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NIIT Tech (NITEC) stayed on the growth curve with a 2.8% (JMFe) QoQ USD revenue growth in 1QFY19; adjusted for incremental impact from the on-going ramp-down in Morris, a Top10 client, and seasonal decline in the GIS business, we estimate a 7%+ QoQ growth in the core business, strongest in the last 5-years. The growth construct was solid quarterly order booking was the highest ever (c.18% YoY on a TTM basis) and headcount addition was strong (7%+ over the last 2 quarters). The incremental growth profile is also margin accretive; EBITDA margin (ex-hedge gains) was a tad above estimates and up 264bps YoY. We believe the turnaround at NITEC is firmly on track and with the Morris-induced drag...

At 18.0%, EBITDA margins expanded 90 bps QoQ, above our 60 bps expansion and 17.7% estimate mainly on account of increased digital and product business as well as operational efficiencies Reported profit grew 13.7% sequentially to | 86.1 crore, ahead of our estimates of | 83.1 crore on account of a better-than-expected operating performance. However, it was partly offset by a higher effective tax rate (22.8% vs. 16.5% in Q3FY18) Organisation changes driving acceleration in growth...

Change for growth': NIIT Technologies (NITEC) management indicated that it has incorporated a number of changes in the form of: (1) Restructuring of its sales team (Domain-centric now vs. Geo-centric earlier), (2) Aggressive hiring of Tier-1 talent in leadership roles, (3) Making its compensation and incentives structure more rewarding and (4) Efforts to improve operational efficiencies....

Under the leadership of Mr Sudhir Singh, NITEC has ushered in four key changes to aggressively drive the growth agenda: (1) restructuring to a vertical-led organization from geo-led organization, (2) adding senior leadership from tier-1 organizations at a fast clip and in healthy numbers, (3) significant restructuring of the rewards &incentive structure and (4) process changes to drive margins and productivity. The early fruits of this endeavor are reflected in the improvement across multiple metrics, such as (1) improved order intake, (2) uptick in the number of large deal wins, (3) 27% YoY growth in Digital and (4) reduction of client concentration. In order to sustain the results, NITEC has adopted a three-pronged approach: (1)innovate in three chosen verticals' sub-segments, (2) industrialize through full-spectrum intelligent automation and (3) incubate Digital at scale to drive superior end-user experience.

4Q CC revenue growth was 4.3% v/s our estimate of 2.5%. EBITDA margin at 18% (+90bp QoQ) was in line.4QFY18 revenue grew 17.3% YoY (est. of +14.1%) to USD122m, EBITDA rose 12.5% YoY to INR1,418m and PAT increased 16.5% YoY (est. of +10%) to INR861m. For FY18, NITEC's INR revenue grew 7.8% YoY, while CC revenue rose 9.7%. EBITDA grew by 9.4% YoY to INR5.0b and PAT by 25% YoY to INR2.8b. Adjusted for one-time exceptional loss in FY17, PAT growth was 11% YoY.

of 4.3% qoq and OPM gains of 80bps qoq. Revenue and OPM were ahead of our estimates of 3% qoq growth and 50bps gains. Management is expecting better client budgets in its Top 20 accounts across business...

NIIT Tech reported steady 2.6%/12.4% QoQ growth in revenue/PAT in Q3FY18. New management based across geographies is expected to result in client additions across the segments. Management has indicated strong deal pipeline in coming quarters. We expect steady double digit revenue growth in FY19 on account of growth across BU's, strong executable pipeline and large order wins. All the positives have already factored in price, hence we recommend to sell the stock with target price of INR 740. Conference call highlights Management indicated Q4FY18 and FY19 to report strong double digit growth on the back of strong order intake and deal pipeline. NIIT Tech now has a decentralized presence with one EVP Europe,...

ICICI Securities Ltd | Retail Equity Research NIIT Tech's (NTL) US$ revenues grew 1.7% QoQ to $116.7 million, largely in line with our expectation of 2.1% growth to $117.2 million Rupee revenues increased 2.6% QoQ to | 756.5 crore and were largely in line with our expectation of | 758.5 crore estimate At 17.1%, EBITDA margins expanded 100 bps QoQ and were above our 60 bps expansion, 16.7% estimate mainly on account of lowerthan-expected direct cost (| 481.1 crore vs. | 490 crore assumed) Reported profit of | 75.7 crore was ahead of our estimate of | 68...

Sector: IT /Mid-Cap | Earnings Update 3QFY18 Background: NIIT Technologies a leading global IT solutions organization. In 3QFY18: Revenue share by service mix: Application Development & Maintenance (65%), System integration & Package implementation (5.0%), Managed service (19%), IP assets (7.0%) & BPO (4.0%) segments. Vertical mix: BFSI (43%), Transportation (27.0%), Manufacturing, Med & others (27.0%). Geography mix: America (50.0%), EMEA (30.0%), and ROW (20.0%). Company has total headcount of 9,081; Active clients: 78, Utilization: 79.0%. Revenues from top 5 clients: (30%), top 10: (42%). Attrition: (10.6%). DSO: 70. Revenue mix: Onsite...

NITEC's 3QFY18 revenue adjusted for forex gains grew 2.1% QoQ (est. of +0.7%), despite seasonal weakness and ramp-down of Morris. Except the customer-specific issue,which impacted the Manufacturing vertical, strength was seen in both BFSI(4% QoQ) and Transport (4.4% QoQ). Contribution from the Digital segment increased to 25% of overall business, having grown by 11% QoQ. GPM of 36.4% (+140bp QoQ), SGA of19.3% (+40bp) led to EBITDA margin of 17.1% (+100bp). Margin expansion was a function of growth in Digital and NITL. PAT stood at INR757m, higher than our estimate of INR677m, led by the operational beat and lower ETR,which was due to a one-time tax benefit