The company posted a 7.5% (YoY) drop in net profit at Rs.53 crore despite a 15% rise in net revenues at Rs.542 crore. The net profit was impacted due to one-time dividend payout of Rs. 5.4 crore and this was paid for repatriation of dividend from overseas subsidiaries during the quarter. This one-time opportunity was available during the quarter to offset taxes paid from dividend distribution tax payable for FY2013. Also OPM declined 202bps sequentially to 14.4% primarily on account of wage hikes implemented from April 01 2013. Seasonally too, Q1 is usually weak and this got further aggravated due to the one time expense and wage hikes.

The contribution to the total revenues from the U.S. increased to 39% while that from EMEA stood at 35%. The revenue share from rest of the world improved to 26%. Among industry segments, Travel and Transportation contributed to 36%, BFSI was 30% and Manufacturing/Distribution contributed to 7% to the revenue mix. Five new clients were added during the quarter, two in India, one each in USA, EMEA and APAC, all in the Travel and Transportation segment. Total headcount increased to 8,207 at the end of the quarter under review, with steady attrition maintained at 12.36%. The company had four large deals in the offing, each with a total contract value of $10 million, expected to be cleared within the next 3-9 months.  NIIT also has orders worth $263 million executable over 12 months. The company does not expect to take any hit if the US Immigration Bill gets implemented.