NIIT Technologies' Q2 profit falls 9%; stocks under pressure

Mid-tier tech company NIIT Technologies has posted its Q2 results over the weekend. Company has posted a tepid set of numbers as revenue rate declined and profitability dropped to Rs 59 crore as against Rs 64.6 crore in the year ago period.

NIIT Technologies’ revenue has risen by 2 per cent year-over-year, helped by growth in BFSI from the US as well as higher traction in travel and transportation business. The company's revenue has risen by 3.3 per cent sequentially. NIIT Technologies has secured fresh orders of USD 143 million during the quarter in review. Company has posted a consolidated net profit of Rs 58.9 crore in July-September from Rs 28.6 crore in last quarter.

On a segmental basis, revenue from travel and transportation business has risen by 6 per cent sequentially resulting in revenue share of 33 per cent.

Geography wise, revenue from US has risen 7.9 per cent sequentially and accounted for nearly half of company’s total revenue, followed by Europe, the Middle East and Africa (EMEA) with 33 per cent of total revenue. NIIT’s India business continued its decline with revenue falling 7.2 per cent sequentially due to lower business from Indian government.

During the reported quarter, the company has added 3 new customers, 1 in the US and 2 in EMEA.

Reacting to the results, shares of company were under pressure as they declined more than 3 per cent in early trade to Rs 427.50.