NIIT Technologies rebounds post Q3 earnings

The stock has moved higher by 7% to Rs 399, bouncing back 13% from intra-day low on the BSE.

NIIT Technologies has moved higher by 7% to Rs 399, bouncing back 13% from intra-day low, after the company said its consolidated operating profit margin expanded sequentially by 120bps to 16.29% for the third quarter ended December 2013.

Meanwhile, the company’s consolidated net profit for the quarter declined by 14.9% at Rs 53.1 crore, while revenues remain flat at Rs 587 crore over the previous quarter.

“However there was a loss in other income as a result of revaluation of foreign currency assets and liabilities due to period end exchange difference resulting in a decline in net profits. While revenues from services grew 4.3% sequentially, overall revenues for the quarter remained flat as a result of reduced Purchase for Resale (PFR) in domestic Government business,” NIIT Technologies said in a press release.

During the quarter the company secured a USD 300 million deal from a top BFSI client for a period of 10 years. This large engagement includes renewal and vendor consolidation with respect to maintenance support and operation around the client’s existing platform as well as major contribution to the development and implementation of its new platform, it added.

The stock opened at Rs 375 and hit a low of Rs 353 on the BSE. A combined 1.99 million shares have already changed hands on the counter till late noon deals against an average sub 1 million shares that were traded daily in past two weeks on the BSE and NSE.