IT solutions business contributed 94 p.c.
Company added 300 employees during the quarterForms 50:50 joint venture with Adecco SA
NEW DELHI: Consolidating its position further, NIIT Technologies on Friday posted a 78 per cent increase in its net profit at Rs. 26.90 crore for the second quarter ended September 30, 2006, against Rs. 15.10 crore in the same quarter last year.
Sharing the financial results with media persons, NIIT Technologies CEO, Arvind Thakur, said the company's consolidated revenues grew by 49 per cent to Rs. 219.90 crore for the quarter from Rs. 147.50 crore in the corresponding quarter last year with IT solutions business contributing about 94 per cent (Rs. 206 crore) of the total revenue. However, the business process outsourcing (BPO) unit accounted for only six per cent of the topline at Rs. 13.90 crore, he said.
Of the overall revenues, 50 per cent was recorded in Europe, 33 per cent in the U.S. and 17 per cent in Asia Pacific including India, he said adding, that revenues had grown consistently demonstrating the robustness of the company's strategy.
The operating profit is Rs. 41.50 crore, up 59 per cent from Rs. 26.10 crore in the same quarter last year. The company added about 300 employees in the quarter, taking the total headcount to 4,148 even as it received orders valued at $42 million in the quarter, which, according to company's Chairman, Rajendra S. Pawar, was the highest since the company was spun off from NIIT Ltd.
During July-September, NIIT Technologies entered into a joint venture with human resources service provider and a Fortune Global 500 company, Adecco SA. NIIT Tech, through the 50:50 joint venture, would deliver application, software development and maintenance to Adecco's clients, he said, adding that the joint venture presented NIIT Technologies with an opportunity to service a new segment of customers.
With 80 per cent of the revenues coming from the areas of focus, Mr. Pawar said the transition of NIIT Technologies to a vertical, industry-focused organisation was complete.