Wipro, the third largest outsourcing firm in India, reported results for the first quarter this week.

Net income rose by 18 percent to $284 million on revenue of 15.8 billion rupees, less than the consensus estimate of 15.99 billion rupees. But revenue evened things out a bit at $1.92 billion24 percent more than what the company reported in the same period last year. That equals about 106.20 billion rupees, more than the $105.47 billion that Wall Street expected.

Wipro’s core IT and service business generated $1.54 billion in sales, not falling short of the company’s guidance of $1.52 to $1.55 billion dollars.  In total it accounted for 78 percent of Wipro’s revenue in this quarter and 93 percent of its operating margin. Operating income was 21 percent in Q1.

The firm’s financial performance didn’t falter, but the weak outlook for Q2 caused Wipro’s stock to fall by as much as 4.3 percent. The company expects its outsourcing division to see revenue increase by no more than 2 percent in the coming quarter, and blames it on weakening demand from Western clients.

“T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – “We have delivered revenues in line with our guidance in a volatile environment. We will continue to build differentiation  and invest in technology driven business transformations for our customers as well as rewarding our talent.”

Wipro’s chief financial officer Suresh Senapaty said something along those lines as well, noting that the firm “improved profitability, while continuing to invest for growth.”