NIIT’s Q2 Net Plunges 96 PC To Rs 2.01 Crore

New Delhi: | Updated: Apr 30 2002, 05:30am hrs
NIIT Ltd’s net profits in the second quarter (January-March 2002) of the current fiscal have plunged 96 per cent to Rs 2.01 crore from Rs 48.33 crore of the corresponding quarter of the previous financial year. The revenues of the IT major have also come down by 60 per cent in the same period touching Rs 89.03 crore against Rs 217.03 crore in the second quarter of the previous fiscal.

ChrysCapital Drops Plan To Pick Up Stake

ChrysCapital will withdraw its application submitted to Foreign Investment Promotion Board (FIPB) for acquiring up to 15 per cent stake in NIIT through the secondary market.
This was disclosed by NIIT chairman Rajendra Pawar who said: “They have informed us about the decision citing the Securities and Exchange Board of India (SEBI) regulation that does not permit foreign corporate bodies to own more than five per cent stake in a listed Indian firm through secondary market.”

The NIIT management, however, maintained that the company was confident of achieving the Rs 115 crore operating profit target for the entire current fiscal.

“We are maintaining our guidance for the fiscal. We have done better than our guidance in the last two quarters and the performance is expected to improve in coming quarters because of current order intake,” said NIIT chairman Rajendra Pawar. However, he did not provide any specific growth projections for the current quarter (April-June). NIIT claimed to have a fresh order intake to the tune of $28.71 million in the second quarter.

The global revenues of the company including that of subsidiaries has been reported at Rs 189.2 crore in the second quarter of this fiscal while the company has made a loss before tax of Rs 1.5 crore for global operations in the quarter against Rs 34.7 crore profit before tax for the same quarter last year. The loss before tax, however, has come down from Rs 13.5 crore of the previous quarter (Oct-Dec 2001).

The global software service revenues of the company were reported at Rs 107.8 crore in the second quarter while the revenue from education was Rs 81.4 crore during the quarter. The company has added only 16 new education centres including 6 in China and 7 in other countries including Columbia.