NIIT Tech delivers seven-quarter strong revenue growth helped by the integration of Incessant

A robust growth in the US and European markets together with the integration of recently acquired digital platform company, Incessant Technologies, led NIIT Technologies to report 4.9 per cent sequential growth in the revenue at Rs 641 crore for the June 2015 quarter. This was the fastest pace of sequential revenue growth since the September 2013 quarter when the revenue of the mid-sized software exporter grew by a strong 8.4 per cent.

The constant currency revenue growth was 5.5 per cent. Excluding the additional revenue from Incessant, the growth was 1.4 per cent. The low growth reflects slowing business in the Indian market where NIIT Tech executed some of the government projects and the geographic information system (GIS) segment historically exhibited weakness in the June quarter. Barring the Indian market, growth in other markets was strong. In the constant currency, the international market growth was 4.8% for the quarter compared with the March 2015 quarter.

The integration of Incessant has strengthened NIIT Tech’s banking, financial services, and insurance (BFSI) vertical. Of the total revenue, 37 per cent comes from travel and transport vertical while 36 per cent is from BFSI.

NIIT Tech reported 17 new clients for the June 2015 quarter. “Of these, 15 were the accounts of Incessant and each of them belongs to the BFSI vertical,” said Arvind Thakur, CEO and joint MD, NIIT Tech.

Incessant has also infused capability to offer digital integration services. “We now derive 14 per cent of our revenue from digital services,” said Thakur.

The company is expected to retain the order book addition in the range of $90-100 million every quarter. At the end of the June 2015 quarter, it had a revenue visibility of $300 million.