NIIT Technologies Q1 FY’18 Revenues up 5.7% YoY
PAT rises 79.5% over previous year
Noida, July 20th 2017, Thursday: NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for the quarter ended in June 30, 2017 with revenue increasing by 5.7% over same period last year to Rs. 708.9 Crores. Operating Profits expanded by 9.1% YoY to Rs. 110.8 Crores and Profit after Tax jumped 79.5% to Rs. 51.3 Crores.
Qtr. performance at a glance
Profit After Tax
In the previous quarter the company had concluded the consultation process for a government client where a project was put on hold and the settlement provided a onetime improvement in revenues and margins. Excluding the impact of this settlement in the last quarter, revenues declined 1.2% sequentially as a result of the seasonal decline in the GIS business and adverse impact of currency. However momentum in international business saw revenues expand sequentially for the company in constant currency. Revenues in US grew 4.3% sequentially in constant currency representing 49% of revenue mix on reported basis. Revenue share for EMEA stood at 32%. APAC contributed to 10% of total revenues also exhibiting strong growth of 9.8% in constant currency.
“Despite seasonal decline in our domestic GIS business, revenues during the quarter grew 1.4% sequentially in constant currency excluding the impact of the settlement in the previous quarter”, said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd.
The company saw increased traction during the quarter in smaller segments including Manufacturing & Media. Manufacturing, Media & Others segment collectively grew by 4.2% in constant currency and now represents 29% of total revenues. BFSI grew 1.7% sequentially in constant currency contributing to 42% of revenue mix. Travel & Transportation contributed to 29% of overall revenues.
The quarter saw intake of USD 110mn of new business; USD 60mn from US, 23mn from EMEA and 27mn from ROW. 9 new customers were added during the quarter, 5 in US, 1 in EMEA and 3 in ROW. This included extension of a large multiyear engagement with an existing travel client in the US.
During the quarter, the company strengthened its position in the Digital Integration space with the acquisition of 55% interest in RuleTek LLC, a BPM architecture services company based in the US with a track record of successful implementations for fortune 500 companies, thereby establishing a near shore presence with an increased foot print in the US.
During this quarter, the company also forged a partnership with Arago, a pioneer in Artificial Intelligence (AI) to integrate AI technology into its TRON SMART AUTOMATION platform thereby building machine learning capabilities into the offering.
“Our partnerships and investments in platform capabilities will deliver superior experience to our clients”, said Mr. Rajendra S Pawar, Chairman, NIIT Technologies Ltd.
110 people were added during the quarter taking headcount to 8963 at the end of the period.
NIIT Technologies has been positioned as a Major Contender and a Star Performer in Everest Group’s Capital Markets PEAK MatrixTM 2017
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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