Feb 4 (Reuters) - Westlife Foodworld, a McDonald's franchisee in India, reported an over 85% drop in quarterly consolidated profit on Wednesday, hit by a one-time charge linked to new labour codes and intense competition from local rivals.
Consolidated profit after tax for the quarter ended December 31 was 10.2 million rupees ($112,938), down from 70.1 million rupees a year earlier.
Competition from local diners and cloud kitchens weighed on Western fast-food chains despite higher disposable income from tax cuts. Westlife also booked a one-time charge of 96.9 million rupees linked to labour laws implemented in November.
India’s new labour codes - the biggest overhaul of workers’ laws in decades - have hit profits across sectors, including Godrej Consumer Products, Mahindra Holidays and Resorts, Wipro and Infosys.
Total revenue from operations rose 3% to 6.71 billion rupees, slower than the previous quarter’s 4% growth.
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