Nagarro sees services profit slump

Germany-headquartered IT service provider Nagarro increased sales in the second quarter, but profits were well down, partly due to higher staffing costs.

Sales jumped 8% to €226.8m at the SDax-listed company, though earnings before interest, taxes, depreciation and amortisation (Ebitda) crashed 28% to €28.9m.

The company said this was down to "considerable excess capacity in software development”. In response, both salaries and the number of employees have been “adjusted”, it said.