Launch of a new business line and increased depreciation due to new school projects impacted NIIT’s profit after tax to fall 60 per cent at Rs 5.5 crore for the third quarter ended 31 December 2008 from Rs 13.9 crore registered in the year ago period. Net revenue for the company was up 17 per cent at Rs 278.9 crore from Rs 238.8 crore in the quarter ended 31 December, 2007.
The company suffered fall in PAT also because its associate company NIIT Technologies that posted a fall of 52 per cent in net profit because of foreign exchange volatility, in which it holds 25 per cent.
Sequentially (quarter-on-quarter), the profit was down 81.4 per cent and the net revenue was up 25.9 per cent.
The company is now selectively recruiting employees. In the quarter under review, NIIT’s global headcount was reduced by 194 people that currently stands at 3850.
The shares of NIIT closed six per cent lower at Rs 22.8 on the Bombay Stock Exchange today.
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