On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to $465 million, representing a growth of 18 per cent year on year (YoY), it said.
However, the company’s consolidated revenues during the quarter under review declined sequentially by 6.8 per cent in constant currency terms to Rs 1,057 crore. Ebit (earnings before interest tax) margin was down 11.6 per cent from 12.9 per cent in the previous year quarter. The revenue and margins impacted by sharp ramp-down and pricing pressure in the Travel, Transportation & Hospitality (TTH) vertical.
“NIIT Tech’s commentary has been a clear outlier over the last couple of quarters, given the current context of COVID-19 disruption and the company’s relatively high exposure to TTH (still 19 per cent of revenue). The recent rally in stock price indicates industry-leading growth and stable margins have already been priced into the current valuations. Post the revenue and margin miss in Q1FY21, execution on the guidance would be the key to sustaining current multiple,” Motilal Oswal Securities said in result update.
At 10:22 am, the stock was trading 5 per cent higher at Rs 1,862 on the BSE against 0.37 per cent decline in the S&P BSE Sensex. A combined 1.76 million equity shares have changed hands on the counter on the NSE and BSE, so far.