NIIT Tech Q4 net down 15% on forex losses

IT firm NIIT Technologies today said it has reported a 15 per cent decline in its net profit at Rs 26.3 crore for the quarter ended March 31, 2009, on account of currency fluctuations and forex losses.

The profit after tax stood at Rs 31 crore in the quarter ended March 31, 2008.

"The global environment deteriorated dramatically in the second half of FY09 with a significant impact in the last quarter...Top clients in our major industry segments cut back in their spending during the quarter," NIIT Technologies CEO Arvind Thakur told reporters after announcing the company's fourth quarter results.

The IT firm has experienced hedging losses to the tune of Rs 22 crore during the said quarter.

The forex losses has also pulled down the revenues of the company by 9 per cent.

"The rupee further depreciated during the quarter against dollar resulting in reduction in revenue of Rs 22.1 crore due to crystallisation of effective hedges," he added.

NIIT reported revenues of Rs 227 crore for the quarter ended March 31, 2009, a 9 per cent decrease from Rs 248.5 crore in the corresponding quarter last year.

The scorching pace of growth of the country's export-oriented software-service firms have been halted due to the turmoil in global markets and a recession in the United States, which accounts for more than half of the sector’s revenue.