Wipro in the red

Wipro went down 2% to Rs.278.70; it has recouped a bit but remains in the red around 1.5% down now at Rs.281 levels. Overall the mood on the counter remains muted.

The company yesterday announced that one of its telecom client in India has filed for bankruptcy and this is expected to impact its earnings for Q4 and FY18. This telecom company is Aircel, which filed for bankruptcy on 28th Feb.

Wipro stated in the Press Release that it has subsequently submitted its claim on March 28, 2018 and since then has been engaged with the Insolvency Resolution Professional (IRP) to discuss the potential outcome of the process.

Wipro said it 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 March 31, 2018. The impact of this client insolvency petition will reflect in the financial results of the Company for the quarter and year ended March 31, 2018.

The company will be announcing its Q4 and FY18 performance on 25th April.