NIIT Tech's Q3 net profit falls 10% to Rs 62 cr

IT firm NIIT Technologies today said its net profit declined 10 per cent to Rs 62.4 crore in the December quarter, impacted by seasonal softness and currency volatility.

The company's net profit stood at Rs 69.4 crore in the year-ago period.

Its revenues grew two per cent to Rs 693.8 crore in the reported quarter from Rs 680.2 crore in the October-December, 2015 quarter, as per Indian Accounting Standards (Ind AS).

"The third quarter is traditionally a soft quarter for the industry. Also, there was an emphatic depreciation of the euro and pound versus dollar that affected the numbers," NIIT Technologies CEO and Joint MD Arvind Thakur said.
 

However, the company has been able to expand margins by 23 basis points, which will be stronger in the coming quarter, he added.

Insurance grew 2.1 per cent sequentially during the quarter representing 24 per cent of the revenue mix.

Travel and Transportation segment contributed to 32 per cent of the revenue mix, while BFS and other segments including manufacturing and media contributed to 18 per cent and 26 per cent, respectively.

The company experienced strong growth in EMEA which expanded 4 per cent in constant currency, but due to depreciation of pound and euro, sequential growth reported is 0.6 per cent. It accounted for 34 per cent of the quarter's revenue.

The US accounted for 48 per cent, while APAC region and India contributed 10 per cent and 8 per cent, respectively to total revenues.

The quarter saw intake of USD 101 million of new business -- USD 51 million from Europe, Middle East and Africa (EMEA), 38 million from the US and 12 million from Rest of World (RoW). Three new customers were added during the quarter, 1 each in the US, EMEA and APAC.

"The company has clear focus on building its digital business, which grew 31 per cent over same period last year. It accounted for 19 per cent of the revenues," he said.

Head-count at the end of the quarter stood at 8,809 and attrition rate was 12.6 per cent.