NIIT Tech posts 56 per cent increase in Q1FY07

New Delhi, July 19: NIIT Technologies today said its operating margins for the second quarter can come under pressure in view of the acquisition of UK-based Room Solutions, while posting a 56 per cent increase in net profit for the first quarter ended June 30, 2006.

''The rise in profits can be attributed to improvement in the operating profit as well as slight benefits in terms of foreign exchange. There can be a marginal drop in the operating profits in the next quarter due to the acquisition of UK-based Room solutions in May,'' NIIT Technologies CEO Arvind Thakur told reporters.

However, the company does not see any adverse effect on the next quarter's figures and hopes it to be back up in the third quarter.

The net profit for first quarter stood at Rs 21.8 crore, as against Rs 14 crore for the corresponding period last year.

The company's operating profit for the three months was up by 41 per cent at Rs 36.3 crore as compared to Rs 25.7 crore during the same period a year ago.

The consolidated revenues for Q1 FY07 were to the tune of Rs 191 crore, up by 40 per cent, as compared to Rs 136.5 crore in FY06.

The IT solutions contributed 94 per cent to the consolidated revenues for the quarter with Rs 179 crore.

Europe provided maximum share 46 per cent of business, while the US contributed 34 per cent of overall revenues during the quarter.

The share of India was about 9-10 per cent, Mr Thakur said.

Room supplemented 27 per cent of the growth witnessed in this quarter, Mr Thakur said.

NIIT Technologies order intake during the quarter was at 38 million dollars with the addition of four new customers in areas its of focus. Of the four contacts, three were in the transportaion and travel vertical and one was in the retail space.

The company recieved a 20 million dollar order in its transporation segment from an existing client.

The orders, to be executed in the coming 12 months, stand at 90 million dollars In all, 305 people were recruited during the quarter, taking the total number of people engaged at the end of the quarter to 3,848.

The salary hike during the quarter was 17 per cent.

UNI