NIIT Technologies Q2 profit jumps 66% to ₹111.8 crore
NIIT Technologies revenues grew 23.1% to ₹907.4 crore in the September quarter from ₹737.2 crore in the year-ago period
New Delhi: NIIT Technologies Wednesday reported 66.3% jump in net profit to ₹111.8 crore for the quarter ended September 30, 2018, driven by strong demand across sectors like BFSI and travel and transportation. The company had registered a net profit of ₹67.2 crore in the year-ago period, it said in a regulatory filing.
The company’s revenues grew 23.1% to ₹907.4 crore in the reported quarter from ₹737.2 crore in the year-ago period. On sequential basis, net profit was up 30.3%, while revenue was higher 10%. Digital revenues grew 11.6% sequentially contributing to 28% of the total revenues.
Speaking to PTI, NIIT Technologies CEO Sudhir Singh said the growth has been driven by the restructured leadership team, differentiated strategy and focussed execution by the team.
“The extremely robust 10% sequential revenue growth and the 217 basis points sequential improvement in Operating Margin is a reflection of the new normal as we target predictable and fast scaling profitable growth,” he said.
Singh noted that the recent rupee fall has not had a major impact on the numbers as on a constant currency basis, the company saw 7.6% sequential growth.
He added that “broad-based de-risked growth” across all verticals and significant investments in building differentiated capability, while simultaneously improving margin profile were factors contributing to the strong set of numbers.
Singh said the deal pipeline remains strong across geographies with acceleration in demand for digital services.
The company booked fresh business of $160 million during the quarter, which included 10 new logos.
Of this, $86 million was from the US, $39 million from EMEA and $35 million from Rest of the World (RoW). Order book executable over the next 12 months has expanded to $363 million, the company said.
“Significant increase in new logo acquisition, accelerating order book generation and new leadership firmly in position have materially improved the business profile of the company,” said Arvind Thakur, vice chairman and managing director at NIIT Technologies.
The company added 261 people during the quarter, taking total headcount to 10,025 at the end of September. The insurance vertical grew 11.2% during the quarter (contributing to 28.8% of total revenues), while banking and financial services vertical registered 6.2% growth (accounting for 16.2% of total revenues).
Revenues in travel and transportation segment were up 9.2% at the end of the September quarter and represented 26.9% of the revenue mix. Revenues from Europe, Middle East and Africa (EMEA) contributed 34%, while the US accounted for 49% of the mix. These markets grew 16% and 8.4% on sequential basis, respectively. India and APAC business accounted for 8% and 9%, respectively of the total mix.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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