Wipro Profit Rises

But the stock falls.
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Wipro

(WIT) - Get Report

said fourth-quarter earnings rose 34% from the year-ago period, but the stock sold off in New York.

The Bangalore, India-based company earned $134 million, or 10 cents a share in the quarter, a penny ahead of estimates.

Fourth-quarter revenue rose 33% from a year ago to $687 million. Analysts were expecting revenue of $668.2 million in the most recent quarter.

The company expects to post revenue of $533 million in the second quarter from its global IT services segment.

"During the quarter ended March 2006, we continued to see broad-based Revenue growth with our differentiated Services -- Testing and Technology Infrastructure Services -- continuing to deliver significantly higher growth rates. On margin front, improved price realizations, higher utilization, increased proportion of Offshore projects and continued improvements in BPO profitability helped in significantly offsetting the acquisition related pressure on profitability and compensation revision for our Onsite staff and led to Operating Margin expansion sequentially," the company said.

Fourth-quarter gross profit rose 28.6% from a year ago to $213 million and operating profit rose 28.9% from a year ago to $144 million.

By segment, fourth-quarter revenue from global IT services and products segment rose 39% from a year ago to $519 million.

The stock slid 52 cents to $14.75 Wednesday.

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