India, Jan. 12 -- Tata Consultancy Services (TCS), India's biggest IT services provider, today reported exceptional item of Rs 2,128 crore due to the statutory impact of new labour codes, dragging its consolidated net profit 14% year-on-year to Rs 10,657 crore for the October-December quarter. Revenue for the quarter rose 5% year-on-year to Rs 67,087 crore, compared to Rs 63,973 crore year ago.

The exceptional item relating to the statutory impact of new labour codes consists of gratuity of Rs 1,816 crore and long-term compensated absences of Rs 312 crore, arising due to a change in wage definition.

The IT services major stated that it assessed and disclosed the incremental impact of these labour law changes based on the legal opinion o...