Arvind Thakur, chief executive officer, NIIT Technologies says the rupee has appreciated against the dollar, euro and the pound as a result of which the other income which were positive in last quarter has turned negative this quarter which resulted in sequential decline in net profits of the company.
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: What attributed to 19% sequential decline in profitability and the impact of foreign exchange on the company this quarter? A: There was a substantial increase in other income on account of rupee depreciation in the last quarter. In this quarter, the rupee has appreciated against the dollar, euro and the pound as a result of which the other income which were positive in last quarter has turned negative this quarter which resulted in sequential decline in net profits of the company.Q: What is your margin forecast and how much order wins are you expecting in FY13? A: We have built a very significant growth momentum in our business and this has come on the back of some large new business that we have acquired from new and top clients which have grown quite significantly. Revenues in FY12 grew almost 28%. In this quarter we had a sequential growth of 2.4%, excluding the currency impact, the constant currency growth is 4.8% and y-o-y it’s over 40%. We expect that the growth momentum will be carried forward in the next couple of quarters. This financial year, we incurred extraordinary one-time expense, on account of large transformational deals, which added pressure to our margins. Going forward, we hope to improve our margins as well.
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