Buy NIIT Technologies; target of Rs 1425: Dolat Capital

Dolat Capital's research report on NIIT Technologies

USD revenue (Ex Hedge Gain) grew 5.8% QoQ to USD 132mn (DCMe: USD 128mn) led by healthy organic growth and client addition. INR revenue improved 10% QoQ to ` 9.07bn (DCMe: ` 8.98bn) positively impacted by rupee depreciation. EBIT margin improved 243bps QoQ to 14.5% (DCMe: 13.1%) on account of operational efficiencies and positive impact of INR depreciation. PAT improved 30.3% QoQ at ` 1,118mn (DCMe: ` 1,008mn) on back of healthy margins.

Outlook

NITEC is expected to maintain strong growth momentum above peers and industry averages led by traction in key focus verticals like BFSI and travel; the company has invested heavily in the BFSI vertical in Euro area in terms of hiring senior level sales/consultants which is paying rich dividends (Euro geo grew 12.4%QoQ).

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