NIIT Tech Q1 net down 50%, revenues plummet 11%
IT firm NIIT Technologies on Tuesday said it has reported a 50 per cent dip in its net profit for the first quarter ended June on hedging losses and a challenging business environment.
New Delhi: IT firm NIIT Technologies on Tuesday said it has reported a 50 per cent dip in its net profit for the first quarter ended June on hedging losses and a challenging business environment.
On a consolidated basis, NIIT Tech`s profit stood at Rs
17.6 crores, down from Rs 35.1 crore reported in the same
period last year.
"The economic environment continues to be uncertain.The
company has redesignated hedge contracts which have resulted
in an loss of Rs 11.4 crores in other income, leading to a
lower profit," NIIT Technologies Ltd CEO Arvind Thakur told
reporters after announcing the firm’s results.
Revenues fell 11 per cent in the April-June quarter to Rs
218.2 crore from Rs 245.8 crore last year.
Following the results, shares of NIIT technologies were
down 9.42 per cent and were trading at Rs 99.60 on the BSE.
"Traditionally the first quarter of the year has always
been a smaller quarter where revenues decline sequentially due
to lower domestic business primarily with the government," he
added. The domestic business contributes about 10 per cent
of the total revenue of the company.
The company is also creating verticals with a focus on
the domestic market. "We are planning to bid aggressively for
government projects, including the Unique ID programme," he