NIIT Continues To Outperform. Nonetheless, Be Cautious
Sagar Lele / 20 Jul 2012
NIIT Technologies posted their Q1 results on July 19, 2012, beating analysts’ expectations. The topline of the firm grew by 5.89 per cent sequentially, reaching Rs 469.6 crore in Q1FY13 from Rs 443.5 crore in Q4FY12. The net profit of the firm rose by 24.46 per cent sequentially to Rs 57.5 crore from Rs 46.2 crore.
Financials For Q1FY13 And Q4FY12
| Q1 FY13 | Q4 FY12 | |
|---|---|---|
| Rs Crore | ||
| Gross Revenue | 469.6 | 443.5 |
| Operating Profit | 75.1 | 74.5 |
| PBT | 83.5 | 58.8 |
| PAT | 57.5 | 46.2 |
| Sequential Growth | % | |
| Gross Revenue | 5.89 | 2.42 |
| Operating Profit | 0.81 | -4.49 |
| PBT | 42.01 | -31.87 |
| PAT | 24.46 | -27.81 |
| Margins | % | |
| Operating Profit | 15.99 | 16.80 |
| PBT | 17.78 | 13.26 |
| PAT | 12.24 | 10.42 |
The operating profit saw a growth of only 0.81 per cent due to the currency depreciation benefits being transferred to hike wages. The net profit margin of the company for Q1FY13 was 12.24 per cent, which is higher than the 10.42 per cent seen in Q4FY12.
The company announced that it had bagged fresh orders of USD 83 million in Q1FY13. Of these new orders, the U.S., EMEA, Asia Pacific and India contributed USD 25 million, USD 30 million and USD 28 million. The company has been seeing strong growth from the Asian markets.
NIIT Technologies has been taking a segment-centric approach which has helped it gain robust performance in the segment and has also helped boost overall revenues as well. The transport vertical alone constitutes up to 40 per cent of its revenues. It has successfully built and implemented various platforms used across the industry.
In terms of the services provided though, there was no change in any of the services in terms of revenue contribution and mix. NIIT Technologies added five new clients, evenly distributed across geographies.
Revenue Mix According To Verticals
| Vertical | Q1FY13 | Q4FY12 |
|---|---|---|
| BFS | 13 | 13 |
| Insurance | 21 | 21 |
| Transport | 40 | 39 |
| Manufacturing | 7 | 6 |
| Government | 8 | 7 |
| Others | 11 | 14 |
Revenue Mix According To Geography
| Geography | Q1FY13 | Q4FY12 |
|---|---|---|
| Americas | 36 | 37 |
| EMEA | 39 | 37 |
| Asia Pacific | 13 | 13 |
| India | 12 | 13 |
NIIT Technologies’ performance has been consistently growing over time. The firm’s revenue grew by 27.93 per cent in FY12 to Rs 1,576.5 crore from Rs 1,232.3 crore in FY11. This growth has been higher than the IT majors and has been in line with the outperforming mid-cap IT firms.
Due to this outperformance of mid-cap IT firms, the entire clan’s stock prices have witnessed YTD returns of over 50 per cent. In the case of NIIT Technologies, the return on stocks for the fiscal has been to the extent of 59.26 per cent. We have an optimistic view towards the growth figures of all these companies but looking at the capital appreciation seen over time, we would recommend investors to be extremely cautious and watchful while investing in them.
Financials For FY12 And FY11
|
| FY12 | FY11 |
|
|---|---|---|---|
|
| Rs Crore | % Change | |
| Gross Revenue | 1,576.5 | 1,232.3 | 27.93 |
| Operating Profit | 268.4 | 240.4 | 11.65 |
| PBT | 260.2 | 217.7 | 19.52 |
| PAT | 197.2 | 182.2 | 8.23 |
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.