Tech Mahindra Q3 Profit Hit by New Labor Codes; Rs 272 Cr Exceptional Charge

• Tech Mahindra reported a Rs 272.4 crore exceptional charge in Q3 due to new labor codes, impacting net profit.
• The charges stem from increased gratuity and leave liability due to past service costs.
• CFO Rohit Anand stated an ongoing 10-20 basis points impact on margins, which the company plans to offset.
• Other IT majors like TCS (Rs 2,128 crore), HCLTech (Rs 956 crore), and Infosys (Rs 1,289 crore) also reported significant exceptional charges.
• Despite the charge, Tech Mahindra's Q3 consolidated net profit rose 14.1% YoY to Rs 1,122 crore, with revenue up 8.3% to Rs 14,393 crore.

Why It Matters: New labor codes significantly impacted Tech Mahindra's Q3 profit, though the company saw overall growth.