Bangalore-based Wipro Limited said the recent heavy rains and floods in the first week of December had impacted its business in Chennai where it has over 22,000 employees.
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. 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,” said Wipro.
“Plans were invoked for the work being done from our facilities to ensure there was no disruption in the business-critical operations of our customers,” it assured.
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.
Wipro deeply appreciates the efforts of its employees in Chennai for their tremendous enthusiasm and dedication to honour customer commitments in a very challenging environment.
Wipro Cares, the community initiatives arm of Wipro has partnered with multiple social organizations to provide immediate relief efforts in Chennai through the supply of food grains, clothing, primary healthcare and medicines to flood-affected communities. Wipro will continue to monitor the situation and review the need for further support to relief operations.
Wipro said it has largely seen the restoration of normal operations in Chennai facilities. Wipro 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. fii-news.com
