NIIT Tech Q2 net at Rs 59 cr, India business declines 7.2%

Strong growth in western geographies with traction in both key verticals of BFSI and travel and transportation resulted in 4.6 percent growth in the US with revenue share of 49 percent and 7.9 percent sequential growth in EMEA with revenue share of 33 percent to total revenues.
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Oct 17, 2016, 05.04 PM | Source: Moneycontrol.com

NIIT Tech Q2 net at Rs 59 cr, India business declines 7.2%

Strong growth in western geographies with traction in both key verticals of BFSI and travel and transportation resulted in 4.6 percent growth in the US with revenue share of 49 percent and 7.9 percent sequential growth in EMEA with revenue share of 33 percent to total revenues.

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NIIT Tech Q2 net at Rs 59 cr, India business declines 7.2%

Strong growth in western geographies with traction in both key verticals of BFSI and travel and transportation resulted in 4.6 percent growth in the US with revenue share of 49 percent and 7.9 percent sequential growth in EMEA with revenue share of 33 percent to total revenues.

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NIIT Tech has posted consolidated net profit of Rs 58.9 crore in July-September from Rs 28.6 crore in last quarter. During the quarter, its consolidated total income was at Rs 693 crore from Rs 671 crore quarter-on-quarter.

Its operating profits increased by 12.8 percent sequentially to Rs 114.5 crore and profit after tax stood at Rs 58.9 crore.

“Revenues grew 3.5 percent sequentially in constant currency driven by expansion of business in western geographies specifically in our insurance and travel segments”, said Arvind Thakur, CEO and Joint MD.

Strong growth in western geographies with traction in both key verticals of BFSI and travel and transportation resulted in 4.6 percent growth in the US with revenue share of 49 percent and 7.9 percent sequential growth in EMEA with revenue share of 33 percent to total revenues.

“Increase in revenues and decline in SG&A expenses resulted in expansion of operating margins by 139 basis points bps to 16.5 percent in the quarter”,”a company statement said.

Geography-wise, APAC contributed to 11 percent to total revenues, whereas India business declined by 7.2 percent due to lower revenues from India Government leading to revenues share of 7 percent.

Segment-wise, BFSI grew 3.4 percent sequentially during the quarter increasing the revenue share to 42 percent, 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 percent resulting in revenue share of 33 percent. Manufacturing, media and other segments contributed to 25 percent 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.

Headcount at the end of the quarter stood at to 8868and attrition was 12.9 percent. Utilisation improved to 81 percent.

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NIIT Tech Q2 net at Rs 59 cr, India business declines 7.2%

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