NIIT spurts after strong Q4 earnings

NIIT jumped 11.71% to Rs 39.60 at 14:37 IST on BSE after consolidated net profit surged 415% to Rs 14 crore on 5% increase in net revenue to Rs 232.90 crore in Q4 March 2014 over Q4 March 2013.

The result was announced during trading hours today, 21 May 2014.

Meanwhile, the BSE Sensex was down 64.72 points, or 0.27%, to 24,312.16.

On BSE, so far 33.92 lakh shares were traded in the counter, compared with an average volume of 3.26 lakh shares in the past one quarter.

The stock hit a high of Rs 41.40 so far during the day, which is also 52-week high for the counter. The stock hit a low of Rs 34.20 so far during the day. The stock hit a 52-week low of Rs 14.90 on 31 July 2013.

The stock had outperformed the market over the past one month till 20 May 2014, rising 13.80% compared with 7.72% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 43.81% as against Sensex's 18.70% rise.

The small-cap company has an equity capital of Rs 33.03 crore. Face value per share is Rs 2.

NIIT's EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 85% to Rs 13.10 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin increased by 244 basis points to 6% in Q4 March 2014 from 3% in Q4 March 2013.

On a consolidated basis, NIIT's net profit fell 32.30% to Rs 17.77 crore on 1% increase in net revenue to Rs 951 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013). EBITDA rose 19% to Rs 62 crore in FY 2014 over FY 2013. EBITDA margin increased by 98 basis points to 7% in FY 2014 from 6% in FY 2013.

"All comparisons are on a like to like basis, excluding pass through revenues," NIIT said in a statement.

Career Building Solutions (CBS) recorded net revenue of Rs 82.40 crore during the quarter, backed by a growth of 16% year-on-year (YoY) growth in non-tech revenue in Q4 March 2014 over Q4 March 2013. The pioneering Cloud campus initiative has now expanded to cover 96 courses, across 211 centres. Cloud Campus enrolments increased by 6,500 in Q4, taking the cumulative number of enrolments to around 60,000.

Corporate Learning Solutions (CLS) recorded net revenues of Rs. 107.6 Cr, up 41% in Q4 March 2014 over Q4 March 2013.

Mr Vijay K Thadani, Chief Executive Officer, NIIT said, "The Corporate Training Business recorded fresh order intake of $21.8 million, up 52% in Q4 March 2014 over Q4 March 2013, reflecting strong customer confidence."

School Learning Solutions (SLS) registered net revenue of Rs 41.70 crore during the quarter, with a robust order intake of Rs 55 crore in Q4 March 2014 over Q4 March 2013 from non government schools.

Mr P Rajendran, Chief Operating Officer, NIIT said, "NIIT signed up 371 new schools during the quarter, to offer exciting technology and multimedia based education. The new NGuru solutions strengthened NIIT's leadership position, thereby registering a growth of 78% YoY in new schools added, with a growth of 115% YoY in order Intake, during the quarter."

NIIT, a leading Global Talent Development Corporation, offers learning and knowledge solutions across 40 countries. NIIT's training solutions in IT, banking, finance and Insurance, knowledge process outsourcing (KPO), business process management (BPM), executive management education, vocational skills, school learning solutions and communication and professional life skills has impacted over 35 million learners since inception.

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