NIIT Tech Q1 net profit surges 79% to 51.3 cr

NIIT Technologies today reported 79.5 per cent jump in consolidated net profit to Rs 51.3 crore for the first quarter ended June 30, 2017.
NIIT's net profit stood at Rs 28.6 crore in the year-ago period.
The company's revenues increased by 5.7 per cent to Rs 708.9 crore in the said quarter from Rs 670.7 crore in the April-June period last year.
On a sequential basis, the net profit declined 30.7 per cent and revenues were down 1.2 per cent from March 2017 quarter as a result of the seasonal decline in the GIS business and adverse impact of currency, NIIT Technologies said.

The company, in the January-March 2017 quarter, had also included a one-time settlement amount of Rs 27 crore on account of a project that was put on hold.
Talking about the financials, NIIT Technologies CEO and Joint MD Arvind Thakur said the company saw increased traction during the quarter in smaller segments, including manufacturing and media.

The quarter saw intake of USD 110 million of new business with USD 60 million worth of orders coming from the US, 23 million from Europe, Middle East and Africa (EMEA) and 27 million from Rest of the world. The company added 9 new customers during the quarter.

Thakur said the company added 110 people during the quarter, taking headcount to 8,963 at the end of June quarter.
Of the total headcount, about 1,000 people are in the US alone.
"We will increase the number based on the business requirement. The focus is also on reducing dependence on (work) visas," he added.
In terms of segments, manufacturing, media and others collectively represented 29 per cent of total revenues. BFSI accounted for 42 per cent of the revenue, while travel and transportation contributed to 29 per cent.
During the quarter, NIIT Technologies also strengthened its position in the digital integration space with the acquisition of 55 per cent stake in US-based RuleTek LLC.

"This has helped us establish a near shore presence in the US... Also, digital accounted for 21 per cent of the revenues this quarter," Thakur said.
Revenues in the US represented 49 per cent of revenue mix, while EMEA accounted for 32 per cent.
Shares of NIIT Technologies were trading at Rs 543.80 apiece in late afternoon trade, down 1.11 per cent from its previous close on the BSE.