NIIT Technologies gains 6% on healthy Q2 results

The stock moved higher by 6% to Rs 1,214 after the company reported a strong 29% sequential growth in its consolidated net profit at Rs 1,167 million in Q2FY19.

Shares of NIIT Technologies has moved higher by 6% to Rs 1,214 on the BSE in an otherwise subdued market after the company reported a strong 29% sequential growth in its consolidated net profit at Rs 1,167 million in September quarter (Q2FY19). The information technology company had reported a profit of Rs 904 million in the same quarter last fiscal.

Revenue during the quarter under review grew 10% at Rs 9,074 million over the previous quarter. Operating profit margins expanded by 217 bps quarter-on-quarter (q-o-q) to 18% from 15.8% in June quarter.

“The extremely robust 10% sequential revenue growth and the 217 bps sequential improvement in Operating Margin is a reflection of the new normal as we target predictable and fast scaling profitable growth,” said Sudhir Singh, Chief Executive Officer, NIIT Technologies.

“Broad-based derisked growth across all verticals and significant investments in building differentiated capability while simultaneously improving margin profile were the highlights of the quarter,” added Singh.

NIIT Technologies secured a fresh business of US $ 160 million during the quarter which included 10 new logos. Order book executable over the next 12 months expanded to $ 363 million, the company said.

At 01:43 PM; NIIT Technologies was trading 5.6% higher at Rs 1,204 on the BSE, as compared to 0.15% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.06 million equity shares changed hands on the BSE and NSE so far.