NIIT Technologies on Tuesday reported a year-on-year fall of more than 5 per cent in its quarterly consolidated net profit as the Mumbai-based software firm suffered a loss in other income.

The company said its consolidated net profit slipped 5.3 per cent year-on-year to Rs 53.1 crore in the October-December quarter of 2013.

The mid-tier software firm's net profit slipped despite a rise of 14.2 per cent in its consolidated revenue, which jumped from to Rs 587.3 crore in the October-December quarter compared with Rs 514.4 crore in the same quarter of 2012-13.

NIIT Technologies' chief financial officer (CFO) Pratibha Advani attributed the fall in net profit to loss in other income.  Speaking on the topic, Advani said, "There was a loss in other income as a result of revaluation of foreign currency assets and liabilities because of period end exchange difference resulting in a decline in net profits."

The company suffered forex losses of Rs 7 crore due to rupee appreciation, hedging loss of Rs 8.3 crore, which also played a role in dragging the company's quarterly net profit down.

The U. S. business, which contributed nearly 44 per cent to the revenues in the quarter under review, however, grew 7.9 per cent year-on-year.

NIIT Technologies' India business grew 11 per cent in the third quarter.  CEO Arvind Thakur expressed hope that the company would see a better domestic growth in the fourth quarter of current fiscal.

Source: Top News