Wipro flags Trump as potential threat in US SEC filing

Xavier Trudeau
Juin 10, 2017

In its annual filing with the US Securities and Exchange Commission, Indian IT major Wipro has mentioned US President Donald Trump as one of the risk factors, among others, that could hurt their business operations.

Wipro referred to the Trump administration as, "promoting greater restrictions on free trade generally and significant increases on tariffs on goods imported into the United States" in its annual report. "Changes in existing regulations or increased governmental intervention in the industries, where our clients operate may adversely affect the growth of their respective businesses and therefore negatively impact our revenues", the report said quoting Wipro, as saying.

This could have a material and adverse effect on its business, revenues and operating results, Wipro said.

When Trump came to power, he increased the tariff rate for United States imports (goods imported in the US) and promoted greater restrictions on free trade.

"Social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we now operate could adversely affect our business", the company said.

The company had reported net sales of Rs 55,420.9 crore in the fiscal ended March 31, 2017.

Since being elected as United States president, Donald Trump has put restrictions of number of US H-1B visas being issued to foreign companies.

Over the past few months, Trump's anti-immigrant stance has raised concerns over the availability of the H-1B work visa, which is commonly used by software companies like Wipro to keep costs down by bringing Indian techies to the US.

The company further said in the SEC filing that if the economy in the Americas or Europe continued to be volatile or uncertain or conditions in the global financial market deteriorate, pricing for its services may become less attractive.

In fact Wipro in its SEC filing has pointed out that protectionist measures by the Trump government could prompt key U.S. clients to focus on other priorities which in turn may force them to reduce or defer their spending on new technologies.

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