Latest News | NIIT Q3 Net Profit Up 53 Pc to Rs 41.5 Cr

New Delhi, Feb 5 (PTI) NIIT Ltd on Friday said its consolidated net profit grew 53 per cent to Rs 41.5 crore in the December 2020 quarter with strong deal wins, cost conservation and managing the product mix contributing to the strong performance.

The skills and talent development firm had posted a net profit of Rs 27.1 crore in the year-ago period. Its revenue grew by 4 per cent to Rs 253.4 crore in the quarter under review, from Rs 243.9 crore in the year-ago period.

"This quarter has been an uplifting quarter for us. There was a strong recovery by NIIT because of its agile and decisive actions, combined with robust execution. The corporate learning group (CLG) led the growth and grew by 12 per cent on a quarter on quarter basis, and 15 per cent year-on-year," NIIT CEO Sapnesh Lalla told PTI.

The company's CLG recorded net revenue of Rs 217.5 crore, and added three new Managed Training Services (MTS) customers and registered 4 MTS customer renewals in the December 2020 quarter.

"CLG acquired three new MTS customers, resulting in an increased revenue visibility of USD 270 million. The key initiatives in the SNC business, including NIIT Digital, StackRoute and TPaaS continued to gain momentum," he said.

Skills and Careers Group (SNC) recorded net revenue of Rs 35.9 crore during the December 2020 quarter.

NIIT Ltd Vice Chairman and Managing Director Vijay K Thadani said in the past few quarters, the company has reached out to customers to extend support during the pandemic.

"Our customers really appreciated this and this is also visible in the renewals we have got from MTS customers...of course, cost conservation and managing the product mix have been the other elements, which have contributed to this performance," he said.

Thadani said going forward, the momentum is expected to continue.

"We do see a similar kind of thing happening in Q4 even though Q4 is not our best quarter and Q3 is typically the best quarter. But despite that I think we will see an improvement in year on year growth...with appropriate margins since we are also investing in digital technology at a faster pace," he added.

Thadani also noted that there is economic uncertainty in the future coming out of the new bouts of COVID-19 that are being seen in various parts of the world, including the UK and that is definitely something to watch for.

At the end of the December 2020 quarter, NIIT's headcount stood at 2,435, an addition of 49 people from the September quarter.

Shares of the company closed at Rs 195.55 apiece, down 1.49 per cent over previous close on BSE.

In December, NIIT's board of directors had approved a proposal for buyback of up to 98.75 lakh equity shares for an aggregate amount not exceeding Rs 237 crore at a price of Rs 240 per share.

The buyback is subject to the approval of the shareholders and other regulatory permissions.

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