Business IdeasNIIT Tech Q2 net declines 12% on forex losses
IT solutions provider NIIT Technologies today reported a 12 per cent fall in its profit after tax to Rs 32.1 crore for the second quarter ended September, due to volatility in currency movement.
- 'Not many first-time buyers purchase low-cost PCs' - Obama"s healthcare plan to benefit Indian IT players - Cognizant buys UBS captive unit for $75 mn - Infosys suggests better times ahead; Q2 net up 7.5% YoY - Infosys: Way to go - Mastek net down 35.8% Y-o-Y
The consolidated revenues of the company also declined by 12 per cent to Rs 226.3 crore in the latest quarter from Rs 258.7 crore in the same period last year, NIIT Tech said.
The drop in revenue could be attributed to forex losses of Rs 15.4 crore that have been reduced from the revenues, NIIT Tech CEO Arvind Thakur told reporters here.
However, the company has increased its operating margins.
"Operating margins jumped to 20 per cent during this quarter representing a change of more than two per cent both sequentially and year-on-year," he added.
During the April-September period, the company secured fresh orders worth USD 51 million, which includes three new clients -- two in travel and one in retail, the company said.
"The environment continues to be volatile particularly with respect to global currencies, however, the overall sense is that the economic climate is stabilizing," NIIT Tech Chairman Rajendra S Pawar said.
The board has also made a grant under the existing ESOP (Employees Stock Ownership Plan) that would cover over 500 managers, he added.
At the end of the September quarter, 3,917 people were engaged in the company.