Q1 (April – June 2009) Insight@NIIT:Vol.5 Investor Communication Contents
     
 

 
   

       
     
   
Contents
 
 


 
     

 
     
   
NIIT Limited Announces Q1 (Apr-Jun ‘09) Consolidated Results 2009-10
 
 

 

 

Rajendra S Pawar
Chairman
NIIT Limited

Forex volatility adversely affected profit from operations as well as the share of associates’ profits.

 

 

Vijay Thadani
CEO
NIIT Limited

Effective management of costs resulted in 53% growth in EBITDA, in a challenging environment.

 

 

 

P Rajendran
COO
NIIT Limited

The School Learning Solutions showed healthy growth of 43% with 1,984 new schools added in the quarter.

 

 

 

 

 

 

  • EBITDA grows 53% to Rs 28.6 Cr
  • School Learning Solutions revenue up 43% YoY
  • Order Intake of Rs 107.5 Cr in School Learning Solutions
  • USD 31 Mn Order Intake for Corporate Solutions

NIIT Limited : Consolidated Financials at a Glance (in Rs Cr)

  Qtr ended Jun 30,‘08

Qtr ended Jun 30,‘09

Growth YoY
Global System-wide Revenue
366.4 368.8 1%
Net Revenue
259.5 261 1%
EBITDA
18.7 28.6 53%
Profit After Tax
17.0 9.9 -42%

For the first quarter ending June 30, 2009, NIIT Limited, the leading Global Talent Corporation recorded net revenue of Rs 261 Cr and EBITDA of Rs 28.6 Cr , an improvement of 373 basis points, YoY. PAT at Rs 9.9 Cr was impacted by forex volatility, both, in operations and share of associates’ profits. The results were taken on record at the meeting of the Board of Directors of NIIT Limited here today. Growth in market share and revenue in School Learning Solutions, Corporate Learning Products and Individual Learning Solutions, China helped to offset the impact of the environment in the US and Europe market.

Improved product mix, better management of headcount and overhead costs resulted in higher operating efficiency and improved operating margin.

NIIT launched the GNIIT (IMS) programdeveloped in association with technology partners- Cisco, CompTIA, EMC, Microsoft, and Sun with the aim of meeting the industry’s growing need for certified professionals. The curriculum combines the strengths of technology partners to develop specialized skills in domains like Networking, Storage Management, Server and Datacentre management, Desktop and Application Support and Emerging Specializations like Security and Virtualization. With this launch, NIIT increased its share and IMS enrolments grew by 92% YoY. In China, NIIT enrolments grew by 63% due to introduction of new technology products and expanding centres under Public Private Partnership model
In this quarter, placements were up 87% due to continued robust demand for industry-ready trained IT professionals.

School Learning Solutions reported strong growth in revenue driven by demand from Government and Private schools. During the quarter, NIIT received mandate to provide computer aided education across 1,870 Government schools in Gujarat.

According to Mr P Rajendran, Chief Operating Officer, NIIT Limited, ‘The School Learning Solutions showed healthy growth of 43% with 1,984 new schools added in the quarter”. SLS recorded 89% growth in EBITDA due to increased revenue and operating leverage. Order Intake for the quarter stands at Rs 107.5 Cr leading to an order book of Rs 397.1 Cr Corporate Learning Solutions recorded EBITDA improvement of 739 basis points. In Corporate E-learning products, NIIT improved its market share with revenue growing 23% YoY. Fresh Order Intake was USD 31Mn leading to pending Order Book of USD 81Mn of which 63% is executable in the next 12 months.

New Business - Finance & Management Training and NIIT Uniqua
With the addition of 3 new executive management programs in Supply Chain Management, Advanced program in Competitive Strategy and HR Management, NIIT Imperia extended its offering to 25 Programs. NIIT Imperia tied up with Financial Management Service Foundation, Delhi. For the BFSI sector, IFBI enhanced its offering by launching a new set of programs under the ‘BFS series’ and also added Dhanalakshmi Bank as a partner.

Other Highlights of Q1:

  • NIIT was recognized among Bersin & Associates Learning leaders
  • NIIT received the ICT Gold Medal – Vietnam for the 4th year in a row.
  • NIIT received the Best Learning Partner award from CISCO and Microsoft
  • IFBI was recognized as the Best Training School by The Week – Nielsen survey
  • NIIT received the Best Green IT Project award by PC Quest for V-lab.
  • Basic computer education program, “Swift” gained national mindshare as 7,000 students from 500 schools across India competed at ‘Vish Come True’ national Chess competition, for a chance to play with NIIT MindChampion Viswanathan Anand.


 
     


 
     
   
NIIT leads the way to address talent shortage in Infrastructure Management space
 
 

Vijay Thadani
CEO
NIIT Limited

Infrastructure Management Services has opened exciting career opportunities for youth around the world and India, in particular, is poised to take a lead in Remote Infrastructure delivery.

Partner quotes:

Milind Gurjar
Director Global Market Development.
Learning @CISCO

Our Workforce Transformation Program with NIIT will significantly increase student access to Cisco's leading IT training and certification resources.

Todd Thibodeaux
President and CEO
CompTIA

We are pleased to be associated with NIIT as a Global Member to address the huge demand in the emerging domain of IT infrastructure management.

Alok Ohrie
President EMC India and SAARC

The unique GNIIT (IMS) programme focuses on concepts, principles, design, deployment and management of technologies rather than specific products and is aimed at producing industry-ready professionals.

B S Sherigara
Vice Chancellor
Kuvempu University

The continuing alliance with NIIT for the GNIIT (IMS) programme is an example of Industry-Academia collaboration and we aspire to meet Industry requirements through such innovative programs.

Rajan Anandan
Managing Director
Microsoft Corporation India Pvt. Ltd.

The demand for IT Professionals in the industry, especially in the domain of Infrastructure Management Services, is growing and especially in light of the slowdown.

Anil Valluri
Vice, President & Managing Director India GEM
Sun Microsystems

The GNIIT (IMS) program is a great platform for any IT career aspirant and would prepare students for specialized careers


Partners with global technology majors to introduce specialized programs on IMS

NIIT announced a pioneering initiative to create a talent pool, aimed at meeting the industry’s growing need for certified professionals in the Infrastructure Management Services (IMS) space.

NIIT brought together global technology giants Cisco, CompTIA, EMC, Microsoft, and Sun, to co-design an industry-aligned GNIIT (IMS) program that will provide students an application-based learning experience, mapped to global certifications. Short duration, specialization programs as well as B.Sc (ITIM) from Kuvempu University are part of the comprehensive offerings from NIIT.

This initiative aims at benefiting- individuals, by enabling an iron-clad career for them; organizations, by providing them with the assurance of NIIT training expertise and finally the IMS industry itself by making available ‘globally certified, first-day first-hour’ ready manpower for meeting industry needs.

According to Nasscom-McKinsey report, the IMS industry – that manages core IT systems, including hardware, software, connectivity and people – is all set to become the next frontier for growth. IMS is moving towards a remote delivery model experiencing an 80% CAGR, with services being provided from offshore locations. Given its established credentials, India is strongly-positioned to capture up to $15 billion, of the $28 billion global opportunity in Remote Infrastructure Management (RIM) over the next four years. This, in turn, will fuel the demand for experienced workforce with highly specialized skill-sets.

It has been our constant endeavor to introduce industry relevant programs which benefit the students and the industry at large. NIIT will address the rising global talent shortage in this space through the GNIIT (IMS) program developed in association with our technology partners- Cisco, CompTIA, EMC, Microsoft, Sun along with Kuvempu University.” he further added.

Aligned to the GNIIT architecture, the GNIIT (IMS) program will be spread over four semesters in two years, after which students will undergo one year of Professional Practice. The students will further be offered credit points equivalent with Kuvempu University’s B.Sc(ITIM) program thus allowing them to pursue the GNIIT (IMS) program coupled with a Bachelors degree in ITIM (IT Infrastructure Management).




 

 
     


 

     
   
Delhi Municipal School children to get computer savvy
 
 

 

L Balasubramanian
President
School Learning Solutions NIIT Limited

NDMC’s initiative for encouraging computer education for children belonging to lower socio-economic strata of the society is laudable. NIIT’s customized training programs will open new vistas of teaching and learning for Municipal School staff and students, and will integrate technology in teaching-learning process.


NDMC partners with NIIT for ICT Education in 29 Municipal Schools

NIIT entered into an agreement with capital’s civic body, New Delhi Municipal Council (NDMC) to provide ICT Education in 29 Municipal Schools in the city.

As per the initiative, NIIT will train the teachers, and offer computer aided education to 11,500 students from 29 Municipal Schools in the capital. The customized training program will be offered to students from Classes 6th to 12th initially for a period of one year.

Speaking on the association, Ms. Mamta R Agarwal, Director (Education), NDMC said, “The Chairman, NDMC is constantly striving to make our schools the best in education and facilities. In this regard, we have partnered with NIIT for this project to provide the best of computer education and training to our students.”

NIIT will set up computer labs furnished with hardware and connected accessories inside NDMC and Navyug Schools; offer training on Computer Science and Informatics Practices for +2 level students; and offer basic computer education programs for students of Classes 6th to 10th.

The new program uniquely positions NIIT to become the only training company in India to offer comprehensive ICT education in over 9,500 Government, Municipal and Private schools across the country.

 
     

     
   
NIIT introduces eGuru Math Lab for the first time in Andhra Pradesh at Delhi Public School, Nacharam, Secunderabad
 
 

 

 

 


Launching a breakthrough initiative that aims at making the vital subject of Mathematics simpler, easier and fun to learn for school students, NIIT installed the first ‘NIIT eGuru Math Lab’, at Delhi Public School in Secunderabad. The installation of ‘NIIT eGuru Math Lab’ also marked the establishment of the first such Math Lab in the state of Andhra Pradesh.

Mr. M. Komariah, Chairman, DPS Secunderabad inaugurated the revolutionary concept in presence of Mr. L Balasubramanian, President, School Learning Solutions, NIIT Ltd.; Mr. T. Bheemsen, Vice Chairman, DPS, Secunderabad; Mr. C Ramaiah, Director of IIT study circle and former Principal, APRJC, Nararjunasagar; Dr. N M Rao, former lecturer in Mathematics at A.M.U. Aligarh and Mr Komaresan, Professor of Math, Hyderabad Central University.

The inauguration of NIIT eGuru Math Lab was followed by a seminar on ‘Joy of learning Mathematics’. Prominent speakers like Mr. C Ramaiah, Dr. N M Rao and Dr. Komaresan, emphasized on the need for more such initiatives to bring about a change in our present education systems.

Speaking at the launch of ‘NIIT eGuru Math Lab’, Mr. M Komariah, Chairman, DPS Secunderabad said, “We are committed to impart world-class education to our students. NIIT eGuru Math Lab is a revolutionary concept that makes the difficult subject of Mathematics, exciting and engrossing. We are confident that this association will benefit our students with better comprehension and understanding of the subject.”

Mr. L. Balasubramanian, President-School Learning Solutions, NIIT commented, “NIIT believes in providing impactful learning solutions for students. NIIT eGuru Math Lab is another initiative to make the present curriculum interesting and interactive thereby bringing back the joy of learning Mathematics.”

In addition to providing greater scope for individual participation in the process of learning and becoming autonomous learners, the Math Lab also enables the teacher to demonstrate, explain and reinforce abstract mathematical ideas by using concrete objects, models, charts, graphs, pictures, posters, etc.

 
     

     
   
NIIT MindChampions’ Academy expands presence in Andhra Pradesh”
 
 

L Balasubramanian
President
School Learning Solutions
NIIT Limited

We are grateful to the Government of Andhra Pradesh for extending support to this initiative. Our objective is to bring students the advantages of technology training combined with the benefits of Chess that NIIT MindChampions’ Academy delivers.

 

 

 


Hon’ble Minister Mr. D Manikya Vara Prasad & World Chess Champion Viswanathan Anand Flag off NIIT MindChampions’ Academy in the State

NIIT MindChampions’ Academy expands to 2005 more Government schools, taking the total number to 2668 schools

NIIT MindChampions’ Academy was flagged off by Hon’ble Minister for Secondary School & Intermediate Education, Government of Andhra Pradesh, Mr. D Manikya Vara Prasad in 2005 more Government schools in the state of Andhra Pradesh. NIIT MindChampions’ Academy is a joint initiative of NIIT, leading Global Talent Development Corporation and World Chess Champion, Viswanathan Anand, to promote Chess among young kids in schools.

NIIT MindChampions’ Academy which was already present in 663 Government schools and 90 Private schools in the state has now extended its presence to 2005 more Government schools, taking the total number to 2668 Government schools.

Hon’ble Minister for Secondary School & Intermediate Education, Government of Andhra Pradesh, Mr. Manikya Vara Prasad and World Chess Champion Viswanathan Anand distributed MCA kits to the Principals of some of the identified Government Schools where MCA was launched.

Speaking at the launch, Hon’ble Minister for Secondary School & Intermediate Education, Government of Andhra Pradesh, Mr. Manikya Vara Prasad said, “We are pleased to have this initiative by NIIT in Andhra Pradesh of initiating children into the game of Chess. I am confident that this will prove to be a significant contribution towards development of these young minds."

World Chess Champion and NIIT MindChampion Viswanathan Anand said, “The game of chess makes significant contribution to the field of education. Since playing Chess improves our Memory, logic, analysis and decision making, it serves as an important educational tool. NIIT MindChampions’ Academy offers a marvelous opportunity for children to explore chess and at the same time benefits them in development of intellectual abilities.”



 
     

     
   
NIIT Recognized among 2008 Bersin & Associates Learning Leaders
 
 

Josh Bersin
President of Bersin
& Associates

We found several themes in common among these organizations - a strong alignment with their most urgent business problems, a focus on collaboration and informal learning, and a priority on learning program adoption and change management. We believe that all training and development professionals can gain valuable insight from the Learning Leaders success stories.


Sapnesh Lalla
Senior Vice President
NIIT (USA), Inc

We are proud to be recognized with this award particularly among our esteemed colleagues in the learning industry,


- Learning Administration Solution receives Vendor Innovation Award

NIIT was awarded the prestigious Vendor Innovation Award by Bersin & Associates for its Learning Administration Services. Bersin & Associates, the only research and advisory firm focused on enterprise learning and talent management, gave the award as part of its Learning Leaders Program.

NIIT was honored for its integrated Learning Administration solution developed for Royal Philips Electronics. The solution, which is just one component of NIIT’s Managed Training Services, includes a robust global Learning Management System as well as a 24x5 Global Customer Service desk for the company’s employees in more than 80 countries.

 
     

     
   
NIIT strengthens its presence in Kolkata
 
 

Surojit Biswas
NIIT Ltd.,
ILS-India, East

We are very happy to bring yet another centre in Kolkata. There is an ever increasing demand for IT professionals and we will continue to reach every section of the society with our comprehensive range of products to prepare students for the new technology age.


 

 


- Launches its 16th state-of-the-art IT education centre in the city

NIIT expanded its reach in Kolkata by launching its new state-of-the-art IT education centre at Nagerbazar, Kolkata. NIIT’s sixteenth centre in the city was inaugurated by Dr. N.R. Banerjea, Chairman, West Bengal Electronics Development Corporation Ltd. (WEBEL)and former Vice Chancellor, Bengal Engineering & Science University (BESU), Mr.Kalyan Kar, Managing Director, Acclaris India, Mr.Sanjeev Saxena, Director HRD, Ordinance Factory Board and Shri Debang Gandhi, an eminent sports personality, graced the occasion as Guests of Honour. The new centre is expected to train thousands of IT career aspirants, every year.

The new education centre at “Credible House” 47, Jessore Road, Nagerbazar, Dum Dum, Kolkata : 700 028, houses state-of-the-art machine rooms and class rooms. The centre will offer NIIT’s complete portfolio of IT education offerings for career aspirants, end users and software professionals, including NIIT’s industry endorsed multiple track GNIIT program, NIIT Edgeineers, and short term SWIFT courses, among others.

“Our new state-of-the-art centre offers excellent infrastructure and study environment for students to enable them to have the best learning experience,” He further added.



 
     

     
   
NIIT to provide computer aided education across 1870 schools in Gujarat
 
 

L Balasubramanian
President
School Learning Solutions
NIIT Limited

We are honoured to partner with the Department of Education, Gujarat for the first time, in their initiative to promote computer education across 1870 government schools in the state. We remain committed towards making education more impactful and interactive, by leveraging IT, and ensuring that the best tools and resources are made available to the school students. The confidence placed in us by two new states in Gujarat and Rajasthan, bears testimonial to our cause.


NIIT entered into a contract with the Department of Education, Government of Gujarat to introduce Computer Aided Learning in 1870 secondary and senior secondary government schools for classes 9-12 in Gujarat.

The five-year contract would impact around 9,00,000 school students across Gujarat, thus consolidating yet another state into NIIT’s portfolio after its recent foray into Rajasthan with 1672 schools. Based on its impeccable track record of providing quality ICT education solutions in schools NIIT bagged the majority share of the contract awarded by the Government of Gujarat.

Recognizing the potential of Information and Communication Technologies to transform the teaching–learning process in the non-formal and formal education space, and its potential in changing the way teachers and learners gain access to knowledge and information, NIIT’s ICT in Education initiative focuses on using IT to enhance the reach and quality of teaching and learning.

 

 
     

     
   
NIIT UNIQUA brings World Chess Champion and NIIT Mind Champion Viswanathan Anand to Jaipur
 
 

Viswanathan Anand
World Chess Champion

Our education system offers a rigid and inflexible course curriculum which leads to constrained development of skill sets in our society. Hence, acquisition of additional skills becomes imperative to help increase one’s employability. Just like a game of Chess contributes significantly towards intellectual development, similarly, up-skilling helps you to have an edge over others.

Chockalingam Murugan
NIIT Uniqua
President

Most of the graduates who aspire to be employed in this sector remain unemployed for want of right skills to excel in the BPO environment. ITES-BPO industry is growing at over 50 per cent, providing an ever-expanding opportunity to create more jobs than any other sector.


Viswanathan Anand talks about the need for up-skilling at a seminar on- “Emerging career opportunities in the BPO/ ITeS sector”, hosted by NIIT Uniqua
Along with Anand, the seminar is addressed by Industry experts from Genpact, Infosys and Deutsche Bank

World Chess Champion and NIIT Mind Champion, Viswanathan Anand attended a seminar in on “Emerging career opportunities in BPO and ITeS Sector” organized by NIIT Uniqua- Centre for Process Excellence, an NIIT-Genpact venture. The seminar was held to discuss the growing opportunities in the BPO/ITES sector and how to create talent pool for this industry.

Attended by industry experts from Genpact, Infosys and Deutsche Bank, the seminar was chaired by World Chess Champion, Viswanathan Anand who was the Chief Guest at the event. During the occasion, Anand released a book on “Career opportunities in BPO & Business Services Industry” by NIIT Uniqua.

The Seminar served as a forum to address the ever increasing demand for skilled workers in the BPO and ITES sector. World Chess Champion, Vishwanathan Anand, highlighted the need for up-skilling to increase employability in the present challenging economic scenario.

Recognizing this need, NIIT Uniqua offers a blended learning curriculum that brings together formal learning and hands-on real-life experience for aspirants for sustainable career development in Business & Technology Services industry.”

 

 
     

     
   
Winners of NIIT Vish Come True Chess competition play with World Chess Champion Viswanathan Anand
 
 

Viswanathan Anand
World Chess Champion

Vish Come True, is yet another initiative by NIIT to introduce chess to students at a young age in order to develop their intellectual capabilities.

 

 

G Raghavan
President
Individual Learning Solutions NIIT Limited

We have received an overwhelming response for the NIIT Vish Come True competition across India. This has been an ideal initiative that supports our endeavour to promote intellectual growth of students.

 


Anand plays live Chess, simultaneously with the winners across 7 cities

NIIT Vish Come True, National Chess Competition for school children organized by NIIT, leading Global Talent Development Corporation and Asia’s largest IT trainer, witnessed a grand closing. World Chess Champion Viswanathan Anand played simultaneous chess with the eight National Champions across seven locations - Bangalore, Kolkata, Ahmedabad, Chandigarh, Bhopal and Patna, facilitated by NIIT Imperia’s synchronous learning technology, while being based out of Delhi.

The national chess contest saw widespread participation from around 7000 students from 500 schools all over the nation. Enthusiastic students from places as diverse as- Sibsagar in Assam to Surat in Gujarat and Pathankot in Punjab to Coimbatore in Tamil Nadu enrolled for the competition, hoping for a chance to play with their Chess Ideal, lovingly referred by them as Vishy Anand.

The contest was organized by NIIT through its national network of centres. School students were encouraged to come forward and play Chess, as the game helps improve concentration and decision making abilities, thereby enhancing academic performance among children.

World Chess Champion, Anand, gave playing tips to young Chess enthusiasts and responded to their queries, using NIIT Imperia’s national network which is being used by premier business schools such as the IIMs (Ahmedabad, Indore, Kolkata) and others, to offer their executive management education programs to working professionals across the country.

 
     
 

 
         
 
NIIT in News
   
 
Add IT to your portfolio,Mail Today, April 28, 2009
Cyber classrom, Careers 360, April 2009
Educating Bharat, Dataquest, June 2009
Get the IT advantage, Mail Today, April 28, 2009
Instant Karma, The Week, May 24, 2009
Kamal Nath can take his Chhindwara skill training programme nationwide, The Economic Times, June 01, 2009
NIIT launches GlobalNet+, The Hitavada, June 15, 2009
NIIT orders, H.T.Mint, May 15, 2009
Pink City emerging as outsourcing hub, The Hindu, June 22, 2009
Planning counts, plans don't, The Economic Times, June 03, 2009
Soon, 9 lakh students will log on to computers, Ahmedabad Mirror, May 14, 2009
 
     

     
   
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