Decrease in employee benefit expense
Lanco Infratech, which has interests in infrastructure, power and realty segments, retrenched 30 percent of its 5,700 workforce in the last financial year due to slowdown in development of some of its projects amid subdued market conditions.
According to the latest annual report of the infra major, the group, which had a workforce of 5,700 by the end of March 2013 has cut down its workforce to 4,000 by the end of March this year. By the end of FY12, it had nearly 8,000 employees, the report said.
During the year 2013-14, employee benefits expenses decreased by 38 percent over the previous year. The decrease was on account of fall in the total number of employees in the group due to a slowdown in the development of future projects as a result of a slowdown in the economic activity in the country Lanco said in its annual report.
The fall in the total number of the employees in the company was one of the major reasons in the decrease in the employee benefit expenses as belted out by the authorities.
Source: The Financial Express
