Q2 (July-September 2018)
Insight@NIIT:Vol.40
Investor Communication
Contents
 
   
   
     
 
   
Contentss
 
 
Q2 Results
     
     
 
   
NIIT Limited announces Q2 (July - September 2018) Consolidated Results
 
 


 


Vijay K Thadani
Vice Chairman & Managing Director, NIIT Limited
 
"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."

 

 

 

 

 

 


Sapnesh Lalla
Chief Executive Officer
NIIT Limited
 
"FY18 saw robust profitability, with PAT growing 53% YoY. EBITDA grew 22% YoY in Q4, on the back of Corporate Learning Group (CLG) delivering a strong revenue growth of 28% YoY during the quarter. CLG now forms 65% of NIIT revenue, showcasing strong performance and a higher growth trajectory."

 

 

 

 

 

  • PAT grows 104% YoY, at Rs. 25.9 Cr
  • Records Net Revenue at Rs. 228.5 Cr, up 10% YoY
  • EBITDA up 23% YoY at Rs. 21.9 Cr
  • Corporate Learning Group (CLG) grows 28% YoY; CLG revenue visibility grows 16% YoY to $226 Mn
  • Key initiatives – Talent Pipeline as a Service (TPaaS) and StackRoute, deep skilling in digital technologies – receive encouraging response from the industry; gets mandate from top tier IT Services and BFSI organisations.

NIIT Limited 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.

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.

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.

 
     
     
 
   
NIIT launches Career Quest in Delhi/ NCR - unique Initiative to help college students identify and get prepared for their dream career
 
 

Kshitij Jain
Vice President,
Career Education Business, NIIT Ltd
 
"As there are multiple career options available in today's digital economy it is important for students to understand which career is best suited to their aptitude. Towards this, we have introduced Career Quest to help youth find their dream career that will help them stay meaningfully employed in the future."

- To engage with youth and counsel them on new age career options

NIIT Limited presents Career Quest in Delhi/ NCR to help youth find their dream career. Career Quest is a platform where youth can explore and learn about new-age careers through expert on-ground counselling by NIIT across colleges.

Career Quest will be organised from 19th - 29th September 2018 across the colleges. Career Quest aims to engage with youth and counsel them on new age career options through activities and games. NIIT's expert counsellor will interact with students and help them to find a career best suited for them based on their aspirations and aptitude. Post the completion of the activities the students will be given career guides to help them identify and explore various career options.

While the options are plenty in today's digital economy, information about future-ready careers and the roles and path they entail are often not available to students. Hence, they seem to be 'drifters' not knowing what stream to choose and strongly feel the need for guidance and direction. Understanding this need NIIT, is focused towards being 'Inspiring Mentor' to these students. Career Navigator tool has been designed to explore an individual's career aspirations and advise them on the best career path for their future. Any student aspiring to opt for aspirational career programs at NIIT will have to undergo the Career Navigator process.

Through Career Quest NIIT will expose students to new-age career programmes in Digital marketing, Data Analytics, IT, banking and Finance & Accounting and Business Analytics.

Earlier this year, NIIT launched aspirational career programs matching the future-ready talent requirements of the industry with ambitions of the generation next. These programs include, Advanced Program in Digital Marketing and Branding, Advanced Program in Data Analytics and Predictive Modelling, Advanced Program in Full Stack Software Engineering, Advanced Program in Banking and Finance and Advanced Program in Accounting & Business Analytics.

 
     
     
 
   
NIIT Nguru in association with Marshall Cavendish unveil "MY PALS ARE HERE" – series based on Singapore Mathematics
 
 

Pradeep Narayanan
Head, MindChampion Learning Systems Limited (MLSL)
 
"This world-class programme has been widely adopted across the globe and has resulted in improved teaching learning experience in Mathematics. The programme promotes understanding through structured approaches and the pedagogy with collaborative activities that help students to learn and develop problem-solving skills."

- A fun-filled series to sharpen a child's problem-solving and critical thinking skills

MindChampion Learning Systems Limited (MLSL), NIIT's wholly owned subsidiary for its K-12 school learning initiative, launches "MY PALS ARE HERE" an engaging series based on Singapore teaching methodology. Introduced in association with Marshal Cavendish Education, the series has been designed to build a strong foundation of mathematics and strengthen a child's conceptual understanding of the subject.

MY PALS ARE HERE series helps students by providing hands-on activities and games to reinforce mathematical skills. Students hone their problem-solving skills through individual and collaborative practices. As they work through mock problems, they learn how to apply the same problem-solving strategies to real world problems. The series also helps students by providing activities to develop critical thinking skills and challenge students to solve questions based on higher order thinking skills. MY PALS ARE HERE is targeted at students from grade 1 to 5.

According to TIMSS (Trends in International Mathematics and Science Study), over 70% of Singapore students consistently performed better academically than the international average. The results of mathematics assessments from 1995 to 2015 show consistent outstanding performance by the students of Singapore. NIIT Nguru has collaborated with Marshall Cavendish, a leading national and regional provider of K-12 educational solutions of Singapore to bring an engaging series "MY PALS ARE HERE" based on Singapore teaching methodology. This world-class programme has been widely adopted across the globe and has resulted in engagement among all stakeholders.

NIIT Nguru is a holistic range of School Learning Solutions which aims to make the vital process of teaching and learning simpler, thus bringing back the joy of learning for students.

 
     
     
 
   
NIIT Earns 19 Brandon Hall Awards Jointly with Customers
 
 

DJ Chadha
EVP & Global Head, LDO, Content Design & Development at NIIT's Corporate Learning Group
 
"We are extremely proud that we have earned 19 Brandon Hall Excellence awards jointly with our customers. These highly coveted awards are a recognition of the finest in learning and talent development. We are honored to partner with our customers in their L&D transformation journeys through innovative approaches and transformative business results,"


Expands training capability for global rollouts of cloud-based Enterprise Applications in the Pharmaceutical and Life Sciences Industry

NIIT Limited announced that it has 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, Talent Management, Leadership Development, Talent Acquisition, Workforce Management and HR and Sales Performance Awards.

NIIT earned 19 awards in various categories jointly with customers:

  • 2018 Brandon Hall Gold in the Best Advance in Creating a Learning Strategy category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Gold in the Best Unique or Innovative L&D Program category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Gold in the Best Use of Blended Learning category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Gold in the Best Use of Games and Simulations for Learning category jointly with GE for GE Generator 2nd-Person Simulation for iPad
  • 2018 Brandon Hall Gold in the Best Use of Leadership and Competency Development category jointly with IQVIA for IQVIA New Manager Onboarding Program
  • 2018 Brandon Hall Gold in the Best Sales Program for Sales Training and Performance category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Gold in the Best Sales Training Program for the Extended Enterprise category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Gold in the Unique or Innovative Sales Training Program category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Silver in the Best Advance in Custom Content category jointly with IQVIA for IQVIA - Project Leader Curriculum
  • 2018 Brandon Hall Silver in the Best Advance in Custom Content category jointly with Liberty Mutual Insurance for Liberty Mutual - Digital Security
  • 2018 Brandon Hall Silver in the Best Advance in Learning Measurement category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Silver in the Best Use of Video for Learning category jointly with Royal Dutch Shell for Shell Orthodoxies
  • 2018 Brandon Hall Silver in the Best Sales Onboarding category jointly with MetLife for MetLife Distribution Academy
  • 2018 Brandon Hall Bronze in the Best Advance in Custom Content category jointly with Royal Dutch Shell for Shell Front Line Barrier Management Assessor Training
  • 2018 Brandon Hall Bronze in the Best Advance in Custom Content category jointly with Royal Dutch Shell for Shell Terminal Self Assurance
  • 2018 Brandon Hall Bronze in the Best Advance in Custom Content category jointly with Royal Dutch Shell for Shell SAP Blueprint Refresher
  • 2018 Brandon Hall Bronze in the Best Use of Blended Learning category jointly with Westfield for Westfield CCCP
  • 2018 Brandon Hall Bronze in the Best Use of Games and Simulations for Learning category jointly with Royal Dutch Shell for Shell SLR/IDF Game
  • 2018 Brandon Hall Bronze in the Best Use of Video for Learning category jointly with Equinor for Equinor Learning Methods

The winners are listed at http://www.brandonhall.com/excellenceawards/past-winners.php

"Excellence Award winners personify innovation that drives business results. Our winners embrace the future and embrace change and the challenges that go with it," said Rachel Cooke, Chief Operating Officer of Brandon Hall Group and head of the awards program. "It is amazing in reviewing these entries how organizations – both large and small – work across functions to make human capital management a valuable asset that enables business success."

The award entries were evaluated by a panel of veteran, independent senior industry experts, Brandon Hall Group analysts and executives based upon the following criteria: fit the need, design of the program, functionality, innovation, and overall measurable benefits.

Excellence Awards winners will be honored at Brandon Hall Group's HCM Excellence Conference, January 23-25, 2019, at the Hilton West Palm Beach in Florida.

 
     
     
 
   
NIIT Nguru Assessment suite holds center stage at the Global Educators Fest 2018
 
 

Pradeep Narayanan
Head MindChampion Learning Systems Limited (MLSL)
 
"Assessment is a critical step in the learning process. It determines whether the learning objectives of the curricula have been met. It also helps teachers in making informed decisions to guide students towards success. To this end, NIIT Nguru Assessments focus on making students' learning process visible so that teaching strategies can be selected to support an appropriate course for future learning."


- MLSL showcases its proprietary technology enabled K-12 assessments suite to Principals at the global meet in Udaipur

MindChampion Learning Systems Limited (MLSL), NIIT's wholly owned subsidiary for its K-12 school learning initiative, conducted a knowledge session on "Moving Beyond the Bubble - Towards Technology Enabled Assessments" at Global Educators Fest 2018 in Udaipur recently. It was conducted to familiarize educators with technology for student assessment and the benefits of technology driven assessments for improved learning. The session with school leaders generated a lot of interest in the NIIT Nguru Assessment suite.

Assessment and feedback are pivotal to the experience of learning. The way students are assessed shapes their understanding of the concepts and curriculum, influences thought process and determines learning progress and outcomes. Harnessing the power of technology, NIIT Nguru Assessment suite offers comprehensive K-12 assessments across all subjects delivered through an easy-to-use web-based solution that supports educators in making informed decisions and guides students towards success. The analytics and data from the Assessment system accelerates learning for both teachers and students by allowing for shorter, more effective assessments and fine-tuning of learning progressions.

Practice Plus – Step towards mastery is a K-12 practice and assessment platform by NIIT Nguru that helps students achieve higher levels of Learning & Mastery of concepts through practice & assessment is used by 2,829,26 students. The online solution moves beyond assigning grades to providing deeper insights regarding student's performance.

NIIT Nguru is a holistic range of School Learning Solutions which aims to make the vital process of teaching and learning simpler, thus bringing back the joy of learning for students.

 
     
     
 
   
NIIT launches pioneering Career Programs to match the changing talent requirements of global organizations
 
 

Anurag Gupta
Head, Career Education Business- India, NIIT Ltd

 
"NIIT has been playing a pioneering role in developing industry-aligned talent since 1981. Having worked with the industry and the student community for over three decades, we understand the changing workforce requirements in today's fast-paced business environment. We also understand the changing aspirations of today's youth, their desire to succeed and the lack of proper guidance and inspiration that often lead them to drift away. Therefore, what is required is not just winning career program but 'Inspiring Mentors' who can shape the aspirations of today's youth. We are committed to be the 'Inspiring Mentor', guiding youth towards success and thereby creating a skilled talent pool for the industry."


- To train 60,000 graduates & undergraduates over the next 2 years in aspirational industry guided programs

- Introduces Advanced Program in Digital Marketing and Branding, Advanced Program in Data Analytics and Predictive Modelling, Advanced Program in Full Stack Software Engineering, Advanced Program in Banking and Finance and Advanced Program in Accounting & Business Analytics

- Unveils "Career Navigator tool" to mentor & counsel students on lifelong career path & that are right for them

NIIT Limited unveiled a series of aspirational Career Programs guided by the choices of the industry to address the changing workforce needs that digital transformation has brought forth. On offer are aspirational programs in the fast-evolving digital marketing, data analytics, financial services & futuristic IT streams. These programs have been designed to help undergraduates and graduates build a challenging career in the digital economy. NIIT plans to train 60,000 youth over the next 2 years in these new-age career programs.

A recent study conducted by NIIT in association with IPSOS (a global market research and a consulting firm) highlights that youth today aspire for a lavish life style and want to be seen as global citizens. Youth, particularly in the Commerce and Arts segments are excited about prospects in Digital Marketing and Banking & Financial Services. The Science and IT students however continue to aspire for the IT industry and new age Data Analytics roles. With the digital economy set to create 600 million new jobs globally by 2030 (according to World Bank) there are substantial opportunities across sectors.

To this end, NIIT has designed aspirational career programs matching the future-ready talent requirements of the industry with ambitions of the generation next. These programs include, Advanced Program in Digital Marketing and Branding, Advanced Program in Data Analytics and Predictive Modelling, Advanced Program in Full Stack Software Engineering, Advanced Program in Banking and Finance and Advanced Program in Accounting & Business Analytics. Each of these programs is backed by placement assistance.

While the options are plenty, information about these future-ready careers and the roles and path they entail are often not available. Hence, the youth seem to be 'drifters' not knowing what stream to choose and strongly feel the need for guidance and direction. Understanding this need NIIT, is focused towards being 'Inspiring Mentor' to these students. Further, a unique Career Navigator tool has been designed that will explore an individual's career aspirations and advise them on the best career path for their future. Any student aspiring to opt for aspirational career programs at NIIT will have to undergo the Career Navigator process.

Recognising the need for specialised modules that are globally recognized, these programs come equipped with certifications from leading institutions like IIM Bangalore, Harvard University, The University of Edinburgh (delivered through NIIT's alliance with edX), amongst others. The programs are offered through an instructor-led methodology at NIIT centres across the country. Designed to provide a strong foundation and an intensive learning experience, students will benefit from the perfect combination of training hours, expert faculty and comprehensive learning material. NIIT also offers Guided Practice providing every learner an opportunity to polish his learning at a pace that is comfortable for him. These programs include frequent lectures by industry experts and practitioners providing both context and real-world examples to further advance learning. These programs are flexible allowing learners to choose a program schedule that works for them.

Organizations today seek candidates with complex problem-solving abilities and logical aptitude who can work on multiple technology platforms. The ideal candidate today is a lifelong learner who can adapt to the change and value add from day one. The new-age career prepare the candidate for a lifelong Career and not just a job-role.

 
     
     
 
   
NIIT to train 20000 youth in 3 years from Tamil Nadu, Karnataka, Andhra Pradesh & Kerala under Talent Pipeline as a Service (TPaaS)
 
 

Sapnesh Lalla
Chief Executive Officer
NIIT Limited
 
"In today's changing environment NIIT would like to be a reliable partner servicing specific talent needs at the time businesses need the talent. Talent Pipeline as a Service (TPaaS) is our attempt to identify and groom the best Just-in-Time job ready talent for the emerging roles in organisations, to keep pace with changing business models".


- Offers students job assurance for aspirational career opportunities in high tech and relationship management roles with leading corporates

NIIT Limited announced that the company will train 20000 youth in 3 years from Tamil Nadu, Karnataka, Andhra Pradesh & Kerala, for the IT & BFSI sectors under Talent Pipeline as a Service (TPaaS), a first-of-its-kind strategic initiative 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.

The IT sector is facing uncertainty of demand and would like to move to a Just-in-Time hiring model. The sector also needs talent that is specifically skilled on digital technologies so that they can positively contribute to projects from Day 1.

The BFSI sector is having to deal with a situation, wherein the work profile is changing dramatically. As per the BCG report titled "Indian Banking 2020: Making the Decade's Promise Come True", by 2020, 70% of banking & finance jobs would be in sales and/or relationship management. This requires new skills sets to be hired across the BFSI sector.

This changed scenario, calls for responsive and reliable talent pipelines which provide the capability to deliver specifically skilled, ready to deploy Just-in-Time talent that can deliver outcomes from day 1. NIIT's Talent Pipeline as a Service (TPaaS) reliably delivers against this promise.

With the digital economy set to create 600 million new jobs globally by 2030 (according to World Bank) there are substantial opportunities across sectors. At 3.9 million, IT is the largest private sector employer in India and the sector will require an additional 2.5 - 3 million professionals in new jobs roles by 2025. And it is also expected that the total market size of the insurance sector in India is projected to touch US$ 350-400 billion by 2020.

Overall, 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. NIIT has specifically created bespoke career programs for leading corporates in the IT & BFSI sectors as per their business needs. Leading Banks, BFSI companies and a Tier 1 IT Services Company will be serviced under this initiative during the initial phase.

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.

 
     
     
 
   
StackRoute - a digital transformation partner for corporates by NIIT recognized as 'Most Innovative Learning Partner for Enterprises'
 
 

Sapnesh Lalla
Chief Executive Officer NIIT Limited

 
"We are delighted to receive this award that reiterates our commitment to create elite full-stack programmers, who can become key members of high-performance teams in top notch product engineering companies and IT firms."


StackRoute, a digital transformation partner for corporates to build multi-skilled full stack developers @ scale, has won the 'Most Innovative Learning Partner for Enterprises' award at Times Ascent - National Award for Excellence in Training & Development. The award is a recognition of StackRoute's track record in creating multi-skilled, multi-disciplinary and product engineering full stack developers. The award ceremony was organized in Mumbai on 5th July 2018.

Times Ascent - National Award for Excellence in Training & Development is organized by the Human Resources Development Management Committee of the World HRD Congress. It is the only award that gives public recognition to achievements in training and development of individuals and companies, whether large or small and whatever the nature of their business and services.

StackRouteŽ is an NIIT incubated venture. Established in August 2015, StackRoute runs programming, quality-engineering, data-science and Digital Architect series bootcamps. StackRoute programs are designed to be outcome oriented and work towards business relevant outcomes.

As digital transformation partner, StackRoute works with large IT services companies and product engineering companies in building multi-skilled high performing full stack developers.

"Outcome driven" and "Practitioner led", StackRoute today has created a niche for itself as the product engineering start-up in the learning domain providing disruptive learning solutions.

StackRoute focus on full stack technologies (Java spring, .NET code, JavaScript – MEAN/MERN), emerging architectures and design trends in the Digital Ecosystem. Our graduates work on non-trivial full stack web application around Microservices, stream computing, distributed real time event processing, machine learning, natural language processing, and building reactive and performant applications.

 
     
         
   
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