be in USD 1.52-1.55 billion range, just about 0.6% higher than that in Jan-March at the top end.

In the fourth quarter, Wipro's consolidated net sales were up 19% from a year ago to Rs 9,836.3 crore.

On a sequential basis, Wipro's net profit was up 1.7%, while revenue fell 0.5%.Volume growth in IT services was also muted at 0.9% quarter-on-quarter.

In the fourth quarter, the company's revenue from IT services rose 9.7% from a year ago and 2% sequentially to USD 1.54 billion.

The company added 13,535 employees in the last fiscal year, and as of March 31, the IT services segment had 1,35,920 employees.

Wipro added 41 new customers in the fourth quarter and 173 during the year.

India's top IT company Tata Consultancy Services on Monday reported a 23% year-on-year rise in consolidated net profit at Rs 2,932.4 crore, while total income was up 30.5% year-on-year to Rs 13,259.3 crore in Jan-March.

Number two player Infosys had reported a 27% year-on-year growth in net profit. It has guided for 8-10% US dollar revenue growth in fiscal 2013. For the first quarter Infosys has forecast a revenue growth of 6-7.1% year-on-year and 0-1% sequentially.

Meanwhile, among Wipro's other segments, IT products revenue was up 3% from a year ago to 937 crore. Consumer Care and Lighting Business revenue rose 25% year-on-year to Rs 907 crore in Jan-March.

At 9:55 hrs, Wipro shares were down 6.6% at Rs 412.80 on NSE.