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NIIT hits over 13-year high on healthy March quarter results – Business Standard

Shares of NIIT rose 9 per cent to hit an over 13-year high of Rs 241.75 on the BSE in intra-day trade on Monday, surging 29 per cent in three days, after the company reported a healthy set of March quarter (Q4FY21) numbers. The stock of the IT training services provider was trading at its highest level since September 2007.

The company’s revenues increased 9 per cent quarter-on-quarter (QoQ), up 30 per cent year-on-year (YoY), to Rs 275.5 crore, mainly led by 8 per cent QoQ growth in corporate learning group (CLG) and 12 per cent QoQ growth in Skills & Careers Group (SNC). EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin improved from 18.4 per cent in Q3FY21 to 24.9 per cent in Q4FY21 on account of 570 bps QoQ improvement in CLG and profits in SNC. Profit after tax increased 11.3 per cent QoQ to 51.3 crore.

The company recorded an exceptionally strong quarter of revenue growth and profitability owing to sustained business development, digital transformation and optimized business operations. The management said the corporate business continues to accelerate. The investment in the digital transformation of the business has created new opportunities for growth and improvement in profitability.

NIIT is a global skill and talent development company and a leading provider of managed training services.

Commenting on the impact of the COVID-19 pandemic on the business, NIIT said the company has been able to arrest the impact partially due to agile and decisive actions including acceleration of the transition to digital. Given the increase in adoption of digital learning, the company has achieved revenue and EBITDA levels higher than last year, it added.

“The company had enabled work from home (WFH) globally for its workforce and transitioned delivery of learning services to its digital platform ‘NIIT Digital’, which has enabled continuity of services to NIIT’s B2B as well as B2C customers. The timeline for the opening of education centres is not known at this point in time. However, learning has been transitioned to Digital, and available across B2C and B2B learners. The company has also rationalized usage of leased premises in line with changing customer preference,” the company said.

At 10:42 am, NIIT was trading 7 per cent higher at Rs 236 on the BSE, as compared to a 0.17 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled, with a combined 3.9 million shares having changed hands on the NSE and BSE so far.

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