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'Floods to Have Material Impact on Q3 Revenue'

India’s largest software services exporter TCS said the recent floods in Chennai were expected to have a material impact on its Dec quarter revenue.

Published: 12th December 2015 04:49 AM  |   Last Updated: 12th December 2015 04:49 AM   |  A+A-

CHENNAI: The country’s largest software services exporter TCS on Friday said the recent floods in Chennai were expected to have a “material impact” on its December quarter revenue.

It  said that a majority of facilities in Chennai, where the company has over 65,000 employees, have opened for normal business from December 7 but attendance remains lower than normal.

“While majority of facilities in Chennai opened for normal business functioning on December 7, 2015, attendance were lower than normal as employees were still recovering from the flood’s aftermath,” TCS said in a filing.

It added that Chennai was one of its largest delivery locations across the country.

According to the company, other than mission-critical activities, normal business functioning of its facilities in Chennai had to be halted all week since December 1 due to the extreme weather conditions and flooding of the city.

“This is expected to have a material impact on the company’s revenue in the seasonally weak third quarter ending December 31, 2015,” it said.

The third quarter of the financial year (April-March) is traditionally weaker for IT firms as business gets impacted due to low volume growth amid Christmas and New Year holidays and furloughs in the US and Europe.

According to industry analysts, other IT firms like Infosys, Cognizant and HCL Technologies too could see a slump in the quarterly revenue as each of these firms have a significant employee base in the city.



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