NIIT Technologies reports 1.9% sequential growth in Q2 FY15
New Delhi, India, October 15, 2014: NIIT Technologies Limited, a leading global IT solutions organization, today announced its financial results for the quarter ended in September 30, 2014 with a 1.9% sequential increase in revenues to 588.3Crores. Operating Profits increased 6.1% sequentially to 82.2Crores and Profit After Tax stood at 40.1 Crores.
Following the successful implementation of the Airport Operations Control Centre (AOCC) at Chennai Airport last quarter, the Company also successfully implemented the AOCC in Kolkata in this quarter. Increased depreciation due to capitalization of assets as a result of AOCC’s at Chennai and Kolkata going live, and loss in other income due to currency fluctuations has resulted in decline in net profits.
“International business for the Company reported a sequential growth of 5.6% during the quarter”, said Arvind Thakur, CEO and Joint MD, NIIT Technologies Ltd.
Americas contributed to 44% of revenues, EMEA to 38% of revenues, APAC to 7% and India to 11%. Completion of build phase in large Government Systems Integration projects and their movement to Operations and Maintenance phase resulted in domestic business reducing by 20.7% in the quarter.
Softness in the Insurance business in the Americas resulted in reduction in BFSI mix to 33% of revenues whereas Travel and Transportation grew 9.5% sequentially to represent 42% of overall revenues. Manufacturing/Distribution contributed to 7% and Government business accounted for 3% of revenues in the quarter.
“The Company added five new clients, four in Americas, wherein three are in the Travel and Transportation segment and one in BFSI; and one in the Government vertical in India,” said Mr. Sudhir Chaturvedi, COO, NIIT Technologies Ltd. “USD 103mn of new orders were secured during the quarter.”
USD 298mn worth of fresh business is executable over the next 12 months.
On October 1 2014, the Company launched +ADVANTAGEsuite, the next generation commercial insurance platform designed to drive underwriting profitability. +ADVANTAGEsuite’s highly configurable business user led platform readily adapts to the needs of specific classes of business, allowing new lines to be brought to market quickly.
The board approved the appointment of Ms. Holly Morris as a non-executive additional director of NIIT Technologies Ltd.
Ms. Morris has a reputation for developing enterprise level strategies and implementing transformative process improvements in support of business growth. For the last 25 years, Ms. Morris’s career has spanned corporate boards, Fortune 500 and global financial services organizations. In her last corporate role she was the CIO at Thrivent Financial, a Fortune 500 financial services organization. Prior to Thrivent she served as Sr. VP of Technologies at American Express Global Financial Services. She also held CIO and CTO positions at ING.
“We are pleased to induct Holly to the NIIT Technologies board. Her long experience particularly in the Insurance & Financial Services sector and U.S. will provide valuable guidance to support our growth”, said Rajendra S. Pawar, Chairman, NIIT Technologies Ltd.
Total headcount stood at 8288 at the end of the quarter under review.
