New Delhi: Skills and talent development company NIIT Ltd on Saturday posted a consolidated net profit of 1,090.4 crore for the June quarter, and said its board has approved a buyback programme of up to 335 crore.

Net revenue declined by 2% to 210.3 crore during the first quarter, from 214.3 crore in the year-ago period.

NIIT Ltd, which had registered a net profit of 17.9 crore in the April-June 2018 quarter, said profit after tax for the June 2019 quarter includes a one-time income on account of divestment of NIIT Ltd's shareholding in NIIT Technologies.

In April this year, funds affiliated with Baring Private Equity Asia (BPEA) bought about 30% stake in NIIT Technologies from NIIT Ltd. The transaction, which closed in May, saw NIIT Ltd receiving gross proceeds of 2,020.4 crore in cash. The company had constituted a committee to make recommendations for utilisation of proceeds for rewarding shareholders.

The board has approved a proposal to buy back up to 2.68 crore equity shares from shareholders at 125 per share, representing about 16% of the total paid-up equity share capital, for an aggregate amount not exceeding 335 crore.

NIIT vice-chairman and MD Vijay K Thadani said the buyback process was likely to be completed by December this year, subject to regulatory approvals.

Commenting on the results, Thadani said the increase in revenue visibility for Corporate Learning Group (CLG) and the growth in 'Go forward' business in Skills and Careers (SNC) "vindicate the company's strategy and reaffirm the confidence of customers, in our ability to add value".

The company's CLG business recorded a net revenue of 152.4 crore. Under CLG, the company signed five new Managed Training Services (MTS) contracts in the June 2019 quarter, taking the MTS customers tally to 49.

CLG recorded a revenue visibility of $264 million, up 18% year-on-year.

The SNC group recorded a net revenue of 51.7 crore during the said quarter. The SNC 'Go forward' business grew 15% year-on-year.

MindChampion Learning Systems Ltd registered a net revenue of 6.2 crore.

The company's headcount stood at 2,521 people at the end of June 2019.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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