NIIT Tech Q2 Net falls 35.7% to 40.1 cr

IT firm NIIT Technologies today posted 35.7 per cent decline in net profit at Rs 40.1 crore for the quarter ended September 30, 2014, impacted by increased depreciation costs.
The company's net profit stood at Rs 62.4 crore in the July-September 2013 quarter.
"In this quarter, there was an increased depreciation due to capitalisation of assets as a result of Airport Operations Control Centre (AOCC)'s Chennai and Kolkata projects going live," NIIT Technologies CEO and Joint MD Arvind Thakur told reporters here.
Also, in the same quarter last year, there was a Rs 18 crore forex gain due to currency fluctuations that has resulted in decline in net profit this quarter (comparative basis), he added.

The company's consolidated revenues increased 0.2 per cent to 588.3 crore in the reported quarter from Rs 587.3 crore in the July-September 2013 quarter.
It registered fresh orders worth USD 103 million in the said quarter and added five new customers in the US and India.

It has USD 298 million worth of fresh business executable over the next 12 months on its books.
"International business for the Company reported a sequential growth of 5.6 per cent during the quarter," he said.
Its total headcount stood at 8,288 with an addition of six employees in the quarter under review.
Talking about the geographies, Thakur said the environment remains mixed.

"There are strong signs of recovery in the US, the unemployment rates have come down significantly. On the other hand, Europe remains stressed with geographies like Germany. Also, African region remains stressed with the Ebola scare," he said.
Optimistic on emerging markets, he said growth is coming back in these markets with significant opportunities in countries like India.
"Projects like Digital India are creating a lot of demand in the technology space," Thakur said.
He added that the company is also looking at opportunities in Middle East and is sharply focussed here in areas like travel.
Americas contributed to 44 per cent of NIIT Technologies' revenues in the reported quarter, EMEA 38 per cent, APAC to 7 per cent and India 11 per cent.

Softness in the insurance business in the Americas resulted in reduction in BFSI mix to 33 per cent of revenues, while Travel and Transportation grew 9.5 per cent sequentially to represent 42 per cent of overall revenues.
Manufacturing/distribution contributed to 7 per cent and government business accounted for 3 per cent of revenues in the quarter.