NIIT Tech Q2 net profit jumps 66 pc to Rs 111.8 cr
NIIT Technologies Wednesday reported 66.3 per cent jump in net profit to Rs 111.8 crore for the quarter ended September 30, 2018, driven by strong demand across sectors like BFSI and travel and transportation.
New Delhi: NIIT Technologies Wednesday reported 66.3 per cent jump in net profit to Rs 111.8 crore for the quarter ended September 30, 2018, driven by strong demand across sectors like BFSI and travel and transportation. The company had registered a net profit of Rs 67.2 crore in the year-ago period, it said in a regulatory filing.
The company's revenues grew 23.1 per cent to Rs 907.4 crore in the reported quarter from Rs 737.2 crore in the year-ago period. On sequential basis, net profit was up 30.3 per cent, while revenue was higher 10 per cent. Digital revenues grew 11.6 per cent sequentially contributing to 28 per cent of the total revenues.
Speaking to PTI, NIIT Technologies CEO Sudhir Singh said the growth has been driven by the restructured leadership team, differentiated strategy and focussed execution by the team. "The extremely robust 10 per cent sequential revenue growth and the 217 basis points sequential improvement in Operating Margin is a reflection of the new normal as we target predictable and fast scaling profitable growth," he said.
Singh noted that the recent rupee fall has not had a major impact on the numbers as on a constant currency basis, the company saw 7.6 per cent sequential growth. He added that "broad-based de-risked growth" across all verticals and significant investments in building differentiated capability, while simultaneously improving margin profile were factors contributing to the strong set of numbers.
Singh said the deal pipeline remains strong across geographies with acceleration in demand for digital services. The company booked fresh business of USD 160 million during the quarter, which included 10 new logos.
Of this, USD 86 million was from the US, USD 39 million from EMEA and USD 35 million from Rest of the World (RoW). Order book executable over the next 12 months has expanded to USD 363 million, the company said.
"Significant increase in new logo acquisition, accelerating order book generation and new leadership firmly in position have materially improved the business profile of the company," said Arvind Thakur, Vice Chairman and Managing Director at NIIT Technologies.
The company added 261 people during the quarter, taking total headcount to 10,025 at the end of September. The insurance vertical grew 11.2 per cent during the quarter (contributing to 28.8 per cent of total revenues), while banking and financial services vertical registered 6.2 per cent growth (accounting for 16.2 per cent of total revenues).
Watch this Zee Business video here:
Revenues in travel and transportation segment were up 9.2 per cent at the end of the September quarter and represented 26.9 per cent of the revenue mix. Revenues from Europe, Middle East and Africa (EMEA) contributed 34 per cent, while the US accounted for 49 per cent of the mix. These markets grew 16 per cent and 8.4 per cent on sequential basis, respectively.
India and APAC business accounted for 8 per cent and 9 per cent, respectively of the total mix.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.