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NIIT Technologies dips 8% on disappointing June quarter results

Operating margins declined 171 bps to 13.4% primarily on account of wage increase during the quarter.

SI Reporter  |  Mumbai 

NIIT Technologies has dipped over 8% to Rs 424 after reporting 19% year-on-year (yoy) decline in consolidated net profit at Rs 43 crore for the quarter ended June 30, 2014. IT consulting and software firm had profit of Rs 53 crore in the same quarter last year.

Consolidated revenues however, grew 6.6% to Rs 578 crore during the quarter under review against Rs 542 crore in the corresponding quarter of previous year.

Lower other income at Rs 4 crore as compared to Rs 21 crore in the same quarter last year, on account of revaluation of current assets and liabilities due to rupee depreciation, has resulted in yoy decline in net profit, NIIT Technologies said in a statement.

“In constant currency, revenues remained flat sequentially during the quarter,” said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies.

“Operating margins declined 171 bps to 13.4% primarily on account of wage increase during the quarter”, he added.

The stock opened at Rs 468 and touched a low of Rs 420 on National Stock Exchange (NSE). The trading volumes on the counter more than doubled with a combined 808,000 shares changing hands till 1420 hours on NSE and BSE.

First Published: Tue, July 15 2014. 14:29 IST
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