IT solutions company NIIT Technologies today reported 7.5% decline in its net profit at Rs 53.2 crore for the first quarter ended June 30, 2013.
The Noida-based firm had posted a net profit of Rs 57.5 crore in the year-ago period.
Consolidated revenue of the company rose by 15.4% to Rs 541.9 crore in the April-June quarter against Rs 469.6 crore in the same quarter of last fiscal.
"Rs 5.4 crore of dividend tax was paid for repatriation of dividend from overseas subsidiaries during the quarter which contributed to the net profit decline," NIIT Technologies CEO Arvind Thakur said here.
Operating margins declined 202 basis points sequentially to 14.4% primarily due to wage hike implemented from April this year. The company gave a wage hike of 8% to off-shore employees and 3% to those on-site.
It secured fresh orders of $145 million during the quarter leading to $263 million worth of orders executable over the next 12 months.
This includes a $15 million contract renewal with a travel and transportation client in the US and $60 million contract to implement Airport Operations Control Centers across 10 airports in India with Airports Authority of India.
"Robust intake of $145 million during the quarter will sustain further growth during the year," Thakur said.
NIIT Technologies added 5 new clients during the quarter, including two in India. All clients are in the travel and transportation segment.
The contribution to total revenues from the US increased to 39%, while that from EMEA stood at 35%. The revenue share from rest of the world improved to 26%.
Among segments, travel and transportation contributed to 36% followed by BFSI at 30% and manufacturing/distribution 7% to the revenue mix.
"We are also focusing on manufacturing, which is seeing an expansion in Asia," Thakur said.
The company made 49 net additions to its employee strength during the April-June quarter this fiscal taking the total headcount to 8,207 at the end of the quarter.
On the outlook, NIIT Technologies Chairman Rajendra S Pawar said that the US is seeing recovery, while things in Europe are weak.
"We see good signs of recovery in the US and strong traction in the domestic market, while Europe continues to exhibit weakness," he added.
Shares of the company today fell by 0.27% to settle at Rs 261.10 apiece from its previous close at the BSE.
