FY 17 was a challenging phase lor the global economy which slowed down even further inthe lace ol macro-oconomic uncertainties currency volatility and major geo-politicaldevelopments.
Economic activity in India slowed down as well in the second half ol the financial yearbecause of the temporary dip in consumption induced by cash shortages and paymentdisruptions from the currency exchange initiative.
These developmentsacross the world and on home turfimpacted your Companywhich laced a scenario where customer companies were more risk averse more cautious ondslower to make decisions.
The good news however is that despite the advorso economic conditions globalcorporations continued to invest in training and built up greater trust in theiroutsourcing training partners.
This trend was fuelled by the Digital Transformation (DX) phenomenon sweeping theworld which added a completely new dimension to the area of talent development.
A scaling of DX investments crcotcd a demand for a new crop of talent that was equippedwith advanced Digital skills. It therefore compelled these organizations to take a seriousview of reskilling existing manpower or acquiring professionals well versed in Digital.
The DX and automation trends acted as a spur for your Company which has been quick torecognize the opportunities being created by the rise of Digital. NIIT's early moveradvantage in the Digital skilling realm and its focus on building manpower for thisrapidly expanding areno served it well during FY I 7. It also helped your Company tooffset the slowdown in demand for IT skills which resulted from an overall lower hiringsentiment displayed by the IT-BPM sector.
Overall NIIT locused on introducing a spote ol new offerings that expanded itsmulti-disciplinary learning management and training delivery solutions portfolio in FY 17.It strengthened its plotforms of growth while concentrating on improving liquidityprofitability and capital efficiency.
Your Company remained in robust financial health during FY I 7 logging in revenues ofRs. I 187./ croro YoY with a PAT of Rs. 65.1 crore.
Besides a landmark and revenue positive Q4 NIIT also rode on the back of a strongrevenue performance by its Corporate Learning Group (CLG) which kept it on the path ofgrowth and profitability.
As in past years. Managed Training Sorvicos (MTS) remained in the driving soot forCLG accounting for 97 percent of the revenues of that business in Q4 and building up acustomer portfolio of 34 organizations worldwide. MTS incidentally has grown by seven foldover the last six years!
It was essentially significant deals including the one forged with the Real EstateCouncil of Ontario and multi-year contracts ond renewals in the Telecom Oil & GasLife Sciences Technology Manufacturing Energy and Mining sectors that continued tocatalyze CLG's momentum during the year.
The efforts of the B2B India team also contributed to the success of CLG enabling thebusiness to deepen its engagements with clients in India such as Wipro ICICI RelianceVodafone Gionee Maruti-Suzuki Deloitte among other blue-chip Indian and MNC lirms.
Your Company's Skills & Careers Business (SNC) meanwhile remained stable based onthe traction achieved by business renewal initiatives such as StackRoutoTM tho DigiNxtsorios 'India's Nxt loch Star' Training.com and NIIT. tv.
The innovative StackRouleTM initiative helped create a talent pool ol hundreds olDigital innovators for the IT industry within a year of its launch. StackRoutc seems tohave caught the imagination of Indian corporates drawing firms in Bengaluru Chennai andDelhi NCR.
Your Company's multi-modal training platform Training.com meanwhile addressed thereskilling and continuous training needs of CXOs through a newly penned partnership withIndia's premier B-School IIM Calcutta. Within a short span of time the platform hasgenerated more than 1.2 million visitors with over two million page views.
All these were very positive developments for NIIT as the SNC business was facingheadwinds in the previous years. FY 1 7 then was a comeback year. As demand for vanilla ITtraining declined and the need for Digital skills scaled NIIT introduced a wide range ofDigital products which drew a positive response from the market.
Besides Indio SNC made significant strides in its key Asian playgrounds China Vietnamand Bangladesh. Whilo in China your Company set up its largest Big Data talent trainingbase in Guiyang City it launched its first specialized IT center in Hoa Sen Vietnam tocreate talent pool for its Digitalization and unveiled its Center of Excellence inBangladesh.
SNC's other key initiatives including NIIT.tv NIIT Imperia and its 'Beyond IT courses'kept steady course adding new partnerships fresh learning programs and drawing customersespecially in the banking domain.
And last but not least your Company's MindChampion Learning Systems Ltd. (MLSL) awholly-owned subsidiary under the Schools Learning Group (SLG) banner kept its momentumgoing whilo maintaining operational balance and increasing efficiency. During FY 1 7 MLSLimproved its margins through a continued focus on cost management and its go forwardIP-driven business which increased by 29 percent YoY.
During the year MLSL signed contracts with leading private schools notching up an orderintake of Rs. 422 million.
Having built credibility over decades within the Indian and overseas markets NIITcontinued to be a trusted brand in the 17 and now Digital Transformation training sogment.
In India it was recognized in 2017 as 'India's Most Trusted Training Brand' by TrustResearch Advisory for the fifth consecutive year. During the year Training.com wasconferred with the 'eEducation Services of the Year-Online educational services oward 2017' by Franchise Indio. Another big accolade your Company won was for its Nil I USAbusiness which was ranked among the 'Top 20 Training Outsourcing Companies 201 7' byTraininglndustry.com for the 10th consecutive year. The organization also ranked NIIT USAamong the Top 20 Companies in Content Development 201 7' for tho seventh consecutiveyear.
With the successful completion of the restructuring and re-energization phase of itsthree-phase transformation journey which it began in 2015 your Company has now enteredthe renewal phase ol the initiative. NIIT has in placo the stragegy execution roadmap andleadership team in place to roll out this transformation.
In FY 18 the CLG business will remain a significant spur for the company's growthowing to its strong pipeline of new orders. CLG is expected to expand its MTS footprintand leverage new opportunities that start out large. The business will gravitate towardshigher margin services and explore inorganic opportunities to add new capabilities.
SNC mconwhilo is expected to put its power behind its DigiNxt series and StackRoutcprograms to gain ground in the Digital training realm. The business will continue to focuson the India and China markets to drive future growth. In the School Learning segmentyour Company will work to position itself as the largest and best school service provider.
Nil T's investments in building capability for large comprehensive deals too arecxpoctod to hold it in good stead in FY 18.
I would like to thank each one of you for remaining solidly behind NIIT for all theseyears. I know for sure that NIIT will go the extra mile to meet and in fact exceed yourexpectations.
Chairman NIIT Ltd.