NIIT Q1 net profit up at Rs 15 cr

Company's revenues rose 4% to Rs 225.3 crore for the first quarter of 2015-16

Skills and talent development firm NIIT today posted big growth in net profit to Rs 15 crore for the quarter ended June 15, 2015 on back of strong growth in its corporate learning segment and transformation of skills and careers business.

It had a net profit of Rs 0.6 crore in the April-June quarter of the last fiscal.

The company's revenues rose 4 per cent to Rs 225.3 crore for the first quarter of 2015-16, from Rs 233.2 crore in the year-ago period.

"On the back of continued and steady growth in our Corporate Learning Group (CLG) and successful transformation of the Skills and Careers Group, NIIT is back to growth and profitability," NIIT Chief Executive Officer Rahul Patwardhan told reporters here.

CLG recorded net revenue of Rs 128.5 crore, up 15 per cent year-on-year, backed by a strong growth in Managed Training Services (MTS) offerings.

During the quarter, NIIT bagged five large multi-year, annuity based contracts, taking the overall CLG revenue visibility to USD 201.5 million.

Its Skills and Careers Group (SNC) recorded net revenue of Rs 72.5 crore during the quarter under review.

"We have committed to leverage the enabling ecosystem following the launch of 'Skill India' by training 10 million young learners across 16 industry segments over the next five years," NIIT Vice Chairman and Managing Director Vijay Thadani said.

NIIT's School Learning Group (SLG) registered a net revenue of Rs 32.2 crore during the quarter.

During the quarter, NIIT launched a new brand positioning campaign -- The Place to go Places -- to reposition itself as an organisation beyond IT training.

"The recent announcements by the Indian government on Skill India and Digital India will enable mass scaling of skill development, using technology as a delivery mechanism," Thadani said.

NIIT is well poised to harness this opportunity as it is already using cloud campus and synchronous learning technology to reach thousands of students across multiple industry segments in India, he added.