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NIIT Tech Q3 Net Profit Rise by 54 Per cent

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IT firm NIIT Technologies on Friday said its net profit has increased 53.9% to Rs74.2 crore for the December quarter on the back of better operational efficiency and improved tax rates. The company’s net profit stood at Rs48.2 crore in the same period last fiscal.

“The growth came on multiple accounts. We saw expansion of operating margins by 60 basis points. Also, there was an improvement in tax rates and benefit from higher other income,” Arvind Thakur, CEO and Joint MD, NIIT Technologies told PTI.

For the reported quarter, NIIT saw its revenues grow by 14% to Rs678.7 crore as against Rs595.3 crore in the year-ago period.

In terms of geographies, the US contributed 46% to overall revenues, while Europe, the Middle East and Africa (EMEA) accounted for 34%. Asia Pacific’s contribution was 10% to the revenues. Revenues from India contributed 10% of the mix.

Among various industry segments, BFSI grew by 2.1% contributing 38% to total revenues, while travel and transportation revenues declined by 3.7% (36% of revenue mix).

“The order intake during the quarter was $123 million resulting in $301 million of order book executable over the next 12 months. We see a good deal pipeline ahead,” Thakur said.

The digital segment accounted for 15% of the company’s revenues and this sector will see a strong momentum in the ongoing quarter, he added. Durind the reported quarter, the company added 4 new logos (clients), including a large engagement from the UK regulator Ofcom.

The company’s headcount stood at 9,517 at the end of the quarter, with utilisation of direct resources at 78.7%. The attrition rate was recorded at 13.6%.

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