NIIT Tech Q3 net zooms 92% at Rs 34.6cr

New Delhi, Jan 17 (UNI) IT solutions provider NIIT Technologies today reported a whopping jump of 92 per cent in its net profit at Rs 34.6 crore for the third quarter ended December 31, 2006 as against Rs 18 crore in the corresponding period last year.

The company contributed this expansion in profit mainly to the full integration of Room Solutions, the insurance firm acquired last year.

''Room Solutions has been integrated in Q3FY07 and is the prime reason for the growth in profit. It contributed to the operating margin expansion to 21 per cent,'' NIIT Tech CEO Arvind Thakur told reporters here.

The company clocked consolidated revenues of Rs 231.5 crore in Q3FY07, of which its IT Solutions business contributed for the major share (94 per cent) of Rs 217.3 crore while the remaining six per cent (Rs 14.2 crore) was attributed by its BPO segment.

The growth in Q3 revenues was 47 per cent over the same quarter a year ago at Rs 157.4 crore.

The company recorded a fresh order intake of 56 million dollars during the quarter leading to an order book executable over the next 12 months of 95 million dollars.

Mr Thakur also informed that the company reduced its number of employees at its Business Process Outsourcing (BPO) arm by 85 people to stand at 872 professionals in the third quarter of the current fiscal.

Focussing on its existing markets like Europe, which comprised 50 per cent of its Q3FY07 revenues, the company Chairman Rajendra S Pawar said ''we will continue to look at the European market in the next quarter also.'' He said, ''We are going to focus on the verticals we are involved in -- financial services, transportation, retail, manufacturing and government sectors -- even in the fourth quarter.'' An 87 per cent growth in financial services and a 50 per cent growth in transportation is a result of the ''sharp focus'' on these industry segments, the Chairman added.

UNI