NIIT Ltd Q3 net profit up over two-fold at Rs 1.2 cr, Rajendra S Pawar sees 'revival'

Written by PTI | New Delhi | Updated: Jan 18 2014, 01:17am hrs
NIITIT training solutions firm NIIT reported over two-fold growth in its consolidated net profit at Rs 1.2 crore for the third quarter ended Dec 31, 2013. Reuters
IT training solutions firm NIIT Ltd today reported over two-fold growth in its consolidated net profit at Rs 1.2 crore for the third quarter ended December 31, 2013.

The Gurgaon-based NIIT Ltd had posted a net profit of Rs 50 lakh in the year-ago period.

Consolidated revenues, however, rose marginally to Rs 233.6 crore in the October-December quarter this fiscal from Rs 232.7 crore in the same quarter of 2012-13 fiscal.

Commenting on the performance, NIIT Ltd Chairman Rajendra S Pawar said: "The margin growth of 279 bps points to the underlying revival in business. Despite Q3 being a seasonally weak quarter, the performance is good."

Total placements during the third quarter stood at 8,117 students.

"NIIT has been able to take advantage of the developing opportunities in the US market to record a 31 per cent y-o-y increase in order intake in its CLS business," NIIT CEO Vijay K Thadani said.

Corporate Learning Solutions (CLS) recorded net revenues of Rs 105.9 crore, up 34 per cent y-o-y. It added three new contracts in the third quarter taking the Pending Order book for CLS to Rs 257 crore executable over the next 12 months.

Career Building Solutions (CBS) recorded net revenue of Rs 91.7 crore during the quarter. Cloud campus initiative has now expanded to cover 92 courses across 210 centres with a cumulative enrolment of over 53,000 students.

"Our non-IT courses have also done well in the third quarter, while banking services course posted a decent growth," Thandani said.

The company has also started new courses keeping in view the growth in adoption of disruptive technologies. NIIT extended its portfolio by introducing a programme in Business Analytics during the quarter, which has been receiving a good response from the industry.

Going ahead, Pawar said, the market shows signs of growth and it is favourable for players like NIIT.

"The swing in growth is indicative of the underlying revival," he added.

Shares of NIIT today fell by 3.17 per cent to settle at Rs 27.50 apiece on the BSE from its previous close.