NIIT LTD

By Research Desk
about 9 years ago
NIIT LTD

 

The stock slumped into the red after its Q3FY15 numbers and this does not come as a surprise – the company ended the quarter with a net loss of Rs.16 crore, compared to the net profit of Rs.5 crore in Q2FY15. Its net revenue itself came in 11% (QoQ) lower at Rs.117 crore and then it had a total operating expense of Rs.134 crore, pushing the company into the red. Operating loss stood at Rs.5 crore.  Strangely, the company issues a Press Release which talks only about consolidated net profit/revenue but detailed results are given only if standalone numbers.

The biggest expense for any IT company or its main raw material is manpower. Here too, of the total cost of Rs.134 crore, 36% was spent on employee benefit expenses and another 25% on Professional and technical outsourcing expenses. Thus overall very disappointing numbers. Its net loss at end of 9MFY15 stands at Rs.17 crore v/s loss of Rs.8 crore for FY14. Looks like loss will exceed that of FY15 in current fiscal.

105.55 (-2.95)

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