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Last Updated : Oct 15, 2013 10:53 PM IST | Source: CNBC-TV18

Bagged orders worth $84mn in Q2; forex gain at 8%: NIIT

The company's revenue rose 8.4 percent (up 17.4 percent Y-o-Y) to Rs 587.3 crore during September quarter from Rs 541.9 crore in June quarter, led by strong growth in US.


NIIT Technologies saw a fresh order intake of USD 84 million in second quarter FY14 versus USD 154 million in Q1. However, Arvind Thakur, chief executive officer, NIIT Technology clarified that this does not signal a slowdown.


“In Q1 we had huge business in the domestic market which was USD 65 million intake from the Airports Authority of India (AAI). In Q2, the intake has been primarily been in the international market. If one compares the international business, last quarter we had a USD 83 million of intake and this quarter it is USD 84 million. So, I think we are in equal par as far as intake is concerned,” explained Thakur.


Additionally, Thakur said that the company has gained 8 percent quarter- on quarter (QoQ) due to the rupee depreciation seen recently.


The company's revenue rose 8.4 percent (up 17.4 percent Y-o-Y) to Rs 587.3 crore during September quarter from Rs 541.9 crore in June quarter, led by strong growth in US.

Below is the edited transcript of Thakur’s interview to CNBC-TV18.


Q: Your fresh order intake in this quarter is only USD 84 million and if I compare this with Q1 where your fresh order intake was USD 145 million, it appears it is a very sharp slowdown and even your executable order book has degrown. Is there some slowdown in momentum that we have witnessed in Q2?


A: Not really. In Q1 we had huge business in the domestic market which was USD 65 million intake from the Airports Authority of India (AAI). If one really looks at the intake that we have had in Q2 it has primarily been in the international market. The domestic business sometimes makes the intake volatile. If one compares the international business last quarter also we had a USD 83 million of intake and this quarter it is USD 84 million. So, I think we are in equal par as far as intake is concerned.


Q: Could you tell us what was the quantum of the forex element in this quarter, a forex gain or forex loss?


A: We have had a total currency gain of about 8 percent sequentially between Q1 and Q2 in terms of our revenue. So, that would be the amount of forex gain that we have had in this quarter.


Q: Is this USD 85 million a run rate that we could expect in the coming two quarters as well in terms of fresh orders?

A: Yes. If you looks at the history that has typically been the run rate. When you get some large government orders then the run rate improves to USD 100 million plus.



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First Published on Oct 15, 2013 04:41 pm
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