NIIT Technologies quarter net profit slips 12.5%, says confident of topping Nasscom estimate

Apr 22 2013, 17:21 IST
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NIIT Technologies quarter net profit slips 12.5% (Agencies) NIIT Technologies quarter net profit slips 12.5% (Agencies)
SummaryThe company had reported a net profit of Rs 64 crore in the corresponding quarter last year.

IT services company NIIT Technologies today said its net profit dropped 12.5 per cent to Rs 56 crore in October-December due to currency volatility, but expressed confidence that it would top Nasscom's growth estimate of 11-14 per cent growth in 2012-13.

The company's net profit stood at Rs 64 crore in the corresponding quarter last year.

On sequential basis, net profit increased by about 30 per cent from Rs 43.1 crore, registered in July-September 2012.

"In Q2 FY'12, there was a sudden increase in other income because of currency fluctuation, which was not the case this time and so the net profit in this quarter is down 12.5 per cent," NIIT Technologies Chief Executive Officer Arvind Thakur told reporters here.

The 'other income' stood at Rs 12.6 crore for the October-December 2012 period compared to Rs 17.4 crore registered in the same period last year.

The company suffered a forex loss of Rs 7.7 crore in the reported quarter.

Consolidated revenue of the company was up 18.8 per cent to Rs 514 crore for Q3 of FY 13 as compared to Rs 433 in the same period last year.

On sequential basis, it was higher by 2.77 per cent from Rs 500.1 crore registered in in July-September 2012.

Revenues grew 4.4 per cent sequentially in constant currencies during the quarter, reflecting the sustained growth momentum of the company, Thakur said.

"Despite an uncertain environment, we have been securing fresh orders at a steady rate throughout the year. We are confident of topping Nasscom's growth estimate for the current financial year," he added.

Industry body Nasscom had estimated IT sector's growth at 11-14 per cent in 2012-13. However, it later said the industry could meet the lower limit given the volatile and challenging global economic environment.

Kotak Securities Head of Private Client Group Research Dipen Shah said the results were broadly in line with estimates.

"NIIT Tech has maintained decent revenue growth over the past few quarters on the back of good traction seen in the Travel and transportation vertical," he said.

BFSI accounted for 31 per cent of the revenues, while manufacturing/distribution and government contributed six per cent and eight per cent, respectively.

"Travel and Transport, which comprised 42 per cent of the revenues, continues to do well. There was softness in the BFSI (banking, financial services and insurance) segment due to overall economic uncertainties but things are looking up," Thakur said.

Thakur said that though clients are yet to fix their IT budgets

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