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Nagarro posts 33.7% YoY revenue growth in Q3 2021

FRANKFURT, Germany, Nov. 12, 2021 /PRNewswire/ -- Nagarro, a global leader in digital engineering and technology solutions, today stated its unaudited financial numbers for Q3 2021 and released its nine-month statement.


Nagarro_Logo

Reflecting strong demand, revenue grew to €141.0 million in Q3 2021, up 33.7% YoY from €105.4 million in Q3 2020, and up 10.7% QoQ from € 127.3 million in Q2 2021. Constant currency YoY revenue growth for Q3 2021 was 33.6%. Gross profit grew to €40.0 million in Q3 2021 from €34.9 million in Q3 2020. Gross margin dropped, changing from 33.1% in Q3 2020 to 28.4% in Q3 2021. Adjusted EBITDA grew by €1.3 million from €20.4 million (19.4% of revenue) in Q3 2020 to €21.7 million (15.4% of revenue) in Q3 2021. It may be noted that Q3 2020 also included the effect of salary cuts in response to the onset of the Covid-19 pandemic. In addition, wage inflation and the carrying of a large number of trainees weighed on the gross margin and on the Adjusted EBITDA in Q3 2021 despite some relief from reduced travel and reduced utility bills.


EBITDA increased by €1.6 million from €17.6 million in Q3 2020 to €19.2 million in Q3 2021. Our most significant adjustments to EBITDA in Q3 2021 are the expense on stock option of €1.6 million and expenses of €0.5 million related to the rollover of non-controlling interest. EBIT increased by €1.1 million from €12.4 million in Q3 2020 to €13.4 million in Q3 2021. Net profit decreased by €0.7 million to €8.4 million in Q3 2021 from €9.1 million in Q3 2020.


Nine-month results


Nagarro's 9M 2021 revenues grew to €384.0 million, up from €321.4 million for the same period in 2020, a growth of 19.5%. In constant currency, the revenue growth was 22.1%. Gross profit grew to €112.1 million in 9M 2021 from €105.9 million in 9M 2020. Gross margin dropped, changing from 32.9% in 9M 2020 to 29.2% in 9M 2021. Adjusted EBITDA grew 5.5% from €56.1 million (17.5% of revenue) in 9M 2020 to €59.2 million (15.4% of revenue) in 9M 2021.


EBITDA decreased  by €1.4 million from €53.3 million in 9M 2020 to €51.9 million in 9M 2021. EBIT decreased by €2.5 million from €37.3 million in 9M 2020 to €34.8 million in 9M 2021. Net profit decreased by €2.5 million to €21.7 million in 9M 2021 against €24.2 million in 9M 2020.


"Nagarro's revenue growth continued, despite an overheated job market," said Vaibhav Gadodia, Managing Director. "We again added over 1,100 professionals in this quarter, including fresh graduates, net of attrition. The company has raised its revenue guidance for 2021 to €525 million, while it retains its gross margin and Adjusted EBITDA margin guidance." The company will offer an earnings video call (webcast) on November 12 at 10 am Central European Time, which is 4 am in New York City and 5 pm in Singapore. To participate in the earnings video call, participants can register here for the webcast.


 


Key figures – Quarterly













































































































































































































































































































































 


 

Q3




 

Q3




 


 


 

Q2




 


 


 


 

2021




 

2020




 

Change




 

2021




 

Change




 


 

kEUR




 

kEUR




 

%




 

kEUR




 

%




 


 


 


 


 


 


 


 


 


 


 

Revenue




 

140,954




 

105,394




 

33.7%




 

127,322




 

10.7%



Cost of revenues




 

100,991




 

70,532




 

43.2%




 

89,328




 

13.1%



Gross profit




 

40,008




 

34,926




 

14.5%




 

38,038




 

5.2%



Adjusted EBITDA




 

21,709




 

20,442




 

6.2%




 

18,960




 

14.5%




 


 


 


 


 


 


 


 


 


 


 

Revenue by country




 


 


 


 


 


 


 


 


 


 

Germany




 

32,229




 

27,353




 

17.8%




 

30,754




 

4.8%



US




 

50,623




 

36,600




 

38.3%




 

45,413




 

11.5%




 


 


 


 


 


 


 


 


 


 


 

Revenue by industry




 


 


 


 


 


 


 


 


 


 

Automotive, Manufacturing and Industrial




 

24,882




 

15,776




 

57.7%




 

21,123




 

17.8%



Energy, Utilities and Building Automation




 

11,852




 

9,159




 

29.4%




 

10,875




 

9.0%



Financial Services and Insurance




 

17,503




 

13,918




 

25.8%




 

14,687




 

19.2%



Horizontal Tech




 

13,883




 

8,496




 

63.4%




 

12,020




 

15.5%



Life Sciences and Healthcare




 

9,607




 

6,902




 

39.2%




 

9,149




 

5.0%



Management Consulting and Business Information




 

8,539




 

9,666




 

-11.7%




 

7,889




 

8.2%



Public, Non-profit and Education




 

10,355




 

6,746




 

53.5%




 

11,107




 

-6.8%



Retail and CPG




 

19,324




 

13,549




 

42.6%




 

17,715




 

9.1%



Telecom, Media and Entertainment




 

10,517




 

9,792




 

7.4%




 

9,483




 

10.9%



Travel and Logistics




 

14,491




 

11,390




 

27.2%




 

13,273




 

9.2%




 


 


 


 


 


 


 


 


 


 


 


 


Key figures – Nine months































































































































































































































Nine-month period ended September 30




 

2021




 

2020




 

Change




 


 

kEUR




 

kEUR




 

%




 


 


 


 


 


 


 

Revenue




 

384,001




 

321,433




 

19.5%



Cost of revenues




 

272,034




 

215,728




 

26.1%



Gross profit




 

112,100




 

105,858




 

5.9%



Adjusted EBITDA




 

59,228




 

56,134




 

5.5%




 


 


 


 


 


 


 

Revenue by country




 


 


 


 


 


 

Germany




 

93,538




 

85,709




 

9.1%



US




 

135,307




 

111,674




 

21.2%




 


 


 


 


 


 


 

Revenue by industry




 


 


 


 


 


 

Automotive, Manufacturing and Industrial




 

64,865




 

45,310




 

43.2%



Energy, Utilities and Building Automation




 

32,139




 

27,750




 

15.8%



Financial Services and Insurance




 

45,245




 

40,681




 

11.2%



Horizontal Tech




 

37,868




 

26,919




 

40.7%



Life Sciences and Healthcare




 

27,622




 

23,223




 

18.9%



Management Consulting and Business Information




 

24,331




 

25,530




 

-4.7%



Public, Non-profit and Education




 

30,785




 

24,643




 

24.9%



Retail and CPG




 

53,106




 

38,751




 

37.0%



Telecom, Media and Entertainment




 

29,113




 

30,893




 

-5.8%



Travel and Logistics




 

38,925




 

37,732




 

3.2%




 


 


 


 


 


 


 


 
































































 


 


 


 


 

Nine-month period ended September 30




 

2021




 

2020




 


 

%




 

%



Revenue concentration (by customer)




 


 


 


 

Top 5




 

14.3%




 

13.8%



Top 6-10




 

11.0%




 

10.1%



Outside of Top 10




 

74.7%




 

76.1%




 


 


 


 


 


 


Segment information


 

























































































































































































































Nine-month period ended September 30




 

2021




 

2020




 

Change




 


 

kEUR




 

kEUR




 

%



Central Europe




 


 


 


 


 


 

Revenue




 

129,607




 

119,639




 

8.3%



Cost of revenues




 

92,332




 

83,398




 

10.7%



Gross profit




 

37,276




 

36,240




 

2.9%




 


 


 


 


 


 


 

North America




 


 


 


 


 


 

Revenue




 

135,636




 

111,674




 

21.5%



Cost of revenues




 

96,892




 

72,121




 

34.3%



Gross profit




 

38,743




 

39,553




 

-2.0%




 


 


 


 


 


 


 

Rest of Europe




 


 


 


 


 


 

Revenue




 

56,934




 

47,866




 

18.9%



Cost of revenues




 

40,635




 

32,827




 

23.8%



Gross profit




 

16,432




 

15,192




 

8.2%




 


 


 


 


 


 


 

Rest of World




 


 


 


 


 


 

Revenue




 

61,824




 

42,254




 

46.3%



Cost of revenues




 

42,175




 

27,382




 

54.0%



Gross profit




 

19,649




 

14,872




 

32.1%




 


 


 


 


 


 


 


 

Gross profit, gross margin and Adjusted EBITDA are neither required by, nor presented in accordance with,



IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.



Gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized.



Rounding differences may arise when individual amounts or percentages are added together.




Logo: https://mma.prnewswire.com/media/844192/Nagarro_Logo.jpg


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