Oct 16, 2008 Q2 ’09 Results 1

NIIT Technologies Financial Results Analysis

Financial Year 2008-09Quarter 2

Oct 16, 2008 Q2 ’09 Results 2

Outline

• Highlights– For the Quarter– Acknowledgements– Business Highlights for the quarter

• Financial Statements– Income Statement– Balance Sheet

• Business Analysis– Revenue Cuts– Order Intake– Top clients– People Resources

• Shareholding Pattern

All nos. on a Consolidated Basis

Oct 16, 2008 Q2 ’09 Results 3

Highlights for the Quarter

• Consolidated Revenues at Rs 2587mn– Up 13% YoY, 5% QoQ (7% QoQ excluding hedging)– Revenue loss on account of hedging – Rs. 85Mn

• Operating profits at Rs 458Mn– Up 8% YoY, Flat QoQ (8% QoQ excluding hedging)– Operating Margins at 18% (LQ & LY 19%)– Operating Margins excluding hedging 20%– Capacity utilization 81%

• Net Profits at Rs 367Mn– Up 7% YoY; 4% QoQ– Net Margins at 14% (LQ 14%; LY 15%)

• Fresh order intake of $75mn

• Unveiled IPF3 – New Generation SOA-based Insurance Process Framework

Oct 16, 2008 Q2 ’09 Results 4

Acknowledgements

• Ranked No. 3 among IT Outsourcing Vendors in the prestigious Black Book of Outsourcing 2008 Insurance Industry user survey

• Declared ‘Business Superbrand’ for 2008

• Felicitated with the ‘Distinguished Service Award ' at the 2008 India and the U.S. Symposium

Oct 16, 2008 Q2 ’09 Results 5

Business Highlights for the Quarter

• Focus verticals contribute 83% to revenues

• BFSI grows 6% YoY (Contributes 42%)– Repeat Orders from existing customers– Added a mid sized American Insurer as new client– Enthusiastic response to IPF3

• Transport grows 29% YoY (Contributes 28%)– Signed Strategic engagement with Cathay Pacific for the development of a

Warehouse Operating System for their new cargo terminal at HK airport– In addition to above, added 1 new significant client– Multi-year multi-million contract with British Airways

• Manufacturing & Retail grows 21% YoY (Contributes 13%)– New Managed Services contract with existing client– 1 new client in UK

• Non-linear Business grows 32% YoY (Contributes 25%)

Oct 16, 2008 Q2 ’09 Results 6

Quarterly Income Statement

5.99

14.3%

351

51

62

112

19%

456

2002

453

1549

2458

Q1’09

16531409Cost of Revenues

6.25

14.2%

367

65

81

104

18%

458

2128

475

2587

Q2’09

69Other Income (net of interest)

6141873Total Operating Expenses

7

(80) Bps

7

(81) Bps

8

13

YoY(%)

4

(12) Bps

4

(83) Bps

0

5

QoQ(%)

5.86

15.0%

344

47

103

19%

426

464

2299

Q2’08

Net Margins (%)

OPM (%)

PAT after Minority Interest

Tax

Operating Profit

Depreciation

EPS (Rs. Basic)

SG&A

Revenues

(Rs Mn)

• Other Income includes gain of Rs. 56mn due to forex & MTM of non-effective hedges

Oct 16, 2008 Q2 ’09 Results 7

Balance Sheet

4764

0

521

54

4189

3602

587

Jun 30, 2008

13071822Cash & Equivalents58Minority Interest

196143Deferred tax Assets

Current Liabilities

Other Current Assets

Debtors

Capital WIP

Net Block

4712

0

413

4241

3654

587

Sep 30, 2008

47124764

(3002)

1116

2153

790

2152

Sep 30, 2008

617Reserves & Surplus

Jun 30, 2008

(Rs in mn)

(3010)

984

2013

2195

Deferred tax Liability

Net worth

Loans

Equity

• DSOs at 80 days Vs. 77 days LQ• Cash & cash equivalents Rs 1307mn

• Dividend payout Rs. 381mn• Loan Repayment Rs. 105mn

• Increase in Capital WIP due to Asset Additions & New Infra

Oct 16, 2008 Q2 ’09 Results 8

Americas

32%

APAC10%

EMEA50%

India8%

Americas

32%

APAC10%

EMEA50%

India8%

Geographic Revenue Mix

FY’08 Q2’09

• India grows well; revenue share in double digits

Q1’09

Operational Revenues (Excl. Hedging)

Americas

31%

EMEA50%

APAC9%

India10%

Americas

31%

EMEA50%

APAC9%

India10%

Americas

31%

EMEA51%

APAC10%

India8%

Americas

31%

EMEA51%

APAC10%

India8%

Oct 16, 2008 Q2 ’09 Results 9

Vertical Revenue Mix

Insurance

28%Retail & Manfg.12%

Transportation25%

BFS16%

Others19%

Insurance

28%Retail & Manfg.12%

Transportation25%

BFS16%

Others19%

FY’08Insuranc

e27%

Retail & Manfg.13%

Transportation28%

BFS15%

Others17%

Insurance

27%

Retail & Manfg.13%

Transportation28%

BFS15%

Others17%

Q2’09

Insurance

28%

Retail & Manfg.13%

Transportation28%

BFS14%

Others17%

Insurance

28%

Retail & Manfg.13%

Transportation28%

BFS14%

Others17%

Q1’09

Oct 16, 2008 Q2 ’09 Results 10

Order Intake

• 5 new significant customers added during the quarter• 2 large airlines• 1 mid-tier American insurer

• $95mn of firm business executable over next 12 months

US $ mn

4049

59

81

43

75

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Oct 16, 2008 Q2 ’09 Results 11

Top Client Mix

• 42 Million dollar clients

38% 36% 36% 36% 36% 34% 34%

49% 47% 46% 46% 47% 46% 46%

63% 60% 58% 59% 60% 60% 60%

40% 42% 41% 40% 40%37% 40%

Q1'08 Q2'08 Q3'08 Q4'08 FY'08 Q1'09 Q2'09

Top 10

Top 20

Top 5

(%)

Others

Oct 16, 2008 Q2 ’09 Results 12

People Resources

3,905 4,149 4,318 4,207 4,046

800766

711602

542

7979

898784

Sep'07 Dec'07 Mar'08 Jun'08 Sep'08 Sep'07 Dec'07 Mar'08 Jun'08 Sep'08

BPO

Solutions

Segmental Mix On-Offshore Mix

Onsite

Offshore

Corp

NTL5002

22%

78% 77%

23%

77%

51184789

23%

4888

75%

25%

4667

77%

23%

Oct 16, 2008 Q2 ’09 Results 13

Shareholding Pattern

37 3441 39

46

4040

40 4040

7 138 12

616 13 11 9 8

Sep'07 Dec'07 Mar'08 Jun'08 Sep'08

FIIs

Banks/MF/FI's

Promoters

Others

•All figures in %

Oct 16, 2008 Q2 ’09 Results 14

Thank You