Markets fall, NIIT holds itself due to stronger profit numbers

Management training firm NIIT Ltd. (NIIT) announced its nine month ending quarterly results on Wednesday. NIIT is a global leader in skills and talent development. It showed a substantially good increase in net profit owing to growth in its Global Corporate Training Outsourcing.

On financial front the consolidated net revenue from operations of NIIT reached  Rs 262 crores in Q3FY16 compared to Rs 248 crores in Q3FY15, an increase of 6 per cent year on year (YoY). The EBITDA stood at Rs 16.4 crores this quarter compared to Rs 5.7 crores in Q3FY15, an increase of 185 per cent YoY. The EBITDA margin of company stood at 6.25 per cent this quarter compared to 2.29 per cent in Q3FY15. The net profit stood at Rs 13.7 crores in Q3FY16 compared to Rs 1.8 crores in Q3FY15, an increase of 661 per cent YoY. The substantial growth in EBITDA and net profit is due to the increase in international revenue, which reached to 70 per cent of total revenue.

Speaking on the company’s performance during the quarter, Rahul Patwardhan, Chief Executive Officer, NIIT Limited said, “Global Corporate Training Outsourcing is growing steadily. While we further strengthened our Corporate Learning Business operations in US and Europe during the quarter, NIIT is now positioned to leverage emerging CLG opportunities back home in India, as we perceive a huge potential for industry-aligned, globally benchmarked corporate learning solutions from leading corporates in the country. Our Skills & Careers Business Transformation program is also continuously delivering improved outcomes, eventually triggering NIIT’s overall Y-o-Y revenue growth rate's consistent improvement for the third successive quarter.”

This quarter the company has expanded its Europe operations and has commissioned new facilities in Norway and Ireland. Further the corporate learning group;and skills and career group grew by 17 and 3 per cent Y-O-Y respectively. They now combinedly contribute to 92 per cent of NIIT revenues.

NIIT offers multi-disciplinary learning; management; training; and delivery solutions to corporations; institutions; and individuals in over 40 countries. The scrip closed at Rs 78.50, an increase of 3.70 per cent from previous close.