Press Release

Q4 Net Profit up 40% YoY

Consolidated Quarter Results (January- March 2010)

·         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%

New Delhi, May 7, 2010: NIIT Limited, leading Global Talent Development Corporation and Asia’s largest IT trainer, today 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

Commenting on the company’s performance Mr. Vijay K. Thadani, Chief Executive Officer, NIIT said, “We had a strong quarter with 40% growth in PAT, in a challenged environment”

 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.

Mr. Rajendra S Pawar, Chairman, NIIT Limited said, “The improved job scenario on the back of a reviving economy will accelerate demand for employability training.”

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.

“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,” said Mr. P Rajendran, Chief Operating Officer, NIIT Limited

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.

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

About NIIT 

NIIT Limited, leading Global Talent Development Corporation and Asia’s largest IT trainer, offers learning and knowledge solutions to over 5 million students across 40 countries.

Leading IT magazine Dataquest has conferred upon NIIT, the ‘Top IT Training Company’ award successively for the past 17 years, since the inception of this category. Rated among India’s Business Superbrands 2008, NIIT’s Individual Learning Business offerings include industry-endorsed programs for students seeking careers in IT - GNIIT, Edgeineers and Global Net Plus for IT professionals.

NIIT has provided computer-based learning to over 15,000 government and private schools. The futuristic NIIT eGURU range for schools is a holistic education package that comprises of Interactive Classrooms (an embedded Teaching Learning Material, that uses elements of interactivity, automation and web links library); Math lab (technology tools that enable school students to learn and explore mathematical concepts); IT Wizard (equips the students with core computer knowledge and IT skills); and Quick School (an Education Resource Planning solution for school management).

For working professionals, NIIT Imperia, Centre for Advanced Learning, offers Executive Management Education Programs in association with Indian Institutes of Management (IIMs) at Ahmedabad, Indore, Kolkata, Lucknow, IMT Ghaziabad and IIFT Delhi.

NIIT Institute of Finance Banking & Insurance (IFBI), formed by NIIT with equity participation from ICICI Bank, offers programs for individuals and corporates in Banking, Financial Services and Insurance.

 NIIT Uniqua, Centre for Process Excellence, addresses the increasing demand for skilled workers in the business and technology services industry by providing training programs in relevant areas. This is a part of NIIT Institute of Process Excellence, a NIIT-Genpact venture.

NIIT’s Corporate Learning Solutions, offers integrated learning solutions (including strategic consulting, learning design, content development, delivery, technology, assessment and learning management) to Fortune 500 companies, Universities, Technology companies, Training corporations and Publishing houses.

NIIT delivers a tailored combination of catalog learning products, technology and services through Element K offerings. These include: vLab®: hands-on labs, instructor-led courseware, comprehensive e-reference libraries, technical journals, and KnowledgeHub™: hosted learning management platform. This makes NIIT the first and the best choice for comprehensive learning solutions, worldwide.

For media queries, please contact:

Prateek Chatterjee, NIIT Ltd, Ph: (Cell) +91 9910201085, (Dir) +91 124 4293041

Email: prateek.chatterjee@niit.com   or

Reema Bardhan, NIIT Ltd,  Ph: (Cell) +91 9891267470, (Dir) +91 124 4293042

Email: reema.bardhan@niit.com  or

Visit our website:  www.niit.com

Investors may contact:

Kapil Saurabh, NIIT Ltd, Ph: +91 124 4293324; Fax: +91 124 4293333;