NIIT Technologies net profit up 44.7 pct to Rs 62.4 cr

New Delhi: IT services firm NIIT Technologies has reported a 44.7 per cent jump in its net profit at Rs 62.4 crore for the second quarter ended September 30, 2013, on the back of growth
niit technologies net profit up 44.7 pct to rs...
PTI 16 Oct 2013, 11:08 AM IST
New Delhi: IT services firm NIIT Technologies has reported a 44.7 per cent jump in its net profit at Rs 62.4 crore for the second quarter ended September 30, 2013, on the back of growth in US market and depreciating Indian rupee.



The net profit of the company stood at Rs 43.1 crore during the same period last financial year.

The operating profit of the company rose 4.4 per cent to Rs 88.6 crore for the quarter as compared to Rs 84.8 crore last year.

"Good improvement in net profits is contributed by improved growth in operating profits as well as depreciation of the rupee, which also has been quite significant during the quarter," NIIT Technologies CEO and joint MD Arvind Thakur said here.

Consolidated revenues of the company also increased 17.4 per cent to Rs 587.3 crore during the reported quarter as compared to Rs 500.1 crore in the same period last year.

Thakur said it is encouraging to see uptrend in the US market while Europe continues to be soft with UK showing some improvement.

"We experienced robust growth in the US with business expanding by 15 per cent sequentially during the quarter. EMEA grew by 11 per cent with a strong intake of fresh new business," Thakur said.

The contribution to the total revenues from the US increased to 41 per cent from 38 per cent last year. While from EMEA (Europe, Middle East and Africa), the revenue contribution decreased to 36 per cent from 39 per cent last year.

"Among industry segments, travel and transportation contributed to 37 per cent, BFSI was 33 per cent and manufacturing/distribution contributed to 6 per cent to the revenue mix," Thakur added.

During the quarter, the company got fresh orders of $84 million, leading to $248 million worth of orders executable over the next 12 months.

The company's headcount reduced by 190 people, and the staff strength stood at 8,017 at the end of the quarter.

"Utilisation improved to 80.3 per cent from 77.3 per cent from the previous quarter, while the attrition remained at 12.4 per cent," Thakur said.

During the quarter, the company created a new position of Chief Operating Officer and inducted Sudhir Chaturvedi into this role.

Chaturvedi will be based in UK and will look after global sales and delivery for software and business services.

"Sudhir's induction enhances leadership bandwidth to execute on the next phase of the company's growth," NIIT Technologies Chairman Rajendra S Pawar said.
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