Chennai floods affect Virtusa’s revenue
View(s):Heavy rainfall and the resultant flooding in Chennai, India in December 2015 temporarily affected Virtusa’s regular business operations at its Chennai facility, Virtusa said in a media release. While operations in Virusa’s Chennai facility have been fully restored, the incident resulted in an unfavourable revenue impact of approximately US$0.4 million of incremental expenses associated with the deployment of its business continuity programme. “In total, Virtusa’s earnings per share were impacted by approximately $(0.02) in the third quarter of fiscal 2016 due to the effects of the flood.
The company ended the third quarter of fiscal 2016 with $201.2 million of cash, cash equivalents, and shot-term and long-term investments, the release said adding, Virtusa’s fiscal third quarter ending cash balance excludes $20.3 million of restricted cash held in escrow for the mandatory unconditional offer related to the proposed acquisition of a majority interest in Polaris Consulting and Services, Ltd. Cash flow from operations for the third quarter of fiscal 2016 was $22.4 million.
Kris Canekeratne, Virtusa’s Chairman and CEO, said, “While we faced some unexpected challenges brought on by the Chennai floods, outstanding execution by our local team enabled us to navigate this event with minimal interruption to our critical business operations. From a demand perspective, corporations are increasingly investing in IT solutions which enable them to run their business more efficiently, secure the business, and grow the business. Virtusa’s value proposition of delivering industry leading, transformational services and solutions that squarely address these critical business objectives continues to resonate in the market and is enabling us to win market share”.