Net profit of NIIT Tech is likely to fall over 2 percent in January-March quarter at Rs 72.5 crore in January-March quarter from Rs 74.2 crore in last quarter. According to a CNBC-TV18 poll, the company may see dollar revenue fall 1.3 percent at USD 102 million from USD 103.4 million on sequential basis. In rupee terms, revenue may rise marginally by 0.8 percent at Rs 684 crore versus Rs 678.7 crore quarter-on-quarter.
Revenue may show a slight decline in constant currency terms. There were sizable project completions in the prior quarters and no immediate new project ramp-up to compensate for this. The company has a large exposure to British pound (about 18 percent), and hence there will be cross currency headwinds of 120 -130 basis points.
During the quarter, EBITDA may come in at Rs 121.5 crore (17.8 percent) against Rs 123.6 crore (18.2 percent) on weaker revenue momentum.
The company expects revenue growth to recover from Q1FY17, led by ramp up of deals. The management has guided for FY16 revenue at lower end of industry average and expects to grow at industry average in FY17.
Key positive from the last quarter was fresh order intake at USD 123 million, which will support growth to pick up in H1FY17.
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