TechM Q3 profit slips 6% on Labour Code impact

HEADCOUNT DECLINES 2.03% AT 149

- URVI MALVANIA

TECH MAHINDRA POSTED a 6% sequential decline in net profit for the third quarter of the current fiscal, reporting a profit of ₹1,122 crore compared with ₹1,195 crore in Q2.The decline was largely driven by the impact of the new Labour Code implementation, the Mumbai-based IT services major said on Wednesday.

The reported profit missed Bloomberg estimates of ₹1,369 crore.The impact of the labour code implementation declared by the company stood at ₹272.4 crore.

Revenue for the quarter rose 2.84% sequentially to ₹14,393 crore from ₹13,995 crore in Q2, beating Bloomberg estimates of ₹14,170 crore.

Earnings before interest, taxation, depreciation and amortisation (Ebitda) came in at ₹2,365.6 crore, exceeding street estimates of ₹2,258 crore.Ebitda grew 9.11% quarter on quarter.