NIIT Technologies Q2 net profit up 14.1% YoY

NIIT Technologies Limited announced its financial results for the quarter ended in September 30, 2017 with revenue expanding 4% sequentially to Rs. 737.2 Crores representing an increase of 6.4% over same period last year. Operating Profits expanded 7.5% QoQ or 4.1% YoY to Rs. 119.1 Crores and Profit after Tax improved 14.1% over same period last year to Rs. 67.2 Crores.

“Robust sequential growth during the quarter came on the back of strong growth in the US, APAC & India”, said Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. “Operating Margins expanded 53 bps sequentially to 16.2%”, he added.

Revenues from the US expanded 5.5% sequentially during the quarter and now contributes to 50% of the revenue mix. APAC and India represents 11% and 10% of the mix respectively. EMEA business declined 4.8% sequentially on account of the ramp down in a key travel client resulting in the share of the region being 29% of the total mix.

The company continued to experience good traction in the BFSI segment with revenues expanding 5.6% sequentially during the qtr contributing to 42% of revenue mix. Revenues in Travel & Transportation represents 27% of overall revenues. Manuf, Media and Other segment expanded as a result of ramp up of digital engagements in the US, collectively representing 31% of total revenues.

“Deal momentum has been strong during the quarter. Fresh business of USD 122m was secured and we added 7 new logos”, said Mr. Sudhir Singh, CEO Designate, NIIT Technologies Ltd.

USD 64 mn of fresh business was secured from the US, USD 32 mn from EMEA and 26 mn USD from ROW. This includes a large contract from a US travel client. Order book executable over the next 12 months stood at USD 320 m.

Digital business gained significant traction during the qtr. with 3 of the 7 new logos secured in the digital integration space. Further a key client in the UK enhanced its relationship with the company as an SI digital partner. A B2B ecommerce application using cross platform mobile technology went live for a large client in the US.

“Digital revenues grew 14% sequentially contributing to 23% of the total revenues”, said Mr. Rajendra S Pawar, Chairman, NIIT Technologies Ltd.

59 people were added during the quarter taking headcount to 9,022 at the end of the period.