Wipro Q3 up nine per cent

Indian No.3 outsourcer Wipro Ltd met expectations with an 8.7 percent rise in quarterly profit, but gave a downbeat outlook as its
Western clients clamoured for lower prices, sending its shares down.

Wipro forecast its information technology services revenue, including from its acquisition of Citi Technology Services, at 1.05 billion dollars in the current quarter, down seven percent from the October-December period.

Talking to reporters here on Wednesday, Wipro Chairman Azim Premji said, "It is clear that 2009 will be a tough year. Consumer confidence is down significantly and leading indicators such as world economy is still not bottomed out. This will affect economic activity leading to capital conservation and revenue reductions and opex reduction and cost reductions."

Wipro had earlier said Nortel, which last week filed for bankruptcy protection, contributed less than 1.5 percent to its IT revenue and it expects a major portion of its business with it will continue.

Wipro's earnings follow results from No. 2 exporter Infosys Technologies, which beat profit expectations but still trimmed its annual revenue forecast, while sector leader Tata Consultancy Services' profit lagged forecasts.