NIIT Technologies Ltd. FY05-06 Operating Profit at Rs 115.6 crore; up 19%

» Consolidated Annual Revenues at Rs 607.5 cr
» Operating Margin improves to 19%
» Operating Profit at Rs 115.6 crore , up 19%; PAT at Rs 66.3 crore
» Acquires UK-based ROOM Solutions
» Declares enhanced dividend of 60%

NIIT Technologies Limited, the global IT solutions organization, released its annual results for the year ended March 31, 2006 , showing consolidated revenues of Rs 607.5 crore , a rise of 12% YoY , and net profit of Rs 66.3 crore , up 13% YoY . Operating profit was at Rs 115.6 crore , a rise of 19%, and the company posted an EPS of Rs 17.15. The Board of Directors has announced an enhanced dividend of 60% on every equity share.

IT solutions contributed Rs 566.1 crore to the consolidated revenues, while the BPM business saw a topline of Rs 41.4 crore , making up 7% of the total pie. In its second year of independent operations, NIIT Technologies saw improved YoY growth in each of the quarters during the year.

Europe continued to provide maximum share of business, representing 43% of total revenues, while the Americas improved its contribution to 39% during the year. The rest of the world contributed 18% of the revenues.

During the year, the company brought in sharper focus on its key industry verticals-BFSI, Transportation and Retail, and enhanced its presence through its SAP practice in the Manufacturing space.

"Share of revenues in the areas of Focus increased to 75%, representing a growth of 21%," Mr Arvind Thakur , CEO of NIIT Technologies Limited, said. "Operating margins for the company improved to 19% as a result of this focus," he added.

Leading the growth was the Transportation practice, which grew 25%. Both BFSI and combined Retail & Manufacturing practice grew at 19%.

In a bid to sharpen its differentiation in the Insurance space, NIIT Technologies recently acquired UK-based insurance solutions provider Room Solutions, which gives it access to deep domain expertise in the commercial insurance space.

" The ROOM acquisition is an important move as it adds substantially to our domain expertise in the insurance sector," Mr Rajendra S Pawar , Chairman of NIIT Technologies Ltd, said.

In line with the overall growth plans, NIIT Technologies has added nearly 125,000 sq. ft. of offshore development facilities in Gurgaon , Bangalore , Delhi and Mumbai during the year.

NIIT Technologies Consolidated Quarter Results Jan-Mar 2006

» Consolidated Revenues at Rs 166.2 cr
» Operating Margin improves to 20%
» Operating Profit up 35% YoY to Rs 33.2 crore
» Profit After Tax at Rs 19.2 crore

NIIT Technologies reported revenues of Rs 166.2 crore and a PAT of Rs 19.2 crore in the quarter ended March 31, 2006 . Operating Profit saw a jump of 35% YoY , at Rs 33.2 crore for the quarter under review. Fresh order intake of US $31 million in the quarter resulted in a pending order book of US $76 million, executable over 12 months.

IT solutions contributed Rs 154.6 crore to the consolidated revenues for the quarter, making up 93% of the total pie, while the BPM business showed revenues of Rs 11.6 crore . The quarter saw NIIT SmartServe , the company's Business Process Management arm, achieve operating break-even during the quarter. Looking at the opportunity in the remote infrastructure management space, the company launched its Managed Services Business during the quarter.

"The next wave of offshoring will take place in IT operations and we would like to ride the crest of this wave," Mr Thakur said. "We plan to build on our process capability and strong customer relationships to grow this business," he added.

Many of NIIT Technologies' customers have been serviced for over 10 years. The company has already been assessed at Level 5 of both SEI- CMMi and People-CMM frameworks, while all its offshore facilities are certified to BS 7799 security standards. During the quarter, the BPM subsidiary, NIIT SmartServe , has been certified as per the international Customer Operations Performance Center (COPC)-2000 standard for its service standards and quality.

Also during the quarter, NIIT Technologies Thailand-currently the prime location for providing Managed Services-became the first company in the ASEAN region to be assessed as per the BS 15000 service management standards compliance certification. This assessment completes the full cycle of quality certifications for all of NIIT Technologies' service offerings.

In all, 253 people were added during the quarter, taking the total number of people engaged at the end of the year to 3,543.

Acknowledgments
During the year, NIIT Technologies bagged the following prestigious recognitions:

» The LOMA award for Excellence in Education, 2006
» Tech's 'Star Employer' listing in the Dataquest-IDC Best Employer Survey, 2005
» NIIT SmartServe was ranked among Global Outsourcing Top 100 companies by IAOP
» NIIT Technologies' GIS arm, ESRI India, received an award from ESRI Inc., USA for its outstanding performance in the Asia-Pacific region.

About NIIT Technologies Limited
Global IT solutions organization NIIT Technologies services customers in North America , Europe , Asia and Australia . It offers services in Application Development and Maintenance, Enterprise Solutions (including Managed Services), and Business Process Management to organizations in the Insurance, Banking & Financial Services, Transportation, Retail & Manufacturing, and Government sectors.

NIIT Technologies follows global standards of development, and has the ISO 9001:2000 certification, assessment at Level 5 of both SEI- CMMi and People-CMM frameworks, and the BS 7799 information security management certification.

NIIT Technologies' subsidiaries NIIT SmartServe Limited and NIIT GIS Limited offer Business Process Management and GIS Solutions, respectively.