India's third largest software services company Wipro Ltd on Friday joined Infosys, Tata Consultancy Services and HCL Technology in beating market expectations by posting a 18% year-on-year rise in net profit to Rs. 1,716 crore during the October-December quarter.
Strong demand for IT services from global clients boosted profits.
Revenues rose 10% at Rs. 11,025 crore during the quarter. However, "soft" guidance for the current quarter sent the company's shares down 7.9% at Rs. 397 on the Bombay Stock Exchange.
"We see two challenges. One, we see the fiscal cliff talks still continuing and we don't know when the budgets would come in. And, what it would mean in terms of buying in this quarter," said TK Kurien, CEO, IT business.
Meanwhile, chairman Azim Premji said he was willing to divest a small stake to comply with SEBI norms to bring down promoter holding to 75%.