NIIT Technologies reports 43.9% rise in net profit for FY 2018-19
PTI May 4, 2019
IT company NIIT Technologies on Saturday reported a 22.5 per cent rise in consolidated net profit to Rs 105.5 crore for the fourth quarter ended March 31, 2019, driven by broad-based growth across verticals. The company said it plans to invest Rs 70-80 crore as capex during FY2019-20.
Consolidated revenue grew 23.2 per cent year-on-year to Rs 972.2 crore for the company, where Baring PE recently announced plans to acquire a substantial stake.
The net profit at Rs 105.5 crore represents a growth of 22.5 per cent over Rs 86.1 crore notched in the year ago period, NIIT Tech said in a regulatory filing.
"Consequent to recent judicial pronouncement in Australia, company has reassessed its position pertaining to applicability of GST, Fringe benefit tax and royalty tax in our acquired entity in Australia. Basis the reassessment, the company has filed voluntary disclosure with the Australian tax authorities. The impact of the same has been booked as exceptional items amounting to Rs 56 million and Profit after tax for the quarter is reflective of the same," the company said in a statement.
The statement added that the quarter had certain non-recurring expenses relating to FBT during the year in Australia and increase in legal and professional expenses due to merger and acquisition activities. Operating profit excluding these non-recurring expenses stood at Rs 176.3 crore.
For the full year FY2018-19, the company registered a net profit of Rs 403.3 crore, up 43.9 per cent over the previous fiscal, while the revenue came in at Rs 3,676.2 crore, a growth of 22.9 per cent.
"The year was characterised by strong deal momentum...USD 170 million of fresh business was secured during the quarter," Arvind Thakur, Vice Chairman and Managing Director, NIIT Technologies said.
The company is looking at a capex of Rs 70-80 crore during the 2019-20 and will invest in areas like digital capabilities.
Last month, Baring Private Equity (BPEA) had announced plans to buy about 30 per cent stake in NIIT Technologies from NIIT Ltd and other promoter entities for about Rs 2,627 crore.
The deal will also trigger an open offer under which BPEA will make an offer to the public shareholders of NIIT Technologies for purchasing up to 26 per cent additional shareholding -- taking the total deal value to up to Rs 4,890 crore.
Sudhir Singh, Chief Executive Officer, NIIT Technologies said that the process of regulatory approvals for the acquisition of stake by Baring, is currently underway.