NIIT Technologies Limited (NSE: NIITTECH), a leading global IT solutions organization, today announced a resilient financial and operating performance for the quarter ended June 30, 2020 (Q1FY’21). Despite having one of the highest exposures within its peer set to the Travel, Transport & Hospitality vertical, which is one of the most adversely affected by the COVID-19 pandemic, the Company has reported consolidated revenue of Rs 1,057.0 crore during Q1FY’21, representing a growth of 9.8% over the same quarter previous year. Profit after Tax (PAT) for the year stood at Rs 79.9 crore.
Q1FY’21 Highlights:
| Quarter performance at a glance* | |||
| Particulars | Qtr ended | Qtr ended | Growth |
| 30-June-20 | 30-June-19 | YoY | |
| Rs Cr | Rs Cr | ||
| Consolidated Revenues | 1,057.0 | 962.7 | 9.8% |
| EBITDA | 180.6 | 162.3 | 11.3% |
| EBITDA Margin | 17.1% | 16.9% | 23 bps |
| Profit After Tax | 79.9 | 100.6 | (20.6)% |
*Q1FY’20 EBITDA & PAT adjusted for one time non recurring expenses
*Q1FY’21 EBITDA is before RSU cost. (EBITDA post RSU is Rs 168.6 Cr)
“Our ability to grow all non-Travel related businesses sequentially and to also secure multiple significant deal wins even during a pandemic-affected quarter demonstrates the tenacity of the 11,000 members of Team NIIT Technologies. The resolve of the team, the sustained deal momentum, ongoing ramp-ups, and the opportunity pipeline combined with very strong operational rigor, gives us the confidence of delivering a sequential growth in the next quarter and a growth-led performance for the full year FY’21,” said Mr. Sudhir Singh, Chief Executive Officer, NIIT Technologies Ltd.
Consolidated revenues during the quarter under review declined sequentially by 6.8% in constant currency terms to Rs. 10,570 million. In reported terms, the revenue declined 4.7% sequentially. This reflects the significant Covid-19 pandemic related distress in the Travel vertical, which is a substantial contributor to the company’s revenues and declined by 31.6% quarter-on-quarter. Excluding the Travel vertical, the rest of the firm registered a growth of 3.2% QoQ in constant currency terms and 5.1% in reported terms during the quarter.
All other verticals, except Travel, delivered sequential growth in Q1FY’21. The Insurance services business grew 1.9% QoQ contributing to 33.0% of the quarter’s revenue. The BFS business grew 6.2% sequentially and contributed to 17.2% of total revenue. Other segments collectively expanded 8.6% quarter-on-quarter and they now represent 30.4% of overall revenue.
Among geographies, Americas, EMEA and Rest of the World (including APAC) contributed 47%, 36% and 17% respectively to the revenue mix, respectively.
The company has reported a healthy EBITDA margin of 17.1% for the quarter under review, before the impact of RSUs granted to its leadership team, despite drawdowns on account of COVID-19 related issues, particularly in the Travel vertical. EBITDA post RSU cost for the quarter stands at INR 1,686 million. Profit after taxes (PAT) stood at net profits contracted by 29.7% over last quarter to INR 799 million.
Fresh business of US$186 mn was secured by the company during the quarter, which included a large deal along with two more significant deals. A total of 11 new clients were added during the quarter. On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to US$465 mn, representing a growth of 18% YonY.
Acknowledgements:
• NIIT Technologies is positioned as a Leader in Zinnov Zones 2020 for RPA services
• NIIT Technologies has been ranked amongst the top 3 IT service providers in customer satisfaction in Whitelane’s 2020 UK IT Sourcing Study