NIIT Limited announces Q3 (Oct - Dec 2015) Consolidated Results

• • • NIIT records Net Revenue at Rs. 262.3 Cr, up 6% YoY and PAT of Rs. 13.7 Cr; Share of international revenue at 70%

    • Corporate Learning Group grows 17% YoY; contributes 60% to NIIT revenue

    • Expands Europe operations; commissions new facilities in Norway & Ireland

    • Skills & Careers Group grows 3% YoY; contributes 32% to NIIT revenue

    • Launches 'FinVantage' and enters into strategic partnership with HP and Metascale

    • Strengthens leadership with senior level appointments - Gavin Dabreo joins as CEO of NIIT's K-12 school learning subsidiary, MindChampion Learning Systems Limited; Amit Kaul joins to spearhead the growth of Managed Training services business in India

NIIT Limited Q3 (Oct - Dec 2015) Consolidated Financials at a Glance (in Rs. Cr)	​	​	​
​	Qtr ended Dec 31, 2014	Qtr ended Dec 31, 2015	Growth YoY
Net Revenue	248.2	262.3	6%
EBITDA	5.7	16.4	185%
Profit After Tax	1.8	13.7	+11.9 Cr

New Delhi, January 20, 2016: NIIT Limited, a global leader in skills and talent development, today reported its results for the third quarter ending December 31, 2015. In this quarter, the company recorded Net Revenue of Rs. 262.3 Cr, up 6% YoY with a PAT of Rs. 13.7Cr, up Rs 11.9 Cr YoY. EBITDA for the quarter was recorded at Rs 16.4 Cr, up 185% 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, "Global Corporate Training Outsourcing is growing steadily. While we further strengthened our Corporate Learning Business operations in US and Europe during the quarter, NIIT is now positioned to leverage emerging CLG opportunities back home in India, as we perceive a huge potential for industry-aligned, globally benchmarked corporate learning solutions from leading corporates in the country. Our Skills & Careers Business Transformation program is also continuing to deliver improved outcomes, leading to NIIT's overall YoY revenue growth rate consistently improving for the third successive quarter."

Corporate Learning Group (CLG) which offers Managed Training Services (MTS) to market-leading companies in North America, Europe, Asia, and Oceania, recorded net revenues of Rs. 158.6 Cr during the quarter, up 17% over same period of the previous year. It added one new MTS customer in Q3, taking the total number of customers to 27, with a Revenue Visibility of USD 195 Mn for CLG.

Further, strengthening operations in key international markets including Europe and North America, NIIT announced the establishment of a new facility in Bergen, Norway to expand near-shore multi-lingual delivery capability and further invest in the rapid growth of its business in Europe. NIIT now has three established centers in Europe – Dublin, Bergen, and London with a diverse mix of pan-European staff from the UK, Ireland, Norway, the Netherlands, Romania, and Germany.

In order to power the growth of the Managed Training Services business in the Indian market, NIIT appointed Amit Kaul as National Business Development Head, Corporate Learning – India during the quarter.

Mr. Sapnesh Lalla, Group President, Corporate Learning Group, NIIT Limited said, "Reaffirming customer confidence, Corporate Learning business recorded a 12% YoY increase in order intake at USD 27 Mn and registered a revenue growth of 15% YoY in constant currency. Our deal pipeline has grown significantly in the quarter."

During the quarter, NIIT unveiled NIIT.tv - a disruptive innovation aimed at radically changing the skilling landscape. 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. NIIT.tv further extended its unique technological platform to help school students succeed in their Class 10th & 12th CBSE board exams and unveiled CBSE Board Exam Preparatory Classes for free. Recently NIIT.tv also entered into a strategic partnership with Tutorialspoint.com to provide high quality educational videos and tutorials to an established base of 1 Million users every month, across 140 countries.

Commenting on Technology transformation powered by the 200 people strong EduTech team at NIIT, Mr. Udai Singh, Chief Strategy Officer, NIIT Limited said, "NIIT is actively involved in offering technologically advanced learning products to its customers. The phenomenal response to the launch of StackRoute^TM and NIIT.tv signals the emergence of NIIT as India's strongest and largest 'EduTech' company".

Skills and Careers Group (SNC) recorded a net revenue of Rs. 82.8 Cr during Q3, up 3% YoY with an EBITDA Margin at 1% up 1396 bps YoY. Backed by accelerated Business Transformation phases of Re-energization and Renewal, SNC continued to deliver strong improvement, with the third continuous quarter of acceleration in YoY Revenue growth.

Speaking on the occasion, Mr. Shivan Bhargava, Group President, Skills & Careers Group, NIIT Limited said, "Beyond-IT revenue share was recorded at 38% of SNC revenues in the third quarter. During the quarter, NIIT strengthened its portfolio through strategic alliances with companies like HP and MetaScale, enabling us to strengthen our offerings in new-age IT & Big Data."

During the quarter, StackRoute^TM, a pioneering initiative to create Full-stack programmers for the start-up industry, received overwhelming response from start-ups and IT companies alike, leading to over-subscription of multiple batches. StackRoute^TM creates 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. StackRoute^TM has strong acceptance as a strategic program to help IT majors transform their workforce to be become Digital-Skills ready.

NIIT and HP entered into a strategic partnership to offer Post Graduate Certificate Program in Software Testing. The program will enable learners to apply key testing skills and practices using HP Tools. Further, MetaScale and NIIT came together to support India's analytics needs. The partnership recognized the need in the market for Big Data training programs that combines solid fundamentals of Hadoop, which is fast becoming an industry standard analytics platform, with rigorously tested and proven techniques for leveraging large data sets, streaming data and the Internet of Things to solve real business problems.

NIIT Institute for Finance, Banking and Insurance (IFBI), India's largest Banking training institute, announced the launch of a two-month Certificate Program in Global Finance and Accounting: 'FinVantage' - a comprehensive fast track training program in Accounts Payable and Accounts Receivable.

NIIT IFBI launched the 1st batch for Certificate Program in Banking Sales and Marketing (CPBSM) in association with Catholic Syrian Bank (CSB). CPBSM is an exclusive program that aims to build a pool of probationary officers with marketing skills.

MindChampion Learning Systems Limited registered net revenue of Rs. 20.9 Cr during the quarter.

NIIT hived off its K-12 School Learning business into a Wholly Owned Subsidiary Company called - MindChampion Learning Systems Limited and appointed Mr. Gavin Dabreo as the CEO.  This was done with the view of inviting strategic investors and partners, as a separate entity would effectively cater to the independent growth and future expansion plans of the School Learning business.

During the quarter, Five-time World Champion and NIIT MindChampion Viswanathan Anand unveiled NIIT Nguru MathLab@Class, a unique technology enabled learning solution for schools in Madurai. Further Anand also launched the state-of-the-art NIIT Nguru MathLab Plus in Hyderabad. MathLab is an in-depth program inculcating mathematical aptitude, skill building and logical thinking amongst students.

Other Highlights:

• NIIT named as the 'Most Respected Education Company', by Businessworld magazine

• NIIT named to TrainingIndustry.com's Top 20 Gamification Companies List

• NIIT receives 'Franchisor of the Year Award' - under the category Vocational & Skill Development Training Institute at Franchise India Awards 2015

• NIIT named to TrainingIndustry.com's Top 20 IT Training Companies List

• During the quarter, NIIT successfully completed implementation of the "Chiphen Rigpel" project in Bhutan, launched by The Royal Government of Bhutan in partnership with Government of India. Through this project NIIT impacted 2,00,000 Bhutanese citizens and helped Bhutan transition into a modern Knowledge Society.