NIIT Limited announces Consolidated Results for Q2 2006-07

• System-wide Revenues at Rs. 321.3 crore, up 66% YoY
• Operating Profit (EBITDA) at Rs. 23.8 crore, up 36% YoY
• 3 New Businesses addressing Banking Training,
  Management Development & Assessment Solution launched
• Element K contributes 26% of quarterly net revenues

New Delhi, October 27, 2006: For the second quarter ending September 30, 2006, NIIT, Asia’s largest IT Trainer, has posted Global System-wide revenues of Rs. 321.3 crores, representing a 66% increase YoY. Net revenues for the quarter stood at Rs. 203.1 crore.

The company posted an Operating Profit (EBITDA) of Rs. 23.8 crore, representing a 36% YoY growth as compared to Rs. 17.5 crore in the corresponding quarter last year.

NIIT Limited and its subsidiaries have recorded a consolidated net profit of Rs. 16.1 crore, a growth of 23% YoY. This has resulted in a basic EPS of Rs. 8.3 per share of Rs. 10 each.

Commenting on NIIT’s Q2 performance, NIIT Chairman Mr. Rajendra S. Pawar said, "NIIT’s 66% growth is driven by strong increase in the existing Individual and Corporate businesses, new products and the recent acquisition."

The company’s Individual Business recorded a 46% YoY growth in revenues, with GNIIT enrolments going up by 98%. China operations recorded a 35% growth in revenues, during the quarter.

Commenting on the success of the new software engineering programmes to prepare individual learners for IT careers, Mr. P. Rajendran, Chief Operating Officer said, "Over 30,000 engineering and computer science students enrolled at NIIT this quarter."

NIIT recently acquired Element K, a leading provider of learning solutions in North America. The company has nearly 1500 customers and 641 employees.

Order intake in Corporate Solutions Business, excluding Element K, grew by 33% YoY. With a fresh order intake of US$ 12.9 million the pending order book increased to US$ 37.5 million; of this 63% is executable over the next 12 months.

In addition, Element K contributed 26% of the total revenue at Rs. 53.7 crore.

Mr. Vijay K. Thadani, Chief Executive Officer, NIIT Limited said, "At nearly US$ 250 million size, NIIT together with Element K, is now the first and the best choice for comprehensive learning solutions, worldwide."

The results were taken on record at the meeting of the Board of Directors of NIIT Limited here today.

3 New Businesses launched

During the quarter, NIIT launched three new businesses in the rapidly emerging services sector. These included NIIT Imperia, Centre for Advanced Learning to provide Executive Management Education Programmes in association with Indian Institutes of Management at Ahmedabad, Calcutta and Indore.

The NIIT Institute of Finance, Banking and Insurance (IFBI), with equity participation from ICICI Bank, will prepare skilled professionals for the financial services sector. The company has initially set up specialised NIIT Imperia and IFBI centres in Delhi, Mumbai, Bangalore, Chennai, Kolkata and Hyderabad.

The third business, NIIT Litmus, offers assessment and proficiency testing services for catalysing large scale-recruitment in the IT and ITES space. NIIT Litmus centres have been set up in Delhi, Mumbai, Chennai and Bangalore, to begin with.

Bags Dataquest Top Training Company Award

Leading IT magazine Dataquest has conferred upon NIIT the ‘Top Training Company Award 2006’ for further strengthening its leadership position in the Indian IT training industry. NIIT is now nearly 1.5 times bigger than the combined revenues of the next 4 players put together and has widened the winning gap by becoming 3.72 times the size of the No 2 player.

* Previous period figures have been recast for comparative purposes

Source : Equity Bulls

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