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NIIT Technologies

BSE: 532541|NSE: NIITTECH|ISIN: INE591G01017|SECTOR: Computers - Software
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Chairman's Speech (NIIT Technologies) Year : Mar '07
During the year 2006-07, the company made 
 strides on all fronts. From improvements in 
 revenues and profitability to expansion in 
 existing and new markets, the Company notched 
 up a strong performance for the year. It gives me
 great pleasure to share with you the key highlights 
 of 2006-07 and the Companys plans for the year ahead.
 
 
 Continued focus in its verticals of choice and
 a concerted effort to emerge as a leader in the 
 chosen verticals through its strategy of Focus 
 and Differentiation,enabled your company to 
 achieve higher traction within the customer 
 community and build mind-share among industry 
 analysts.FINANCIALS
 
 From the time NIIT Technologies spun off as 
 an independent entity within the
 NIIT Group, the company has been building scale 
 in its operations, expanding its
 product portfolio and investing in both organic 
 and inorganic growth initiatives.
 The results for 2006-07 show a strong growth 
 trend with a consistently improvingnet margin.
 
 NIIT Technologies Limited and its subsidiaries 
 posted a consolidated revenue of Rs. 9007 million 
 for the financial year ending March 31, 2007. 
 The year saw revenue from operations touch 
 Rs. 8859 million, up from Rs. 6075 million in the
 previous year, resulting in an annual growth 
 of 46 percent.
 
 
 In terms of geographic mix, the Company 
 continued to post the largest share of
 revenues from Europe, a market it has been 
 focusing on since its inception. The
 Company derives half of its revenues from Europe, 
 32 percent from the Americas and 18 percent from 
 Asia and Australia. The Company strengthened 
 its presence and continued building differentiators
 in the Continent, which is now being targeted as
 the next big business destination for Indian 
 IT-BPO organisations.NIIT Technologies also recorded 
 a healthy growth of 34 percent within the ITESBPO
 market, through its subsidiary NIIT SmartServe 
 Limited concentrating on the same verticals 
 and client sets as the IT services business.
 NIIT SmartServe broke even at operating profit
 level for the very first time. Going forward, 
 this will enable the Company to offer blended, 
 integrated IT-BPO solutions to customers,
 resulting in better economies of scale and better 
 leverage and synergy between both the businesses.
 
 CUSTOMER CONTRIBUTIONS
 
 The Company entrenched itself among key 
 customers across the globe, with expanded contracts
 and improved relationships. The Company evolved 
 from being a vendor, to being a Partner for 
 numerous clients, some of whom completed ten
 years of association with NIIT Technologies.
 It was these deep and enduring relationships 
 with marquee customers that enabled the Company 
 to maintain a healthy project pipeline and keep 
 the order books full. While the top five clients 
 accounted for around 39 percent of the Companys 
 revenues during 2006-07, almost 65 percent of 
 its revenue was realised from the Top 20,
 million dollar customers, who increased in number 
 from 25 to 38. Almost 89 percent of NIIT 
 Technologies revenues were a result of repeat
 business.
 
 
 STRONG VERTICAL FOCUS
 
 NIIT Technologies realised the importance 
 of taking the niche approach, early in
 the day. It was this strategy, of focusing on 
 a handful of verticals and creating an
 edge in these markets, that has enabled NIIT
 Technologies to draw leading global
 organisations into its client fold. Today, 
 while building scale and size, NIIT
 Technologies is also looking at positioning 
 itself as the Best within these chosen
 verticals. During 2006-07, the BFSI remained 
 the largest revenue generator, with
 a share of 42 percent. It was followed by 
 Travel and Transportation, which
 accounted for 25 percent of the revenue and 
 Retail & Manufacturing, with a
 contribution of 12 percent. Our ranking has 
 improved by 3 positions in the
 NASSCOM top 20 exporters list.
 
 SUCCESSFULLY INTEGRATING ROOM SOLUTIONS INTO NIIT
 TECHNOLOGIES
 
 Mergers and Acquisitions, which have remained 
 high on NIIT Technologys radar,
 received a big boost with the acquisition of 
 UK-based ROOM Solutions Limited by
 NIIT Technologies in 2006. During 2006-07, 
 the integration of ROOM Solutions
 was successfully completed. ROOM has brought 
 special domain skills and
 solutions in the area of commercial insurance 
 to NIIT Technologies, as well as a
 strong base of UK customers into the 
 client portfolio.
 
 ADECCO NIIT TECHNOLOGIES JOINT VENTURE
 
 During the year 2006-07, your company entered 
 into a 50:50 joint venture with
 Ajilon holding Europe BV, a subsidiary of Adecco, 
 SA, a Fortune Global 500
 
 company and the global leader in Human Resources 
 services. This JV will focus
 on delivering world-class application software 
 development and maintenance
 solutions to Adeccos clients around the world 
 and provide the opportunity to
 service a new segment of customers.
 
 BUILDING PEOPLE RESOURCES AND INFRASTRUCTURE
 
 At the end of the financial year, NIIT Technologies' 
 IT services and BPO employee numbers stood at 4448, 
 up from 3543 in the previous year. Of this, 829
 professionals were from the BPO business.
 NIIT Technologies efforts to become a People-centric 
 organisationencompassing innovative HR strategies, 
 Best Practices and unique approaches to
 attracting and retaining talentsbore fruit, 
 with the Company attracting high
 caliber talent at all levels.
 Besides People, the Company also expanded its 
 infrastructure during the year. At
 the end of the financial year 2007 the Company 
 has an offshore development
 capacity of over 300,000 square feet. Already, 
 it has scaled its capabilities in the
 Kolkata region and the construction of its campus 
 in Greater Noida is proceeding
 at a rapid pace.
 
 FUTURE PLANS
 
 Going by the current performance, I am confident 
 that your Company has a very bright futureone that
 holds out higher value for all stakeholders.
 
 With the Software Industry showing greater 
 strength and an ever-increasing global reputation, 
 it is an opportune time to invest in enhancing 
 scale and sharpening competencies in identified 
 areas.I take this opportunity to congratulate 
 and thank all NIITians who are playing a
 key role in building this the organisation.
 And finally, I thank you all for supporting and 
 encouraging us to put in our best.
 
Source : Dion Global Solutions Limited
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