NIIT Technologies gains on strong Q1 results

The stock moved higher by 6% to Rs 443 after reporting 35% yoy growth in consolidated net profit at Rs 58.50 crore in June 2015 quarter.

NIIT Technologies has moved higher by 6% to Rs 443 on the BSE after reporting a strong 35% year-on-year (yoy) growth in its consolidated net profit at Rs 58.50 crore for the first quarter ended June 30, 2015 (Q1), on back of strong operational performance.

IT consulting & software firm had profit of Rs 43.2 crore in the same quarter, year ago.

Consolidated revenues grew 11% at Rs 641 crore on yoy basis, NIIT Technologies said in a statement.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin expanded by nearly 300 basis points to 16.25% in June 2015 quarter from 13.4% in the corresponding quarter of previous fiscal.

“The quarter witnessed robust 8.9% sequential growth in international geographies which helped maintain operating margins at 16.3% despite wage hikes” said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies.

The company said order intake during the quarter was US $ 97 million resulting in $ 300 million of order book executable over the next 12 months.

The stock opened at Rs 419 and touched high of Rs 454 on the BSE post announcements of June quarter results. Till 1302 hours, a combined around one million shares changed hands against an average sub 200,000 shares that were traded daily in past two weeks on the BSE and NSE.