NIIT Technologies will announce its second quarter earnings on Wednesday. Overall analysts expect this quarter to be muted like previous quarter, wherein dollar revenue declined 1.9 percent, margin dropped 172 basis points and profit fell 30 percent on sequential basis due to ramp-down in two BFSI (the US) clients.
According to CNBC-TV18 poll estimates, profit after tax is expected to rise 7.6 percent quarter-on-quarter to Rs 46.5 crore and revenue to increase 1.1 percent to Rs 584 crore in the quarter ended September 2014.
Operating profit may climb to Rs 81.8 crore from Rs 77.5 crore and margin may expand to 14 percent from 13.4 percent during the same period.
Management in an interaction with CNBC-TV18 (post Q1 earnings) had indicated that revenue may be flat in Q2 with a pick-up only in October 2014-March 2015 period. It had also lowered its EBITDA margin expectations from 17 percent earlier to about 16 percent now.
Analysts expect a flat quarter because of ramp-down of projects from a couple of large accounts (in BFS and Insurance, respectively) and declining hardware component in revenue.
Key things to watch out for would be client specific issues, attrition and orderbook.
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