Wipro to feel the heat due to Chennai rains as revenue to drop 

Wipro CEO TK Kurien
Wipro says the recent rain and flood in Chennai will have a negative impact on its revenue in the quarter ending December 31, 2015.

The Bangalore-based Wipro is now expecting revenues to be in the lower half of its previous guidance. Wipro has multiple facilities in Chennai with over 22,000 employees.

Revenues from IT services business are expected to be in the lower half of the guidance range of $ 1,841 million to $ 1,878 million.

“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 operating margins for the quarter,” said Wipro.

Wipro admitted that the recent rainfall and flooding impacted the regular business operations of its Chennai facilities during the first week of December.

The IT consultancy and services company invoked business continuity plans to ensure there was no disruption in the business-critical operations of customers.

IBM recently moved a part of its team to Bangalore from Chennai.

Wipro, a leading software exporter, has largely seen the restoration of normal operations in Chennai facilities. Wipro has insurance coverage and is in touch with the insurance companies to assess the damage and the claim will be subject to policy terms.