JOIN USIT major Tata Consultancy Services has said that the rains and flooding in Chennai is likely to have a material impact on the company's earnings in the third quarter.
“Chennai is one of the company's largest delivery locations, with over 65,000 employees. Other than mission critical activities, the normal business functioning of our facilities in the city had to be halted all week since December 1 due to extreme weather conditions and subsequent flooding," TCS said in a notice to the exchanges.
While majority of the facilities in Chennai opened for normal functioning on Monday, December 7, 2015, attendance rates were lower than normal as employees were still recovering from the flood's aftermath. This is expected to have a material impact on the company's revenues in the seasonally weak third quarter ending December 3, 2015, the company added.
According to a note by Edelweiss, TCS has 50,000 employees in Chennai, HCL Tech has 35,000, Infosys has 25,000 while Tech Mahindra has 3,500 employees. Chennai units of Cognizant, Wipro and Infosys had also made arrangements to overcome the flood situation. BPO companies were also badly hit. Leading BPO Sutherland had closed its two units in Chennai during the rains and flooding. It is learned that both are now functioning normally.