NNIT Tech slumps as Q2 profit falls

NIIT Tech has today slumped almost 3.5% currently, at Rs.380.30 and this is after falling first to an intra day low at Rs.360.15.

The stock is reacting to the not-so-good performance of the company for Q2FY15, posted a 36% (YoY) 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%. There is also a significant drop in ‘other income’, down 112% (QoQ) thus adding on the bas effect.