NIIT Q1 net jumps 35% to Rs 58 cr

Mid-tier IT services firm NIIT Technologies reported a 35.5% jump in net profit at Rs 58.5 crore for the three months ended 30 June 2015 compared to the same period last year. The growth in profits came on back of a 11% year-on year increase in revenue to Rs 641.1 crore.

“The quarter witnessed robust 8.9% sequential growth in international geographies which helped maintain operating margins at 16.3% despite wage hikes,” said Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd. With the integration of Incessant Technologies, the company acquired 15 new clients, added Sudhir Chaturvedi, COO, NIIT Technologies Ltd. “In all 17 new logos were added during the quarter," he said.

Business in the US grew 7.7% sequentially contributing to 45% of overall revenues during the quarter. EMEA grew by 4.7% contributing to 35% of the mix, and the revenue share from APAC and India stood at 20%.

Among industry segments, banking and financial services grew 15.2% sequentially due to growth in new insurance accounts and integration of Incessant. BFSI now contributes to 36% of total revenues, travel and transportation to 37%, manufacturing/distribution to 6% and government to 5% of the revenue mix.

Order intake during the quarter was $97 million resulting in $300 million of order book executable over the next 12 months. The company said that it added 734 people during the quarter taking the total headcount to 9,228 at the end of the quarter while the rate of attrition declined to 14.30%.