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NIIT Technologies clocks 22.5% growth in Q4 net profit

NIIT Technologies clocks 22.5% growth in Q4 net profit
Photo Credit: Photo Credit: VCCircle
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Indian software services company NIIT Technologies Ltd has reported a 22.5% rise in consolidated net profit for the fourth quarter ended March 2019 to Rs 105.5 crore from Rs 86.1 crore a year earlier.

Consolidated revenue grew 23.2% from Rs 789 crore to Rs 972 crore during the period, the company said in a regulatory filing.

The company has also adjusted its results to account for tax payments in Australia and non-recurring legal and professional expenses due to merger and acquisition activities during the fourth quarter. After the adjustments, consolidated net profit rose to Rs 114.3 crore.

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For the full year, the company clocked a 44% rise in net profit to Rs 403 crore and a 23% increase in revenue to Rs 3,676 crore.

“The financial year 2018-19 was one of the most successful years in our firm’s history. Not only did we deliver very significant growth but we also increased operating margin simultaneously,” said Sudhir Singh, chief executive officer, NIIT Technologies.

Singh added that the company’s strategy of transforming the industries they served through emerging technologies differentiated the firm and drove their growth.
The cumulative order intake for the year grew 27% to $646 million. For the fourth quarter, it recorded a fresh order intake of $170 million.

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In terms of verticals, the insurance business accounted for 28.7% of total revenue for the financial year while the travel and transport vertical contributed 26.9%. The banking and financial services segment accounted for 16.1% of the overall revenue, and the remaining businesses accounted for 28.3%.  

In terms of regions, 2018-19 revenue growth in the Americas stood at 21.8%. Europe, the Middle East and Africa region reported 32% growth in revenue while the Asia-Pacific region grew 14.9%. India accounted for 8% of its overall revenue and grew 7.3%.

“The year was characterised by strong deal momentum. Order intake improved steadily in each quarter, with large deal wins and new logo additions,” said Arvind Thakur, vice-chairman and managing director, NIIT Technologies.

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In April, Baring Private Equity Asia had signed pacts to acquire a 30% stake in NIIT Technologies from its parent NIIT Ltd for about Rs 2,627 crore and made an open offer to buy up to 26% more from public shareholders for as much as Rs 2,262.35 crore.

Assuming full acceptance in the open offer, Baring would shell out as much as Rs 4,890 crore for a 56% stake in NIIT Technologies.