Tata Technologies Q3 Profit Plunges 96% Due to New Labor Codes

• Tata Technologies reported a massive 96% drop in Q3 profit, falling to 6.64 crore rupees from 169 crore rupees a year ago.
• The significant decline is primarily attributed to a one-time charge of 140 crore rupees related to India's new labor codes.
• New labor codes, effective November, mandate that salary costs account for at least 50% of CTC, increasing gratuity and leave liabilities.
• CEO Warren Harris expects a sharp improvement in Q4, projecting over 10% quarter-on-quarter revenue growth.
• Despite the profit dip, overall revenue grew by 3.7% to 1,366 crore rupees, with services revenue up 4.7%.

Why It Matters: Tata Technologies' Q3 profit plummeted 96% due to a one-time charge from new labor codes, but Q4 recovery is expected.