Wipro Q1 profit misses forecast, remains cautious

By Sumeet Chatterjee

BANGALORE (Reuters) - Indian information technology outsourcers Wipro (WIPR.BO: Quote, Profile, Research, Stock Buzz) and Satyam (SATY.BO: Quote, Profile, Research, Stock Buzz) posted higher quarterly profits, but said the business outlook was cloudy due to slowing Western economies, sending their shares lower.

Wipro Ltd, the country's No.3 software services exporter, on Friday missed forecasts with a 15 percent rise in quarterly profit, while its smaller rival, Satyam Computer Services Ltd, beat forecasts with a 45 percent surge in earnings.

But both firms were cautious about outsourcing prospects in the near term, as major U.S. clients battle weakening economies and skyrocketing oil prices.

"The current situation hasn't improved compared to last quarter, particularly in the financial services sector," Wipro's Chief Financial Officer Suresh Senapaty said.

"Some of the U.S. banks are in trouble, so the uncertainty has still not disappeared."

Wipro's shares closed 3.8 percent lower at 365.55 rupees, after sinking as much as 6.5 percent, while Satyam stock ended 7.5 percent lower at 382.95 rupees, after tumbling nearly 10 percent. Other software stocks also fell.

The main Mumbai index .BSESN rose 4 percent, while the sector index dropped 2.6 percent.

"The very cautious guidance is not helping. Sentiments have been hit and investors are dumping the stocks," said Jayesh Shroff, fund manager at SBI Mutual Fund.  Continued...