Software services giant Wipro Ltd is likely to lose business from its big client 186k, a former broadband telecoms unit of Lattice Plc which merged with National Grid Transco, vice-chairman Vivek Paul said.

He told Reuters on Friday that 186k was expected to ramp down a $70 million systems integration contract awarded to Wipro in July 2001, "to zero".

Wipro had completed work worth $46 million of the contract, Paul said in an interview.

He said that Wipro has factored in the ramp down of the contract in its fourth quarter global IT revenue forecast of $162 million.

But Paul said New York Stock Exchange-listed Wipro, which has a large exposure to the troubled telecoms sector, saw signs of a recovery in the telecoms business.

"What we are seeing is that the paralysis in telecoms is beginning to see signs of an end," he said.

Wipro earlier announced a net profit of Rs 231 crore (Rs 2.31 billion) in the third quarter ended December 31, up three per cent from the year earlier and compared with a profit of Rs 220 crore (Rs 2.2 billion) in the preceding quarter.

Revenue rose 27 per cent on year to Rs 1,108 crore (Rs 11.08 billion), up 4.3 per cent from the preceding quarter.

The net profit was in line with the forecast of Rs 240 crore (Rs 2.4 billion) in a Reuters poll of 12 analysts released earlier this month but revenues were slightly higher than the poll forecast of Rs 1,101 crore (Rs 11.01 billion).

Wipro's shares fell as much as 5.2 per cent to Rs 1,496.30 after the results, while the benchmark Bombay Stock Exchange index was up 0.19 per cent.