NIIT Tech drops after declaring poor Q2 result

NIIT Technologies lost 5.25% to Rs 416.60 at 14:15 IST on BSE after consolidated net profit fell 12.61% to Rs 59.60 crore on 2.18% growth in total income to Rs 694 crore in Q2 September 2016 over Q2 September 2015.

The result was declared on Saturday, 15 October 2016.

Meanwhile, the S&P BSE Sensex was down 83.94 points, or 0.3%, to 27,589.66

On BSE, so far 1.28 lakh shares were traded in the counter, compared with an average daily volume of 33,199 shares in the past one quarter. The stock hit a high of Rs 450.40 and a low of Rs 415.30 so far during the day. The stock hit a record high of Rs 632 on 18 November 2015. The stock hit a 52-week low of Rs 338 on 30 August 2016. The stock had outperformed the market over the past 30 days till 14 October 2016, rising 8.41% compared with Sensex's 2.6% fall. The scrip, however, underperformed the market in past one quarter, sliding 6.46% as against Sensex's 0.59% decline.

The small-cap company has an equity capital of Rs 61.36 crore. Face value per share is Rs 10.

Shares of NIIT Technologies saw pre-result rally, gaining 7.76% in three trading days to settle at Rs 439.70 on Friday, 14 October 2016, from its close of Rs 408.05 on 7 October 2016.

NIIT Technologies said that Q2 September 2016 saw strong intake of fresh new business of $143 million. This included renewal of a large engagement with a media client in the US and also a large IMS contract from a new insurance client in the UK. During the Q2 September 2016, 3 new customers were added, 1 in the US and 2 in EMEA.

NIIT Technologies CEO and Joint MD Arvind Thakur said that revenues grew 3.5% sequentially in constant currency driven by expansion of business in western geographies, specifically in insurance and travel segments.

NIIT Technologies is a global IT solutions organization addressing the requirements of clients across the Americas, Europe, Middle East, Asia and Australia. The company's portfolio of service offerings encompasses application development and maintenance, infrastructure managed services, digital services and business process management.

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