NIIT Technologies recorded a 13% increase in its revenues at Rs 258.7 crore for the second quarter ended September 30, 2008 compared to the same period last fiscal. During the period the company’s net profit stood at Rs 36.7 crore, up 7% compared to the corresponding period of the previous fiscal. On a sequential basis NIIT’s revenues grew by 5% while net profit saw an increase of 4%.
Due to fluctuations in the currency, NIIT suffered forex losses of Rs 8.5 crore this quarter. This is almost double of what it suffered last quarter. According to Arvind Thakur, CEO and joint MD, NIIT Tech, ?Heavy forex losses have eaten into the operating margin of the company which was at 18% this quarter compared to 19% in the last quarter.?
?We expect the pressure on pricing to continue in the near future. These are challenging times for the industry and we are trying to transform our business to the non-linear model, with more focus on VAS and intellectual property related services,? said Thakur.
During the quarter, the company had an order intake of 74% over the previous quarter and it added five new customers. Around 28% of the company’s revenues come from the travel sector, while 27% of it comes from the insurance clients.