The Hindu Business Line : NIIT Tech Q1 net flat at Rs 35 cr; revenues rise 7%

Mr Arvind Thakur (left), Chief Executive Officer, NIIT Technologies Ltd, and Mr Rajendra S. Pawar, Chairman, at a press conference in the Capital on Tuesday. —

Our Bureau

New Delhi, July 22 IT solutions company NIIT Technologies Ltd today posted a consolidated net profit of Rs 35.1 crore for the first quarter ended June 2008, the same as year-ago period, primarily on account of losses on hedging position.

“The company’s hedge accounting policy based on Recognition & Measurement Principles’ under AS30, for highly probable forecast transactions, has resulted in operating revenue being reduced by Rs 4.6 crore and Rs 6.3 crore of unrealised loss provided for in other income, with a net profit of Rs 35.1 crore,” Mr Arvind Thakur, CEO and Joint Managing Director, NIIT Technologies said.

The company’s current hedges are pegged at $222 million covering 30 months.

NTL’s Q1 consolidated revenue at Rs 245.8 crore, represented a growth of seven per cent over the same period previous year. The operating profit for the quarter grew 7 per cent over the same period last year to touch Rs 45.6 crore. The operating profit margin in the just ended quarter came in at 18.6 per cent, compared with 18.5 per cent a year earlier.

Europe, Middle East and Africa (EMEA) accounted for a lion’s share of business (52 per cent of total revenues), while the Americas contributed 30 per cent of overall revenues during the quarter. The rest of the world contributed 18 per cent of the revenues. Banking, Financial Services & Insurance vertical pitched in 42 per cent, Travel, Transportation & Logistics (TTL) contributed 28 per cent and Retail & Manufacturing contributed 13 per cent of the revenues.

“In spite of the challenging macro-economic environment, the company acquired six new customers and a healthy order intake of $43 million. Going forward, the focus would be on improving cost structures and generating business through new non-linear services,” said Mr Thakur added. Close to 23 per cent of NIIT Technologies’ revenues were derived through non-linear services such as managed services and asset based services in the quarter, and the company expects this figure to rise to 25 per cent over the year.

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