NIIT clocks 57 p.c. rise in net profit

Global revenues of the Rs. 1,237-crore, IT solutions corporation, NIIT and its subsidiaries have reached the Rs. 1200 crore-mark and stood at Rs. 1,237.1 crores in the 12 months ended September 30, 2000 against Rs. 880 crores, an increase of 40.6 per cent.

The net profit has improved by 57 per cent to Rs. Rs 224.1 crores from Rs. 142.8 crores. Operating margin grew by 34.6 per cent to Rs. 261.1 crores. The fluctuation in the exchange rate have contributed to Rs. 5.22 crores (Rs, 3.36 crores), according to a company release.

The board of directors have also recommended a dividend of 42.5 per cent for 1999-2000 on an equity of Rs. 38.65 crores against 40 per cent previously.

Fresh order intake of $123.98 million in the software solutions business represents an impressive growth of 102 per cent over the same period last year. Growth in total expenses at 26.2 per cent was less than the sales growth leading to higher growth in profits. Personnel expenses increased by 23.6 per cent to Rs. 95.11 crores (Rs. 76.95 crores) because of headcount increased from 3768 to 4603.

A higher provision of income tax at Rs. 14.4 crores has been made (Rs. 9.08 crores). With fresh addition of Rs. 204 crores to reserves the total stood at Rs. 579.7 crores. The book value has gone up to Rs. 159.94 from Rs. 107.1.

For the year under review, international revenues constitute 54 per cent and domestic revenues the balance.

Software revenues at Rs. 611.4 crores constituted 49 per cent of the global revenues, a growth of 53.5 per cent (Rs. 398 crores) over last year. Learning revenues of Rs. 625.2 crores represent a growth of 30 per cent. Commenting on the performance, Mr. Rajendra S. Pawar, Chairman, NIIT, said ``A strong growth in earnings reinforces the sustainability and steadiness of NIIT's unique business model that leverages the strengths of NIIT's software and education business.''

Global Tele

The net profit of Global Tele Systems has more than doubled to Rs. 101.51 crores in the second quarter ended September 30, 2000. The net profit, before extra-ordinary income, has spurted to Rs. 73.41 crores from Rs. 30.32 crores. The increase in net profit margin was on account of concerted focus on e-commerce, software and engineering services, resulting in a better product mix, and higher exports.

The company has recorded a total income of Rs. 224.12 crores during the quarter under review against Rs. 188.33 crores in the corresponding quarter, an increase of 19 per cent. The gross profit was up by 48 per cent as compared to 37 per cent.

Ballarpur Ind

Ballarpur Industries has achieved a net profit of Rs. 23.09 crores in the first quarter ended September 30, 2000 against Rs. 10.13 crores in the corresponding period in 1999-2000. The operating profit has risen by 65.63 per cent. The turnover was higher at Rs. 377 crores against Rs. 296 crores.

During the period, the company has allotted equity shares to the shareholders of APR Limited in pursuance to the scheme of arrangement and reorganisation and the equity capital has gone up to Rs.11.89 crores.

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