NIIT, a leading player in skills and talent development, plans to increase its quarterly revenue by 24% or more in FY25. The company’s strategic focus on sectors like banking, financial services, and insurance (BFSI) and technology training for global capability centres (GCCs) is yielding positive results amidst the broader slowdown in IT hiring, Vijay K Thadani, vice chairman and managing director, told FE.
“Our technology training focus shifted to GCCs and second-year GSIs, which helped offset the decline in traditional IT services hiring,” Thadani said. “The demand for upskilling in BFSI and technology sectors has been robust, leading to a strong performance in these areas,” he added.
With the widespread hiring freezes in the IT sector, NIIT is navigating these challenges by forming strategic partnerships with GCCs that continue to hire and require training services. This approach has not only mitigated the impacts of the slowdown but also bolstered NIIT’s financial recovery. The company has a tie-up with over 50 GCCs.
For the quarter ended January-March, NIIT reported a 24% year-on-year increase in its topline to Rs 74.3 crore, with its net profit swinging to Rs 11.2 crore from a loss of Rs 9.4 crore in the December quarter. The company’s revenue from technology based jobs has reduced to 64% in Q4 from 76% from the year ago period, while revenue from those of BFSI and other jobs rose by 12% to 36% in the same quarter.
The company’s financial turnaround is also attributed to strategic cost optimisations. Thadani said: “We’ve undertaken significant cost rationalisation efforts, including downsising our education centers, which has effectively reduced overheads and enhanced our Ebitda margin.”
Further bolstering its strategic realignment, NIIT has integrated generative AI (GenAI) to enhance operational efficiencies and adopt innovative training solutions. Rajendra S Pawar, chairman and co-founder, said: “Generative AI has significantly boosted our productivity, enabling us to do more with less. It’s reshaping how we approach training and development across sectors.”
Looking to the future, NIIT plans to continue leveraging its strengths in BFSI and technology sectors, while expanding its offerings to include new-age skills and personalised learning experiences. The company has also been proactive in adapting to GenAI, integrating these capabilities into its digital marketing and full-stack software engineering programs to ensure learners remain competitive in the evolving job market.