New Delhi: Software training firm NIIT Ltd’s consolidated Oct-Dec quarterly profit plunged 60% on higher costs and depreciation from the launch of new ventures, its chief executive said on Tuesday.
NIIT’s profit fell to Rs55 million from Rs139 million a year ago, while net revenue rose 16.8% to Rs2.79 billion.
“This was essentially the first quarter of NIIT Uniqua. We will take some time before it makes profit,” Vijay Thadani said, refering to a joint venture with Genpact for training workers in the business process outsourcing sector.
NIIT has invested Rs45 million in the venture in the first phase, out of a total commitment of Rs150 million, Thadani told a news conference.
“We (also) had additional deprecation because of new school projects we added,” he said.
Earnings before interest, tax, depreciation and amortization (EBITDA) was little changed on the quarter at Rs229 milion.
Profits were also hit by a drop in earnings at NIIT Technologies, in which NIIT holds a 25% stake, he added.
NIIT shares closed 2.6% down at Rs22.80 on the BSE index.