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New labor codes cost ₹91cr, impact may rise
3 Feb
Summary
- Q3 profit fell 33% to ₹120 crore due to a ₹91.35-crore one-time expense.
- Revenue increased 6.6% QoQ to ₹2,467 crore, while EBIT grew 17.3%.
- Company declared an interim dividend of ₹5.50 per share for FY2025-26.
Firstsource Solutions Limited experienced a significant financial impact in the third quarter, reporting a net profit of ₹120 crore, a 33% decrease from the previous quarter's ₹179.5 crore. This downturn was primarily attributed to a one-time expense of ₹91.35 crore incurred due to India's newly implemented labor codes.
Despite the profit dip, the company's revenue demonstrated resilience, growing by 6.6% to ₹2,467 crore compared to the prior quarter. Earnings Before Interest and Taxes (EBIT) also saw a healthy increase of 17.3% to ₹315.6 crore, with an expanded EBIT margin of 12.8%.
Looking ahead, further financial implications are anticipated as the rules surrounding the new labor codes are finalized. In a move for shareholders, Firstsource declared an interim dividend of ₹5.50 per share for FY2025-26, with a record date set for February 20, 2026.
