NEW DELHI: India’s fourth largest IT services firm Wipro has flagged “increased protectionism” and risk of a “global trade war” among factors that could adversely impact its business, according to its regulatory filing.
Wipro derives about 55 per cent of its IT services revenue from the Americas (including the US) and 25 per cent from Europe. For the year ended March 2019, the company had posted a total revenue of Rs 58,584.5 crore (USD 8.47 billion).
“Our business and financial performance is and will continue to be affected by economic conditions globally. Increased protectionism and the risk of global trade war, resulting in weaker global trade and economic activity could adversely affect our business,” it said in its annual report filing to the US market regulator.
The Bengaluru-based company further cautioned that if the economy in the Americas or Europe continues to be volatile, or if conditions in the global financial market deteriorate, pricing for its services may become less attractive and clients in these geographies may reduce or postpone their technology spending “significantly”.
“Reduction in spending on IT services may lower the demand for our services and negatively affect our revenues and profitability,” it said outlining the risk factors for the company and the industry.
Wipro also listed cyber attacks and other security incidents among its risk factors that could impact “confidentiality and integrity” of its IT and digital infrastructure and potentially lead to loss of reputation and financial obligations.
The company, which competes with Tata Consultancy Services, Infosys, HCL Technologies and others, also stated that changes to US immigration laws could make it more difficult for it to obtain the required nonimmigrant work permits for employees.
Source: Economic Times