Steep rise in NIIT net profit; bonus issue from Mastek
ENS ECONOMIC BUREAU

MUMBAI, JAN 12: Software firm NIIT Ltd registered a 116 per cent growth in net profit at Rs 18.5 crore for the first quarter ended December 31, 1999, as compared to Rs 8.58 crore in the corresponding quarter of 1998-99. At the company's annual general meeting held here on Wednesday, shareholders also approved dividend payout of Rs 4 for each share of Rs 10 value.

The rise in profitability was higher as the company's worldwide revenues grew to Rs 208.94 crore, up from Rs 144.73 crore in the corresponding quarter in the previous year, marking a 44 per cent increase.

The maximum gains came from the US region which grew by 67 per cent as compared to the last year's first quarter and now comprises one-third of the total revenues. Significantly, most of this has come from software solutions and content creation in what NIIT calls learning the solutions business. Revenues from Europe also grew 42 per cent and Asia-Pacific by 34 per cent respectively.

The cumulative revenues of NIIT's 18 subsidiaries overseas also grew 50% to touch Rs 124.3 crore, constituting 59 per cent of the total revenues. Of this, 54% came from NIIT USA alone. Software solutions revenues went up 50 per cent to touch Rs 1.1 billion, representing 53 per cent of the total revenues. The learning solutions comprise 47% of the total figure.

MASTEK BONUS ISSUE: Mastek Ltd reported a net profit increase of 434 per cent to Rs 7.21 crore for the second quarter ended Dec 1999. Though the company announced a bonus of 1:1, the share price on bourses slipped to Rs 4,407 from Tuesday's closing of Rs 4,413.

During the period under review, sales income modestly grew by 67 per cent to Rs 22.53 crore. Revenues for the group as a whole increased to Rs 60.75 crore, up from Rs 35.80 crore, an increase of 70 per cent over the same quarter last year. The company's chairman and managing director Ashank Desai said that there ought to be no room for disappointment. Instead, he said, the company has been focussing on the ``quality of earnings which is what really matters.'' He pointed out that margins at both the gross and net levels had improved. Desai added that growth areas for the company are two dimensional. They include offshore development and ``tomorrow's business'' like and e-business. Revenues from these areas was 40 per cent. For the US arm of the company, e-business accounted for 15 per cent. Desai said, ``by the year end, 50 per cent of our revenues will come in from e-business.''

SILVERLINE TECH: The company has reported a 26.4 per cent rise in net profit to Rs 18.24 crore for the quarter ended December. The company's operating revenues grew 76.7 per cent to Rs 51.16 crore during the period but other income declined by 19.24 per cent to Rs 1.42 crore. The company's operating profit stood at Rs 18.63 crore against Rs 15.2 crore in the corresponding period in the previous year.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.