NIIT Technologies Falls Nearly 5% As Q2 Profit Declines

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Shares of NIIT Technologies fell as much as 4.8 per cent to hit intraday low of Rs. 418.55 after the company’s net profit in the September quarter fell 9 per cent.

NIIT Technologies reported a 9 per cent decline in consolidated net profit at Rs. 58.9 crore for the quarter ended September 30, 2016. The company’s net profit stood at Rs. 64.6 crore during the same quarter in the year ago period.

Its consolidated revenues increased 2 per cent to Rs. 692.9 crore in the reported quarter from Rs. 679.3 crore in the July-September 2015 quarter.

“Lower revenues in NITL (the insurance arm of NIIT Technologies, primarily servicing the Lloyd’s market in the UK) which is a high margin platform business for NIIT Technologies over same period last year is a result of uncertainties in UK for Brexit,” NIIT Technologies CEO and Joint MD Arvind Thakur said.

The company’s digital business continued to see strong traction and accounted for 19 per cent of its revenues, he added.

“Revenues grew 3.5 per cent sequentially in constant currency driven by expansion of business in western geographies, specifically in insurance and travel segments,” he said.

Banking, financial services and insurance (BFSI) grew 3.4 per cent sequentially during the quarter increasing the revenue share to 42 per cent with growth.

As of 12:30 p.m., shares of NIIT Technologies traded 4.58 per cent lower at Rs. 420.15, underperforming the Nifty which was down 0.7 per cent.