NIIT Technologies today said its net profit jumped 39.7% to Rs 57.5 crore for the first quarter ended June 30, 2012 because of strong growth in business.
The company's net profit was Rs 41.2 crore in the April- June quarter in 2010-11.
NIIT revenues also grew 42.8% to Rs 469.6 crore, in the first quarter this fiscal from Rs 328.8 crore in the April-June 2011 quarter.
"The environment remains challenging, but we have witnessed strong growth in the Europe, Middle East and Africa (EMEA) markets. Our strong order book and steady intake of fresh business will support sustained growth for us," NIIT Technologies Chief Executive Officer Arvind Thakur told reporters here.
During the quarter, the company secured USD 83 million in fresh orders, leading to USD 240 million of executable order book over the next 12 months. In the January-March quarter the company had received orders worth USD 92 million and added four clients.
Business from the US accounted for 36% of the revenues, EMEA 39%, Asia Pacific 13% and India stood at 12%.
Travel & Transport segment revenues increased to 40% of the revenues, BFSI 34% and manufacturing/ distribution accounted for seven%.
However, most of the company's gains from depreciation of the rupee during the quarter were offset by wage hikes, resulting in drop in margins by 80 basis points (0.8%) to 16% from 16.8% in the January-March 2012 quarter.
The rupee had nosedived from Rs 48 level last year to Rs 58 this year, resulting in gains for Indian IT firms as they earn revenues in dollars.
NIIT Technologies gave wage hikes to the tune of eight% to its employees in India, while that for onsite employees stood at about three%.
Its headcount stood at 7,444 with the addition of 82 people (net) during the quarter.
Talking about hiring, Thakur said the situation remains difficult. "Given the environment, companies will go in more for just in time hiring. One has to be prudent as this contributes majorly to the cost structure," he added.
On the global environment, company Chairman Rajendra S Pawar said there were challenges globally.
"There is still no clarity on the situation in Europe and US is starting to come out. But we have seen strong growth in the EMEA region. And given the order book we have, we are confident of good growth this year...We are ahead of Nasscom numbers," he said.
Nasscom expects the industry to grow 11-14% this year.
