NIIT Technologies - Inline revenues, profit beat driven by forex gains - Emkay

- NIITTech reported inline rev, however margins came inlower than estimates at 16% ( Emkay est 17%) impacted adversely by hedging losses and wage hikes impacted during the qtr

- Profits at Rs 576 mn (+25% QoQ) beat estimates aided primarily by translation gains despite higher than est tax rates at 29.5%

- Order wins of US$ 80 mn flat QoQ with order book at US$ 240 mn(+20% YoY). Headcount addition relatively somber at ~82 after strong addition in recent qtrs

- Tweak estimates for lower US$ revenue estimates, however Q1 beat limits cut in FY13E EPS to 4.2% while FY14E EPS remains unchanged. Retain ACCUMULATE, TP Rs 340

Source : Equity Bulls

Keywords