NIIT Tech gains after entering into settlement agreement with Govt entity

NIIT Technologies rose 1.70% to Rs 436 at 14.51 IST on BSE after the company said it concluded consultation process with government entity and has entered into settlement agreement.

The announcement was made after market hours yesterday, 20 December 2016.

Meanwhile, the BSE Sensex was up 34.11 points, or 0.13%, to 26,342.09.

On the BSE, so far 21,000 shares were traded in the counter, compared with average daily volumes of 23,292 shares in the past one quarter. The stock had hit a high of Rs 440 and a low of Rs 426.50 so far during the day.

The stock hit a 52-week high of Rs 614.35 on 22 December 2015. The stock hit a 52-week low of Rs 370 on 9 November 2016. The stock had outperformed the market over the past 30 days till 20 December 2016, rising 7.86% compared with the 2.11% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.79% as against Sensex's 7.72% decline.

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

In Q1 June 2016, NIIT Technologies made a provision of Rs 36.13 crore for amounts outstanding in respect of a government contract, where the programme was put on hold to resolve certain project issues.

In the latest announcement, NIIT Technologies said that it has concluded the consultation process with the said government entity and has entered into a settlement agreement. Accordingly, this may result in partial reversal of the provision outlined in the said note in the current financial year.

On a consolidated basis, NIIT Technologies' net profit rose 90.42% to Rs 59.60 crore on 3.30% increase in net sales to Rs 691.30 crore in Q2 September 2016 over Q1 June 2016.

NIIT Technologies is a global IT solutions organization addressing the requirements of clients across the Americas, Europe, Asia, and Australia. The company services clients in travel and transportation, banking and financial services, insurance, manufacturing, and media verticals, offering a range of services, including application development and maintenance, infrastructure management, and business process management.

Powered by Capital Market - Live News