NIIT Technologies net up 14% in Q2

Global IT solutions provider NIIT Technologies Ltd on Wednesday reported Rs 67-crore net profit for the second quarter (Q2) of fiscal 2017-18, posting 14 per cent growth from Rs 59 crore in the same period year ago.

"Consolidated revenue for the quarter under review (Q2) at Rs 737 crore was up 6.4 per cent from Rs 693 crore in the like period year ago and 4 per cent up sequentially from a quarter ago," said the NCR-based company in a statement here.

Operating profit at Rs 119 crore was up 4 per cent from Rs 115 crore year ago and 7.5 per cent up sequentially from a quarter ago.

"Robust sequential growth during the quarter came on the back of strong growth in the US, APAC and India," said Chief Executive Officer Arvind Thakur on the occasion.

Operating margin expanded 53 basis points sequentially to 16.2 per cent for the quarter.

Revenue from the US market, which contributes to 50 per cent of the mix, grew 5.5 per cent sequentially, while APAC and India accounted for 11 per cent and 10 per cent, respectively.

Revenue from Europe, Middle East and Africa (EMEA), however, declined 4.8 per cent sequentially owing to ramp down in a travel client, resulting in the share of region being 29 per cent of the total mix.

Among verticals, revenue from the BFSI (Banking, Financial Services and Insurance) segment had a good traction to increase 5.6 per cent sequentially during the quarter and accounted for 42 per cent of the revenue.

Revenue from travel and transportation was 27 per cent of the overall revenue, while manufacturing, media and other segments contributed 31 per cent on ramping up digital engagements in the US.

"Deal momentum has been strong during the quarter, with $122 million new business and addition of 7 new clients," said CEO-designate Sudhir Singh in the statement.

Digital business gained traction, with 3 of the 7 new logos secured in the digital integration space.

"Digital business grew 14 per cent sequentially to contribute 23 per cent of the total revenue", said NIIT Chairman Rajendra S. Pawar.

The company, however, added only 59 techies, taking its headcount to 9,022 for Q2.

--IANS

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