NIIT net profit jumps 350%
The company attributes continuing growth in Corporate Learning Group coupled with strong operational controls in other businesses for the rise in profit
NIIT Ltd, a global skills and talent development company, today reported a 350% jump in its consolidated net profit of Rs 19.7 crore year on year (YoY) in the third quarter of FY18.
The company attributed continuing growth in Corporate Learning Group coupled with strong operational controls in other businesses for the rise in profit.
The net revenue for the quarter rose 4% to Rs 209.4 crore while earnings before interest, taxes, depreciation, and amortisation (EBITDA) was recorded at Rs 18.4 crore, up 69% YoY. Net debt was recorded at Rs 41.9 crore.
Speaking on the company's performance during the quarter Sapnesh Lalla, CEO of NIIT Ltd, said, "A robust and continuing growth in Corporate Learning Group coupled with strong operational controls in other businesses, resulted in 8% YoY growth in go forward business in constant currency terms, and a 69% YoY growth in EBITDA, despite it being the weakest seasonal quarter."
Corporate Learning Group (CLG) recorded a net revenue of Rs 129.4 crore, up 14% YoY in constant currency terms. It renewed a marquee MTS contract resulting in revenue visibility of $ 199 million, up 44% YoY from 38 MTS customers.
NIIT acquired Eagle Productivity Solutions, a top-rated global provider that specialises in training solutions for companies adopting sophisticated cloud-based applications in the pharmaceutical and life sciences industry.
The acquisition will help NIIT expand its training capability for global rollout of cloud-based enterprise applications in the pharmaceutical and life sciences industry, a company statement said.
"We are proud to have consolidated net profitas part of the NIIT family. They bring deep expertise in pharmaceutical & life sciences segment. Its unique capability enables enterprises to successfully roll out applications and processes achieving over 90% adoption rates", added Lalla.
In this quarter, NIIT also entered into a strategic partnership with UP! Your Service, the global leader in creating cultures of service excellence worldwide, to expand its Corporate Learning portfolio to deliver internal and external cultures of Service Excellence. Through this tie-up, NIIT aims to create a huge difference in the way organisations work to create value for their customers and colleagues.
Skills & Careers Group (SNC) recorded net revenue of Rs 69.1 crore during Q3 on an EBITDA of Rs 1.8 crore.
Speaking on the occasion, Prakash Menon, President, global retail business (GRB), said, "Strong operational control measures together with new age curriculum like training in Blockchain technology, helped drive momentum for the business".
During the quarter, Training.com in association with IIM Calcutta, announced the second batch of the Advance Program in Data science. Since the launch of the platform in October 2016, Training.com has generated more than 9 million visitors.
Training.com has built a portfolio of over 160 advanced courses including programs in Digital Marketing, Technology, Data Science and Applied Finance from premium institutions including IIM-C, Microsoft and Digital marketing institute, the statement said.
MindChampion Learning Systems Limited (MLSL) registered net revenue of Rs 9.2 crore during the quarter. It signed 85 private school contracts in Q3, up 67% YoY.
The company's share, however, closed 1.19% down at 108.15 on the BSE.