NIIT Tech shares surge 5% on Q3 earnings

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NIITNIIT Technologies shares moved higher after its third-quarter net profit beat estimates. NIIT Tech shares were up 5 per cent at Rs. 390.

NIIT Technologies reported a lower net profit in its third-quarter profit, hurt by losses due to valuation of foreign currency assets.

The IT company said its net profit in the quarter ended December 31 stood at Rs. 53.1 crore, down 5.3 per cent from a year earlier. The net profit was however higher than analyst estimates of Rs. 52.1 crore.

NIIT Tech said its revenue rose 14.2 per cent to Rs. 587.3 crore during the third quarter . Its operating profit grew sequentially by 8 per cent and margins expanded by 120 bps quarter-on-quarter.

Revenues from services grew 4.3 per cent sequentially. “Strong growth in western markets, particularly the US, contributed to the sequential growth in services”, said Arvind Thakur, CEO & Joint MD NIIT Technologies. “Growth in the US was driven by expansion of business in the BFSI segment”, he added.

Four new clients were added during the quarter while its total headcount stood at 8,160 at the end of the third quarter.