NIIT Q3 net profit up 21% at Rs75.6 crore
New Delhi: NIIT Technologies on Friday posted 21.2% increase in consolidated net profit to Rs75.6 crore for the December quarter of the current fiscal.
Its net profit was Rs62.4 crore in the October-December quarter of last fiscal, the company said in a statement. NIIT’s revenues increased 9% to Rs756.5 crore in the third quarter of 2017-18 as against Rs693.8 crore in the year-ago period, it added.
It also said that the board has approved the appointment of Sudhir Singh as the company’s chief executive officer (CEO). Besides, Arvind Thakur has been elevated to the role of vice chairman and managing director, the statement said.
“Operating margins expanded 97 bps sequentially to 17.1 per cent as a result of growth in digital engagements in US and Europe, Middle East and Africa (EMEA),” Singh said. Revenues from EMEA expanded 7.2% sequentially during the quarter and now accounts for 30% of the revenue mix. The US business grew 1.5% sequentially contributing to 50% of the mix. India and APAC business now represent 10% each of the total mix.
“Continuing with the good intake in the previous quarter, fresh business of USD 130 million was secured during the current quarter which included 3 large deals and 8 new logos,” NIIT Technologies vice chairman and managing director Arvind Thakur said.
The company said it continues to experience good traction in the banking, financial services and insurance (BFSI) segment with revenues expanding 4% sequentially during the quarter, contributing to 43% of the revenue mix. Travel and Transportation segment grew by 4.4% and now represents 27% of the total revenues.
Of the fresh business secured during the quarter, $82 million was from the US, $25 million from EMEA and $23 million from rest of the world. Digital revenues grew 11% sequentially, accounting for 25% of the company’s revenues.
The company has roped in three senior executives to drive growth. Gautam Samantha, a former Infosys executive, will head Europe business, while ex-Fujitsu executive Anantha Basavaraju has joined as APAC head. Another former Infosys executive, Madan Mohan has taken charge of a new service line around data services and automation with his base in the US. NIIT Technologies added 59 people during the quarter, taking the headcount to 9,081.