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NIIT Q3 net up 36%; bullish on year ahead

NIIT Q3 net up 36%; bullish on year ahead
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First Published: Fri, Jan 21 2011. 04 04 PM IST
Updated: Fri, Jan 21 2011. 04 04 PM IST
New Delhi: Software training company NIIT Ltd on Friday said its October-December profit rose more than a third due to strong performance in corporate learning solution that offset seasonal slowing in other segments, and foreacst a bullish year ahead.
“Overall we see a positive momentum in the market. More and more skilled people are required in the industry and getting people to get skilled is a core competence of the company,” chief executive Vijay K. Thadani said at a news conference.
Thadani said Noth American and European markets were beginning to come back in looking at training partnerships, boosting business possibilities for NIIT overseas.
NIIT reported a profit of Rs 129 million for October-December against Rs 95 million in the year-ago period, while revenue rose 6% to Rs 300 crore.
Operating margin expanded about 130 bps to 12% from a year ago because of “volume, product mix and operating leverage,” Thadani said.
Traditional sluggishness in individual learning solutions in October-December was partly offset by good growth in corporate learning solution, Thadani said. Students are usually reluctant to enroll for courses towards the end of the calendar year.
Corporate learning and individual learning solutions contributed about 50% and 40% to the overall quarterly revenue, respectively, while the school segment accounted for the rest.
Revenue from individual and corporate segments grew by 12% and 8%, respectively, while it declined from schools by 18% as the company shifted its focus away from government schools.
“The government scheme called IT & School is to go through a renewal process and that policy is still being rolled out and we would like to bid once that policy stabilises and that has not yet happened,” Thadani said. Government schools contribute about 8 pct to the company’s total revenue.
Thadani said individual learning solutions, which offered the best margins among all, would remain the fastest growing segment in the future.
The appreciation of rupee compared to last year negatively impacted the company’s profit by Rs 14 million.
Shares in NIIT, currently valued at about Rs 940 crore, closed 0.44% higher at Rs 57 in a Mumbai market that ended down 0.2%.
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First Published: Fri, Jan 21 2011. 04 04 PM IST