NIIT Technologies profit dips 52 per cent

IT solutions provider NIIT Technologies today said its net profit dipped 52% to Rs 16.8 cr for the third quarter ending Dec 31 from Rs 34.7 cr in the same period last year.

IT solutions provider NIIT Technologies on Wednesday said its net profit dipped 52 per cent to Rs 16.8 crore (Rs 168 million/$3.36 million) for the third quarter ending Dec 31 from Rs 34.7 crore (Rs 347 million/$6.94 million) in the same period last year.

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However, the company's revenues rose six per cent to Rs 248.5 crore (Rs 2.49 billion/$480 million) for the quarter, as compared to Rs 233.8 crore (Rs 2.3 billion/$460 million) in the same period last year, a company statement said.

NIIT's operating profit remained flat at Rs 44.4 crore (Rs 444 million/$88.8 million).

Operating revenue dipped by Rs 18.9 crore (Rs 189 million/$3.78 million) during the quarter due to the weakening of the rupee against the dollar, it said.

“With major economies moving into recession, our immediate focus has been to secure future business with our top clients. This resulted in a record order intake of $148 million including consolidation and contract extensions of up to five years from major customers,” said Arvind Thakur, NIIT chief executive and joint managing director.

“The operating margin improved by 25 basis points over the previous quarter. However, the adverse impact of volatility in currencies, mainly pound led to exchange loss of Rs 139 million, resulting in reduced net profit,” company chairman Rajendra S Pawar said.