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NIIT to issue $10 m FCCB to Intel Capital

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CIOL Bureau
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NEW DELHI: NIIT Ltd will issue $10 million Foreign Currency Convertible Bonds (FCCB) to Intel Capital. The NIIT Board has approved the Intel proposal to this effect and recommended it to the NIIT's shareholders for their approval. The company will use proceeds of the financing to expand its domestic and international business.






Sharing details NIIT CEO Vijay K Thadani said, "With the proposed issuance to Intel Capital, we are further strengthening our relationship with Intel Corporation, towards the joint mission of taking technology-assisted learning into the deep interiors of the country."





For the third quarter ending December 31, 2004, NIIT Ltd and its subsidiaries have reported consolidated operating profit of Rs 9.2 crore compared to a loss of Rs 20 lakh reported in the same quarter last year. This led to a 1070 basis points improvement in operating profit margin to 11 percent. The nine-month operating profit of Rs 36.1 crore is up 145 percent YoY.





On the other hand, NIIT Technologies reported a 133 percent year-on-year increase in net profit at Rs 13.3 crore for the third quarter ended December 31, 2004. The software company's consolidated revenues increased by 12 percent to Rs 141.2 crore for the third quarter ended December 31, 2004 against corresponding period last year.





NIIT Ltd also informed that it would be building additional 500-person capacity for its Knowledge Solutions Business and Instructional R&D Centers in the coming year. The work on these expansion projects has already commenced in Delhi and Gurgaon.





NIIT Technologies is also planning to build an additional 200-person software development center in Delhi. NIIT Technologies' BPO subsidiary, NIIT SmartServe is setting up an additional development facility in Gurgaon.














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