Wipro Shares Fall As Revenues To Be Affected After Chennai Rains

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Shares in Wipro fell after the company said that the Chennai rains is to have an impact on revenues.

Wipro Shares Fall As Revenues To Be Affected After Chennai Rains
Wipro: Quotes, News
BSE 331.90BSE Quote15.45 (4.66%)
NSE 331.95NSE Quote16.95 (5.11%)
"For the quarter ending December 31, 2015, the incident is expected to have a material impact on the Revenues and will result in higher one-time cost incurred towards deployment of our business continuity plan. Both these factors will impact our Operating Margins for the quarter," the company said in a statement to the BSE.

"Revenues from our IT Services business are expected to be in the previously communicated range of $ 1,841 million to $ 1,878 million; However, we expect revenues to be in the lower half of the guidance range."

The recent heavy rainfall and resultant flooding impacted the regular business operations of Wipro's Chennai facilities during the first week of December. Business continuity plans were invoked for the work being done from the facilities to ensure there was no disruption in the business-critical operations of customers. Wipro has multiple facilities in Chennai with over 22,000 employees.

Wipro has been focused on ensuring the safety of its employees and their families and has rolled out multiple employee support initiatives to mitigate their hardship during this period.


Read more about: mahindra and mahindra
Story first published: Wednesday, December 16, 2015, 11:29 [IST]
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