Consolidated revenues for the quarter grew 2.7% sequentially to Rs 611.2 crore and operating profits improved by 15.6% sequentially to Rs 99.7 crore.
Leading global IT solutions provider NIIT Technologies today announced its financial results for the last quarter (Q4) and audited results for the year ended 31st March 2015 with consolidated revenues for the quarter growing 2.7% sequentially to Rs 611.2 crore and operating profits improving by 15.6% sequentially to Rs 99.7 crore.
Rajendra S. Pawar, Chairman, NIIT Technologies Ltd. said, “It has been a tumultuous year as the company addressed changing expectations of the market. With major issues behind us and a well-defined agenda we can look forward to a period of sustained growth and profitability”.
* Revenues up 2.7% QoQ
* Operating Profits up 15.6% QoQ
* Operating Margins up 183 bps QoQ at 16.3%
* Net addition of 435 people during the quarter
A dispute between one of NIIT’s subsidiaries and a client had a big financial impact during the quarter to the tune of Rs 80 crore which is reflected as an exceptional expense. NIIT reported a post-tax loss of Rs 17.5 crore as a result of this exceptional expense.
“Robust growth in the US contributed to strong sequential growth during the quarter”, said Arvind Thakur, Chief Executive Officer, NIIT Technologies Ltd. “Cross currency headwinds in Europe impacted reported revenues. In constant currency, revenues expanded 3.3% sequentially”.
Business in the US grew 3.8% contributing to 44% of overall revenues during the quarter. EMEA contributed 35% while the revenue share from APAC and India stood at 21%. Growth in the US was a result of expansion of business in the BFSI segment. Overall BFSI contributed to 33% of revenues while Travel and Transportation contributed to 38% of total revenues. Other segments of focus like Manufacturing and Government contributed to 8%, and 6% of the revenue mix respectively.
Sudhir Chaturvedi, COO, NIIT Technologies said, “Growth in the US was a result of business expansion with new clients acquired in the Insurance space. Our UK subsidiary focused on Insurance also expanded its business. Overall revenues in Insurance grew 9.2% sequentially.”
Fresh orders of $89 mn were secured during the quarter leading to $295 mn worth of orders executable over the next 12 months.
435 people were added during the quarter taking the total headcount to 8,494 at the end of the period under review, and attrition rate being 15.75%.
FY 15 HIGHLIGHTS
* Revenues up 2.9% at Rs 2372.5 Crores
* Operating Profits down 1.7% at Rs 345.7 Crores
* Net Profits down 50.5% at RS 114.1 Crores
* Board recommends Rs 9.50 dividend per share
Consolidated revenues for FY’15 grew by 2.9% to Rs 2372.5 crore.
Reduced focus on domestic government business led to a decline by 38% over previous year in the government sector and the Company encountered client specific issues in the US in the first quarter.
“After an initial setback in Q1, the company reported steady improvement in both revenues and operating margins throughout FY’15”, said Arvind Thakur, Chief Executive Officer, NIIT Technologies.
The company has increased revenues in Infrastructure Management Services (IMS) which grew by 43%. Among geographies the US expanded the most during the year representing 44% of revenue mix.
The board recommended Rs 9.50 per equity share as dividend for FY’15.
The Company announced its foray into Digital Integration by signing a definitive agreement with a global BPM specialist, Incessant Technologies to acquire a 51% stake.
Incessant is sharply focused in enabling its clients to automate and integrate back end systems with a digital front end and currently has 300+ Consultants who are certified practitioners. They have strong relationships with 20+ clients, and strong alliance partnerships with leading platform providers like Pegasystems and Appian.
“Incessant provides us with the capability to be a significant player in the Digital Integration space with Digitization and Automation of business processes for seamless customer experience”, said Sudhir Chaturvedi, COO, NIIT Technologies.
Incessant FY’14 revenue was $13.9 mn, and is estimated to report revenue of $17 mn for FY’15. The entity is expected to be margin and EPS accretive in FY ’16 for NIIT Technologies.