NIIT hits highest level after 20 years; zooms 67% in 2 months

Shares of NIIT rallied 8 per cent, hitting a price level of Rs 507 on the BSE in Monday’s intra-day trade after a gap of 20 years in an otherwise range-bound market. Previously, the stock of the information technology (IT) training services company touched the Rs 507 mark, also its record high on January 4, 2000 on the BSE.

At 03:54 am, NIIT was up 3 per cent at Rs 494.60, as compared to a 0.07 per cent rise in the S&P BSE Sensex. In the past two months, the stock has zoomed 67 per cent from a level of Rs 303, after it reported a strong set of numbers for the quarter ended September 2021 (Q2FY22). In comparison, the benchmark index was up 1.2 per cent during the same period.

Other than those already reported, the company is not aware of any specific reason for increase in volume of its shares over the last few days, NIIT had said in a clarification on increase in share volumes.

“As on date of this letter, there is no event or information available with the company, which is reportable or requires disclosure in terms of Regulation 30 of the Listing Regulations,” it said on January 1, 2022.

For Q2FY22, NIIT had reported a more-than-double or 101 per cent year on year (YoY) rise in its consolidated net profit at Rs 52.4 crore on the back of strong operational performance. Revenue grew 44 per cent YoY at Rs 314 crore, while earnings before interest, taxes, depreciation, amortization (ebitda) margins improved 780 basis points to 23.5 per cent.

The company's corporate learning group (CLG) posted revenue growth of 40 per cent YoY and Ebitda margin of 29 per cent. CLG singed 6 new MTS contracts, highest addition in a quarter. NIIT said it ended the quarter with 63 MTS customers and revenue visibility at $294 million.