NIIT Tech Q4FY08 net dips 11% at Rs 31 cr

New Delhi, June 11 (UNI) NIIT Technologies today said its net profit for the fourth quarter ended March 2008 dipped 11 per cent to Rs 31 crore as compared to Rs 45.90 crore for the same period a year ago.

However, the total revenue for Q4FY08 witnessed a hike of six per cent at Rs 248.50 crore as against Rs 243.50 crore for Q4FY07.

''Given the volatility in exchange rate, the company adopted recognition and measurement from AS 30 for hedge accounting to reflect the MTM for forecasted transactions as mandated by ICAI.

Accordingly, a provision of Rs 6.70 crore for notional loss has been provided, resulting in a net profit of Rs 31 crore during this quarter,'' company Chairman Rajendra Pawar told reporters here.

NIIT Tech CEO Arvind Thakur said the company's margins continue to be under pressure. ''There are pressures. There is lowering of consumer spending. Added to that is runaway crude prices,'' he said.

He added that the company has hedged 236 million dollars at Rs 41.10 for 30 months.

''The company's net profit for the year ended March 2008 increased five per cent to Rs 135.30 crore as compared to Rs 129.20 crore for the last fiscal,'' Mr Pawar said.

The company's consolidated revenues for FY08 went up six per cent to Rs 941.50 crore, whereas it was Rs 885.90 crore during the last fiscal.

However, its operating profit for the year ended March 2008 dipped two per cent to Rs 176.30 crore as against Rs 180.30 crore for the year ended March 2007.

NIIT Technologies' Board of Directors has also recommended dividend of Rs 6.50 per equity share.

IT solutions contributed Rs 890.10 crore to the consolidated revenues, while the BPM business contributed Rs 51.40 crore, Mr Pawar said.

Europe continued to provide maximum share of business, representing 50 per cent of total revenues, while the US improved its contribution to 32 per cent with the rest of the world contributing 18 per cent of the revenues.

BFSI vertical contributed 44 per cent, travel, transportation and logistics vertical contributed 25 per cent and retail and manufacturing contributed 12 per cent of the revenues.

The company's order book stood at 113 million dollars.

''Inspite of the tough macro-economic environment, the company garnered a steadily increasing order intake in each quarter, including a record intake of 81 million dollars in Q4, and maintained stable operating margin during the year,'' Mr Thakur said.

During the year, NIIT Tech added 670 new employees taking the global strength to 5118.

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