NIIT Ltd - ZENMoney

Company Profile: NIIT Ltd, set up in 1981 is a leading global talent development corporation and Asia's premier IT trainer, offering leading and knowledge solutions across 40 countries. including Americas, Europe, Asia, Middle East, Africa and Australia/Oceania. The company imparts training solutions in IT, Banking, Finance and Insurance, Knowledge Process Outsourcing (KPO), Business Process Management (BPM), Executive Management Education, Vocational Skills, School Learning Solutions, Communication and Professional Life Skills through a blend of classroom and on-line learning. It runs various training programs and integrated learning solutions like Yuva Jyoti, GNIIT, MTS, and NGuru. The company's customers include Fortune 500 Companies, universities, Govt an and private schools, technology companies, training corporations and publishing houses.

Strengths:

- Strong brand name in the field of software training with presence across the chain of IT and expansion into newer verticals like financial services.

- The company has huge cash reserves. (Rs 105 crore as per FY13 balance sheet)

Concerns:

- Slowdown in the hiring in the IT sector is likely to affect the company's business in the short to medium term.

Outlook: NIIT has been witnessing muted revenue growth in the last two year in the wake of economic uncertainty across the world. The company however plans to get back on its growth trajectory in the coming quarters. As part of its strategy, the company is restructuring its business by trying to cut back its debt and undertake cost rationalizing to improve cash flows in the coming quarters. The company plans to continue its focus on cloud technology to spur its future growth and profitability. Further, Improving economic outlook in the US is likely to improve discretionary spending in the IT sector which will benefit the company.

Source : Equity Bulls

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