Board recommends Dividend of Rs. 12.5 per share
Noida, May 5 2017, Friday: NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced its financial results for the quarter ended in March 31, 2017 with a sequential revenue increase of 7.3% over previous quarter to 744.7 Crores. Operating Profits increased by 31% sequentially to 152.3 Crores and Profit after Tax expanded 60.7% to 100.3 Crores. Operating margins for the quarter jumped 370 bps over previous quarter to 20.5%.
The results for the quarter ended March 31, 2017 are as per notified Ind AS. The published figures for quarter ended March 31, 2016 has been recast to Ind AS.
During the quarter under review, the company received part payment against settlement of a Govt contract which was put on hold resulting in revenue recognition of 27.1 crores for services contracted and reversed provisions amounting to Rs. 13.15 crores provided in Q1 FY17. Revenues excluding the settlement impact reflects a reported sequential growth of 3.4% during the quarter with operating margins expanding 82 bps to 17.6%. Subsequent analysis in the release excludes impact of this settlement.
“The financial year ended on a positive note with robust performance during the quarter”, said Mr. Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd.
BFSI vertical grew 4.1% during the quarter contributing to 42% total revenues. Revenues in Travel & Transportation segment declined 1% sequentially reflecting currency impact on large engagements in EMEA and now represents 31% of the revenue mix. Share of other segments increased to 27% mainly on account of strong seasonal growth in GIS business driven by enhanced traction in the domestic Smart Cities program.
Revenue expanded 5.2% sequentially in the US representing 48% of revenue mix. Revenue share for EMEA stood at 33% reflecting a 0.5% decline due to depreciation of Euro and GBP. In constant currency however EMEA revenues were up 1% during the quarter. ROW contributed 19% to total revenues.
The quarter saw intake of USD 112mn of new business; USD 40mn from US, 47mn from EMEA and 25mn from ROW. 5 new customers were added during the quarter, 2 in BFSI and 3 in Others. This included a 20m plus engagement with a large Airline Group in EMEA.
The company successfully executed many projects in digital space which included a Digital Client Onboarding System for a large insurer in the US, which was recognized by our platform partners Appian as the “Best Overall Application” at their Annual Conference in Appian World 2017.
“Digital business grew 33% in FY17 contributing to 20% of total revenues for the year”, said Mr. Rajendra S Pawar, Chairman, NIIT Technologies Ltd.
Headcount at the end of the quarter stood at to 8,853 and attrition was 12.7% for the year.
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