NIIT Technologies Q2 net profit at Rs 58.9 cr; Revenues up 3.3%

India Infoline News Service | Mumbai | October 17, 2016 10:53 IST

Revenues grew 3.5% sequentially in constant currency driven by expansion of business in western geographies specifically in our Insurance and Travel segments, Arvind Thakur said.

NIIT
NIIT Technologies Limited, a leading global IT solutions organization, today announced its financial results for the quarter ended in Sept 30, 2016 with a sequential revenue increase of 3.3%%  over previous quarter to Rs 692.9 Crore. Operating Profits increased by 12.8% sequentially to Rs 114.5 Crore and Profit after Tax stood at Rs 58.9 Crore.

"Revenues grew 3.5% sequentially in constant currency driven by expansion of business in western geographies specifically in our Insurance and Travel segments", said Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. "Increase in revenues and decline in SG&A expenses resulted in expansion of operating margins by 139 bps to 16.5% in the quarter".

Strong growth in western geographies with traction in both key verticals of BFSI and Travel and Transportation resulted in 4.6% growth in the US with revenue share of 49% and 7.9% sequential growth in EMEA with revenue share of 33% to total revenues. APAC contributed to 11% to total revenues, whereas India business declined by 7.2% due to lower revenues from India Government leading to revenues share of 7%.

BFSI grew 3.4% sequentially during the quarter increasing the revenue share to 42%, growth being led by Insurance in US with both existing and new clients scaling well. Travel and Transportation registered an even stronger growth of 6% resulting in revenue share of 33%. Manufacturing, Media and other segments contributed to 25% of revenues.

The quarter saw strong intake of fresh new business of USO 143 m. This included renewal of a large engagement with a media client in the US and also a large IMS contract from a new insurance client in the UK. During the quarter 3 new customers were added, 1 in the US and 2 in EMEA.

"Our Digital business continues to see strong traction and now contributes to 19% of revenues", said Rajendra Pawar, Chairman NIIT Technologies Ltd NIIT. Headcount at the end of the quarter stood at to 8,868 and attrition  was 12.9%. Utilization  improved  to 81%.

Acknowledgements
  1. NIIT Technologies won Aecus Innovation award for delivering 'Uninterrupted Business and IT operations at Multiple Airports during Unprecedented Crisis' for Airports  Authority of India (AAI)
  2. NIIT Technologies has been identified as a 'High Achiever'  in  NelsonHall's NEAT Vendor Evaluation for Software Testing
  3. The Company has been conferred with Operational Excellence  & Quality and BPO Innovation of the Year awards from Asia Outsourcing Excellence

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