NIIT Technologies announces Q3 FY’17 PAT expands 5.9% sequentially

NIIT Technologies Limited announced its financial results for the quarter ended in Dec 31, 2016 with a sequential revenue increase of 0.1% over previous quarter to Rs. 693.8 Crores. Operating Profits increased by 1.5% sequentially to Rs. 116.2 Crores and Profit after Tax expanded 5.9% to Rs. 62.4 Crores.

The results for the quarter ended December 31, 2016 are as per notified Ind AS. The published figures for quarter ended December 31, 2015 has been recast to Ind AS.

“In a traditionally small quarter for the industry, revenues grew 0.6% sequentially in constant currency.”, said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. “Operating margins expanded 23 bps to 16.8% on the back of increased revenues from offshore”.

Offshore revenues increased as total outsourcing engagements secured in Insurance completed their transition phase and moved to production. Insurance grew 2.1% sequentially during the quarter representing 24% of revenue mix. Travel and Transportation segment contributed to 32% of the revenue mix. BFS contributed 18% whereas other segments including Manufacturing and Media contributed to 26% of the mix.

The company experienced strong growth in EMEA which expanded 4% in constant currency, but due to depreciation of GBP and Euro sequential growth reported is 0.6% representing 34% of revenue mix. Revenue share for US stood at 48% whereas APAC and India contributed 10% and 8% respectively to total revenues.

The quarter saw intake of USD 101mn of new business. USD 51mn from EMEA, 38mn from US and 12mn from RoW. 3 new customers were added during the quarter, 1 each in the US, EMEA and APAC.

During the quarter the company successfully executed many projects in digital space. 80 application services and 92 databases were moved from the on-premise Data Centre to the Cloud for a travel client in the UK and the Data Centre was decommissioned successfully. During the quarter under review the company also delivered the final phase of a mortgage solution for a major bank in the APAC region. Further the company enhanced its delivery by leveraging its automation framework “Excelerate” to transition IMS and AMS towers in a large insurance engagement and went live with Robotic IT Operations at a large manufacturing client.

Earlier, this month the company added Joel Lindsey to its leadership team to drive Digital Business globally. Joel joins NIIT Technologies from HP Enterprises where he was leading Digital Transformation globally.

“The company has clear focus on building its digital business, which grew 31% over same period last year”, said Mr. Rajendra S Pawar, Chairman NIIT Technologies Ltd.

Headcount at the end of the quarter stood at to 8,809 and attrition was 12.6%. Utilization stood at 80%.