NIIT Technologies Q1 revenue up 11%, operating profit up 35%

niit-techNIIT Technologies, an IT solutions organization, reported a revenue increase of 11% for the first quarter over the same period last year, at Rs 641.1 Crores.

Operating Profits grew 34.5% over same period last year to rupee104.2 Crores and Profit after Tax expanded 35.5% to Rs 58.5 Crores.

“The quarter witnessed robust 8.9% sequential growth in international geographies which helped maintain operating margins at 16.3% despite wage hikes” said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd.

Business in the US grew 7.7% sequentially contributing to 45% of overall revenues during the quarter. EMEA grew by 4.7% contributing to 35% of the mix, and the revenue share from APAC and India stood at 20%.

Among industry segments, BFSI grew 15.2% sequentially due to growth in new insurance accounts and integration of Incessant. BFSI now contributes to 36% of total revenues, Travel and Transportation to 37%, Manufacturing/Distribution to 6% and Government to 5% of the revenue mix.

Order intake during the quarter was USD 97m resulting in USD 300m of order book executable over the next 12 months.

“With the integration of Incessant, the company acquired 15 new significant clients”, said Mr. Sudhir Chaturvedi, COO, NIIT Technologies Ltd. “In all 17 new logos were added during the quarter”, he added.

The company’s strategic investment in Incessant Technologies provides it with the ability to be a leader in the Digital Integration space. The opportunity being exploited is where Digital front ends have to be integrated with complex legacy systems which most large corporations have to provide for their customers to get a seamless experience. Processes that earlier required manual intervention can be done in a straight through manner through these services, and complex processes are orchestrated automatically through intelligent business process management services.

“NIIT Technologies has leapfrogged into the emerging Digital Integration space”, said Mr. Rajendra Pawar, Chairman NIIT Technologies Ltd. “14% of the company’s global revenue is now around Digital Services”.

734 people were added during the quarter taking the total headcount to 9,228 at the end of the period under review. Rate of attrition declined to 14.30%.