Indian software giant Wipro has disappointed investors with below-expectations profits and a warning of lukewarm growth.

The firm, arguably the best-known name in the fast-growing Indian hi-tech services market, made a net profit of 2.31bn rupees (�32.5m; $47.2m) in the first three months of the year.

That figure represented 7% year-on-year growth, paltry by Wipro's standards, and came in just below analysts forecasts of 2.35bn rupees.

Weak profits growth, combined with flat revenues, sent Wipro's shares down by almost 8% .

The firm compounded the gloomy news by forecasting revenue growth of just 2.2% for its main unit this year.

Problems, problems

Wipro's key problems are more to do with falling prices than finding customers.

Last quarter, its volume of consulting work increased by 8.5%, but prices fell by up to 4.5%.

"We expect pricing pressures to continue in the first half of the new financial year but see this easing out in the second half," the firm said.

Still, some are concerned that the firm is over-reliant on a few key clients.

Of Wipro's 225 customers, its top five account for 41% of its revenues.

Now, it is pinning its hopes on picking up a hefty slice of the outsourcing work that has underpinned the Indian IT market over the past few years.

Wipro expects more Western firms to cut costs by outsourcing computer functions to cheap service providers abroad.