NIIT (REDUCE) - Quarterly estimates - ICICISecurities

- Consolidated revenue likely to rise just 1.2% YoY to Rs2.3bn. Individual Learning Solutions (ILS) may decline 10% YoY. Corporate Learning Solutions (CLS) may grow 9% YoY and School Learning Solutions (SLS) may grow 14% QoQ.

- EBITDA margin will likely decline 50bps YoY to 4.5% due to margin decline in ILS and SLS, whereas margin in CLS will likely improve YoY.

- PAT after share of associate's profit likely to decline 30% YoY to Rs19mn.

- Key factors to watch: i) Traction in ILS especially longer-duration courses, CLS and new businesses and ii) margin outlook, taxation, capex and DSO.

Source : Equity Bulls

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