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NIIT Q4 earnings dip 90% to Rs 1.31 crore

New Delhi, Dec. 6: NIIT today recorded a net profit of Rs 1.31 crore for its fourth quarter ended September 30, 2002, compared with Rs 12.5 crore a year ago, reflecting a drop of 89.5 per cent.

Consequently, the company has made a provision of Rs 5.7 crore for doubtful debts in the fourth quarter.

NIIT’s global brand revenues also came down to Rs 799.5 crore from Rs 1,139 crore in the corresponding period last year. As a result, the NIIT board has recommended maintaining the dividend at Rs 4.50 per equity share of Rs 10.

However, NIIT reported a 26 per cent jump in its global revenues (NIIT Ltd and its subsidiaries) at Rs 243.1 crore for the quarter ended September 30, 2002, as against Rs 193 crore in the third quarter ended June 30, 2002.

The company claimed that lead indicators like the order intake for software services have also grown steadily over the last six quarters.

NIIT had posted a steady increase in the order book from $ 18 million in the first quarter to $ 29 million in the second quarter, $ 33 million in the third quarter and $ 33.1 million in the fourth quarter of 2002.

Enrolments in the learning business grew 22 per cent in the fourth quarter to 132,262.

Commenting on the company’s performance in the year just ended, NIIT chairman Rajendra S. Pawar said, “The company handled the challenging year with resilience. By recording quarter-on-quarter growth for the third consecutive quarter in both businesses, NIIT is on a growth path.”

NIIT made three acquisitions during the financial year, that complement its identified technologies and verticals like knowledge solutions, finance and insurance and SAP implementation practice.

The company’s international business contributed Rs 420.05 crore to NIIT’s total annual revenues while Rs 379.4 crore was contributed by business from India. The contribution from US operations to the total revenue stood at Rs 214.2 crore with Rs 107 crore coming in from Europe.

The Asia-Pacific region contributed Rs 98.8 crore while the Americas, Europe and Asia-Pacific regions contributed to 51 per cent, 25 per cent and 24 per cent of the international revenues for the year respectively.

Unlike last year, when NIIT made strategic investments in new acquisitions, brand building and putting in place strategies for the two businesses, this year the company is unlikely to make major investments. “We will realise the benefits out of our investments and strategies,” the company said.

NIIT Technologies, the software business of NIIT, showed strong growth in revenues in the fourth quarter. Order intake was also strong at $ 33.1 million with 26 new customers being added during the quarter, the company claimed.

NIIT Technologies president Arvind Thakur said, “Our strategy to scale up our software operations is bringing results. We will continue to focus on identified technologies and verticals by leveraging acquisitions and new businesses in the coming year,” he added.

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