NIIT Q2 net profit up 12%

NIIT Q2 net profit up 12%
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24 Oct, 2019

IT solutions provider NIIT Technologies has reported a 12.2% increase in consolidated net profit at Rs 119.50 crore for the second quarter ended September 30 due to growth in various verticals.

Consolidated revenue for the quarter was Rs 1,038.5 crore, an increase of 19% over the same period last year, an official statement said.

The EBITDA margin for the quarter expanded to 18.3%, up 118 basis points QoQ. 

The board has recommended an interim dividend of Rs 10 per share, and the payout will be on November 5, 2019.

Digital revenues increased 56% year-on-year and 18% quarter-on-quarter, which contributed to 38% of total revenue. 

Insurance contributed 31.1% to revenue, and it increased 15.3% QoQ. Banking and financial services sector expanded 9.4% QoQ while contributing 16.7% to total revenue. The travel transport and hospitality segment was up 5.8% and accounted for 27.8% of the revenue.

In terms of geographies, Americas contributed 49%, EMEA 37%, APAC 10% and India 4%. 

"The fundamentals of the business continue to be strong, as reflected in the sustained deal wins and the operating margin threshold that we have established," said Sudhir Singh, chief executive officer, NIIT Technologies. 

The company announced fresh order intake of $176 million, which it said was the 10th consecutive quarter of increase in order intake.