NIIT Tech Q4 net jumps, order book strong
NIIT Technologies Ltd more than doubled its quarterly profit as it rode an outsourcing boom, and said it had a strong order book.business Updated: May 23, 2007 18:32 IST
NIIT Technologies Ltd more than doubled its quarterly profit as it rode an outsourcing boom, and said on Wednesday it had a strong order book thanks to Western firms seeking to cut costs.
The New Delhi-based firm, which offers software services to financial, transport and retail industries and manages a back-office unit, has contracts worth $103 million to be executed over one year, Chief Executive Arvind Thakur told reporters.
The mid-sized firm, whose clients include British Airways and ING Group, said profit in its fiscal fourth-quarter ended March rose to 459 million rupees ($11.3 million), up from 192 million in the year-ago period.
Consolidated revenue grew 47 percent to 2.44 billion rupees.
India's booming software services industry has been winning large outsourcing business from overseas clients but a firming rupee is a major concern.
The rupee has gained about 9 percent against the dollar so far in 2007, hitting a nine-year peak of 40.50 on Monday.
NIIT said operating margins rose to 22 percent in the quarter from 21 percent in October-December despite the strong rupee as it won more deals in Europe, reduced administrative expenses and shipped more jobs to low-cost India centres.
Thakur said the company earned 52 percent of its revenue from Europe in the March quarter up from 50 per cent in the previous quarter, while contribution from the United States declined to 29 percent from 33 per cent.
Full year profit grew 95 percent to 1.29 billion rupees, while revenue rose 46 percent to 8.86 billion, the company said.
Shares in NIIT Technologies ended nearly 3 percent higher at 519.25 rupees after rising as much as 7 per cent in a Mumbai market that closed 0.63 percent lower. The result came just when the market was closing.
The company also recommended an issue of one bonus share for every two held.
NIIT Technologies' bigger rivals Tata Consultancy Services, Infosys Technologies and Wipro had posted profit growth of between 44 percent and 70 per cent in the March quarter.
Most companies also forecast strong business outlook on increased outsourcing by Western clients.