NIIT Tech’s Q3 net profit falls 10% to Rs62 crore

NIIT Tech’s revenues grew 2% to Rs693.8 crore in third quarter from Rs680.2 crore in the October-December 2015 quarter

A screen grab of  NIIT Tech’s website
A screen grab of NIIT Tech’s website

New Delhi: IT firm NIIT Technologies on Tuesday said its net profit declined 10% to Rs62.4 crore in the December quarter, impacted by seasonal softness and currency volatility.

The company’s net profit stood at Rs69.4 crore in the year-ago period. Its revenues grew 2% to Rs693.8 crore in the reported quarter from Rs680.2 crore in the October-December, 2015 quarter, as per Indian Accounting Standards (Ind AS).

“The third quarter is traditionally a soft quarter for the industry. Also, there was an emphatic depreciation of the euro and pound versus dollar that affected the numbers,” NIIT Technologies CEO and Joint MD Arvind Thakur said.

However, the company has been able to expand margins by 23 basis points, which will be stronger in the coming quarter, he added.

Insurance grew 2.1% sequentially during the quarter representing 24% of the revenue mix. Travel and Transportation segment contributed to 32% of the revenue mix, while BFS and other segments including manufacturing and media contributed to 18% and 26%, respectively.

The company experienced strong growth in EMEA which expanded 4% in constant currency, but due to depreciation of pound and euro, sequential growth reported is 0.6%. It accounted for 34% of the quarter’s revenue.

The US accounted for 48%, while APAC region and India contributed 10 % and 8%, respectively to total revenues. The quarter saw intake of $101 million of new business — $51 million from Europe, Middle East and Africa (EMEA), 38 million from the US and 12 million from Rest of World (RoW).

Three new customers were added during the quarter, 1 each in the US, EMEA and APAC. “The company has clear focus on building its digital business, which grew 31% over same period last year. It accounted for 19% of the revenues,” he said.

Head-count at the end of the quarter stood at 8,809 and attrition rate was 12.6%.

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