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NIIT Technologies Q3FY13 results update

Contributed by Nirmal Bang

NIIT Technologies (NIIT Tech) reported a net profit of Rs.56 crore in Q3FY’13 compared to Rs.43.1 crore during Q2FY’13. Net Sales for the quarter stood at Rs.514.4 crore, registering an increase of 2.8 per cent q-o-q.

Key highlights of the results:

- Order intake during the quarter stood at USD 82 millio taking the total executable order book to USD240+ million over the next 12 months

- Volume growth in constant currency terms stood at 4.4 per cent q-o-q

- On account of restatement of forex liabilities, the other income segment registered a gain of Rs.15 crore, resulting in higher profits

- EPS for the quarter stood at Rs.7.18, cash and cash equivalent adds up to Rs.280 crore, translating into Rs.46.5 per share. This is equal to ~17 per cent of the present price of the company.

Valuation & Recommendation

We expect the company to post net sales of Rs.2012.3 crore for FY’13E. The net profit for FY’13E is expected to be Rs.204 crore, translating into an EPS of Rs.34.3. We expect the company to post net sales of Rs.2210 crore and PAT of Rs.234 crore for FY’14E, translating into an EPS of Rs.39. We value the company at 8.5x FY’14E EPS of Rs.39 to arrive at a price target of Rs.332 over the next 9 months.