NIIT Tech reports 21% drop in net profit to Rs 80 cr for June quarter

NIIT Technologies on Tuesday posted 20.6 per cent decline in net profit at Rs 79.9 crore for June quarter 2020-21.

The IT company had reported a net profit of Rs 100.6 crore in April-June period of the last financial year, NIIT Technologies said in a statement.

Its revenue increased 9.8 per cent to Rs 1,057 crore in the quarter under review as compared with Rs 962.7 crore in the year-ago period.

"Revenues grew 9.8 per cent year-on-year and declined by 4.7 per cent quarter-on-quarter, due to a sharp decline in the Travel and Transport vertical," the company said.

Excluding the Travel and Transport vertical, revenues grew 5.1 per cent sequentially, it added.

The insurance services business grew 1.9 per cent quarter-on-quarter contributing 33.0 per cent to the quarter's revenue. The BFS (banking and financial services) business was up 6.2 per cent sequentially and had 17.2 per cent share in the total revenue.

Other segments collectively expanded 8.6 per cent quarter-on-quarter and represented 30.4 per cent of the overall revenue, NIIT Tech said.

Among geographies, Americas, Europe, the Middle East and Africa (EMEA) and Rest of the World (including Asia Pacific) contributed 47 per cent, 36 per cent and 17 per cent, respectively to the revenue mix.

The company saw an order intake of $186 million with three significant deals secured.

The order book executable over the next 12 months increased to USD 465 million, representing a growth of 18 per cent year-on-year.

The company's ability to grow all non-travel related businesses sequentially and to also secure multiple significant deal wins even during a pandemic-affected quarter demonstrates the tenacity of the 11,000 members of Team NIIT Technologies, CEO Sudhir Singh said.

"The resolve of the team, the sustained deal momentum, ongoing ramp-ups, and the opportunity pipeline combined with very strong operational rigour, give us the confidence of delivering a sequential growth in the next quarter and a growth-led performance for the full year FY'21," Singh added.