Wipro Now Sees Q3 Revenues In Lower Half Of Guidance Range On Chennai Flooding

(RTTNews) - India-based software services company Wipro Ltd. (WIT) late Tuesday said it expects revenues for the third quarter to be in the lower half of the guidance range, impacted by the recent heavy rainfall and resultant flooding in Chennai.

Wipro has multiple facilities in Chennai with over 22,000 employees.

For the quarter ending December 31, the incident is expected to have a material impact on the revenues and will result in higher one-time cost incurred towards deployment of its business continuity plan. Both these factors will impact operating margins for the quarter.

The company noted that revenues from IT Services business are expected to be in the previously communicated range of $1.841 billion to $1.878 billion.

Wipro said the flooding impacted the regular business operations of its Chennai facilities during the first week of December. Business continuity plans were invoked for the work being done from its facilities to ensure there was no disruption in the business-critical operations.

Wipro has largely seen the restoration of normal operations in Chennai facilities. The company has adequate insurance coverage and is in touch with the insurance companies to assess the damage and the claim will be subject to policy terms.