NIIT Technologies achieves 15.4% Revenue Growth YoY

NIIT Technologies has announced its financial results for the quarter ending June 30, 2013 with a revenue increase of 15.4% over the same period last year to Rs.541.9 crore. Operating profits stood at Rs.78.2 crore, representing a YoY growth of 4.1%. Rs.5.4 crore of dividend tax was paid for repatriation of dividend from overseas subsidiaries during the quarter which contributed to the net profit decline.

The other highlights of the financial results include addition of five new clients during the quarter, two in India, one each in the USA, EMEA and APAC in the Travel and Transportation segment. Total headcount increased to 8,207 at the end of the quarter under review, with steady attrition maintained at 12.36%.

Arvind Thakur, CEO, NIIT Technologies, said, "Revenues grew 0.9% sequentially during the quarter. Robust intake order of US$145 million during the quarter will sustain further growth during the year."

Fresh orders of US$145 million were secured during the quarter leading to US$263 million worth of orders executable over the next 12 months. This includes a $15 million contract renewal with a Travel and Transportation client in USA and a prestigious win of $60 million to implement state-of-the-art Airport Operations Control Centres (AOCCs) across 10 airports in India with the Airports Authority of India. Operating margins declined 202bps sequentially to 14.4% primarily on account of wage hikes implemented from April 1, 2013.

The contribution to the total revenues from the U.S. increased to 39%, while that from EMEA stood at 35%. Among industry segments, Travel and Transportation contributed to 36%, BFSI was 30% and manufacturing/distribution contributed to 7% to the revenue mix.