NIIT Tech posted a not-so-good performance for Q2FY15, posted a 36% drop in its consolidated net profit at Rs.40 crore and down 7% sequentially. Growth in revenue was almost flat, up less than 2% (QoQ) at Rs.588 crore. The company has blamed the drop in bottomline of higher depreciation, which came in at Rs.25 crore, up 35% sequentially and YoY, this has surged by 64%. The higher depreciation was due to capitalisation of assets as a result of Airport Operations Control Centre (AOCC)'s Chennai and Kolkata projects going live. There is also a significant drop in ‘other income’, down 112% (QoQ) thus adding on the bas effect.

But its operating profit was up 6% (QoQ) and margins also improved, up 56 bps at 14%. A flat operating cost helped this bottomline. In terms of geography, North America contributed 44% to the topline, followed by EMEA at 38%, India at 11% and APAC at 7%. And sector wise, BFSI revenue remained stable at 16%, same as in Q1 though insurance fell marginally from 18% to 17%. Manufacturing did the best, growing 42% v/s 39% while Govt fell from 6% to 3%.

Its executable order book over next 12 months stands at US$298 million, compared to US$295 million in Q1, meaning the increase has not been all that much. It added four new clients in USA and one in India. Attrition stands at 15.8% v/s 15.4% in Q1. 

The company remains FII heavy – their stake as at 30^th Sept 2014 stood at 36% while promoters stake was at 31%.