NIIT Technologies net down 5.8%

NIIT Tech had a foreign exchange loss of Rs 15 cr in the quarter

NIIT Technologies Ltd has reported a 5.8 per cent fall in net profit to Rs 45.8 crore in the quarter ended September 30 against Rs 43.1 crore posted a year ago, mainly due to appreciation in the value of the rupee.

Sequentially, the company's net profit was down 20.34 per cent from Rs 57.5 crore. NIIT Tech had a foreign exchange loss of Rs 15 crore in the quarter. The rupee has appreciated by 5.6 per cent against the dollar during the July-September period.

Revenue for the quarter at Rs 500 crore represented a growth of 34.8 per cent year-on-year and 6.5 per cent sequentially.

“Operating Profits grew even better than revenues, however, loss in other income due to the appreciating rupee at the end of the quarter resulted in a decline in net profits,” said Arvind Thakur, CEO, NIIT Tech.

“The management has indicated that pricing has remained stable on a portfolio basis. Order booking of $93 million, which is a growth over the previous quarter, is encouraging, in the backdrop of challenging macro scenario. We remain positive on the stock with a medium term perspective,” said Dipen Shah, head of private client group research, Kotak Securities.

The company’s share on Tuesday gained 1.04 per cent on BSE to end trade at 285.80, when the benchmark Sensex closed down 0.73 per cent at 18,577.70 points.