Press Release

2008

NIIT Limited Consolidated Annual Results FY 2007-08

• Net Revenue crosses Rs 1000 Cr mark, up 27% YoY
• Consolidated PAT up 32% YoY to Rs 75.6 Cr
• New Business net revenue up 323% YoY
• Individual Registrations reach 4,00,000
• Board Recommends Dividend of 65% on enhanced capital

New Delhi, June 11, 2008: NIIT Limited, leading Global Talent Development Corporation and Asia’s largest IT trainer, has reported net revenue of Rs. 1006.8 Cr, up 27% YoY for the year ended March 31, 2008. NIIT Limited reported Profit After Tax at Rs. 75.6 Cr, a growth of 32% over last year.

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

The Board has also proposed a dividend of 65% to its equity shareholders.

Annual Performance Highlights

The company recorded system-wide revenue of Rs. 1401.6 Cr, a growth of 26% YoY during the last fiscal. Operating Profit stood at Rs. 103.6 Cr, an increase of 34% over last year.

Commenting on the company’s performance, Mr. Rajendra S. Pawar, Chairman, NIIT Limited said, “It is a year of innovation at NIIT with new initiatives and products leading to net revenue of over Rs 1000 Cr”. 

The individual learning solutions contributed 53% to the global system-wide revenues, followed by the contribution of 39% from the corporate learning solutions and 7% contribution from school learning solutions.

Mr. Vijay K. Thadani, Chief Executive Officer, NIIT said, “Robust growth in revenue and improved gross margin contributed to 32% growth in PAT”.

Individual Learning Solutions (IT) grew 31% to net revenue of Rs. 324.1 Cr led by a 25% growth in enrolments. While student seat capacity increased by 15% in the year, the operating margin for Individual Learning Solutions (IT) improved by 291 bps to reach 21%.

NIIT forged relationships with global technology majors including Adobe, Cisco, EMC, Intel, Microsoft, and Sun Microsystems to enhance its product portfolio which now includes comprehensive programs in Infrastructure Management, Digital Media and Web 2.0.

NIIT extended its IT training programs to new markets in Africa and Asia, through alliances with local Governments and Institutions.

Finance & Management Training (FMT), the new business in Individual Learning Solution, grew 323% to a net revenue of Rs. 30.8 Cr; added 16 new centres taking the total to 22 centres in 19 cities; trained over 11,000 professionals across various programs.

The NIIT Institute of Finance Banking & Insurance (IFBI) has extended its tie ups to include ICICI Bank, ICICI Lombard, ICICI Prudential, Kotak Mahindra Bank, Yes Bank, HDFC Bank, during the year. IFBI extended its offerings beyond banking to include programs in financial planning and insurance in this period. As Infosys Value Partner, IFBI trained 3,700 officers of UCO Bank on the Core Banking Solution.

NIIT Imperia, extended its portfolio by adding new programs from IIMs, IIFT Delhi and IMT-Ghaziabad.

“NIIT’s thrust in Finance & Management Training Business is powered by its ability to develop partnerships and leverage technology and delivery capability,” said Mr. P. Rajendran, Chief Operating Officer, NIIT.

Corporate Learning Solutions grew 21% to net revenue of Rs. 550.8 Cr. NIIT strengthened its English language communication training and assessment services by partnering with ETS and taking controlling stake in Evolv Services Limited, during the quarter. NIIT together with Element K has grown to become the world’s largest content development facility and learning product library. 

Order intake at USD 151 Mn was up 34% over last year. The closing order book is at USD 74 Mn.

School Learning Solutions accelerates growth to 19% YoY. Operating margin improved by 134 bps to reach 13%. The company enhanced its offerings for schools by introducing innovative MathLab, and partnering with NComputing and Key Curriculum Press.

NIIT extended computer education and computer aided education to over 1800 Government and Private schools, taking its overall tally to 7,700 schools. With this, the order intake was Rs 131.9 Cr for the year.

NIIT added 637 people during the year taking the headcount to 3,850.

January-March 2008 (Q4) Financial Results

NIIT Limited and its subsidiaries reported global system-wide revenue of Rs. 382.3 Cr, resulting in a growth of 14% YoY, during the January-March 08 quarter. The company reported net revenue of Rs. 272.4 Cr, during the quarter.

PAT stood at Rs. 25.2 Cr, up 47% YoY.

In this quarter, Individual Learning Solutions (IT) grew 34% YoY to net revenue of

Rs. 90 Cr. Operating margin for the quarter was 22%.  

Finance & Management Training grew 223% YoY to net revenue of Rs 11.2 Cr. 

School Learning Solutions recorded net revenue growth of 66% YoY. During this period, 900 new schools were added in Maharashtra and Bihar. 

 ACKNOWLEDGEMENTS

•  NIIT received prestigious ‘Digital Opportunity Award’ at World Congress on IT (WCIT) 2008 for its path-breaking Hole-in-the-Wall Education initiative.
• NIIT was ranked ‘India’s Most Customer Responsive Educational Institution’ in December 2007, by Avaya GlobalConnect, for the third consecutive year.
• NIIT bagged the ‘Top Training Company Award 2007’ from leading IT magazine Dataquest.
• TrainingOutsourcing.com ranked NIIT and Element K among the Top 20 Training Outsourcing companies in the world.
• NIIT was ranked amongst ‘India’s Most Trusted Services Brand’ in an Economic Times Brand Equity survey in 2008.
• NIIT was voted as the ‘Most Popular Education Brand’ by College and University students in China.
• NIIT is the only Indian Education company in the BCG 50 Local Dynamos