Chennai flood to impact revenue, margins for December quarter: TAKE Solutions

NEW DELHI: IT firm TAKE Solutions today said recent floods in Chennai will impact its revenue and margins for the quarter ended December 31, 2015.

TAKE and its subsidiaries have multiple facilities in Chennai employing more than 450 people.

"Due to the facilities being non-operational for a week, there have been consequential delays in client delivery. As TAKE's contracts are primarily fixed bid in nature, we expect some of the milestone deliveries to slip into the next quarter," it said in a filing to the BSE.

The company, which has also suffered some asset loss, is in touch with insurance companies to assess the material damage and claims will be as per the policy guidelines, it added.

Other tech firms like Tata Consultancy Services and Wipro have also expressed similar concerns. The October-December quarter is usually a weak quarter for the Indian IT players as business is impacted by low volume growth amid Christmas and New Year holidays and furloughs in the US and Europe.