Moneycontrol Bureau
Software services provider NIIT Technologies' third quarter consolidated net profit fell 14.9 percent sequentially to Rs 53.1 crore due to forex loss.
"There was a loss in other income as a result of revaluation of foreign currency assets and liabilities due to period end exchange difference resulting in a decline in net profits," the company said in its release.
According to CNBC-TV18 poll, analysts had expected profit after tax of Rs 54.3 crore and revenues of Rs 591 crore in the quarter ended December 2013.
Consolidated revenues declined 1.7 percent to Rs 587.3 crore in the quarter ended December 2013 from Rs 597.3 crore in previous quarter.
Overall revenues for the quarter remained flat as a result of reduced purchase for resale (PFR) in domestic Government business while revenues from services grew 4.3 percent sequentially.
"Strong growth in western markets, particularly the US, contributed to the sequential growth in services," Arvind Thakur, CEO and joint MD said. "Growth in the US was driven by expansion of business in the BFSI segment," he added.
During the quarter, the company secured a USD 300 million deal from a top BFSI client for a period of 10 years. BFSI segment, which represents 35 percent of revenues, expanded 8.2 percent on sequential basis.
Travel and transportation, which contributes 38 percent to total revenues, grew 2.3 percent Q-o-Q while other segments like manufacturing/distribution and government contributed to 7 percent and 6 percent of revenues respectively.
US geography, which contributes 44 percent to revenues during the quarter, showed a sequential growth of 7.9 percent and EMEA grew by 4.5 percent that contributes 38 percent to revenues.
During the quarter, NIIT Technologies forayed into Latin America through its partnership with GRU Aeroporto Internacional de São Paulo (Sao Paolo International Airport), to implement and transform the cargo handling system at the airport.
IT services provider added four new clients during the quarter, one each in BFSI, travel and transportation, manufacturing, and government segment.
It has secured fresh orders worth USD 377 million during the quarter. Total headcount stood at 8,160 at the end of the quarter.
At 14:29 hours IST, the stock was trading at Rs 367.60, down 1.14 percent on the BSE.
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