Indian tech firm Wipro flags flood hit to Q3 earnings

HCL Infosystems

16/12/2015 04:28

MUMBAI, Dec 16 (Reuters) - Wipro  WIPR.NS , India's 
third-largest software services exporter, warned investors on 
Wednesday that heavy flooding in the southern Indian city of 
Chennai would hit revenues and operating margins for the quarter 
ending on Dec. 31. 
    Wipro, which employs 22,000 people across Chennai, is the 
latest IT service provider to warn of the impact of the floods 
in a city that has become a hub for the industry along with 
other centres like Bangalore and Hyderabad. 
    Rival Tata Consultancy Services  TCS.NS  warned on Friday 
that the floods would have a "material impact" on its 
third-quarter revenues. TCS employs 65,000 people in Chennai, 
roughly a fifth of its total. 
    Floods ravaged Chennai after heavy rains began in November, 
killing some 280 people and displacing 400,000 people across 
Tamil Nadu state.  urn:newsml:reuters.com:*:nL3N13S1YT 
    Wipro said in a statement that revenues for the quarter 
ending on Dec. 31 would be in the lower half of its $1.84 
billion to $1.88 billion range, while it would also book a 
one-off cost. 
    Other major IT service providers operating in Chennai 
include HCL  HCLI.NS , Tech Mahindra  TEML.NS  and Infosys 
 INFY.NS . 
 
 (Reporting by Clara Ferreira Marques; Editing by Stephen 
Coates) 
 ((clara.ferreira-marques@thomsonreuters.com; +91 22 6180 
7257;)) 
 
Keywords: WIPRO LTD OUTLOOK/FLOODS