NIIT Technologies Q1FY17 consolidated net profit declines 48% yoy to Rs.28.6 crore

India Infoline News Service | Mumbai | July 15, 2016 17:46 IST

Company’s consolidated revenue stood at Rs. 670.7 crore rising 4.5% yoy from Rs 642.1 crore to Rs 670.7 crore

NIIT Technologies, global IT services and software solution providers, reported consolidated net profit of Rs. 28.6 crore for the quarter ended 30th June,2016 declining  47.50% yoy.

It’s consolidated operating profit of Rs.102.6 crore for the quarter declined 1.1% yoy. Operating profit margin for the current quarter at 15.98% increased by 85 bps yoy. Company’s consolidated revenue stood at Rs. 670.7 crore rising 4.5% yoy from Rs 642.1 crore to Rs 670.7 crore.

The company reported standalone net profit of Rs. 21.4 crore for the quarter ended 30th June,2016 declining 70.22% yoy .Company’s standalone revenue stood at Rs.367.82 crore rising 1.40% yoy from 362.73 crore.

It’s standalone operating profit of Rs.61.9 crore for the quarter declined 15.01% yoy. Operating profit margin for the current quarter at 16.83% declined 325 bps yoy. 

NIIT Technologies Q1 numbers dissappoint!

The company’s net profit dropped mainly due to higher exceptional item aggregating to the sum of Rs. 36.13 crore which relates to a government contract where the project has been put on hold to resolve certain issues.  Meanwhile, operating margins declined from 20.08% to 16.83% due to increasing employee costs and depreciation expenses.

Standalone EPS for the quarter stood at Rs.9.40

Management Comments:
Commenting on the performance, Mr. Arvind Thakur, CEO & Joint MD, NIIT Technologies  said international revenue improved marginally during the quarter,revenues declined sequentially mainly on account of seasonality in our domestic GIS business. b"Order intake during the quarter was USO 101 m resulting in USO  307 m of  order book executable over the next 12 months", said Sudhir Chaturvedi, COO, NIIT Technologies Ltd. Our Digital business continues to see strong traction and now contributes to 18% of revenues",  said  Rajendra  Pawar, Chairman of NIIT Technologies.
Stock Commentary:

NIIT Technologies Ltd ended at Rs. 470.05, down by Rs. 28.15 or 5.65% from its previous closing of Rs. 498.2 on the BSE.

The scrip opened at Rs. 499 and touched a high and low of Rs. 499.55 and Rs. 456 respectively. A total of 2116072(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3049.26 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 632 on 18-Nov-2015 and a 52 week low of Rs. 407.3 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 510 and Rs. 490 respectively.

The promoters holding in the company stood at 30.79 % while Institutions and Non-Institutions held 52.92 % and 16.29 % respectively.

The stock traded below its 200 DMA.

***Note: This is a NSE Chart



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