NIIT Tech net at Rs 34.7 cr

CORPORATE SCORECARD

Juggling the impact of strengthening rupee and wage inflation, NIIT Technologies today reported stagnant profits on a year-on-year basis at Rs 34.7 crore for the quarter ended 31 December, 2007.

The revenue of the company saw a marginal rise of 1 per cent to reach Rs 233.8 crore this quarter as compared to Rs 231.5 crore in the corresponding quarter in the previous fiscal.

On a y-o-y basis the company reported a drop of 10 per cent in its operating profit from Rs 49.1 crore in the same quarter last year to Rs 44.4 crore this quarter.

"To mitigate the long term impact of the rising costs and strengthening of the rupee, the company has accelerated the pace of transformation towards non-linear business," said, Rajendra S. Pawar, Chairman, NIIT Technologies.

On a sequential basis, the company reported a 1 per cent increase in profit from Rs 34.4 crore in the quarter ending 30 September, 2007.

The revenues of the company rose 2 per cent from Rs 229.9 crore in the previous quarter. The operating profit of the company increased 4 per cent quarter-on-quarter from Rs 42.6 crore .

"This is a period of transition for us to newer platforms, and we are investing more in IP based assets, thus our revenues have seen only marginal increase," explained Arvind Thakur, CEO and joint managing director, NIIT.

"We hope to see the results of these investments in the next fiscal, so the coming quarter is also expected to be slow," he added.

During the quarter the company reported its order intakes worth $59 million . Meanwhile, 213 people were added to its head count to increase the number to 5,002.