Q4 (January – March 2010) Insight@NIIT:Vol.8 Investor Communication Contents




NIIT Limited Q4 Consolidated Quarter Results (January- March 2010)







Rajendra S Pawar
NIIT Limited

The improved job scenario on the back of a reviving economy will accelerate demand for employability training.







Vijay K. Thadani
NIIT Limited

We had a strong quarter with 40% growth in PAT, in a challenged environment.








P Rajendran
NIIT Limited

In our decade long journey of providing ICT in schools, as we cross the significant milestone of 15,000 schools this quarter, NIIT continues to demonstrate excellence in execution and product innovation.
  • Q4 Net Profit up 40% YoY
  • Operating margin at 16%, up 401 basis points
  • IT program enrolments up 18% YoY
  • Board recommends Dividend of 70%

NIIT Limited declared its consolidated results for fourth quarter ended March 31, 2010. In this quarter, the company recorded Profit After Tax of Rs 24.7 Cr representing 40% growth YoY. NIIT reported Operating margin at 16%, up 401 basis points.

The Company’s System Wide Revenue grew by 2% to Rs. 475.6 Cr. The Net Revenue for the quarter stood at Rs. 295 Cr.

The results were taken on record at the meeting of the Board of Directors here today.

The Board has also proposed a dividend of 70%, Rs 1.40 per share

NIIT Limited Consolidated Financials at a Glance (Rs. Cr.)

  Quarter ended Mar 31, 2009

Quarter ended Mar 31, 2010

Growth YoY
Global System-wide Revenue
465.2 475.6 2%
Net Revenue
300.8 295.0 (2%)
Operating Profit
36.4 47.5 31%
Operating Margin 12.0% 16.0% 401 bps
Profit After Tax
17.7 24.7 40%

The fourth quarter saw NIIT entering into a global partnership with IGNOU, World’s largest Open University, to provide education and skill building for enhanced employability, aimed at creating skilled talent pool for Business & Technology Services industry globally.

Individual Learning Solutions (IT) grew 11 %YoY to a net revenue of Rs. 114.4 Cr, supported by 18% increase in enrolments. While the Operating Profit grew to Rs 28.2 Cr, up 19 % YoY, the Operating margin grew by 177 basis points to 25%, due to improved product mix and growth in international operations.

During the quarter NIIT further demonstrated the success of its PPP model by opening its largest global centre in Wuxi, China. Spread over an area of 300,000 square feet, NIIT’s Wuxi centre will have the capacity to train over 10,000 students annually.

NIIT has been recently conferred the ‘Global Learning Partner of the year’ award by Cisco in recognition of its performance and achievements at the Cisco Partner Summit 2010.

School Learning Solutions recorded net revenue of Rs 32.1 Cr while the Operating Margin grew by 499 basis points to 23%. During the quarter NIIT’s School Learning Solutions crossed a significant milestone of reaching out to over 15,000 schools.

Institute of Finance, Banking and Insurance posted a 49% growth in enrolments in the quarter and also crossed the 8000 mark in its graduates placed to date.

Corporate Learning Solutions recorded net revenue of Rs. 139.3 Cr. Continued customer wins supported by 15% growth in the eLearning products and margin improvement by 371 basis points, contributed to improved profitability.

Order intake was at USD 30.9 Mn for the quarter. The closing order book stood at USD 90.3 Mn, up 16% YoY.

Consolidated Annual Results FY 2009- 10

NIIT Limited, reported consolidated annual net revenue of Rs. 1,199.3 Cr, for the year ended March 31, 2010, up 4% over the previous year. The company’s system-wide revenue stood at Rs. 1,796.4 Cr, up 6 %. EPS stood at Rs. 4.3.

NIIT reported an increase in Operating Profit to Rs 156.9 Cr, up 32%. The Company also reported an increase in Operating margin to 13%, up 275 basis points. After adjusting for share of profit from associates and taxation, Profit After Tax stood at Rs 70.2 Cr.

NIIT Limited : Annual Consolidated Financials for FY 2009- 10 (Rs. Cr.)

  Quarter ended Mar 31, 2009

Quarter ended Mar 31, 2010

Growth YoY
Global System-wide Revenue
1689.3 1796.4 6%
Net Revenue
1148.6 1199.3 4%
Operating Profit
118.6 156.9 32%
Operating Margin 10% 13% 275 bps
Profit After Tax
69.8 70.2 1%

Individual Learning Solutions (IT) recorded 7% growth in net revenue at Rs 427.5 Cr supported by 12 % increase in enrolments. Operating margin grew by 136 basis points to 23% on the back of effective cost management and improved revenue mix.

During the year NIIT entered into alliances with SAP and IBM to enhance its product offerings and meet the industry’s growing need for certified professionals. NIIT’s comprehensive product offering in the IT Infrastructure Management space helped further consolidated its competitive edge in the market.

School Learning Solutions recorded 45% growth in net revenue at Rs 200 Cr. Operating profit increased by 38% to Rs 29.6 Cr, contributed by improved product portfolio mix.

During the year, NIIT added 2,812 schools, including repeat orders from the states of Gujarat, Assam and Andhra Pradesh and also a strong response from private schools.

Finance & Management Training (FMT) Solutions witnessed a strong momentum

FMT added newer customer segments for training programs in the BFSI industry like- Dhanalakshmi Bank, TATA AIG Life Insurance, Religare Enterprises Ltd. to name a few. NIIT also entered into a strategic alliance with KPMG to offer training in IFRS, with a view to create skilled global finance professionals.

Corporate Learning Solutions recorded improvement in Operating Margin of 490 basis points. Fresh Order Intake was USD 127.5 Mn. Pending order book stood at USD 90.3 Mn, of which 58% is executable in the next 12 months.

Acknowledgements during the year:

  • NIIT USA was ranked #1 in the ‘Quality of Service Leaders’ and positioned as #2 Service Provider in the ‘Bakers Dozen Customer Satisfaction 2010 Ratings’- a listing brought out by the reputed HRO Today magazine
  • Element K received Gold Award for Green Training by LearnX Asia Pacific Conference
  • Element K received ‘Top 20 Leadership Training Companies’ award by Training Industry, Inc
  • NIIT eGuru was chosen amongst Top 100 Franchise list, by Franchise India magazine
  • Conferred the Gold for Excellence in E-Learning Award in the 2009 by Chief Learning Officer magazine
  • Ranked as the ‘Most influencing IT training brand’, by the Chinese Society of Educational Development Strategy (CSEDS), under Ministry of Education of PRC
  • Conferred the ‘Top IT Training Company Award 2009’ by Cybermedia, for the 17th successive year.
  • NIIT’s innovative ICT learning solutions swept the ‘Digital Learning Awards’ at- eINDIA 2009 summit- India’s largest ICT event.
  • ICT Gold Medal – Vietnam for the 4th year in a row
  • Best Learning Partner award from CISCO and Microsoft
  • - NIIT received the Best Green IT Project award by PC Quest for V-lab

IGNOU & NIIT Bring Together Education and Skill Building to Enhance Employable Talent Pool

V. N. Rajasekharan Pillai
IGNOU, remarked

Students today pursue our education in a system of learning process. This global partnership with NIIT will enable students to acquire employable skills for the domestic as well as global markets.

Rajendra S Pawar
NIIT Limited

Inspired by Prime Minister’s skills mission, the NIIT- IGNOU partnership seeks to contribute to large scale skill development.

Chart a New Course in Industry Linked Career Focused Education

Students to Enjoy Dual Benefit of Degree Program from IGNOU and Professional Training from NIIT

IGNOU- world’s largest Open University and NIIT- leading Global Talent Development Corporation and Asia’s largest IT trainer, entered into a ‘Global Partnership in Education & Skill Building for Enhanced Employability.’ The Memorandum of Understanding (MoU) on this significant partnership was announced by Prof. V. N. Rajasekharan Pillai, Vice-Chancellor, IGNOU and Rajendra S Pawar, Chairman, NIIT.

Under this Global Partnership IGNOU & NIIT plan to collaborate in domains like Information Technology and Management Sciences for its India and international operations. Joint Programs in IT would include programs in stand-alone undergraduate programs or combined Master’s programs. An Executive MBA will be offered as a part of management programs. The tie-up will also be extended to Finishing School programs that would be available as optional programs for IGNOU students and Alumni.

The IGNOU- NIIT partnership aims at initiating the process for developing a pool of industry-ready professionals by bringing together higher education and skill building.



NIIT Signs Mou With S.E.N.A to Develop Human Capital in Colombia

Ajai Lal
Senior Vice President, International Education Business (IT), NIIT

NIIT’s MoU with SENA is in line with our vision of developing talent to meet global needs. We look forward towards combining our strengths to offer the best training in the field of IT, ITeS and English and Professional Life Skills to the people of Colombia.

Julia Gutierrez
Corporate & International Relations, SENA

NIIT has been doing an admirable job in imparting high-class IT education and we are pleased to enter into an MoU with them for developing human capacity in Colombia. We are confident that the collaboration will help enhance the level of our educational offerings for the students.

- MoU to provide IT, ITeS and English and Professional Life Skills training –

NIIT signed a Memorandum of Understanding (MoU) with Servicio Nacional de Aprendizaje (SENA), Colombia’s leading technical education institute, to provide IT, ITeS and English and Professional Life Skills training to the people of Colombia.

The agreement was signed in the presence of MOS for External Affairs India, Dr Shashi Tharoor and Foreign Minister of Colombia, Dr Jaime Bermudez Merizalde and Col. Ajai Lal, Senior Vice President, International Education Business (IT), NIIT at the Ministry of External relations office, Palacio San Carlos, Cancilleria.

Under this MoU- NIIT and SENA have mutually agreed to collaborate for procurement of content for BPO courses and training, procurement of content for English Language training courses and training, and ‘Train the Trainer’ for BPO courses.

The MoU marks a long term commitment on part of NIIT and SENA to jointly develop human capacity in Colombia. This will be followed by closer association in the near future, wherein NIIT will provide SENA Training on various IT Applications, Soft Skill Training, access to E-Learning, and launch its India Education Program. SENA on its part will contribute its professional expertise to every sub-sector, its capacity and physical framework in classrooms, training centers, training laboratories and workshops in Colombia.


NIIT Launches Specialized Tarining Programs to Develop Human Capital in Malaysia

Ajai Lal
Senior Vice President, International Education Business (IT), NIIT

It has been our constant endeavor at NIIT, to introduce programs which prepare students to take on global assignments in IT. With an aim to give Malaysian youth an edge in the highly competitive IT industry that seeks day-one ready manpower, we have launched “SKILL UP Malaysia” Campaign this year.








  • Partners with CISCO to ‘Skill Up’ Malaysia
  • Brings together Technology Giants to Empower Students for a Global Career in IT

NIIT, along with the Institute of Professional Development, Open University Malaysia, organised the first ever Technology Partner Conclave in Malaysia. The Conclave was a part of ‘SKILL UP’ – Malaysia campaign to build a task force of skilled IT professionals across various sectors. Technology leaders participating in the conclave discussed about the current industry trends and requirements where every company wants day one ready professionals and how this is leading to a rise in demand for Industry-ready IT professionals. The conclave focused on the need to train and skill up students in order to meet the industry standards.

At the Conclave, NIIT unveiled customized products with its technology partner CISCO, for the Malaysian market. NIIT’s other technology partners and IT giants like Microsoft and Sun Microsystems also participated in the conclave. The conclave aimed to educate students and build awareness about latest tools and technologies, careers in IT and the need to skill up.

Mr. Rajiv Bajaj, Mr. Bobby Jena, Dr. Selvaraj Oyyan from OUM, HE
Mr. B.N. Reddy, Deputy Indian High Commissioner and Mr. Vimal Pandey


Tahdco Announces Strategic Alliance With IFBI

S. Venkatesh

We are delighted to partner with TAHDCO to offer career focused training to the youth from the less privileged sections of the society.





To Offer Career Focused Post Graduate Diploma in Banking Operations (PGDBO) to Youth from Underprivileged Sections of Society

Tamil Nadu Adi Dravidar Housing Development Corporation (TAHDCO), a Public Sector Undertaking of the Govt. of Tamil Nadu, entered into a strategic alliance with NIIT Institute of Finance Banking and Insurance Training Limited (IFBI), to provide career opportunities in banking sector to the youth of underprivileged society. Under this alliance, fully subsidized vocational training programs in banking will be made available to the aspirants.

NIIT IFBI will train 100 candidates sponsored by TAHDCO on Banking through the Post Graduate Diploma in Banking Operations (PGDBO). The students from underprivileged sections (scheduled caste & scheduled tribes) with family income of less than or equal to 2 lakhs, will be selected through an admission test followed by interview. Successful candidates will be placed at ICICI Bank after completion of the training program and internship with IFBI. Over 6000 students who have undertaken the IFBI PGDBO Program have already been successfully placed in the banking industry.

Chandrakant B Kamble, MD TAHDCO said “Indian economy is on a growth path and newer avenues offering challenging career opportunities are opening up. Hence we have collaborated with NIIT IFBI as they have an excellent track record in offering quality training and placement assurance to all their students.”

The pilot program will be conducted at Chennai and may be extended to other locations in Tamil Nadu later.


NIIT Announces 6th National IT Aptitude Test - NITAT

G. Raghavan
Individual Learning Solutions NIIT Limited

With the return of a strong hiring outlook, IT and ITeS industry will be looking for talent aggressively. National IT Aptitude Test (NITAT) by NIIT helps identify the right talent pool for meeting the manpower needs of the industry.


NITAT to identify Job-Ready Talent for the IT Industry

NIIT conducted the 6th National IT Aptitude Test (NITAT), the country’s largest IT Aptitude Test, simultaneously in over 120 cities nationwide. NITAT enables students and graduates to calibrate their potential and aptitude for a career in the promising IT industry.

NIIT’s pioneering initiative —NITAT— was introduced in 2004 to enable graduates and students pursuing their studies in engineering, arts, commerce and science streams to gauge their aptitude for a career in the IT sector, identify skills further required, if any, and thus systematically charter their career into the IT industry. NITAT has been endorsed by IT Industry, IDC and the prominent technology partners of NIIT like Microsoft, Sun Microsystems, Adobe, EMC, Intel etc. Over the last 5 years NITAT has offered more than 1 lakh scholarships to IT aspirants in programmes offered by technology majors, to help initiate their careers in the IT industry.

Starting this year, NIIT has also instituted Dewang Mehta Scholarships for graduates and students graduating in 2010 who are keen to be associated with the IT industry.

According to a recent IDC survey, domestic IT/ITeS industry, the major contributor to the Indian economic growth for the past few years, is expected to grow by 15% to touch Rs. 1,20,666 crores in 2010. This will bring more opportunities for people with the right skills.

These are clearly signs of healthy economic recovery for India, for which job-ready manpower will become a necessity. NITAT aims at fulfilling this need by identifying a ready talent pool for immediate absorption by the industry.


NIIT Recognized by HRO Today Magazine

Sapnesh Lalla
Senior Vice President

Because training is both our business and our passion, we’ve always put our customers first,




#1 Quality Service Leader in “Bakers Dozen” 2010 Rankings

NIIT was recognized by HRO Today magazine’s “Baker’s Dozen Customer Satisfaction Ratings,” an annual ranking of learning industry providers. NIIT was ranked #1 in the Quality of Service Leaders category and positioned overall as the #2 Service Provider on this year’s list.

The HRO Today ‘Baker’s Dozen’ is an annual survey of learning BPO buyers that ranks providers on customer satisfaction, along with breadth and quality of service, and deal size. NIIT was acknowledged by customers for its value, revenue growth, productivity, customer retention, profitability, costs, cycle time, and quality.

The 2009 HRO Today survey found that cost reduction was the most significant issue driving customers of learning solution providers. While cost continues to be an important factor, this year buyers are also placing an equal imperative on service and organizational issues.

NIIT’s services allow customers to reduce costs, embrace change, and drive quantifiable business impact. Organizations partnering with NIIT benefit from economies of scale and aggregation, proven best practices, process improvements and process management, technology and enablement, in addition to training services such as content development and curriculum design.


NIIT Organizes First-ever Technology Partner Conclave in Ghana

Ajai Lal
Senior Vice President, International Education Business (IT), NIIT

We have been involved in creating skilled ICT manpower in Ghana for the last 10 years and together with our Technology partners Cisco, Microsoft, Oracle and Sun, we remain committed to address the rising global talent shortage in this space.


- Brings together Technology Leaders to Empower Students for a Global Career in IT
- Technology Partner Conclave Organized as part of NIIT’s 10th Anniversary Celebrations in Ghana

NIIT organized the first ever Technology Partner Conclave at National Theatre, Accra, Ghana as a part of its 10th anniversary celebrations in Ghana. The conclave was held to educate students about the latest tools and technologies, career opportunities, and the need to Skill up for a Global Career in IT.

The event saw participation from approx. 1,500 students along-with representatives of leading IT Companies, educational Institutions, Government and public at large. Hon’ Minister of Communication, Mr. Haruna Idrissu, Guest of Honour lauded NIIT’s efforts in Ghana and asked other institutions to emulate it. He expressed hope that India will continue to assist Ghana in its drive to become an ICT superpower in the region.

Key note speakers from Global IT leaders, namely - Cisco, Microsoft, Oracle and Sun Microsystems shared the platform provided by NIIT and discussed about the latest technology offerings, current industry trends and the industry requirements for day one ready professionals. The conclave focused on the need to train and skill up students in order to meet industry standards and the role NIIT plays in making students Industry ready.

H.E. Mrs. Ruchi Ghanshyam, Hon Indian High Commissioner praised the strong India-Ghana Partnership and how ICT has changed the Indian economy. She mentioned many projects in Ghana which were the result of India-Ghana partnership.

NIIT has become a household name in quality IT education in Ghana since its inception, and has trained over 35,000 students in the country till date. NIIT Ghana 10th anniversary will be celebrated throughout the country with Scholarships and Seminars.


NIIT Launches Specialized Training Programs to Develop Human Capital in Sri Lanka

Ajai Lal
Senior Vice President, International Education Business (IT), NIIT

It has been our constant endeavor at NIIT, to introduce programs which prepare students to take on global assignments in IT. Together with our Technology partners Cisco and Microsoft we are committed to address the rising global talent shortage in this space.






- Forges Alliance with Cisco & Microsoft to ‘Skill Up’ Sri Lanka

- Brings together Technology Leaders to Empower Students for a Global Career in IT

As a part of the ‘Skill Up - Sri Lanka” campaign, NIIT formed strategic alliances with technology leaders Cisco & Microsoft to develop human capital in Sri Lanka. NIIT launched the latest technology programs which are mapped to International Certification from these two global technology leaders, namely - CCENT and CCNA programs in Networking in partnership with Cisco and the Professional Series of Certification programs from Microsoft – MCITP (Server Administration).

Cisco and Microsoft Certification mapped programs offered as a part of this campaign will help students chart a career in the global IT industry.

NIIT offers short and long term IT training programs on latest and emerging technologies, across its 4 education centres in Sri Lanka since 2000. NIIT Sri Lanka has successfully executed 3 sessions for Open University, UK.

NIIT has trained students from various industries like Sri Lanka Police, Hatton National Bank, Ministry of Education- Distance Education Modernization Project (DEMP), Ministry of Education- Secondary Education Modernization Project (SEMP) and Information and Communication Technology Agency of Sri Lanka (ICTA) to build high potential career opportunities in IT sector. NIIT students have been successfully placed in top IT companies of Sri Lanka like Millennium IT and Virtusa.


NIIT featured in Training Magazine’s Annual ‘Top 125’ List


Sandra R. Pruitt

Training is our business, and our commitment to providing leadership in human capital development has been key to our success in the global marketplace.




NIIT was named as one of Training magazine’s ‘Top 125,’ an annual ranking of organizations that stand out and excel in the field of human capital development. This is the third consecutive year that NIIT has been named to the list, and this year, the company ranked #67 on the list of 125.

The candidates for the Top 125 rankings are evaluated by a panel of judges from Training magazine. Each organization's ranking is based on factors including financial commitment, training programs offered, metrics measured, and methods of evaluation, etc. Other criteria for scoring include the use of workplace surveys and human resource data such as staff turnover and new employee referrals.


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Our mission is to build young entrepreneurs Part- II
Our mission is to build young entrepreneurs Part- I Franchisee Plus; March 2010
Training talent the NIIT way- Part I; Live IT; January 2010
Training talent the NIIT way- Part II
Training talent the NIIT way -Part III
Viswanathan Anand works the key board; The Telegraph; March 24, 2010



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