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NIIT Technologies Q1 net profit up 6% to Rs 89 cr in June quarter

Gross revenue rose 19.9 per cent to Rs 959.7 crore in the quarter under review from Rs 800.5 crore in the year-ago period

NIIT Tech

IT firm NIIT Technologies Ltd (NTL) on Tuesday said its consolidated net profit increased 6 per cent to Rs 89 crore in the quarter ended June 30, 2019.

The net profit, which excludes the contribution of NTL's GIS business, stood at Rs 84 crore in April-June 2018 quarter, NTL said in a regulatory filing.

Gross revenue rose 19.9 per cent to Rs 959.7 crore in the quarter under review from Rs 800.5 crore in the year-ago period.

In April, NTL had agreed to sell its 88.99 per cent stake in Esri India Technologies Ltd to Environmental Systems Research Institute, Inc (Esri, Inc) for Rs 89.7 crore.

"...hence from FY20, the business will be monitored excluding GIS (geographic information system)," it said.

Including the GIS business, NTL's consolidated net profit grew 2 per cent to Rs 87.6 crore in the June 2019 quarter from the year-ago period, while revenue from operations grew 16.7 per cent year-on-year to Rs 962.7 crore.

The digital business accounted for 34 per cent of the company's revenues, reflecting sequential growth of 12 per cent and year-on-year growth of 46 per cent.

Shares of the company Tuesday closed at Rs 1,353.65 apiece, 0.71 per cent higher from the previous close on the BSE.

NIIT Technologies said it added 11 new customers in June 2019 quarter. Its order intake was $175 million (about Rs 1,200 crore), leading to $395 million (about Rs 2,700 crore) of firm business executable over the next 12 months.

It added 34 people (net) during the June 2019 quarter, taking its total headcount to 10,297 people. The attrition was at 12.98 per cent during the quarter.

In April, funds affiliated with Baring Private Equity Asia (BPEA) had bought about 30 per cent stake in NIIT Technologies from NIIT Ltd and other promoter entities for about Rs 2,627 crore.

The deal triggered an open offer under which BPEA is to now acquire up to 21.8 million shares (35 per cent stake) at Rs 1,394 apiece in the IT firm for up to Rs 3,045.4 crore. The open offer started on July 15 and will close on July 26.