BackNIIT profit up 95% at ₹129 crore
NIIT profit up 95% at ₹129 crore
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By Simantik Dowerah/Livemint.com
New Delhi: Global software major, NIIT Technologies Ltd, on 23 May 2007 posted a 95% rise in net profit at Rs129.2 crore for the year ended 31 March 2007, against Rs66.3 crore achieved in the previous fiscal. The company’s consolidated revenues for the 2006-07 fiscal grew 46% to Rs885.9 crore from Rs607.5 crore, said Arvind Thakur, chief executive officer, NIIT Technologies Ltd, at a media meet in the city.
The NIIT board on 23 May announced an enhanced dividend of 65% on equity shares of Rs10 each, and a bonus of one equity share for every two shares held.
For the fourth quarter ended 31 March 2007, NIIT recorded a 139% increase in net profit to Rs45.9 crore against Rs19.2 crore in the corresponding quarter last year.
“The highlight of this quarter was an order intake of $72 million," said Thakur. “We also recruited 249 people taking the headcount to 4,500."
On NIIT’s future plans, the CEO said the company is “sharply focused" on penetrating the European markets, particularly in the BPO sector. “China is gradually evolving as a destination for offshoring," Thakur added, pointing toward the company’s business interest in that country.
The CEO did not divulge details of prospective mergers and acquisitions saying it was too premature to comment as the deals were under negotiation and no specific pact had been inked. But he added that the acquisition of UK-based ROOM Solutions in May 2006 was a move in the right direction. The takeover of the $25 million company, which has a strong presence in the insurance solutions segment, will add considerably to NIIT’s strong presence in financial services solutions, Thakur said.
“Europe contributed 50% of the total revenues, while the US contributed 32% and the rest of world, particularly Asia and Australia, contributed 12% of the revenues during the financial year 2006-07," Thakur said.
On how the rise in the value of the rupee vis-à-vis the dollar would affect the company’s profits and future programmes, he said: “Most of our overseas profits come from Europe, and are denominated in the euro or pound sterling. Which is why, a weak dollar won’t impact our revenues and margins significantly."
Thakur added that the financial services sector contributed the most to the company’s revenues at 42%, followed by transportation, whose contribution was 25%. The retail and manufacturing business of the company had contributed 12% in 2006-07.
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