Wipro issues Q3 revenue warning over Chennai floods

Moneycontrol BureauIT major Wipro today followed in the footsteps of peer TCS, and said it expects the recent deluge in Chennai to have a material impact on its third-quarter earnings."The Chennai rains have impacted business at our Chennai facilities," the company said. "We see an impact on Q3 revenues."The company said it expects its third quarter revenues to be in the lower half of the guidance range. The company had forecast Q3 revenues for IT services to be in the range of USD 1,841-1,878 million.The news will likely come as a disappointment for markets, which have already seen the Wipro stock struggle in recent months.Recently, TCS had issued a similar warning following the Chennai floods, saying the recent downpour had taken a toll on the company's operations in the city."The market may take this negatively," Mayuresh Joshi of Angel Broking told CNBC-TV18. "I see underperformance for the Wipro stock to continue for 1-2 quarters."Among IT companies, Joshi said he was positive on TCS over the long term."I expect its dollar revenue growth would be reasonable for the next two years. It has undertaken a lot of data analysis activities with clients and it should show up."