Wipro projects slower third-quarter revenue growth

By Arathy S Nair and Sankalp Phartiyal

BENGALURU/MUMBAI (Reuters) - India's third-largest software services firm Wipro Ltd forecast its revenue growth in the current quarter would be dented because of issues such as furloughs and a reduction in the number of working days.

Wipro said it expected revenue from its information technology services business to be in the range of $1,916 million to $1,955 million for the quarter ending Dec. 31, 2016.

"As we look forward, the demand environment is mixed in a seasonally weak quarter affected by furloughs and lower number of working days," Chief Financial Officer Jatin Dalal saod.

Wipro's forecast echoes the cautious business outlook given by larger rivals.

Earlier this month, top software exporter Tata Consultancy Services Ltd reported lacklustre revenue growth, while No. 2 rival Infosys cut its annual revenue growth guidance for the second time in three months.

In its fiscal second-quarter, Wipro reported a 7.6 percent drop in profit on higher employee costs, even though it topped analysts' expectations.

Consolidated net profit fell to 20.7 billion rupees ($309.6 million) for the three months ended Sept. 30, from 22.41 billion rupees, a year earlier, the company said in a statement.

Analysts, on average, had expected a profit of 19.72 billion rupees, according to Thomson Reuters data.

Ahead of the results, Wipro shares closed 0.7 percent higher in the broader Mumbai market that ended slightly lower.

Wipro's smaller rival HCL Technologies painted a rosier outlook picture on Friday, saying it was optimistic that newer areas would drive technology spending.

($1 = 66.8679 rupees)

(Additional reporting by Arnab Paul in Bengaluru; Editing by Amrutha Gayathri)