NIIT Tech Q1 net up 61% to Rs 35.1 cr

New Delhi, July 27 (UNI) NIIT Technologies Ltd today said it net profit for the first quarter ended June 30, 2007 increased by 61 per cent to Rs 35.1 crore as compared to Rs 21.8 crore in the corresponding quarter last year.

Its consolidated total income for the first quarter ended June 30, 2007 increased by 20 per cent to Rs 229 crore against Rs 191 crore in the coressponding quarter last year.

The company's operating profits also surged by 17 per cent in the first quarter of FY07-08 to Rs 42.5 crore as compared to Rs 36.3 crore in the corresponding quarter last fiscal.

The company said it has fresh order intake of 40 million dollars for the quarter and its IT solutions contributed Rs 213.6 crore towards its revenues.

Rupee appreciation had a cascading effect on the profits of the company with the revenue loss of 4.6 per cent and a 2.4 per cent decline in the operating margin.

''The company did not suffer major losses as most of our clientele is based in Europe. However, hedging did help us curtail the losses and we will continue to hedge in the following quarters,'' said NIIT Technologies Ltd CEO and Joint Managing Director Arving Thakur.

The impact of the salary hike on sequential basis was 18.5 per cent, he added.

The company will focus on price revision and invest in newer business models like Asset-based ADM, Integrated services and managed business. ''We are talking to clients for turnkey projects to increase the business prospects,'' Mr Thakur said.

The company is also looking toward increasing its off-shore component. Currently, 62 per cent of its business comes from onsite clients while the rest from off-shore customers.

''There has been a steady increase in the contribution of off-shore clients and we feel it will increase further,'' he added.

The BPO business of NIIT Tech has also been doing well.

''Since the last quarter, the operating margin has shown a positive increase and this quiarter also, there has been a four per cent increase sequentially,'' said Mr Thakur.

UNI