Arvind Thakur, Chief Executive Officer, NIIT Technologies Ltd. serves as the Joint Managing Director on its board. Thakur graduated in engineering from the premier Indian Institute of Technology in India. Thereafter he pursued post graduation in Industrial Engineering from NITIE in Mumbai. He started his career as an Industrial Engineer with BHEL, a large engineering corporation with work specialization in systems. He joined NIIT Ltd. in 1985 as a member of the core team, and has since then been handling key organisational roles. He was the President of its Software business before it was demerged to form NIIT Technologies Ltd. He serves on the boards of the company’s overseas subsidiaries and domestic joint venture with ESRI Inc., a global technology leader in the GIS domain. He is also a Director in an innovative venture, Hole-in-the Wall Education Ltd. that enables technology to be deployed to educate the masses. He is the Chairman and Managing Director of the BPO subsidiary NIIT Smart Serve Ltd.
NIIT Technologies is a leading IT solutionsorganization, servicing customers in North America, Europe, Middle East, AsiaandAustralia.It offers services in Application Development and Maintenance, ManagedServices, IP Asset or Platform Solutions, and Business Process Outsourcing toorganizations in the Financial Services, Travel & Transportation,Manufacturing/Distribution, Healthcare and Government sectors. The Companyadheres to major global benchmarks and standards, having secured the ISO9001:2000 certifications and the ISO: 27001 Information Security Management accreditation.NIIT Technologies also follows global standards of development. It has beenassessed at Level 5 of SEI CMMi version 1.2. NIIT Technologies Business ProcessOutsourcing conforms to the highest quality standards such as COPC and SixSigma.
Following are the key highlights of the conference call conducted by NIIT Technologies Ltd. after its latest quarterly results.
“There was a benefit of weakening rupee where in we had currency gain of 5.4% in sequential revenue growth,” said Arvind Thakur during the conference call.
Comment on your Q1 Performance?
The focused approach to address select industry segments has resulted in sustained growth with the travel segment demonstrating maximum traction, now contributing to 40% of the revenues.
There was a benefit of weakening rupee where in we had currency gain of 5.4% in sequential revenue growth.
Business is continuing to become broader base whereby million dollar clients increased to 64.
The weakness in the environment had seen some impact in our BFS segment. The order intake continued to be healthy even in seasonally weak quarter.
What is your take on margins?
The margins declined due to wage hike in the quarter and we hope to see improvement in balance part of the year.
What were the fresh orders during the quarter?
We maintain steady intake of orders. About $ 83m of fresh orders were secured during the quarter, leading to $ 240m of executable order book over the next 12 months. The Company was selected as a development partner for a leading airline which is undergoing a major transformation to become a full network ticketed carrier.
The Company was able to enhance its presence by signing a $ 15m renewal with a leading BFS client.
Two customers were added in the Travel and Transportation vertical and one each in BFSI, Manufacturing/Distribution and Government.
What was the Capex during the quarter?
Our Capex for the quarter stood at Rs252mn.
Brief us about your financials?
The quarter ended June 30, 2012 saw revenue increase of 43% over the same period last year, representing a sequential growth of 5.9%. Net Profit increased by 40% yoy and 24% qoq to Rs. 575mn. Operating Profits stood at Rs.751mn.
What is your international mix?
US contributes to 36%, EMEA increased to 39% of the total revenue share, while the revenue share from APAC stood at 13% and India at 12%.
What is your revenue mix in terms of segments?
About 40% of our revenue comes from Transport business, 21% of our revenue comes from insurance business, Manufacturing and Government contributes about 15% of our revenue, 13% of our revenue comes from Banking and Financial services.
What kind of hiring are you looking at?
We have added about 82 people taking our total employee strength to 7444.
What is your attrition rate?
Our attrition rate is 12.4%.
What is your current cash level?
Our current cash level stands at Rs2669mn.