NIIT Technologies - Q2FY13 Result Update - Nirmal Bang

NIIT Technologies (NIIT Tech) reported a net profit of Rs.43.1 crore in Q2FY'13 compared to Rs.57.5 crore during Q1FY'13. Net Sales for the quarter stood at Rs.500.1 crore, registering an increase of 10.1 per cent q-o-q.

Key highlights of the results:

- Order intake during the quarter stood at USD 93 million taking the total executable order book to USD253 million over the next 12 months

- Volume growth in constant currency terms stood at 3 per cent q-o-q

- On account of restatement of forex liabilities, the other income segment registered a loss of Rs.15 crore, resulting into lower than expected profits

- EPS for the quarter stood at Rs.7.18, cash and cash equivalent adds up to Rs.232 crore, translating into Rs.38.6 per share. This is equal to ~14 per cent of the present price of the company.

Valuation & Recommendation

We expect the company to post net sales of Rs.1970.3 crore for FY'13E. The net profit for FY'13E is expected to be Rs.228 crore, translating into an EPS of Rs.38. The cash and cash equivalent stands at Rs.232 crore translating into Rs.38.6 per share. This is equivalent to ~14 per cent of the present price of the company. We value the company at 10x FY'13E EPS of Rs.38 to arrive at a price target of Rs.380.

Source : Equity Bulls

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