Info-tech

NIIT net up 53% in Q4

Our Bureau New Delhi | Updated on November 13, 2017 Published on May 10, 2011

Mr Rajendra S. Pawar, Chairman, NIIT, flanked by Mr Vijay K. Thadani (left), Chief Executive Officer, and Mr P. Rajendran, Co-founder and Chief Operating Officer, addressing a press conference in the Capital on Tuesday.

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NIIT Ltd on Tuesday posted 53 per cent rise in consolidated net profit for the quarter ended March 2011. NIIT attributed the net profit growth to an “all round improvement across businesses” and impact of extraordinary income accrued during the quarter.

While NIIT does not give an annual guidance, its Chief Executive Officer Mr Vijay Thadani said the company expects its healthy order book to translate into an accelerated growth for various businesses including individual, corporate and school learning solutions.

“Our margins have been nearly flat for fiscal 2011. But we expect the operating margins to improve in the coming quarters, as the process we had undertaken for reorganization and re-prioritisation of our business, is complete,” Mr Thadani said.

The Profit after Tax (net profit) stood at nearly Rs 38 crore for the fourth quarter of fiscal 2011 compared to about Rs 25 crore a year ago. The net revenue at Rs 324 crore is 10 per cent higher than the same period previous year. The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) stood at Rs 40.5 crore, translating into EBITDA margin of 13 per cent.

During the quarter, there was an impact of extraordinary income (Rs 14 crore) on account of divestment of `non operating assets' - essentially a project (facility) that the company had initially proposed at Greater Noida. It subsequently decided in favour of consolidating operations in Gurgaon, instead.

NIIT's Individual Learning Solutions (IT) clinched 19 per cent increase in IT career enrolments on net revenues of Rs 122 crore. Placements grew 43 per cent in fourth quarter reflecting strong industry absorption. New businesses led by Finance & Management Training recorded 28 per cent growth in revenue during March quarter.

The Corporate Learning Solutions – where the company is now focusing on online learning products and managed training services – posted net revenues of Rs 153 crore in the fourth quarter, coupled with order intake of $40 million and a closing order book of $98 million.

Amongst other businesses, the School Learning Solutions recorded net revenues of over Rs 37 crore during March quarter. It signed up 196 private schools in Q4, 94 per cent higher than the same period last year.

For the full year, NIIT's net profit touched about Rs 92 crore, 31 per cent higher than the previous fiscal. The annual net revenue touched about Rs 1248 crore, four per cent higher than the fiscal 2010. The Board has also proposed a dividend of 75 per cent, amounting to Rs 1.50 per share.

Published on May 10, 2011
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