NIIT Technologies hits 52-week high after Q3 results

NIIT Technologies surged 4.88% to Rs 390 at 14:45 IST on BSE after the company at the time of announcement of Q3 December 2013 results said it secured fresh orders worth $377 million during the quarter.

The Q3 result was announced during trading hours today, 14 January 2014.

Meanwhile, the S&P BSE Sensex was down 48.98 points or 0.23% at 21,085.23

On BSE, so far 2.32 lakh shares were traded in the counter as against average daily volume of 15,487 shares in the past one quarter.

The stock witnessed high volatility post Q3 earnings. The stock rose as much as 7.3% at the day's high of Rs 399 so far during the day, which is also a 52-week high for the counter. The stock lost as much as 5% at the day's low of Rs 353.25 so far during the day. The stock had hit a 52-week low of Rs 234.25 on 6 August 2013.

The stock had outperformed the market over the past one month till 13 January 2014, advancing 11.35% compared with the Sensex's 2.02% rise. The stock had also outperformed the market in past one quarter, jumping 25.56% as against Sensex's 2.95% rise.

The small-cap firm has equity capital of Rs 60.64 crore. Face value per share is Rs 10

NIIT Technologies said it secured total fresh orders of $377 million in Q3 December 2013, leading to an order book executable over 12 months of $265 million. The order intake of $377 million in Q3 December 2013 inclues a $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, NIIT Technologies said in a statement. "This deal reaffirms our position in the account, gives predictability of revenues and provides a strong platform for growth", said Mr. Rajendra S. Pawar, Chairman, NIIT Technologies.

NIIT Technologies added four clients during the quarter, one each in BFSI, Travel & Transportation, Manufacturing and Government segment.

NIIT Technologies' consolidated net profit declined 5.3% to Rs 53.10 crore on 14.2% growth in revenue to Rs 587.30 crore in Q3 December 2013 over Q3 December 2012. Operating profit rose 17.8% to Rs 95.70 crore in Q3 December 2013 over Q3 December 2012.

NIIT Technologies said that operating profit grew by 8% QoQ and margins expanded by 120 basis QoQ in Q3 December 2013. 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, the company said in a statement.

NIIT Technologies said that while revenue from services grew 4.3% QoQ, overall revenues for the quarter remained flat as a result of reduced purchase for resale (PFR) in domestic government business.

Arvind Thakur, CEO & Joint MD, NIIT Technologies said, "Strong growth in western markets, particularly the US, contributed to the sequential growth in services. Growth in the US was driven by expansion of business in the BFSI segment".

NIIT Technologies provides IT solutions in application development and maintenance, managed services, IP Assets/platform solutions and business process outsourcing in verticals such as financial services, travel and transportation, manufacturing, distribution, healthcare and government sectors.

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