NIIT Limited Consolidated Annual Results 2005-06

 

§         Operating profit for the year up 23 per cent to over Rs. 60 crore

§         Earnings per Share up 19 per cent to Rs. 21.4

§         Individual learning business grows 22 per cent

§         China business clocks 26 per cent growth

§         Board recommends dividend of Rs. 6.00 per share

 

New Delhi, June 29, 2006: NIIT, Asia’s largest IT trainer, has announced a healthy 23 per cent growth in operating profit in the financial year ended March 31, 2006. Profit after tax was at over Rs. 40 crore leading to Earnings per Share of Rs. 21.4. The company’s operating margin at the end of the financial year stood at 13 per cent, an improvement of 107 basis points.

 

Here are the financial year results for NIIT Limited at a glance:

 

CONSOLIDATED FINANCIALS AT A GLANCE

In Rs. (crore)

Year ended

March 31,2006

Year ended

March 31, 2005

Growth

Global Systemwide Revenues

711.2

636.3

12%

Net Revenues

450.7

398.4

13%

Operating Profit

60.3

49.0

23%

Operating Margin (%)

13

12

107 bps

Profit After Tax

40.1

35.6

12%

Earnings per Share (Rs.)

21.4

18.0

19%

 

Highlights of NIIT’s results include:

§         The global systemwide revenues of NIIT and its subsidiaries grew 12 per cent to reach over Rs. 711 crore, while net revenues reached over Rs. 450 crore, as the company reached many significant milestones and clocked healthy all-round growth

§         The company’s individual learning business grew significantly, posting a 22 per cent year-on-year growth. Career student enrolment went up 21 per cent while job placements went up by 124 per cent over the previous financial year

§         Its China business grew by over 26 per cent, contributing 10 per cent to the company’s systemwide revenues. The company strengthened its “NIIT Inside” model by forming partnerships with universities and software technology parks

§         The company’s corporate solutions business reported a fresh order intake of $45.7 million, while the institutional business had a fresh order intake of nearly Rs. 132 crore.

 

International business contributed Rs. 343 crore (48 per cent) to the company’s global systemwide revenues, while the remaining Rs. 368 crore (52 per cent) came from India.

 

Commenting on the company’s performance, Rajendra S. Pawar, Chairman, NIIT Limited, said: “A strong surge in student enrolment led to a 23 per cent improvement in our operating profit.”

 

The company made significant headway in its education offering for students and recorded a growth of 21 per cent in career enrolment. Vijay K. Thadani, NIIT’s Chief Executive Officer, said: “The wide acceptance by the industry of our special programmes for engineering students and the multi-track GNIIT programme led to a 124 per cent growth in placements of our students. We have aggressive growth plans this year and our focus will be on leveraging our partnerships with technology majors, among them Intel, Sun and Microsoft, to enhance our offering to students,” Thadani added.

 

NIIT’s corporate solutions business reported a record order intake of $45.7 million with the majority contribution coming from technology companies and large user corporations. P. Rajendran, Chief Operating Officer, said: “The 21 per cent growth in fresh order intake reflects the confidence of our corporate customer base in the range and quality of services delivered by us.”

 

The year 2005-06 also witnessed NIIT’s institutional business making strides with computer education and computer-assisted education being introduced in over 2,000 government schools in the states of Chhattisgarh, Himachal Pradesh and Tripura and bagging repeat orders in Assam. With the addition of these schools, NIIT now touches 1.4 million schoolgoing children in the deep interiors of the country. In a unique programme in Chhattisgarh, NIIT is offering specialised training to over 1.2 lakh girl children in state government schools.

 

January-March 2006 performance

For the last quarter of the financial year 2005-06, the global systemwide revenues of NIIT Limited grew 11 per cent year-on-year to touch nearly Rs. 184 crore. Operating margin improved to 14 per cent during the quarter. Profit after tax stood at more than Rs. 8 crore.

 

Recognition

·         TrainingOutsourcing.com, an independent Web-based knowledge community, ranked

§         NIIT among the world’s premier “Top 20 Companies in the Training Outsourcing Industry” in 2005

·         NIIT featured amongst India’s Top 50 Most Trusted Services brands in a survey conducted by The Economic Times Brand Equity in 2005, for the second consecutive year.

 

 

About NIIT

NIIT, an acknowledged leader in the IT and IT-assisted training space, offers learning and knowledge solutions in over 30 countries. IDC ranks it 16 among top 20 global IT training companies, and the only one outside of the US and the UK, with over half a million students on its rolls. Leading IT magazine Dataquest has conferred upon NIIT, the 'Top Training Company Award' 2005.

 

Rated among India's Superbrands, NIIT's education offerings include: GNIIT, an industry-endorsed programme for students seeking careers in the IT and BPO segments; CATS, which offers training programmes on advanced technologies for IT professionals; Swift, a platform for equipping people with basic computer skills; and NIIT@School, a turnkey IT integration programme that provides computer-based learning in over 3,800 government and private schools.

 

NIIT's range of offerings in the e-learning domain is bolstered by its SEI CMM Level 5 assessed Corporate Solutions Business which has emerged as a leader in the field. The corporate business offers integrated learning solutions that range from strategy and design to development, implementation and administration.

 

Its customers include many Fortune 500 companies, universities, technology companies, training corporations and publishing houses.

 

For investor queries, please contact:

Chetna Khuller, NIIT Ltd., Mobile: 9811156826

E-mail: ChetnaK@niit.com

or

Visit www.niit.com