NIIT net surges107% on better realisations

A series of new programmes and products coupled with better realisations helped NIIT to record a consolidated profit after tax (PAT) of Rs 17.1 crore in the fourth quarter ending March 2007, an increase of 107 per cent from Rs 8.26 crore recorded in the corresponding quarter last year.

Net revenues for the quarter grew by 123 per cent year-on-year to touch Rs 256.6 crore compared with Rs 115.06 crore a year-ago period.

On a quarter-on-quarter (sequential) basis, the company recorded 60 per cent growth in its net profit compared with last quarter's Rs 10.7 crore. For the financial year 2006-07, NIIT recorded a growth of 43 per cent growth in PAT to Rs 57.3 crore. The global system-wide revenue of NIIT and its subsidiaries recorded a growth of 65 per cent to touch Rs 1,116.3 crore, while net revenues stood at Rs 795.1 crore.

The system-wide order intake at Rs 1,247 crore was up 57 per cent. The closing order book of Rs 533 crore is up 53 per cent over last year. During the year, NIIT's new businesses, such as the Institute of Finance, Banking and Insurance (IFBI), with equity participation from ICICI Bank, NIIT Imperia and NIIT Litmus, was able to cross Rs 10 crore.

On the growth opportunities Rajendra S. Pawar, Chairman, NIIT, said, "Opportunities created by high growth sectors are being addressed by new offerings and businesses from NIIT""Imperia, IFBI and Litmus."

ElementK, the Rochester-based comprehensive learning solutions company, acquired in August 2006, contributed 24 per cent to the system-wide revenues.

The acquisition helped the turnaround in international revenues, contributing 59 per cent to the total system-wide revenue compared with 44 per cent last year.

NIIT's China operations showed 100 per cent growth in the fourth quarter, contributing 25 per cent to the system-wide revenue of the company's individual business.

Going forward, the company plans to enhance its existing presence in various countries. It however will pay more attention to the European countries besides Nigeria, Vietnam, Indonesia, Malaysia, Russia, Mexico, Latin America and South Africa.

The company had a headcount of 3,213 by adding 954 people during the year, and intends to add 200 every quarter. Pawar said the company was always looking at acquisitions globally. NIIT also plans to venture into new business models that go beyond the IT sector.

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Board recommends 1:2 bonus issue

NIIT's board of directors today approved the issue of bonus shares in the ratio of 1:2, one additional equity share for every two equity shares held by the members on the record date to be fixed by the board. It also announced a split of the existing equity share of Rs 10 into five shares of Rs 2 each.

The necessary amendments in the memorandum and articles of association of the company are subject to the approval of members.

The board also recommended a dividend at 65 per cent (Rs 6.50 per equity share on face value of Rs 10 each) for the financial year 2006-07. The stock of the company closed at Rs 993.35, a 8.94 per cent increase over the previous day's trading figure.