NIIT Technologies Limited a leading global IT solutions organization, today announced its financial results for Q3 FY2019 resulting in revenues of ₹971.7 Crores, operating profits at ₹180.5 Crores and net profits at ₹100.2 Crores.
- Robust revenue growth -- Revenues up 28.5% YoY and 7.1% QoQ
- Strong improvement in Operating Profits, by 39.4% YoY and 10.4% QoQ
- Operating Margins expand by 145 bps YoY and 56 bps QoQ
- Fresh Order Intake expands to USD 165 Mn
Consolidated revenue for the quarter grew 28.5 % over the same period last year and 7.1% sequentially to 971.7 Crores. Operating profits at 180.5 Crore represented a growth of 39.4% over the same period last year and 10.4% sequentially. Profit after Tax represents a growth of 32.6% YoY to ₹100.2 Crores. PAT declined 10% sequentially on account of lower other income in the quarter and increased effective tax rate.
Table below provides a summary of quarter performance.
Profit After Tax
“This was yet another quarter of robust and profitable growth. We recorded a 7.1% sequential revenue growth in the quarter on the back of a 10% sequential growth recorded last quarter. Equally important was the fact that operating margins too climbed upto 18.6% ” said Mr. Sudhir Singh, Chief Executive Officer, NIIT Technologies Ltd. “All operating metrics including revenue, profits, margins, order intake, order executable, number of new logos acquired and headcount continued to scale up and strengthen.”
Insurance vertical grew 9.8% during the quarter contributing to 29.6% of total revenues. Travel & Transportation vertical grew 5.4% during the quarter contributing to 26.5% of total revenues. Revenues in BFS segment is up 1.7% and represents 15.4% of the revenue mix. Growth of other segments is up 8.9% and represents 28.5% of the revenue mix.
Revenues from EMEA expanded 4.7% sequentially during the quarter which now contributes to 33% of the revenue mix. US grew 5.9% sequentially contributing to 49% of the mix. India and APAC business now represents 18% of the total mix.
“Growth has been broad based with business increasing across all industry segments and geographies” said Arvind Thakur, Vice Chairman and Managing Director, NIIT Technologies Ltd. “Sustained increase in fresh new business over previous quarters continues to provide a platform for growth.”
Fresh business of USD 165 Mn was secured during the current quarter, which included 10 new logos. Of the fresh business secured during the quarter, USD 96 Mn was from the US, USD 42 Mn from EMEA and 27 Mn USD from ROW. The firm recorded two $20Mn+ large deals. The first one was a mandate from a recently acquired client to create an on-demand cloud based operating environment and platform rollout for a specialty Insurance firm. The other one came from a BFS customer for creating an offshore factory to drive enhancements and rollouts of their core securities processing platform.
Order book executable over the next 12 months expanded to USD 375 Mn.
“The company has sharpened its strategy to transform its client business by engaging at the intersect of deep domain expertise and emerging technologies” said Rajendra S Pawar, Chairman, NIIT Technologies Ltd.
Digital revenues grew 12.3% QoQ sequentially contributing to 29% of the total revenues during the quarter. In this quarter we completed the rollout of an end-to-end airport cargo operations handling product across 9 airports, initiated the process construction and technical architecture redesign for an insurance platform implementation, infused AI based automation in the infra stack of a leading European train service and we helped an Insurance major complete the migration of 5 different Data Centers to the cloud and delivered cloud based orchestration using the kubernetes framework for an Insurance client.
119 people were added during the quarter taking headcount to 10,144 at the end of the period.