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IT services firm Wipro said on Wednesday that the recent floods in Chennai, which had hit its operations in the city, will have an impact on its third-quarter revenues and operating margins.
TCS guidance Earlier this week, TCS too had said its revenues will take a hit as its operations were impacted by the disaster.
Wipro, which has multiple facilities in Chennai with over 22,000 employees, said in a statement: “Business continuity plans were invoked for the work being done from our (Chennai) facilities to ensure there was no disruption in the business-critical operations of our customers.”
However, the quarter ending December 31 is expected to take a hit, thanks to one-time costs incurred towards the deployment of the company’s business continuity plan. “Both these factors will impact our operating margins for the quarter,” it said.
Revenues from the company’s IT Services business are expected to be in the previously communicated range of $1,841-1,878 million. “We expect revenues to be in the lower half of the guidance range,” the statement said.
According to analysts, Wipro’s growth forecast for its IT services business for the December quarter, of between 0.5 and 2.5 per cent, was lower than anticipated. They had expected an average of 1.5-3.5 per cent growth.
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