 "Wipro slips as Chennai flood to impact Q3 revenues, margins")
Shares of Wipro were down nearly 1% after the company issued a warning saying that disruption of works at its Chennai facilities due to recent floods would impact third quarter (October-December 2015) performance.
The company said it would incur a “higher one-time cost” towards deployment of business continuity plan which would not only adversely impact its revenue performance during the quarter, it will also impact the operating margins.
Recently, IT major TCS had also issued a similar warning saying that it was expecting material impact on its revenues in the seasonally weak December quarter due on account of disruption in work because of the Chennai floods.
Revenues from its IT services business are expected to be in the previously communicated range of US$ 1,841mn - $ 1,878mn; however, the company expects the revenues to be in the lower half of the guidance range.
Meanwhile, Angel Broking has maintained a buy on the stock with a price target of INR 719.
The stock touched an intra-day low of Rs 553. At 10:25am, over 330,000 shares were traded on the BSE and NSE.
