NIIT Technologies Q4 net profit up 9.4 pct at Rs 61.9 cr

Written by PTI | New Delhi | Updated: May 10 2014, 01:48am hrs
IT services firm NIIT Technologies today posted a 9.4 per cent rise in consolidated net profit at Rs 61.9 crore for the quarter ended March 31, 2014 helped by client wins in the US and growth in banking and financial services space.

The Noida-based firm had reported a net profit of Rs 56.6 crore in the year-ago period.

Consolidated revenues grew by 9.5 per cent to Rs 588.5 crore in the January-March quarter of 2013-14 against Rs 537.2 crore in the same quarter of 2012-13.

Commenting on the performance, NIIT Technologies Chairman Rajendra Pawar said: "FY 2015 starts with a strong order book representing a 15 per cent increase in orders executable over the next 12 months."

On the growth in revenue and profits, NIIT Technologies CEO Arvind Thakur the last fiscal has been a year of consolidation.

"During the year we enhanced our focus in western markets and reorganised ourselves to create a platform for higher growth," he added.

Consolidated revenues for the year grew 14 per cent over the previous year to 2,305 crore while net profit for the year was Rs 230 crore.

NIIT Technologies also created a new position of Chief Operating Officer (COO) during the year and all the sales and delivery for IT & Business Process Management (BPM) services in all geographies were consolidated under this role. Sudhir Chaturvedi has been appointed as the COO.

"The year was characterised by strong intake of fresh business. Order intake doubled for the year. 83 per cent of the intake was from western markets and this included large contracts in the US," NIIT Technologies COO Sudhir Chaturvedi said.

Business in the US grew 29 per cent contributing to 42 per cent of overall revenues. EMEA (Europe, Middle East & Africa) contributed 37 per cent, while the revenue share from APAC and India stood at 21 per cent, he added.

Growth in the US was a result of the revival of business in the BFS segment. Overall BFSI contributed to 34 per cent of revenues while Travel and Transportation contributed to 37 per cent of total revenues, Chaturvedi said.

Other segments of focus like Manufacturing & Government contributed to 7 per cent and 8 per cent of the revenue mix respectively.

NIIT Technologies secured 4 clients during January-March quarter with two in the Travel and Transportation segment, 1 each in Government and Manufacturing.

It added 130 people during the quarter taking the total headcount to 8,290 as of March 2014 and the attrition rate being 14.37 per cent.

On hiring, Thakur said: We will hire about 200 people in the first quarter of 2014-15 fiscal."

NIIT shares today rose by 1.32 per cent to settle at Rs 414.15 apiece from its previous BSE closing.