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NIIT posts net at Rs 13.2 cr

It is planning to invest about Rs 35 crore in three new areas of business in the services sector.
None | By Press Trust of India, New Delhi
PUBLISHED ON JUL 28, 2006 11:44 AM IST

IT service provider NIIT Ltd posted a net profit of Rs 13.2 crore for the first quarter that ended on June 30, 2006.

It is planning to invest about Rs 35 crore in three new areas of business in the services sector.

Net consolidated revenues of the company increased 3.57 per cent to Rs 110.2 crore this quarter compared to Rs 106.4 crore in the perios a year ago, NIIT Ltd CEO Vijay Thadani said.

Operating profit of the company rose to Rs 15.4 crore in the first quarter this fiscal from Rs 14.3 crore in the corresponding quarter last fiscal.

The company's operating margin stood at 14 per cent, up by 51 basis points.

"The reprioritisation of business line led to an improvement of 51 basis points in our operating margin. This was in keeping with the strategy we spelt out last quarter", Thadani said.

The company has identified three new areas of growth in the services sector, which includes setting up of Institute for Finance, Banking and Insurance (IFBI), NIIT Imperia and NIIT Litmus, he said.

NIIT would invest about Rs 15 crore in the current year and Rs 35 crore over a period of three years to establish these institutes, he said.

IFBI would prepare professionals for the BFSI industry while NIIT Imperia would act as advanced learning centres for executive management and technology education and NIIT Litmus would offer assessment and testing services with a focus on BPO and IT space.

"The three new businesses will deploy our core competency in offering technology-based learning to capture the market opportunities offered by the growing service sector," NIIT Chief Operating Officer P Rajendran said.

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