New Delhi, June 11: Software services provider NIIT Technologies today reported an 11 per cent drop in net profit at Rs 31 crore for the fourth quarter ended March 31, 2008, compared with Rs 45.9 crore in the corresponding quarter of the previous year on the back of a global meltdown and rupee appreciation.

“Given the volatility in exchange rate, the company adopted a new method for hedge accounting to reflect the mark-to-market for forecast transactions as mandated by ICAI,” said Arvind Thakur, CEO and joint MD of NIIT Technologies.

The company had to provide for a notional loss of Rs 6.7 crore resulting in a net profit of Rs 31 crore during the quarter, he added.

Consolidated revenue rose 6 per cent to Rs 248.5 crore during the quarter from Rs 243.5 crore in the year-ago period.

For the year ended March 31, the net profit increased 5 per cent to Rs 135.3 crore, while operating profit fell 2 per cent to Rs 176.3 crore.

Consolidated revenue for 2007-08 was up 6 per cent at Rs 941.5 crore, the company said.

Thakur admitted that there were economic and environmental challenges posed by runaway oil prices and lowering of consumer spending.

“However, NIIT Tech has done its best to beat the pressures by having a strong order book,” he said. The company has an order book of $113 million for the next 12 months.