NIIT Tech Q1 PAT declines 30% QoQ to Rs 80 cr

The IT firm reported 29.7% decline in consolidated net profit to Rs 79.9 crore on 4.7% decline in revenues to Rs 1057 crore in Q1 June 2020 over Q4 March 2020.

Consolidated revenues during the quarter under review declined sequentially by 6.8% in constant currency terms to Rs 1057 crore. In reported terms, the revenue declined 4.7% sequentially. This reflects the significant Covid-19 pandemic related distress in the travel vertical, which is a substantial contributor to the company's revenues and declined by 31.6% quarter-on-quarter. Excluding the travel vertical, the rest of the firm registered a growth of 3.2% QoQ in constant currency terms and 5.1% in reported terms during the quarter, the company said.

Profit before tax in Q1 FY21 stood at Rs 108.9 crore, down by 31.5% from Rs 159 crore in Q4 FY20. EBITDA fell 9.1% on a year-on-year (YoY) basis to Rs 180.6 crore during the quarter. EBITDA margin was at 17.1% as on 30 June 2020 as against 17.9% as on 31 March 2020.

All other verticals, except Travel, delivered sequential growth in Q1FY21. The Insurance services business grew 1.9% QoQ contributing to 33.0% of the quarter's revenue. The BFS business grew 6.2% sequentially and contributed to 17.2% of total revenue. Other segments collectively expanded 8.6% quarter-on-quarter and they now represented 30.4% of overall revenue.

Among geographies, Americas, EMEA and Rest of the World (including APAC) contributed 47%, 36% and 17% respectively to the revenue mix, respectively, the company said.

NIIT Technologies secured fresh business of $186 million during the quarter, which included a large deal along with two more significant deals. A total of 11 new clients were added during the quarter. On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to $465 million, representing a growth of 18% on a year-on-year (YoY) basis.

Sudhir Singh, Chief Executive Officer, NIIT Technologies, said: "Our ability to grow all non-Travel related businesses sequentially and to also secure multiple significant deal wins even during a pandemic-affected quarter demonstrates the tenacity of the 11,000 members of Team NIIT Technologies. The resolve of the team, the sustained deal momentum, ongoing ramp-ups, and the opportunity pipeline combined with very strong operational rigor, gives us the confidence of delivering a sequential growth in the next quarter and a growth-led performance for the full year FY'21."

Shares of NIIT Tech surged 6.44% to Rs 1880. It had traded in the range of 1774.30 and 1894.35 so far during the day.

NIIT Technologies is a global IT solutions organization servicing customers across the Americas, Europe, Asia and Australia. It services clients in travel and transportation, banking and financial services, insurance, manufacturing and media verticals, offering a range of services including application development and maintenance, infrastructure management, and business process management.

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