The Hindu Business Line : NIIT Tech net profit flat at Rs 34.7 cr in Q3

Hit by sharp appreciation in the rupee, IT solutions company NIIT Technologies Ltd on Friday posted a flat consolidated net profit for third quarter ended December 2007, at Rs 34.7 crore.

The consolidated revenue for NIIT Technologies, which added 213 professionals during the quarter, stood at Rs 233.8 crore, representing a marginal growth of one per cent year-on-year and two per cent rise over the previous quarter.

“The company continued to extract efficiencies from operations and notched half per cent improvement in operating margins, in spite of the appreciating rupee. The quarter also witnessed an intake of $59 million of fresh business,” Mr Arvind Thakur, CEO and Joint Managing Director, NIIT Technologies said.

Europe, which logged four new customers, continued to provide maximum share of business, representing 49 per cent of total revenue, Americas improved its contribution to 31 per cent and rest of the world contributed 20 per cent.

“To mitigate the long term impact of the rising costs and strengthening of the rupee, the company has accelerated the pace of transformation towards non-linear business. Intellectual property asset based services contribute a sizable 11 per cent of revenue,” Mr Rajendra S. Pawar, Chairman, said.

NIIT Technologies’ headcount at the end of December 2007 stood at 5,002.

The shares of the company dropped 6.9 per cent on the BSE to Rs 187.15, against the previous close of Rs 201.15.

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