NIIT Technologies posts strong Q1 results

NIIT Technologies is an India based information technology (IT) company. The Company focuses on customers in the banking, financial services and insurance, travel transportation and logistics, and retail and distribution sectors, offering services in application development and management, enterprise solutions and managed services.

NIIT Technologies recently declared its First Quarter FY 16 result, The gross revenue from operations rose by 4.9 per cent to Rs 641.1 crore from Rs 611.2 crore in the fourth quarter of FY15. The Company’s US business grew by 7.7 per cent sequentially contributing to 45 per cent of overall revenues during the quarter. EMEA’s regional business grew by 4.7 per cent, while the revenue from APAC and India stood at 20 per cent.

The BFSI segment rose by 15.2 per cent sequentially due to growth in new insurance accounts and integration of Incessant and added 15 new clients. The BFSI segment contributes 36 per cent of total revenues. The Travel and Transportation segment is up by 1.5 per cent and contributes to 37 per cent in revenue due to growth in all international top accounts, lower revenues in India post AAI go-live and added 2 new clients. The Manufacturing/Distribution slide by 15 per cent and contributes 6 per cent in revenue due to lower revenues due to delay in contract closure with a client and hybrid cloud at large APAC goes live ahead of schedule. The Government is down by 14 per cent and contributes to 5 per cent in revenue, due to lower revenues on account of lower PFR.

The operating profit rose by 4.5 per cent to Rs 104.2 crore from 997 Rs crore, but the operating profit margins are steady at 16.3 per cent on sequential basis. The net profit after interest and taxes stood at Rs 84.4 crore in Q1 FY16 It faced a loss of 11 crore in the previous quarter.

The YoY (Year on Year)  consolidated revenue increased by 11 per cent to Rs 641.1 in which the operating profit rose by 34.5 per cent to Rs 104.2 crore during Q1FY16. Operating margins rose by 284 basis points to 16.3 per cent on yearly basis. The net profit increased by 35.5 per cent to Rs 58.5 crore Y-o-Y, because of the effective tax rate at 26 per cent of PBT. The net margin stood at 9.1 per cent.

The fresh order intake (from USA, EMEA and ROW countries) increased by 1.6 per cent on sequential basis. The new client addition (in USA, EMEA, APAC and India) increased by 240 per cent on sequential basis.