Home / Business and Economy / LTIMindtree Profit Plunges Amidst New Labor Code Costs
LTIMindtree Profit Plunges Amidst New Labor Code Costs
19 Jan
Summary
- LTIMindtree's net profit dropped by a third to Rs 971 crore.
- A Rs 590 crore provision was made for new government labor codes.
- Despite profit dip, revenue met estimates and operating margin rose.
LTIMindtree has announced a substantial 31% sequential decrease in its net profit, with earnings falling to Rs 971 crore during the October-December quarter. This decline is primarily due to a one-time financial impact stemming from provisions totaling Rs 590 crore, set aside to address changes introduced by new government labor codes.
Despite the significant drop in net profit, the IT services firm's financial performance showed positive signs in other areas. Consolidated revenue from operations grew by nearly 4%, reaching Rs 10,781 crore, which aligned with market expectations. The company also reported an increase in its operating income and an expansion of its operating margin by 20 basis points.
This financial update comes as LTIMindtree's stock experienced a positive trend, settling 1.6% higher on the BSE ahead of the results announcement. The company's ability to meet revenue estimates and improve margins suggests underlying operational strength even as it navigates the complexities of regulatory changes.
