NIIT’s net profit jumps 78% to Rs 51.4 cr in June quarter; revenue up 49%


Ltd on Friday said it has logged 78 per cent year-on-year jump its net profit to Rs 51.4 crore for the June 2021 quarter, and that the “war for talent” in the IT industry presents strong growth opportunity for the skills and talent development firm.

The company had posted a net profit of Rs 29 crore in the April-June 2020 period.

Its revenue in April-June 2021 rose 49 per cent to Rs 301 crore, from Rs 201.8 crore in the year-ago period.

NIIT’s EPS (earnings per share) stood at Rs 3.8 at the end of the June 2021 quarter.

“In a highly volatile and uncertain environment that we went through during the last quarter, I think the company has demonstrated an exceptional performance, both in terms of growth and profitability,” Vice-Chairman and MD Vijay K Thadani said in a virtual briefing.

The company’s corporate learning group (CLG) business recorded a total revenue of Rs 263.3 crore, clocking a 47 per cent year-on-year growth during the first quarter of FY22. Three new MTS (managed training services) contracts were signed, and scope of work was expanded with two existing customers by the CLG business.

The total number of MTS customers stands at 59 with an overall revenue visibility of USD 298 million.

The skills and careers group (SNC) recorded a net revenue of Rs 37.8 crore, up 62 per cent year-on-year, during the reported quarter. The SNC business has successfully transitioned its customers to the Digital platform and through this, learners are able to access their learning plans and all associated content and services digitally.

“Both the CLG and the SNC Group recorded strong topline (revenue) growth. The agile and decisive actions we took over the past several months have enabled the business to continue to create more value for our customers,” NIIT Chief Executive Officer Sapnesh Lalla said.

There has been increased new customer activity with respect to corporate customers as well as expansions with some of the existing customers in the airline, banking and technology spaces, he added.

Talking about the aggressive hiring plans announced by IT majors like Tata Consultancy Services, Cognizant and Infosys, Lalla said want to digitally transform their businesses and therefore, there “is a war for talent” that is showing up in hiring and attrition numbers.

“In there, there is a great opportunity for NIIT more specifically,” he said adding that its training solutions for corporates as well as college students are poised to play a major role in addressing demand.

“So, I think it’s a great opportunity for us, not just for the IT industry…digital transformation creates growth opportunities for other industries as well, and I think we have a great opportunity,” he added.

Lalla noted that most industries are starting to recover and some sectors are accelerating transformation.

“I think that from an overall perspective, we see a lot of momentum in the technology sector, a lot of momentum in BFSI (banking, financial services and insurance), a fair bit of momentum in life sciences,” he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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