NIIT Technologies Q3 FY’17 PAT expands 5.9% sequentially
Noida, January 17th 2017, Tuesday: NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for the quarter ended in Dec 31, 2016 with a sequential revenue increase of 0.1% over previous quarter to Rs 693.8 Crores. Operating Profits increased by 1.5% sequentially to Rs 116.2 Crores and Profit after Tax expanded 5.9% to Rs 62.4 Crores.
Quarter Performance at a glance
Profit After Tax
“In a traditionally small quarter for the industry, revenues grew 0.6% sequentially in constant currency.”, said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. “Operating margins expanded 23bps to 16.8% on the back of increased revenues from offshore”.
Offshore revenues increased as total outsourcing engagements secured in Insurance completed their transition phase and moved to production. Insurance grew 2.1% sequentially during the quarter representing 24% of revenue mix. Travel and Transportation segment contributed to 32% of the revenue mix. BFS contributed 18% whereas other segments including Manufacturing and Media contributed to 26% of the mix.
The company experienced strong growth in EMEA which expanded 4% in constant currency, but due to depreciation of GBP and Euro sequential growth reported is 0.6% representing 34% of revenue mix. Revenue share for US stood at 48% whereas APAC and India contributed 10% and 8% respectively to total revenues.
The quarter saw intake of USD 101mn of new business. USD 51mn from EMEA, 38mn from US and 12mn from RoW. 3 new customers were added during the quarter, 1 each in the US, EMEA and APAC.
During the quarter the company successfully executed many projects in digital space. 80 application services and 92 databases were moved from the on-premise Data Centre to the Cloud for a travel client in the UK and the Data Centre was decommissioned successfully. During the quarter under review the company also delivered the final phase of a mortgage solution for a major bank in the APAC region. Further the company enhanced its delivery by leveraging its automation framework “Excelerate” to transition IMS and AMS towers in a large insurance engagement and went live with Robotic IT Operations at a large manufacturing client.
Earlier, this month the company added Joel Lindsey to its leadership team to drive Digital Business globally. Joel joins NIIT Technologies from HP Enterprises where he was leading Digital Transformation globally.
“The company has clear focus on building its digital business, which grew 31% over same period last year”, said Mr. Rajendra S Pawar, Chairman NIIT Technologies Ltd.
Headcount at the end of the quarter stood at to 8,809 and attrition was 12.6%. Utilization stood at 80%.
Conferred with ‘Best in Culture Transformation’ and ‘Best in Rewards and Recognitions’ awards from Hindustan Times Mint and The Guild.
NIIT Technologies has been named as a Strong Performer in Application Outsourcing Capabilities in the report "The Forrester Wave(tm): Application Outsourcing Capabilities of Midsize Offshore Vendors, Q4 2016”.
Positioned as a 'Major Contender' on Everest Group's PEAK (Performance, Experience, Ability and Knowledge) MatrixTM for IT Application Outsourcing Services in Insurance, 2016.
About NIIT Technologies
NIIT Technologies is a leading global IT solutions organization servicing customers across the Americas, Europe, Asia and Australia. Differentiated on the strength of its industry expertise, NIIT Technologies services clients in travel and transportation, banking and financial services, insurance, manufacturing and media verticals, offering a range of services including Application Development and Maintenance, Infrastructure Management, and Business Process Management. Focused on Digital Services, the Company is helping businesses design agile, scalable and digital operating models.
NIIT Technologies adheres to major global benchmarks and standards of quality and Information Security.
For further information, please visit www.niit-tech.com
Certain statements in this release are forward-looking statements. The business involves various risks, and uncertainties that could result in the actual results to differ materially from those indicated here. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
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