NIIT net profit surge 72% to Rs 29 cr

NEW DELHI, Apr 15: NIIT Limited has recorded a 72 per cent surge in net profit during the six-month period ended March 31, 1999 to close ...

NEW DELHI, Apr 15: NIIT Limited has recorded a 72 per cent surge in net profit during the six-month period ended March 31, 1999 to close at Rs 29 crore from Rs 17 crore in the same period last year.

Software business recorded revenues of Rs 224.6 crore representing a growth of 45 per cent. Software revenues today constitute 54 per cent of the global revenues. Learning services revenues are up by 36 per cent to touch Rs 194.4 crore.

Rajendra S Pawar, founder and managing director, NIIT said. "The second quarter performance was achieved as a result of the execution of prestigious contracts in e-commerce as well as ERP implementation and software solutions projects.”

According to Vijay K Thadani, president and CEO, NIIT, "with our experience in offering it solutions for governments we are gearing up to cater to the opportunities being thrown open in the areas of government informatics. We are executing large training orders for the income tax department and the ministry of railways”. Some of the keyprojects being executed by NIIT include Y2K related consultancy services for ITC and software projects for Kribhco and Indian Oil.

Meanwhile, NIIT has finalised ICICI group as the financial advisors and arrangers for acquiring a software projects company in the United States. According to Rajendra S Pawar, founder and managing director of NIIT, the proposed acquisition would be complete by the year-end.

"The ICICI group would work with Goldman Sachs to partner us in this acquisition," he said. Speaking on the occasion, Vijay Thadani, president and CEO of NIIT, said, at this exciting growth phase, energies would be focussed on providing strategic inputs to the US and Europe geographies to help them realise their growth plans.

He also ruled out any plans to launch an American Depository Receipt (ADR) saying, "there are no plans for an ADR issue now. For the acquisition, we have already tied up the requisite funds".

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NIIT’s growth initiatives in the US would be led by C N Madhusudan, who has been managingthe company’s US operations since 1991. Dwelling on the directions being pursued for the future Pawar said. "We would be leveraging on our experience in successfully executing e-commerce and ERP implementation.”