NIIT Tech Q1 net down 50%, revenues plummet 11%
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Last Updated: Wednesday, July 29, 2009, 17:43
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 said.

Bureau Report

First Published: Wednesday, July 29, 2009, 17:43

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