Date:08/06/2005 URL: http://www.thehindubusinessline.com/2005/06/08/stories/2005060801810500.htm

Back NIIT Tech Q4 net up 87 pc

Our Bureau

Mr Rajendra S. Pawar (left), Chairman, NIIT, with Mr Arvind Thakur, CEO, NIIT Technologies, at a press conference in the Capital on Tuesday. - - Ramesh Sharma

New Delhi , June 7

NIIT Technologies on Monday posted over an 87-per cent rise in net profit for the fourth quarter ended March 2005 at Rs 16.9 crore against Rs 9 crore in the corresponding period last year.

The revenues touched Rs 137.1 crore compared to Rs 134.9 crore in the year-ago period, translating into a growth of 1.6 per cent.

"This was the first year of independent operations of NIIT Technologies after it was spun off last year from NIIT Ltd. The focus in the first year of operations was to improve profitability and we have achieved that. The company was able to move more work back to India in the January-March quarter, which helped improve margins," Mr Arvind Thakur, CEO of NIIT Technologies Ltd, said at a conference here.

For the full year ended March 2005, the company's net profit rose 77 per cent to Rs 58.5 crore. The consolidated annual revenues stood at Rs 543.2 crore during 2004-05, a growth of 12 per cent over last year's revenues of Rs 484.5 crore. The revenue figure for last year excludes related party transactions due to the de-merger, he said.

The company reported earnings per share (EPS) of Rs 15.15 and the board has recommended an enhanced dividend of Rs 5.50 for every equity share of Rs 10 each.

Eyes buys: NIIT Tech said it is looking at acquisitions to enhance its capabilities in financial services, retail and transportation, and also for scaling up its business process outsourcing (BPO) operations.

"We have adequate cash on our balance sheet to focus on strategic initiatives by acquiring companies. We are looking at three areas, including ways to strengthen capabilities in existing areas to compete effectively in the marketplace. For the BPO business, which is in a start-up phase, we will be eyeing opportunities for scaling up," Mr Thakur, said.

He said that the third aspect of the company's inorganic initiative would entail strategic customers who may be interested in taking equity in the company and committing revenue streams. The company also did not rule out dilution of NIIT Ltd's existing 25 per cent stake in NIIT Technologies for this purpose.