NIIT net profit dips 10% to Rs 62 cr

Revenue up 2% to Rs 694 cr; Joel Lindsey, who was earlier with HP Enterprises, to drive digital biz

Mid-size IT services firm NIIT Technologies reported a 10 per cent decline in net profit to Rs 62.4 crore for the quarter ending December, as against Rs 69.4 crore during the year-ago period.

During the October-December period, the company's revenue grew by 2 per cent to Rs 693.8 crore, compared with Rs 680.2 crore for the corresponding period last year.

The company said its offshore revenues improved as projects secured in insurance moved to production. Business from the insurance sector grew 2.1 per cent sequentially and contributed 24 per cent of its revenue.

"In a traditionally small quarter for the industry, revenues grew 0.6 per cent sequentially in constant currency terms. Operating margins expanded 23 basis points to 16.8 per cent on the back of increased revenues from offshore," said Arvind Thakur, chief executive and Joint MD, NIIT Technologies.

To expand digital technology business, NIIT Technologies has appointed Joel Lindsey, who was leading Digital Transformation at HP Enterprises.

"The company has clear focus on building its digital business, which grew by 31 per cent in Q3 of this fiscal," said Rajendra S Pawar, chairman, NIIT Technologies.