NIIT Tech swings back to profit at Rs 79 cr in Q4

IT solutions provider NIIT Technologies today reported a consolidated net profit of Rs 79 crore for the March quarter on the back of strong growth in the US and banking and financial services vertical.
The company had registered a net loss of Rs 17.5 crore in January-March 2015 on account of certain exceptional items.
NIIT saw revenues grow 12 per cent to Rs 684.7 crore in the reported quarter, from Rs 611.2 crore in the year-ago period.
"We saw a strong growth in our international business, especially in the US as well as the BFSI vertical... Margins expanded as we reduced our focus on government and domestic business," NIIT Technologies CEO Arvind Thakur told PTI.

For the fiscal, net profit zoomed 145 per cent to Rs 280 crore while revenues moved up 13.1 per cent to Rs 2,682 crore.
The company's BFSI vertical grew 29 per cent during the year, increasing the revenue share to 38 per cent from 33 per cent last year.

Travel and transportation contributed 35 per cent of revenues while the manufacturing / distribution share stood at 8 per cent and business from the government at 4 per cent.
Revenues from the Americas grew 17 per cent, representing 46 per cent of the total revenue mix.
The figure for Europe, the Middle East and Africa grew by 8 per cent during the year, contributing 34 per cent to the revenue, while the Asia-Pacific accounted for 10 per cent of the total revenue mix.

"India revenue share reduced to 10 per cent, declining 14 per cent year-on-year, as a result of reduced focus on government business," he said.
The CEO added that the company received fresh orders of USD 120 million during the said quarter, taking the cumulative figure to USD 301 million worth of orders executable over the next 12 months.
"The order intake includes a new multi-year large transformational outsourcing engagement with an insurance client in Europe and another multi-million dollar new insurance logo acquired in the US, Thakur said.
NIIT added 4 new clients during the quarter -- 2 each in the Americas and the Asia-Pacific.

The digital segment contributed to 16 per cent of the overall revenue mix during the quarter.
The company's headcount came down by 40 to 9,476 at the end of the period under review. The attrition rate stood at 12.7 per cent.