NIIT Tech Q3 net drops 9.2% to Rs 48.2 crore

IT firm NIIT Technologies today reported 9.2% fall in its net profit at Rs 48.2 crore for the quarter ended December 31, 2014.

The company had reported a net profit of Rs 53.1 crore in the same period last fiscal.

The consolidated revenue, however, grew 1.4% to Rs 595.3 crore in the said quarter from Rs 587.3 crore in the October-December 2013 quarter.

On a sequential basis, its net profit grew 20.2% on the back of improved operating margins, higher other income and lower depreciation over the July-September 2014 quarter.

"Operating margins improved by 51 basis points sequentially to 14.5% as a result of productivity initiatives," NIIT Technologies CEO and Joint MD Arvind Thakur said.

In constant currency, the company grew one% sequentially during the quarter, he added.

NIIT saw healthy expansion in revenue in Asia Pacific (APAC) and India on the back of execution of large orders secured during the year, increasing revenue share from the region to 21%.

Americas contributed 44%, while Europe, Middle East and Africa accounted for 35% of the revenue.

The company added five new customers during the quarter, with two in the US and one each coming from EMEA, APAC and India.

"During the quarter, NIIT secured $109 million worth of new orders. About 55% of new business was secured in the US, which included a large engagement with an insurance major," NIIT Technologies COO Sudhir Chaturvedi said.

The company's total headcount stood at 8,059 at the end of the quarter under review.