1. NIIT Technologies’ April-June net up 35.5% at Rs 58.5 crore

NIIT Technologies’ April-June net up 35.5% at Rs 58.5 crore

NIIT Technologies' shares were trading at Rs 473.50 apiece in the afternoon trade, up 13.47 per cent from its previous close on the BSE.

By: | New Delhi | Published: July 14, 2015 3:48 PM
NIIT Technologies

NIIT Technologies has rolled out eight per cent hike for its offshore employees.

NIIT Technologies posted 35.5 per cent increase in net profit at Rs 58.5 crore in the April-June quarter of 2015 on the back of strong growth in its international business on Tuesday.

The mid-sized IT services firm had reported a net profit of Rs 43.2 crore in the corresponding period a year ago.

Its consolidated revenue grew 11 per cent to Rs 641.1 crore in the quarter under review from Rs 577.6 crore in the same period last fiscal.

“The quarter witnessed 8.9 per cent sequential growth in intercontinental geographies which helped maintain operating margin despite wage hikes,” NIIT Technologies CEO and Joint MD Arvind Thakur told reporters here.

The company has rolled out eight per cent hike for its offshore employees.

Reacting to the results, the company’s shares were trading at Rs 473.50 apiece in the afternoon trade, up 13.47 per cent from its previous close on the BSE.

Business in the US grew 7.7 per cent sequentially, contributing to 45 per cent of the overall revenues during the said quarter.

Europe, Middle East and Africa (EMEA) grew 4.7 per cent contributing to 35 per cent of the mix, and the revenue share from APAC and India stood at 20 per cent.

“While the international business has seen strong growth, there was 19 per cent decline in domestic business. This is largely on account of large government projects moving into operations and maintenance phase. Also, there is a seasonality factor with the GIS business,” he said.

Talking about the quarter ahead, Thakur said the US would continue to drive growth of the IT services business.

“Though the US economy still seems tepid, there are indications of recovery. Europe too is settling down after the Greek issue. India is in growth phase. Overall, there are healthy indicators of growth,” he added.

Among industry segments, BFSI grew 15.2 per cent sequentially due to growth in new insurance accounts and integration of Incessant Technologies. BFSI accounts for 36 per cent of total revenues.

Travel and Transportation accounts for 37 per cent, Manufacturing/Distribution six per cent and Government five per cent of the revenue mix.

NIIT had an order intake of USD 97 million in the said quarter, resulting in an order book of USD 300 million that is executable over the next 12 months.

NIIT Technologies Chief Operating Officer Sudhir Chaturvedi said the company has acquired 15 new significant clients with the integration of Incessant.

“In all, 17 new logos were added during the quarter. We won two clients in the travel and transportation space,” he added.

NIIT Technologies acquired 51 per cent stake in Hyderabad-based Incessant Technologies for USD 17 million(about Rs 107.8 crore) in May to strengthen its digital services portfolio.

“This quarter, 14 per cent of the revenues came from digital services. NIIT has leapfrogged into the emerging Digital Integration space and this is going to be a strong driver in the quarters ahead,” Thakur said.

The company added 734 people during the April-June quarter taking its total headcount to 9,228 at the end of the period under review. Its rate of attrition declined 14.30 per cent.

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