NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for Q1 FY18-19 resulting in revenues of ₹824.9 Crores, operating profits at ₹130.6 Crores and net profits at ₹85.8 Crores.
Consolidated revenue for the quarter grew 16.4 % over the same period last year and 4.6% sequentially to ₹824.9 Crores. Operating profits at ₹130.6 Crores represented a growth of 17.9% over the same period last year and were down by 7.8% sequentially. Profit after Tax represents a growth of 67.4% YoY to ₹85.8 Crores.
Table below provides a summary of quarter performance.
"This strong performance came on the back of growth across all three of our major verticals. Operating margins during the qtr. were impacted by wage hikes and visa costs which are seasonal, and improved 21 bps over same period last year," said Mr. Sudhir Singh, Chief Executive Officer, NIIT Technologies Ltd. "Significant increase in new logo acquisition, broad based revenue growth across industry verticals and accelerating order book generation from the western markets has materially improved the revenue profile of the company."
Insurance vertical grew 10.0% during the quarter contributing to 28.5% of total revenues. BFS vertical grew 8.8% during the quarter contributing to 16.8% of total revenues. Revenues in Travel & Transportation segment is up 7.7% and represents 27.1% of the revenue mix. Share of other segments remained at 27.6%.
Revenues from US grew 8.0% sequentially contributing to 50% of the revenue mix. EMEA expanded 6.0% sequentially during the quarter which now contributes to 32% of the mix. India and APAC business now represents 8% and 10% respectively of the total mix.
Fresh business of USD 151 Mn was secured during the current quarter which included 9 new logos. Of the fresh business secured during the quarter, USD 69 Mn was from the US, USD 56 Mn from EMEA and 26 Mn USD from ROW. Order book executable over the next 12 months expanded to USD 347 Mn.
"During the quarter, the company restructured itself to be vertical-centric," said Mr. Arvind Thakur, Vice Chairman and Managing Director, NIIT Technologies Ltd. "Moving the centre of gravity of the leadership to the markets along with this restructuring has enhanced market impact and is driving our growth momentum," he added.
Digital business secured some of its largest wins during the quarter. The company signed material new contracts with a key client in the UK and with one of the largest banks in Australia. A large cloud migration support exercise was secured from an Insurance major as well.
"Digital revenues grew 53% YoY contributing to 27% of the total revenues," said Mr. Rajendra S Pawar, Chairman, NIIT Technologies Ltd.
341 people were added during the quarter taking headcount to 9,764 at the end of the period.
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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.
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.