Tata Technologies: Navigating Profit Decline Amid New Labour Codes

Tata Technologies reported a significant 96% drop in consolidated profit, primarily due to new labour codes impacting statutory expenses. Despite this, the company showed resilience through strategic acquisitions and is poised for growth, expecting over 10% revenue growth in the next quarter.

Tata Technologies Ltd, a global player in product engineering and digital services, reported a stark 96% drop in profitability in Q3, driven predominantly by the impact of recently implemented labour codes.

Despite this downturn, the company maintained steady revenue figures and achieved strategic milestones. Operating costs rose from the prior year, while new wage definitions under four Labour Codes brought additional statutory expenses, notably in gratuity and compensated absences.

With robust vertical performance and key acquisitions, CEO Warren Harris indicated readiness for Q4's expected revenue surge. The firm's investment in delivery capacity and the acquisition of Es-Tee Group promises revitalized margins and growth.