Date:28/07/2007 URL: http://www.thehindubusinessline.com/2007/07/28/stories/2007072851580400.htm

Back NIIT Tech net profit rises 61% at Rs 35 cr

Consolidated revenues record 20% increase

While 52 per cent of the business was accrued from Europe, 31 per cent was from America and remaining from other geographies.

Ramesh Sharma

Report card: Mr Arvind Thakur (left), CEO, NIIT Technologies, with Mr Rajendra S. Pawar, Chairman, NIIT, addressing a press conference in New Delhi on Friday. —

Our Bureau

New Delhi, July 27 An appreciating rupee, increased expenditure on bottom-line primarily on account of salary hike triggered a 4.6 per cent revenue loss of NIIT Technologies during the first quarter of the current fiscal.

NIIT Technologies operating margins declined to Rs 18.5 crore against Rs 18.9 crore in the corresponding quarter last year.

However, it reported a net profit of Rs 35.1 crore, a 61 per cent increase from Rs 21.8 crore in the same period last year. NIIT’s consolidated revenues recorded a 20 per cent increase at Rs 229.4 crore against Rs 191.0 crore.

“During the quarter, the company’s order intake stood at $40 million which includes a total of six clients- two in the financial services domain, one in insurance and three in retail. The pending order book over the next 12 months is $105 million,” said Mr Arvind Thakur, CEO and Joint Managing Director, NIIT Technologies.

While 52 per cent of the business was accrued from Europe, 31 per cent was from America and remaining from other geographies.

He said that apart from hedging, the company would increase the offshore component of the business in which the margins were higher as compared to on site work. At present 62 per cent of work is on site and 38 per cent is offshore.

Mr Thakur further said the company had hiked salaries by 16 per cent for its employees offshore and 4 per cent in the domestic market.

Its cash reserves stood at Rs 238 crore, which would be utilised partly for acquisition and another Rs 130 crore would be earmarked for the completion of the first phase of its campus at Greater Noida by next year-end, added Mr Thakur.