Wipro has warned that its Q4 profit may be impacted by 65-75 basis points in the March quarter as one of its telecom clients is undergoing bankruptcy proceedings. Although Wipro did not name the client in its filing, an executive at the firm confirmed Aircel filing for bankruptcy earlier this year had hit profitability and revenue growth at the company. Significantly, this is the second straight quarter when Wipro’s profitability will be hit on account of a client going bankrupt. Wipro and Aircel have not disclosed financial details of the deal. Earlier this year, Aircel filed for bankruptcy after the country’s competitive telecom sector saw a daunting rival emerges in Reliance Jio, controlled by billionaire Mukesh Ambani who has spent more than $25 billion in building the telecom firm.

Source: Mint April 09, 2018 15:35 UTC