NEW DELHI, Oct 25 (Reuters) - NIIT Technologies Ltd.
<NITT.BO> posted a 28 percent rise in net profit in the July-Sept
quarter, aided by hedging and better geographical business
spread, but said appreciating rupee was a cause of concern.
"Given the external challenges to industry on the
strengthening of rupee, the spread of business coming from
different currencies have helped besides sound hedging," Chief
Executive Officer Arvind Thakur told reporters.
The firm earns 51 percent of its revenue from Europe, 31
percent from U.S. and the remaining from Asia and Australia.
Net profit for July-Sept quarter rose to 344 million rupees
from 269 million rupees in the year-ago period. Revenue for the
quarter rose 4.5 percent to 2.3 billion rupees, hit by a strong
rupee.
Thakur said appreciating rupee, managing talent and potential
policy issues relating to taxation were the company's concerns.
The firm said it plans to increase its average billing rate
by a percentage point. "That is one of the main approaches to
deal with this issue (of appreciating rupee)," he said.
Thakur said the company had also completely hedged its
receivables for next 12 months.
NITT added six new customers during the quarter. It said it
has contracts worth $101 million to be executed over the next 12
months.
Shares of NIIT Tech rose 4.52 percent to 346 rupees on Bombay
Stock Exchange.
((Reporting by Rakesh Sharma, editing by Prem Udayabhanu;
Reuters Messaging: [email protected]; +91 11
41781021))
Keywords: NIITTECH RESULTS/UPDATE 1