To result in higher one-time cost towards deployment of business continuity plan
Wipro provided a business update on its Chennai Operations.The recent heavy rainfall and resultant flooding impacted the regular business operations of Wipro's Chennai facilities during the first week of December. Business continuity plans were invoked for the work being done from its facilities to ensure there was no disruption in the business-critical operations of our customers.
Wipro has multiple facilities in Chennai with over 22,000 employees. 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 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.
For the quarter ending 31 December 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 business continuity plan.
Both these factors will impact Operating Margins for the quarter. Revenues from IT Services business are expected to be in the previously communicated range of $ 1,841 million to $ 1,878 million*; However, the Company expects revenues to be in the lower half of the guidance range.
* Guidance is based on the following exchange rates: GBP/USD at 1.55, Euro/USD at 1.12, AUD/USD at 0.72, USD/INR at 65.34 and USD/CAD at 1.33
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