NIIT Tech gets Rs 42cr as part payment for contract settlement

IT firm NIIT Technologies today said it has received a part payment of Rs 41.9 crore under a settlement agreement for a government contract.

In a filing to the BSE, NIIT Technologies said pursuant to the settlement, the company has received a part payment amounting to Rs 41.9 crore.

"This will result in a revenue recognition of Rs 27.1 crore for services contracted, and reversal of provisions amounting to Rs 13.15 crore in the financial statement of the company for FY 2017," it added.

In July last year, NIIT Technologies had said a government contract had been put on hold to resolve certain project issues.
 

Following this, the company had engaged in a consultation process with the government entity and had entered into a settlement agreement.

Shares of the company closed 0.78 per cent down at Rs 431.25 apiece on BSE.