Chennai floods to have material impact on revenue: Hexaware

IT services firm Hexaware Technologies on Friday said the Chennai floods are expected to have material impact on its revenue and a one time influence on cost in the current quarter of the ongoing fiscal.

"In view of the extremely heavy and incessant rainfall and subsequent flooding, Chennai operations, except mission critical activities had to be suspended for 3 days... This is expected to have a material impact on the company's revenue for the quarter ending December 31.

"Additionally, we have one time impact on cost due to wide recovery efforts," Hexaware Technologies said in a BSE filing.

Chennai is the largest delivery centre for Hexaware, contributing 23.5 per cent of the total global revenue, and 44 per cent of the firm's global strength operates out of the city, the company said.

"While our first priority was the safety and well-being of our employees, our next priority was to ensure we keep our customers' critical services running," Hexaware Technologies Ltd CEO and Executive Director R Srikrishna said.

The company has announced a 13-point plan to help employees and their families.

Earlier this month, TCS and Wipro had also informed that a 'material' impact is expected on their earnings in the current quarter.