The market vent its ire on the Wipro counter early on Thursday sore about the company's receding bottom line.

As a result, the scrip of India's largest IT listing flopped 11.92% to Rs 849 by 9:56 IST. Volumes, though, were hardly astounding at 29,749 shares on BSE by then.

According to US GAAP, Wipro has experienced a 0.94% decline in Q4 ended 31 March 2003 net profit to Rs 209.5 crore (Rs 2.09 billion), below market expectations.

In the corresponding period of the previous year, net profit was Rs 211.5 crore (Rs 2.11 billion). Revenues increased from Rs 904.6 crore (Rs 9.04 billion) in MQ 2002 to Rs 1,227.6 crore (Rs 12.27 billion) in MQ 2003.

A capitalmarket.com poll of five software analysts had estimated net profit at Rs 241 to Rs 263 crore (Rs 2.63 billion) for the quarter. Sales were projected at between Rs 1,191 crore (Rs 11.91 billion) and Rs 1,227 crore (Rs 12.27 billion).

Even so, Wipro has met its revenue guidance for the global IT services business as well as for Spectramind (the IT-enabled services business). For the quarter ended 31 March 2003, Wipro had projected revenues from global IT services at approximately $162 million, which it surpassed by posting $167 million. Wipro Spectramind was projected to have revenues of $12 million. The company turned out $14 million.

The global IT services division added 44 new customers during the quarter, including 16 customers transitioned consequent to integration of the global energy practice of AMS Inc.

For the full year ended 31 March 2003, Wipro recorded a 2.8% fall in net profit to Rs 809.9 crore (Rs 8.09 billion) on a 28% rise in top line to Rs 4,285 crore (Rs 42.85 billion).

Software analysts say Wipro's results have turned out disappointing. The results clearly indicate that, going forward, margins will continue to remain under pressure. This is prompting a realignment of the stock's price as per valuation.

Analysts feel top line growth will continue. But the million-dollar question is whether profitability will sustain at the previous pace.

For the current quarter ending 30 June 2003, Wipro has projected revenues in the global IT services business at $172 million and in Wipro Spectramind at $16 million.

As on 31 December 2003, the promoters held 83.91% equity stake in Wipro, while the public and institutions held 7.72% and 1.49%, respectively.