NIIT Technologies revenue up 3.3% sequentially in Q2 FY’17

NIIT Technologies has reported 3.3 percent increase in its revenue for the quarter ended in Sept 30, 2016 over the previous quarter to 692.9 crores.

The sequential revenue growth is attributed to the expansion of business in western geographies specifically in Insurance and Travel segments, said Arvind Thakur, CEO and Joint MD, NIIT Technologies.

“Increase in revenues and decline in SG&A expenses resulted in expansion of operating margins by 139 bps to 16.5 percent in the quarter,” Thakur added.

Strong growth in western geographies with traction in both key verticals of BFSI and Travel and Transportation resulted in 4.6 percent growth in the US with revenue share of 49 percent and 7.9 percent sequential growth in EMEA with revenue share of 33 percent to total revenues.

APAC contributed to 11 percent to total revenues, whereas India business declined by 7.2 percent due to lower revenues from India Government leading to revenues share of 7 percent.

BFSI grew 3.4 percent sequentially during the quarter increasing the revenue share to 42 percent, growth being led by Insurance in US with both existing and new clients scaling well.

Travel and Transportation registered an even stronger growth of 6 percent resulting in revenue share of 33 percent. Manufacturing, Media and other segments contributed to 25 percent of revenues.

The quarter saw strong intake of fresh new business of USD 143 mn. This included renewal of a large engagement with a media client in the US and also a large IMS contract from a new insurance client in the UK. During the quarter 3 new customers were added, 1 in the US and 2 in EMEA.

Digital business continues to see strong traction contributing to 19 percent of revenues.

Headcount at the end of the quarter stood at to 8,868 and attrition was 12.9 percent. Utilization improved to 81 percent.

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