New Delhi: NIIT Limited (NSE: NIITLTD), a global leader in skills and talent development, today reported its results for the second quarter ending September 30, 2018. During the quarter, the company recorded a PAT of Rs. 25.9 Cr, up 104% YoY and Net Revenue of Rs. 228.5 Cr, up 10% YoY. EBITDA was recorded at Rs. 21.9 Cr, up 23% YoY. Operating Margin stood at 10%, up 105 bps YoY.
The results were taken on record at the meeting of the Board of Directors held today. Speaking on the company’s performance during the quarter, Mr. Vijay K Thadani, Vice Chairman & Managing Director, NIIT Limited said, “Distinctive capabilities and strong value proposition of Managed Training Services (MTS) continues to attract global marquee customers. A robust base of 40 MTS clients and $226 Mn Revenue visibility, up 16% YoY, bear strong testimony to this.”
Corporate Learning Group (CLG) recorded net revenue of Rs. 161.6 Cr up 28% YoY. It added 1 new MTS customer in Q2, renewed contract with 1 and expanded business with 3 existing customers. This quarter NIIT earned 19 coveted Brandon Hall Group HCM Excellence awards jointly with customers. The Brandon Hall Group Excellence awards are awarded for excellence in Learning and Development.
Skills & Careers Group (SNC) recorded net revenue of Rs. 61.7 Cr during Q2. Over the last 2-3 quarters the SNC business has focussed on a few key initiatives. These include new career programs, deep skilling in digital technologies under StackRoute and Talent Pipeline as a Service (TPaaS).
Talent Pipeline as a Service (TPaaS) was setup to ensure reliable availability of specifically skilled talent to global organizations to match the pace of expansion in today’s fast changing, uncertain business environment. Within a short span of launch, NIIT already has TPaaS mandates from one of India’s Top 3 leading IT Services Organisation and 7 other market leading companies from the IT and the BFSI sector, for over 9000 professionals for this financial year.
TPaaS also offers unique opportunity to students to chart an aspirational career with global organizations in today’s uncertain times. Students opting for career programs under TPaaS are assured placement with leading corporates on successful completion of the program. NIIT will train around 1,00,000 youth in 3 years for aspirational career opportunities in leading corporates in the IT & BFSI Sectors through this initiative.
The Indian IT industry employs around 4 million people, of which about 40% need re-skilling over the next five years to stay relevant. NIIT’s StackRoute initiative is geared towards imparting deep skilling in digital technologies to transform programmers into full stack developers and project managers into engineering managers and develop digital architects. StackRoute now has substantial mandates from two of India’s Top 5 IT Services Organisations and 7 other IT Services majors for transforming their workforce in the digital age.
In a significant development during the quarter, NIIT unveiled a series of new Career Programmes guided by the choices of the industry to address the changing workforce needs that digital transformation has brought forth. On offer are aspirational programmes in the fast-evolving digital marketing, data analytics, financial services & futuristic IT streams. NIIT plans to train 60,000 youth over the next 2 years in these new-age career programmes.
Acknowledging its contributions in the field of career education, NIIT was recently felicitated with Franchise Award 2018 for ‘Innovation and Technology’, by Franchise India.
Commenting on the Skills & Careers Group, Sapnesh Lalla, CEO, NIIT Ltd. said, “Our key initiatives – new Career Programmes, TPaaS and StackRoute – continue to receive encouraging response. Each of these initiatives are starting to build momentum, resulting in improved visibility and order intake.”
MindChampion Learning Systems Limited (MLSL) registered net revenue of Rs. 5.1 Cr.
During the quarter MLSL added 51 school contracts. It also significantly enhanced the curriculum for NIIT Nguru MathPlus – a unique solution designed for fostering mathematical skills.
NIIT Nguru Practice Plus – an online solution for K-12 that enables continuous practice and assessment, now has over 4.1 lakh registered users, and around 1.5 lakh parents.