NIIT Technologies Q3 net declines 5.3% to Rs 53.1 cr

Written by PTI | New Delhi | Updated: Jan 15 2014, 00:32am hrs
NIIT TechnologiesNIIT Technologies reported 5.3 per cent decline in its consolidated net profit at Rs 53.1 crore for the third quarter ended December 31, 2013. (Reuters)
IT solutions company NIIT Technologies today reported 5.3 per cent decline in its consolidated net profit at Rs 53.1 crore for the third quarter ended December 31, 2013.

The city-based firm had posted a net profit of Rs 56 crore in the year-ago period.

Consolidated revenues rose by 14.2 per cent to Rs 587.3 crore in October-December quarter this fiscal compared to Rs 514.4 crore in the same quarter of 2012-13 fiscal.

NIIT Technologies also announced that it secured a large USD 300 million deal with a 10-year period from a US-based client in the BFSI segment.

Commenting on the performance, NIIT Technologies CEO and Joint Managing Director Arvind Thakur said: "Strong growth in western markets, particularly in the US, contributed to the sequential growth in services."

Growth in the US was driven by expansion of business in the BFSI segment, he added.

On decline in net profit, NIIT Technologies CFO Pratibha Advani said: "There was a loss in other income as a result of revaluation of foreign currency assets and liabilities due to period end exchange difference resulting in a decline in net profits."

NIIT Technologies Chairman Rajendra Pawar said that the USD 300 million deal includes renewal and vendor consolidation with respect to maintenance support and operation around the client's existing platform as well as major contribution to the development and implementation of its new platform.

"The deal reaffirms our position in the account, gives predictability of revenues and provides a strong platform for growth", he added.

In total, NIIT Technologies added four new clients during the quarter, one each in BFSI, travel & transportation, manufacturing and government segment.

Revenues from services grew 4.3 per cent sequentially, overall revenues for the quarter remained flat due to reduced Purchase for Resale (PFR) in domestic government business, Thakur said.

BFSI expanded by 8.2 per cent sequentially representing 35 per cent of revenues, while travel & transportation grew 2.3 per cent sequentially during the third quarter accounting for 38 per cent of total revenues.

Other segments like manufacturing/distribution and government contributed to 7 per cent and 6 per cent of the revenues, respectively, he added.

Geography-wise, the US showed a sequential growth of 7.9 per cent contributing to 44 per cent of the revenues during the quarter and EMEA (Europe, Middle East and Africa) grew by 4.5 per cent contributing 38 per cent of revenues. Other areas collectively now contribute to 18 per cent of revenues.

On hiring, Thakur said: "Generally we hire about 150-200 people every quarter."

Share of the company today rose 4.22 per cent to settle at Rs 387.55 apiece from its previous close.