NIIT tumbles 16 % on earnings warning

NEW DELHI: Shares of NIIT Ltd. slumped 16 per cent on Thursday following an

earnings warning issued by the company after market hours on Wednesday. At 10:25

a.m. (0555 GMT), the shares were down Rs 191.10 to Rs 1,003.40 -- the 16 per

cent limit for price changes in a day, while the top-30 Bombay exchange index

was up 0.41. NIIT said on Wednesday that growth in operating margins would be

lower in its second quarter ending March 31, because revenue from software

services in the key US market would grow below expectations. "The shares

slump is related to the earnings warnings that NIIT issued," said with

Delhi-based Qunatum Securities director Sanjay Dutt. Research firm Salomon Smith

Barney said on Thursday that it would be reviewing its earnings estimates for

NIIT. It expected revenue and operating profit growth in the January-March

quarter to be broadly flat.

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