Wipro shares down as Chennai floods to hit quarterly earnings

Shares of software services firm Wipro today declined by nearly one per cent after the company said recent floods in Chennai will have a "material impact" on its December quarter revenues and hurt its operating margins.
After falling 1 per cent to Rs 553 intra-day, shares of the company finally ended at Rs 555, down 0.64 per cent on BSE.
At NSE, the stock lost 0.7 per cent to close at Rs 554.95.
"The recent heavy rainfall and resultant flooding impacted the regular business operations of Wipro's Chennai facilities during the first week of December.
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," Wipro said in a BSE filing.

It further said: "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 USD 1,841 million to USD 1,878 million. However, we expect revenues to be in the lower half of the guidance range.