NIIT Limited announces Q2 (July - Sept 2015) Consolidated Results FY 2015-16
NIIT records PAT of Rs. 20.8 crore and continues to execute
Business Transformation on schedule
- NIIT records Net Revenue at Rs. 272.5 Cr, up 5% YoY and a PAT of Rs. 20.8 Cr up 102% YoY
- Corporate Learning Group grows 16% YoY
- 'Beyond IT' revenue contributes 40% to the Skills and Careers Group (SNC)
- Significant launch of NIIT.tv and StackRoute marks the start of the Technology-Enabled 'Renewal phase' of the company's 3 stage SNC Business Transformation agenda.
NIIT Limited Q2 (July - September 2015)
Sep 30, 2014
Sep 30, 2015
|Profit After Tax||10.3||20.8||102%|
New Delhi, October 21, 2015: NIIT Limited, a global leader in skills and talent development, today reported its results for the second quarter ending September 30, 2015. In this quarter, the company recorded a Net Revenue at Rs. 272.5 Cr, up 5% YoY and a PAT of Rs. 20.8 Cr up 102% YoY. The Company recorded EBITDA at Rs. 25.2 Cr up 39% YoY, on an Operating Margin of 9%, up 230 bps YoY.
The results were taken on record at the meeting of the Board of Directors here today.
Speaking on the company's performance during the quarter, Mr. Rahul Patwardhan, Chief Executive Officer, NIIT Limited said, "The Business Transformation program has contributed positively to the Q2 numbers. Additionally, the technology transformation renewal phase, has begun 6 months ahead of schedule. NIIT's Corporate Learning Group is on a high growth path and is spearheading NIIT's next frontier. The successful business transformation of the Skills & Careers Group has charted NIIT's turnaround to growth and profitability".
"We look forward to maintaining and speeding up the pace of improvement of revenue growth, profitability and technology transformation, even as we further strengthen the leadership team", added Mr. Patwardhan.
NIIT.tv and StackRoute are strong first steps by NIIT for the Renewal phase of the three stage Business transformation exercise for its Skills and Careers Business. This began with the 'Restructuring phase' in October 2014, and was quickly followed by the 'Re-energising phase' that commenced in April 2015. Keeping up the momentum in parallel, NIIT initiated the 'Renewal phase' from July 2015 which will evolve over next 3 years.
NIIT.tv is a digital learning initiative that brings skilling from NIIT classrooms to every digitally connected Indian, for free, at any time and place of their choice. A disruptive innovation by NIIT for the education space, NIIT.tv will deliver for the very first time, skill-based live courses as well as on-demand courses to the masses, through the digital medium. StackRouteTM is a pioneering initiative to create Full-stack programmers for the start-up industry. It aims to create multi-skilled and multi-disciplinary programmers who can become key members of high-performance teams in top notch product engineering companies, start-ups, and IT firms. These 'Super Programmers' will also be well equipped to create their own technology start-ups.
Commenting on Technology transformation powered by the specialized 200 person, EduTech team at NIIT, Mr. Udai Singh, Chief Strategy Officer, NIIT Limited said, "The technology- enabled Renewal phase of Skills & Careers Group, led by the significant launch of NIIT.tv and StackRoute, signals the emergence of NIIT, as a strong 'EduTech' company".
During the quarter, Corporate Learning Group (CLG) recorded net revenues of Rs. 144.8 Cr, up 16% YoY. Overall Revenue visibility of CLG was recorded at USD 191.1 Mn, up 16% YoY. Managed Training Services (MTS) continued to grow, by contributing 91% to the total CLG revenue.
During the quarter, NIIT added one MTS client, Citi a Fortune 50 global bank and 7 more clients, which have the potential to become MTS accounts. These include, a Fortune 500 global healthcare services company; a Global 500 banking company with significant operations in Asia Pacific and Europe; a Global 500 financial services company headquartered in Switzerland; a Fortune 500 major insurance company headquartered in USA; a Fortune 500 manufacturing company headquartered in USA; a cutting-edge high-growth Silicon Valley Technology company; and a leading Platform-as-a-Service provider.
Mr. Sapnesh Lalla, Group President, Corporate Learning Group, NIIT Limited said, "During the quarter, NIIT's Corporate Learning Group added Citi, as an MTS customer. NIIT will focus on supporting learning transformation for Citi to meet their future goals with high quality managed training services aligned with increased business impact and value."
Skills and Careers Group (SNC) recorded a net revenue of Rs. 104.5 Cr during Q2, up 1% YoY with an Operating Margin at 7% up 359 bps YoY. Backed by accelerated Business Transformation, SNC delivered on the back to growth and profitability promise, at the end of Q2.
Speaking on the company's strategy to strengthen its Beyond-IT offerings, Mr. Shivan Bhargava, Group President, Skills & Careers Group, NIIT Limited said, "As a part of our business transformation strategy, NIIT has ventured into the start-up space with the niche program, StackRoute.Beyond-IT revenue share grew to 40% of SNC revenues in the second quarter, thus reaffirming our conviction about the market potential of such offerings. "
During the quarter, NIIT unveiled Flagship Training Centre at Connaught Place, New Delhi. The high-tech, digital and completely paperless NIIT CP Centre will offer advanced training programs in executive management, banking, digital marketing, big data, new-age IT and other multiple sectors. These programs will be backed by revolutionary Cloud Technology to ensure anytime anywhere accessibility.
Further strengthening its EduTech credentials, NIIT rolled out the revolutionary Cloud CampusTM in China. As part of this rollout in China, NIIT has extended the break-through Cloud Campus platform to support learners in Mandarin.
School Learning Group (SLG) registered net revenue of Rs 23.2 Cr during the quarter, maintaining an Operating Margin of 6% up 379 bps YoY.
During the quarter, NIIT unveiled "English Plus Language Lab" - a world class school learning solution by NIIT Nguru. Nguru English Plus Language Lab is a platform where comprehensive and interactive digital content catering to listening and speaking skills, is put to use in a stimulating lab environment.
NIIT Ranks among Top 20 Workforce Development Companies by TrainingIndustry.com
NIIT earns eight Brandon Hall Group Excellence Awards jointly with customers, including three gold, four silver, and one bronze award in various categories.
NIIT gets selected to the 2015 Top 20 Gamification List of Companies, for the second consecutive year by TrainingIndustry.com
NIIT gets recognized as the Franchisor of the year under the category - 'Vocational & Skill Development Training Institute', by leading industry magazine – Franchise India
During the quarter, NIIT established European Delivery Centre in Dublin creating 110 jobs. The development was supported by the Department of Jobs, Enterprise and Innovation through IDA (Industrial Development Agency) Ireland.
NIIT entered into a strategic partnership with STIKOM Bali in Indonesia to offer multiple new‐age career opportunities under the revolutionary Mastermind Series.
NIIT partnered with Linux Lab to launch Myanmar's First IT Training Centre to offer multiple new-age career opportunities under the revolutionary Mastermind Series.
NIIT unveiled Multi-Skill Training Centre under Pradhan Mantri Kaushal Vikas Yojana at Darbhanga and Bhagalpur, Bihar. These Multi-Skill Training Centres will help youth chart ambitious careers by opting for the programs that suits their aptitude. The centres will impart training across three sectors - in BFSI, IT/ITES and Retail.
During the quarter, NIIT launched '25th Bhavishya Jyoti Scholarship', to enhance employability of meritorious students by bridging the affordability gap and making them future-ready to meet the emerging needs of today's knowledge economy.
Established in 1981, NIIT Limited, a global leader in Skills and Talent Development, offers multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals in over 40 countries. NIIT has three main lines of business across the globe- Corporate Learning Group, Skills and Careers Group, and School Learning Group.
NIIT's Corporate Learning Group (CLG) offers Managed Training Services (MTS) to market-leading companies in North America, Europe, Asia, and Oceania. The comprehensive suite of Managed Training Services includes custom Curriculum Design and Content Development, Learning Administration, Learning Delivery, Strategic Sourcing, Learning Technology, and Advisory Services. With a team of some of the world's finest learning professionals, NIIT is dedicated to helping customers increase the business value of learning and development (L&D). Built on the sound principles of 'Running Training like a Business', NIIT's Managed Training Services and best-in-class training processes enable customers to align business goals with L&D, reduce costs, realise measurable value, benefit from rock-solid operations, and increase business impact.
NIIT's Skills and Careers Group (SNC) delivers a diverse range of learning and talent development programs to millions of individual and corporate learners in areas including Banking, Finance & Insurance, Soft Skills, Business Process Excellence, Retail Sales Enablement, Management Education, Multi-Sectoral Vocational Skills, Digital Media Marketing, and new-age IT. These programs are delivered through a hybrid combination of the Cloud CampusTM online platform, satellite-based 'Synchronous Learning Technology' and a physical network of hundreds of learning centres in India, China, and select markets in Asia & Africa. The flagship multi-disciplinary course offerings include the industry-endorsed RevGNIIT program and a set of Post Graduate Programs for students from different streams, apart from a wide range of specialist short duration programs.
To further strengthen its SNC portfolio in India, NIIT has tied up with industry majors like ICICI Bank for NIIT Institute of Finance Banking Insurance& Training Limited, IFBI; leading business schools in India for NIIT Imperia; Genpact for NIIT Uniqua; and a joint venture with NSDC for NIIT Yuva Jyoti Limited. Besides this, for the China market, NIIT has tied up with governments and software parks in Guian, Chongqing, Wuxi, Suzhou, Changzhou, Zhangjiagang, Haikou and Dafeng, for state-of-the-art public-private partnership centres.
NIIT's School Learning Group (SLG) has been providing technology based learning to over 15,000 government and private schools in India, Bhutan, South Africa and the Middle East. The futuristic NIIT nGuru range of learning solutions for schools comprises Interactive Classrooms with digital content, technology-driven Math Lab, IT Wizard programs and Quick School - an Education Resource Planning software.
As the Most Trusted Brand in India for 3rd year in a row (Brand Trust Report, 2015), NIIT's learning and talent development solutions, continue to receive widespread recognition globally. NIIT has been named among the Top 20 Training Outsourcing Companies for the past seven consecutive years by Training Industry, Inc. USA. Further, leading Indian ICT journal Dataquest has conferred upon NIIT the 'Top Training Company' award successively for the past 20 years, since the inception of this category. NIIT YuvaJyoti Ltd was recognized as the Best Vocational Education and Skill Development initiative at the World Education Summit, 2014.
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