NIIT Technologies Q2 FY’17 Revenues up 3.3% sequentially
Secures fresh orders of USD 143 m
Noida, October 15th 2016, Saturday: NIIT Technologies Limited(NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for the quarter ended in Sept 30, 2016 with a sequential revenue increase of 3.3% over previous quarter to Rs 692.9 Crores. Operating Profits increased by 12.8% sequentially to Rs 114.5 Crores and Profit after Tax stood at Rs 58.9 Crores.
The results for the quarter ended Sept 30, 2016 are as per notified Ind AS. The published figures for quarter ended Sept 30, 2015 has been recast to Ind AS.
Quarter Performance at a glance
Profit After Tax
“Revenues grew 3.5% sequentially in constant currency driven by expansion of business in western geographies specifically in our Insurance and Travel segments”, said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. “Increase in revenues and decline in SG&A expenses resulted in expansion of operating margins by 139 bps to 16.5% in the quarter”.
Strong growth in western geographies with traction in both key verticals of BFSI and Travel and Transportation resulted in 4.6% growth in the US with revenue share of 49% and 7.9% sequential growth in EMEA with revenue share of 33% to total revenues. APAC contributed to 11% to total revenues, whereas India business declined by 7.2% due to lower revenues from India Government leading to revenues share of 7%.
BFSI grew 3.4% sequentially during the quarter increasing the revenue share to 42%, growth being led by Insurance in US with both existing and new clients scaling well. Travel and Transportation registered an even stronger growth of 6% resulting in revenue share of 33%. Manufacturing, Media , and other segments contributed to 25% of revenues.
The quarter saw strong intake of fresh new business of USD 143 m. This included renewal of a large engagement with a media client in the US and also a large IMS contract from a new insurance client in the UK. During the quarter 3 new customers were added, 1 in the US and 2 in EMEA.
“Our Digital business continues to see strong traction and now contributes to 19% of revenues”, said Mr. Rajendra Pawar, Chairman NIIT Technologies Ltd
Headcount at the end of the quarter stood at to 8,868 and attrition was 12.9%. Utilization improved to 81%.
- NIIT Technologies won Aecus Innovation award for delivering ‘Uninterrupted Business and IT operations at Multiple Airports during Unprecedented Crisis’ for Airports Authority of India (AAI)
- NIIT Technologies has been identified as a ‘High Achiever’ in NelsonHall's NEAT Vendor Evaluation for Software Testing
- The Company has been conferred with Operational Excellence & Quality and BPO Innovation of the Year awards from Asia Outsourcing Excellence
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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