NTT DATA keeps hot streak in Q3 FY24 results

Net sales on the rise despite decline in each overseas regional unit

Japanese solution provider NTT DATA shared positive financial results in Q3 FY23 despite a dip in sales in EMEAL.

Overseas net sales reached ¥2tn (£10.6bn), up 4.9 per cent year-on-year, thanks to a three-year contract of €120m (£100.3m) in EMEAL with “a global leader in renewable energy”, a seven-year contract with a US public healthcare solutions provider, and the expansion of a strategic partnership with Google Cloud in APAC.

This strengthened focus on cloud was partly made possible by the acquisition of Niveus in November 2024.

The growth in the overseas unit was also driven by the good performance of the datacentre business and SAP business in GTSS, as well as the impact of foreign exchange rates on sales, despite a sales decline in all regional segments.

Overseas operating profit also showed good gains, with a 15.1 per cent year-on-year climb, reaching ¥71.45bn.

NORAM led the charge thanks to enhanced profits in the region, while the increase in business transformation costs and the impact of sales decline in EMEAL and APAC dragged the numbers down.

Even though these results indicate an upward trend, they are yet to reach those the Tokyo-based reseller experienced in its home country, as net sales rose to ¥1.38tn, up 10.9 per cent year-on-year, partly due to NTT DATA launch of Japan’s first BaaS platform, and operation profit got to ¥139.87bn, a 15.2 per cent increase from the same quarter last financial year.

Globally, net sales reached ¥3.4tn (£18bn), a 7.3 per cent increase year-on-year (¥3.17tn in Q3 FY23).

Overall operating profit also spiked 19.8 per cent this quarter, from ¥197bn to ¥235.98bn year-on-year.

Glimpse of the future

The organisation once again declared to be “on a cusp of a new chapter of transformation in its overseas segment, as the company is aiming to update its portfolio with further services such as Gen AI.

In NORAM, EMEAL, and APAC, the reseller also stated that it wants to strengthen its focus on industries like BFSI, manufacturing/auto, TMT, healthcare, and public sector to “unlock the full potential of [NTT DATA’s] synergies.”

NTT DATA is present in the UK through NTT DATA Business Solutions, ranked 15 in CRN’s Top VARs 2024 list.