NIIT Technologies Q3 net falls 10% to Rs 62 crore

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SME Times News Bureau | 18 Jan, 2017
IT major NIIT Technologies on Monday posted a 10 per cent fall in its net profit for the third quarter ended December at Rs 62.4 crore, as compared to the Rs 69.4 crore net profit in the same quarter of the previous fiscal caused by seasonal softness in demand and currency volatility.

NIIT Tech's consolidated revenues during the quarter in consideration grew two per cent to Rs 693.8 crore, from Rs 680.2 crore in the same quarter of 2015, the company said in a stock exchange filing.

"The third quarter is traditionally a soft quarter for the industry. Also, there was an emphatic depreciation of the euro and pound versus dollar that affected the numbers," NIIT Technologies Chief Executive Officer Arvind Thakur said in the statement.

The company, however, expanded its margins by 23 basis points, which will be stronger in the coming quarter, he said.

"The company experienced strong growth in EMEA (Europe, Middle East and Africa), which expanded 4 per cent in constant currency, but due to depreciation of the British pound and euro, sequential growth reported is 0.6 per cent, representing 34 per cent of the quarter's revenue," the statement said.

Insurance during the quarter grew 2.1 per cent over the previous one, representing 24 per cent of the revenue mix.

The Noida-headquartered NIIT's travel and transportation business contributed to 32 per cent of the revenue mix, while banking and financial services and other segments, including manufacturing and media, contributed to 18 per cent and 26 per cent, respectively, it said.

Of the overseas markets, the US accounted for 48 per cent of total revenues, while the Asia-Pacific (APAC) region and India contributed 10 per cent and 8 per cent, respectively, it added.

The quarter saw an intake of $101 million of new business into NIIT - $51 million from EMEA, 38 million from the US and 12 million from rest of the world. Three new customers were added during the quarter, 1 each in the US, EMEA and APAC, the company said.

"The company has clear focus on building its digital business, which grew 31 per cent over same period last year. It accounted for 19 per cent of the revenues," Thakur said.

The NIIT Tech stock closed on Tuesday at Rs 416.35 a share, down 9.55 points, or 2.24 per cent, on its previous close on the BSE.