Likely to impact profitability for quarter ended 31 March 2018
Wipro announced that in the year 2008, the Company signed a multi-year Outsourcing Services Agreement with a Telecom Services Provider (Client) in India, which was subsequently renewed in the year 2013. On 28 February 2018, the Client filed a petition to initiate its Corporate Insolvency Resolution Process (CIRP) with the National Company Law Tribunal (NCLT).The Company subsequently submitted its claim on 28 March 2018. Since then, the Company has been engaged with the Insolvency Resolution Professional (IRP) to discuss the potential outcome of the process. It is estimated that this development will have an impact on both revenue and profitability. The Company is likely to see an impact on profitability at the net income level in the range of 65-75 basis points of the consolidated revenues for the quarter ended 31 March 2018. The impact of this Client insolvency petition will reflect in the financial results of the Company for the quarter and year ended 31 March 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
