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Last Updated : Jul 23, 2019 07:13 PM IST | Source: Moneycontrol.com

NIIT Tech Q1 turns soft, net profit slides 11%

Digital revenue accounted for about 34 percent for the quarter ended June 2019 with year-on-year growth of 46 percent.

 
 
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NIIT Technologies registered consolidated net profit of Rs 83.4 crore, down 11 percent year-on-year for the quarter ended June 30, 2019.

The company's consolidated net profit stood at Rs 93.8 crore for the comparable quarter last year.

Consolidated revenue from operations rose 16.7 percent to Rs 962.7 crore for the April to June 2019 quarter, from Rs 824.9 crore for the same quarter in 2018.

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On sequential basis, the company's revenue went down by 1 percent and net profit down by 18.28 percent.

Its total order intake for the quarter was $175 million. Orders executable over the period of next 12 months is $395 million.

Digital revenue accounted for about 34 percent for the quarter ended June 2019 with year-on-year growth of 46 percent.

While the verticals travel and transportation, insurance and banking and financial services (BFS) improved, other verticals growth declined by 11 percent on account of sale of the geographic information system (GIS) vertical business.

Insurance and transport accounts for about 29 percent and 28 percent of total revenues followed by BFS at 16 percent. Others account for about 27 percent.

Sudhir Singh, CEO, NIIT Technologies said in the earnings call that the company sees softness in the BFS space, primarily in the capital markets. "The softness from the client side as the IT spend is being compressed due to geopolitical pressures," he added.

Total employee count stood at the end of June 2019 was 10,297, up from 9,764 in the same quarter in 2018.  The 10,297 employees include 275 from Whishworks the company acquired and reduction of 363 employees through disinvestment of its GIS arm.

NIIT Tech's attrition rate stood at 12.9 percent.

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First Published on Jul 23, 2019 05:49 pm
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