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January 20, 2011, 10:51 PM EST
By Ketaki Gokhale
Jan. 21 (Bloomberg) -- Wipro Ltd., India’s third-largest software exporter, replaced the co-heads of the company’s main computer-services business after posting sales that missed analysts’ estimates.
Third-quarter revenue increased 12 percent to 78.3 billion rupees ($1.7 billion), the Bangalore-based company reported today. That missed the 80.5 billion rupee average of 47 analyst estimates compiled by Bloomberg. Profit rose 10 percent to 13.2 billion rupees, in line with estimates.
The stock fell as much as 2.4 percent in Mumbai trading after Wipro joined Infosys Technologies Ltd. in indicating that a weaker recovery in developed markets and sovereign debt concerns in Europe may undermine growth in India’s software- services market. Chief Financial Officer Suresh Senapaty said operating margins for the main information-technology division were “flat” during the latest quarter.
“Wipro is lacking in terms of growth,” said Jigar Shah, a Mumbai-based analyst at Kim Eng Securities India Pvt. “The company is doing well, but not as well as its peers.”
Wipro traded at 469.8 rupees, down 1.6 percent, at 9:14 a.m. in Mumbai. The shares rose 21.5 percent last year, lagging behind the gains of larger rivals Infosys and Tata Consultancy Services Ltd.
Wipro said T.K. Kurien will take over as the chief executive officer of the information technology business from next month after Girish Paranjpe and Suresh Vaswani, joint chief executives and directors, resigned.
Global technology spending may slow this year from 5.4 percent in 2010, according to Stamford, Connecticut-based Gartner Inc.
--Editors: Lena Lee, Anand Krishnamoorthy, Young-Sam Cho.
To contact the reporter on this story: Ketaki Gokhale in Mumbai kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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Jan. 21 (Bloomberg) -- Wipro Ltd., India’s third-largest software exporter, replaced the co-heads of the company’s main computer-services business after posting sales that missed analysts’ estimates.
Third-quarter revenue increased 12 percent to 78.3 billion rupees ($1.7 billion), the Bangalore-based company reported today. That missed the 80.5 billion rupee average of 47 analyst estimates compiled by Bloomberg. Profit rose 10 percent to 13.2 billion rupees, in line with estimates.
The stock fell as much as 2.4 percent in Mumbai trading after Wipro joined Infosys Technologies Ltd. in indicating that a weaker recovery in developed markets and sovereign debt concerns in Europe may undermine growth in India’s software- services market. Chief Financial Officer Suresh Senapaty said operating margins for the main information-technology division were “flat” during the latest quarter.
“Wipro is lacking in terms of growth,” said Jigar Shah, a Mumbai-based analyst at Kim Eng Securities India Pvt. “The company is doing well, but not as well as its peers.”
Wipro traded at 469.8 rupees, down 1.6 percent, at 9:14 a.m. in Mumbai. The shares rose 21.5 percent last year, lagging behind the gains of larger rivals Infosys and Tata Consultancy Services Ltd.
Wipro said T.K. Kurien will take over as the chief executive officer of the information technology business from next month after Girish Paranjpe and Suresh Vaswani, joint chief executives and directors, resigned.
Global technology spending may slow this year from 5.4 percent in 2010, according to Stamford, Connecticut-based Gartner Inc.
--Editors: Lena Lee, Anand Krishnamoorthy, Young-Sam Cho.
To contact the reporter on this story: Ketaki Gokhale in Mumbai kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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