NIIT Technologies Limited, a leading global IT solutions organization, announced its financial results for Q3 FY2019 resulting in revenues of Rs 971.7 Crores, operating profits at Rs 180.5 Crores and net profits at Rs 100.2 Crores.
Consolidated revenue for the quarter grew 28.5 percent over the same period last year and 7.1 percent sequentially to 971.7 Crores. Operating profits at 180.5 Crore represented a growth of 39.4 percent over the same period last year and 10.4 percent sequentially. Profit after Tax represents a growth of 32.6 percent YoY to Rs 100.2 Crores. PAT declined 10 percent sequentially on account of lower other income in the quarter and increased the effective tax rate.
“This was yet another quarter of robust and profitable growth. We recorded a 7.1 percent sequential revenue growth in the quarter on the back of a 10 percent sequential growth recorded last quarter. Equally important was the fact that operating margins too climbed upto 18.6 percent ” said Sudhir Singh, Chief Executive Officer, NIIT Technologies Ltd. “All operating metrics including revenue, profits, margins, order intake, order executable, number of new logos acquired and headcount continued to scale up and strengthen.”
Insurance vertical grew 9.8 percent during the quarter contributing to 29.6 percent of total revenues. Travel & Transportation vertical grew 5.4 percent during the quarter contributing to 26.5 percent of total revenues. Revenues in BFS segment is up 1.7 percent and represents 15.4 percent of the revenue mix. The growth of other segments is up 8.9 percent and represents 28.5 percent of the revenue mix.
Revenues from EMEA expanded 4.7 percent sequentially during the quarter which now contributes to 33 percent of the revenue mix. US grew 5.9 percent sequentially contributing to 49% of the mix. India and APAC business now represents 18 percent of the total mix.
“Growth has been broad-based with business increasing across all industry segments and geographies,” said Arvind Thakur, Vice Chairman and Managing Director, NIIT Technologies Ltd. “Sustained increase in fresh new business over previous quarters continues to provide a platform for growth.”
The fresh business of USD 165 Mn was secured during the current quarter, which included 10 new logos. Of the fresh business secured during the quarter, USD 96 Mn was from the US, USD 42 Mn from EMEA and 27 Mn USD from ROW. The firm recorded two USD 20Mn+ large deals. The first one was a mandate from a recently acquired client to create an on-demand cloud-based operating environment and platform rollout for a specialty Insurance firm. The other one came from a BFS customer for creating an offshore factory to drive enhancements and rollouts of their core securities processing platform.
Order book executable over the next 12 months expanded to USD 375 Mn.
“The company has sharpened its strategy to transform its client business by engaging at the intersect of deep domain expertise and emerging technologies,” said Rajendra S Pawar, Chairman, NIIT Technologies Ltd.
Digital revenues grew 12.3 percent QoQ sequentially contributing to 29 percent of the total revenues during the quarter. In this quarter we completed the rollout of an end-to-end airport cargo operations handling product across 9 airports, initiated the process construction and technical architecture redesign for an insurance platform implementation, infused AI-based automation in the infra stack of a leading European train service and we helped an Insurance major complete the migration of 5 different Data Centers to the cloud and delivered cloud-based orchestration using the kubernetes framework for an Insurance client.—PR Newswire