IT firm NIIT Technologies today reported a 67.4 per cent jump in net profit to Rs 85.8 crore for the first quarter ended June 30, 2018, driven by growth across segments like banking and financial services (BFS) and insurance.
The company had registered a net profit of Rs 51.3 crore in the year-ago period.
NIIT Technologies' revenues grew 16.4 per cent to Rs 824.9 crore in the said quarter from Rs 708.9 crore in the April-June 2017 quarter.
"This strong performance came on the back of growth across all three of our major verticals -- BFS, insurance and travel and transportation... The demand scenario is buoyant," NIIT Technologies Chief Executive Officer Sudhir Singh told PTI.
He added that despite the impact of wage hikes and visa costs -- which are seasonal -- there was an improvement of 21 basis points in operating margins in the said quarter over the same period last year.
Singh said significant increase in new logo acquisition, broad based revenue growth across industry verticals and accelerating order book generation from the western markets has "materially improved the revenue profile of the company".
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Digital revenues grew 53 per cent year-on-year, contributing to 27 per cent of the total revenues.
Singh said fresh business of USD 151 million was secured during the current quarter that includes nine new logos.
Of the fresh business secured during the quarter, USD 69 million was from the US, USD 56 million from EMEA and USD 26 million from Rest of the World.
Order book executable over the next 12 months expanded to USD 347 million.
Asked about the impact of visa-related issues in the US, Singh said, "these changes have introduced an element of time and cost" but will not impact business continuity for the company.
He added that the company has ramped up local hiring, onboarding about 670 people across the US, Europe and Australia over the last two quarters.
In the June 2018 quarter, 341 people were added taking the headcount to 9,764 employees.
In a separate BSE filing, NIIT Technologies said its Chief Financial Officer (CFO) Amit Kumar Garg has resigned from the company.
"Amit Kumar Garg, CFO of the company will be leaving the organisation to pursue other opportunities... His last working day is July 27, 2018," the filing said.
Sanjay Mal, who has been associated with the NIIT Group for over two decades, will succeed Garg as the CFO, taking charge on July 28.
Mal is currently serving as the executive vice president and head (Group Strategic Finance). He was responsible for providing strategic directions to the finance function and reported to respective Boards and Committee in the NIIT Group.
"Sanjay Mal's core expertise lies in corporate finance, treasury, investor relations, large deals structuring, M&A, new ventures development, financial management, risk management and corporate governance," the filing said.
The insurance vertical grew 10 per cent during the quarter (28.5 per cent of total revenues), while the BFS segment registered 8.8 per cent increase during the quarter.
BFS contributed to 16.8 per cent of NIIT Technologies' total revenues.
Revenues from travel and transportation segment was up 7.7 per cent and represented 27.1 per cent of the revenue.
Revenues from the US contributed to 50 per cent, while Europe, Middle East and Africa (EMEA) accounted for 32 per cent of the revenue during the June 2018 quarter.
India and APAC business now represents 8 per cent and 10 per cent, respectively, of the total revenue mix.