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NIIT Tech shares slump 7% on dispute with client

NIIT Technologies provided up to $10 million for its dispute with a client in the Asia-pacific region.

Indulal.PM | March 24, 2015 | Updated 14:47 IST
NIIT Tech shares fall over 7% on dispute with client
Photo: Reuters

NIIT Technologies shares slumped over 7 per cent on Tuesday after the company said that the dispute between a unit and a client in the Asia-pacific region may result in claims and counter claims.

The company provided up to $10 million towards unbilled revenue in the current quarter, it said in a statement.

This could hurt the company's consolidated EBITDA in the fourth quarter of the current fiscal year, brokerage IndiaNivesh said on Tuesday. The brokerage expects NIIT Tech multiple to see some de-rating on account of lower-than-industry-average revenue growth and lowest margins performance among peers.

At 12:52 pm, shares of NIIT Technologies were trading down 7.25 per cent or 27.15 points at Rs 347.45 on the Bombay Stock Exchange (BSE), while on the National Stock Exchange (NSE) index Nifty, the stocks were trading down 7.32% or 27.40 points at Rs 347.

(Reuters)

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