NIIT Technologies Q2 net profit jumps 66% to Rs 111.8 cr on strong demand across BFSI, travel, transportation

New Delhi: NIIT Technologies on Wednesday reported 66.3 percent jump in net profit to Rs 111.8 crore for the quarter ended 30 September, 2018, driven by strong demand across sectors like BFSI and travel and transportation. The company had registered a net profit of Rs 67.2 crore in the year-ago period, it said in a regulatory filing. The company’s revenues grew 23.1 percent to Rs 907.4 crore in the reported quarter from Rs 737.2 crore in the year-ago period. On sequential basis, net profit was up 30.3 percent, while revenue was higher 10 percent. Digital revenues grew 11.6 percent sequentially contributing to 28 percent of the total revenues. [caption id=“attachment_759939” align=“alignleft” width=“380”] Representational image. PTI[/caption] Speaking to PTI, NIIT Technologies CEO Sudhir Singh said the growth has been driven by the restructured leadership team, differentiated strategy and focussed execution by the team. “The extremely robust 10 percent sequential revenue growth and the 217 basis points sequential improvement in Operating Margin is a reflection of the new normal as we target predictable and fast scaling profitable growth,” he said. Singh noted that the recent rupee fall has not had a major impact on the numbers as on a constant currency basis, the company saw 7.6 percent sequential growth. He added that “broad-based de-risked growth” across all verticals and significant investments in building differentiated capability, while simultaneously improving margin profile were factors contributing to the strong set of numbers. Singh said the deal pipeline remains strong across geographies with acceleration in demand for digital services. The company booked fresh business of $160 million during the quarter, which included 10 new logos. Of this, $86 million was from the US, $39 million from EMEA and $35 million from Rest of the World (RoW). Order book executable over the next 12 months has expanded to $363 million, the company said. “Significant increase in new logo acquisition, accelerating order book generation and new leadership firmly in position have materially improved the business profile of the company,” said Arvind Thakur, Vice Chairman and Managing Director at NIIT Technologies. The company added 261 people during the quarter, taking total headcount to 10,025 at the end of September. The insurance vertical grew 11.2 percent during the quarter (contributing to 28.8 percent of total revenues), while banking and financial services vertical registered 6.2 percent growth (accounting for 16.2 percent of total revenues). Revenues in travel and transportation segment were up 9.2 percent at the end of the September quarter and represented 26.9 percent of the revenue mix. Revenues from Europe, Middle East and Africa (EMEA) contributed 34 percent, while the US accounted for 49 percent of the mix. These markets grew 16 percent and 8.4 percent on sequential basis, respectively. India and APAC business accounted for 8 percent and 9 percent, respectively of the total mix.