NIIT Technologies Q1 FY’17 Revenues up 4.5% YoY
Noida, July 15th 2016, Friday: NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for the quarter ended in June 30, 2016 with a revenue increase of 4.5% over the same period last year to 670.7 Crores. Operating Profits were 101.5 Crores and Profit after Tax is 28.6 Crores.
The results for the quarter ended June 30, 2016 are as per notified Ind AS. The published figures for quarter ended June 30, 2015 has been recast to Ind AS.
APRIL-JUNE FY’17 Quarter Performance at a glance
Profit After Tax
Exceptional item represents provision for all amounts outstanding in respect of a Government contract where the program has been put on hold to resolve project issues.
“International revenues improved marginally during the quarter, revenues declined sequentially mainly on account of seasonality in our domestic GIS business” said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd.
Domestic business declined by 26.5% due to seasonality in GIS and lower revenues from Govt clients and now represents 8% of overall revenues. International business grew by 0.5% during the quarter. Amongst international geographies Americas share increased to 48% on the back of strong growth in BFSI whereas EMEA share declined to 32% mainly due to reduced business in the UK insurance sector. Share of APAC expanded to 12% on execution of Digital Integration programs.
BFSI grew 3.2% sequentially during the quarter increasing the revenue share to 42%. Travel & Transportation share remained same as last qtr at 32%. Manufacturing, Media & Others contributed to 24% and Govt. to 2% of revenues during the qtr.
“Order intake during the quarter was USD 101 m resulting in USD 307 m of order book executable over the next 12 months”, said Mr. Sudhir Chaturvedi, COO, NIIT Technologies Ltd.
4 new customers were added during the quarter, 2 in the US and 2 in EMEA. This includes a Tier 1 airline and a regional insurer in the US. In EMEA, the company secured an IMS engagement with a world leader in Digital Security.
The Company also expanded its relationship with a world leader in youth travel to transform their digital sales channel and secured fresh business in the analytics space from a leading airline in the APAC region.
“Our Digital business continues to see strong traction and now contributes to 18% of revenues”, said Mr. Rajendra Pawar, Chairman NIIT Technologies Ltd
For a major bank, the Company delivered a significant release of a mortgage solution. Program for OFCOM was successfully transitioned using components of the company’s Enterprise Automation Platform “Excelerate”.
Headcount at the end of the quarter stood at to 9,022 and attrition was 13.4%.
NIIT Technologies ranked #5 on customer satisfaction and #3 on providing real business value amongst 27 outsourcing providers in 2016 United Kingdom IT Outsourcing Study by Whitelane Research and PA Consulting Group.
NIIT Technologies emerged as a strong challenger amongst top service providers in the first of its kinds evaluation of agile delivery models according to the Ovum Decision Matrix: Selecting a Distributed Agile Delivery Model for ADM Services, 2016–17 report.
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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