The Covid pandemicwhich wreaked health and economic havoc across the worldsending global GDP plunging by 4.3 percent and creating either short-term or long-termimpactremained the dominant force and talking point during 2020 and the first halfof 2021.
India which suffered its debilitating and lethal second wave during the FY21 periodcontinued to witness significantly slower economic growth (a decline of 7.3 percent GDP inFY21). Despite a gradual phase of recovery the projections for FY 22 remain muted andtempered.
The year gone by however did have its redeeming features. The move to Digital bybusinesses was greatly hastened by the shift in consumer behaviour. Digital implementationand transformation by organizations anticipated to take place over a 5-10 years span wasshortened to a few months.
Businesses in fact that had been quick to embrace Digital to ensure continuity andleverage the emerging opportunities enjoyed a windfall experiencing double-digital andeven larger growth in 2020-21.
NUT meanwhile responded to the Covid-19 crisis with alacrity showcasing resilience andagility and taking decisive actions to ensure the safety and health of all stakeholdersand continuity for customers. Whether it was moving all NIITs to the Work from Home (WFH)mode transitioning to digital delivery of learning launching new offerings for existingcustomers conserving cash and rationalizing costs NUT took a spate of measures toremain in sync with and combat the challenging environment.
I am delighted to share that despite the Covid induced challenges faced by the industryduring FY 21 your Company recorded a revenue of Rs. 9495 million which was up sevenpercent from Rs. 8892 million in the previous year.
The Operating Profit (EBITDA) more than doubled to Rs. 1753 million and EBITDA was up106 percent YoY. Your Company recorded a PAT of Rs. 1430 million.
NIIT's Corporate Learning Group (CLG) led the revenue numbers growing by 19 percentYoY and 34 percent in Q4 of FY21. The business accounted for 87 percent of your Company'srevenue during the year. Spurred by new global customer acquisitions in its ManagedTraining Services portfolio during FY21 expanding contracts and client renewals CLGachieved a Revenue Visibility of USD 287 million up 9 percent YoY.
Bearing the brunt of Covid-19 restrictions was NIIT's Skills and Careers (SNC)business which experienced a revenue drop of 37 percent YoY. SNC however pulled off aturnaround that was reflected in a Quarter-on-Quarter revenue growth and a 12 percent YoYexpansion in Q4 FY21.
This was a result in large part of the accelerated digital transformation of our B2Cbusiness and continued technological investments in our online learning platform NIITDigital. Seamlessly delivering learning services to students through enhanced reach andefficiency during numerous national lockdowns NIIT ensured the recovery of its SNCbusiness post the turbulent Q4 FY20 and Q1 FY21 periods.
StackRoute and TPaaS which accounted for 40 percent of SNC's revenues in FY21remained the strong growth pillars for the business owing to their robust customer valueproposition and proven learning outcomes.
On December 24 2020 the NIIT board announced the second buyback out of the proceedsof the divesment in NIIT Technologies utilizing 68 percent of the net cash available fromthe transaction for rewarding you our valued shareowners.
The Board approved the appointment of two Independent Directors Ms Sangita Singh whobrings three decades of global B2B experience at Wipro Infosys and IBM and Ms AvaniDavda with two decades of rich experience in Consumer Retail and business leadership atthe TATA group including in the role of CEO of the Tata-Starbucks JV. They shall join theCompany w.e.f. June 5 2021 as Additional Directors till the forthcoming AGM when theirappointments shall be taken up for approval by the shareholders.
Further Mr Sapnesh Lalla who has been CEO of the company for almost four years nowis being elevated to the Board as Executive Director & CEO on approval by theshareholders in the forthcoming AGM. In addition Mr. Udai Singh Pawar and Ms. Leher VijayThadani will also join the Board as non-executive directors after approval by theshareholders in the forthcoming AGM. These important additions to the Board will alsosignificantly enhance Board diversity in terms of competencies domain experiencegeography gender and age.
Looking ahead we see a positive upswing across all our businesses. Our strong balancesheet and liquidity position coupled with the opportunities opened up by large-scaledigital disruption have positioned us as a leader in the spaces addressed by CLG and SNC.
In CLG for instance and the area of training outsourcing in particular we see vastuntapped potential and a great headroom for growth. The acceleration in Digital adoptionis expected to not only spur the requirement for outsourcing specialists who will helpwith this transition but also new skills. We are geared up to fulfil both these roles.
Sustained investments in innovation thought leadership in advisory services and Salesand Marketing skills will also be our edge as we move forward in FY22.
Your Company is additionally planning to invest in organic and inorganic initiatives aswell in on-boarding specialized manpower to add the new capabilities being sought bycustomers and to increase penetration in select customer segments and geographies.
NIIT's Skills & Careers business which has transitioned to NIIT Digital will see afurther infusion of investments in digital learner acquisition and marketing automationtools. The high opportunity IT and BFSI markets will remain on our radar. We will alsocontinue to enhance our focus on Deep Skilling through our Stack Route and TPAASofferings.
A resurgence in hiring especially for new age career profiles by the Indian IT sectorwhich had seen a drop since 2020 is expected to boost NIIT's corporate as well asindividual training businesses. As part of our effort to rationalize existing products andservices with low profitability and potential to create bandwidth for growth your Companyis now actively looking to divest its schools business to an organization focused on theK-12 market. The business has now been categorized as Asset held for Sale' and effort willbe on in FY22 to find an appropriate investor for it.
Awards and Acknowledgments
It gives me great pleasure to share that despite the challenges of FY21 your Companywas conferred with several coveted global industry recognitions. From 30 Brandon HallGroup HCM Excellence awards which we won jointly with customers in 2020 to rankingglobally among Training Industry's Top 20 Training Outsourcing Companies for thethirteenth consecutive year to being named to Training Industry's 2020 Top 20 IT TrainingCompanies list for the eleventh year NIIT remained in the spotlight for its innumerablesuccesses. To add NIIT was also featured as the only company in Educational ServicesIndustry in the Fortune India 500 list 2020.
NIITs too including your Company's leaders have been felicitated with prestigiousindustry awards during FY21.
I would like to express my appreciation for all NIITs who went the extra mile to ensurethat NIIT as well as fellow colleagues protected and preserved their health. While NIIT onits part made available Educational Medical Financial and Human resources to NIITs andtheir families to help minimize Covid-19 impact the NIITs themselves rose to the taskdisplaying unmatched commitment dedication and selflessness during these testing times.NIITs across the world came together in this fight deeply mourning each loss and joyfullycheering and celebrating every recovery.
I would like to add that NIIT's sustained leadership during this devastating pandemicwould not have been possible without your unstinting support. For your encouragement andbelief in us NIIT shall always be grateful.
Adversity has brought out the best in NIIT and we intend to build on this strength asthe world continues to battle the challenging times.
RAJENDRA S. PAWAR
Chairman NIIT Ltd.