NIIT Limited announces Q3 (Oct - Dec 2016) Consolidated Results

Posted by: at 1/20/2017 02:20:00 am

·         NIIT records 9 month Year To Date (YTD) Revenue at Rs. 826.1 Cr up 8% YoY. YTD PAT at Rs. 34.9Cr.
·         Corporate Learning Group (CLG) grows 18% YoY for 9M YTD; and 14% Q3 YoY on a constant currency
·         CLG registers significant wins in North America, Europe & India during the first 9 months of FY17
·         SNC DigiNxt retail portfolio continues to show strong growth trajectory as per plan
·         NIIT strengthens focus on Training.com – its new multi-modal online learning platform

                  Consolidated Financial Performance:
(In Rs. Crore)
Qtr ended
Dec 31, 2015
Qtr ended
Dec 31, 2016
Change YoY
9M (Mar -Dec) FY15
9M (Mar-Dec) FY16
Change YoY
Net Revenue
262.3
267.3
2%
768
826.1
8%
EBITDA

16.4
8.0
- 8.4 Cr
57.9
58.7
0.8 Cr
Profit After Tax
13.7
6.0
-7.8 Cr
49.5
34.9
-14.5 Cr

NIIT Limited announces Q3 (Oct - Dec 2016) Consolidated Results

New Delhi, January 20, 2017: NIIT Limited, a global leader in skills and talent development, today reported its results for the third quarter ending December 31, 2016. In this quarter, the company recorded Net Revenue of Rs. 267.3 Cr up 2%, with a PAT of Rs. 6 Cr. EBITDA for the quarter was recorded at Rs. 8 Cr.

NIIT reported Year To Date (YTD) 9 month Revenue of Rs. 826.1Cr, up 8% YoY with a PAT of Rs. 34.9Cr. EBITDA for 9 months was recorded at Rs 58.7 Cr, up 1% YoY.

Excluding closed legacy businesses, YTD Revenue from all focus go-forward business, grew at a robust 11% YoY.

The results were taken on record at the meeting of the Board of Directors here today.
Speaking on the company’s performance during the quarter, Mr. Rahul Patwardhan, Chief Executive OfficerNIIT Limited said, “Over the last three quarters, NIIT has played a leading role in creating a trained talent pool to facilitate Digital Transformation of organizations. Going forward, we have charted out an aggressive strategy to emerge as one of the leading corporate training providers in India. With a proven global track record and strategic partnerships with many market-leading clients in North America and Europe combined with our keen understanding of the challenges that digital transformation poses to organizations and the workforce, we are equipped to offer the best training solutions to corporates."

In this quarter, NIIT entered into an exclusive partnership with US based OpenMatters, LLC led by Barry Libert, renowned Digital Transformation Board Advisor, towards driving digital transformation for tier 1 organizations in India, China and Emerging Markets. This initiative will enable the top leadership of top tier firms to become digital leaders who will drive digital transformation initiatives that lead to greater growth and value. In a related move, Barry Libert has been appointed as a Digital Advisor to the NIIT Board.

Corporate Learning Group (CLG) which offers Managed Training Services (MTS) to market-leading companies in North America, Europe, Asia, and Oceania, recorded net revenues of Rs. 177.4  Cr during the quarter, up 12% over same period of the previous year, and with constant currency growth of 14%. It added 3 new clients in Q3 of which 2 were MTS customers, taking the total number of MTS customers to 32.

During the quarter, NIIT announced that its current managed training services contract with a global pharmaceutical company headquartered in West London, UK, has been extended for a further 4 years. The client is one of the world's largest science-led healthcare companies that researches and develops a broad range of innovative products in three primary areas of pharmaceuticals, vaccines and consumer healthcare.

The Corporate Learning Group (CLG) of NIIT has had the most successful customer and new business acquisition period during the first 9 months of FY17 as compared to the similar period of past few years, following recent multi-year contracts. During this fiscal year, NIIT's CLG business has added 5 new multi-year contracts and 4 renewals in the Telecom, Oil & Gas, Life Sciences, Technology, Manufacturing, Energy, and Mining sectors. NIIT has been awarded the status of Accredited Learning Provider for its commitment to high quality and process improvement in the provision of learning, development and training services to clients by the Learning and Performance Institute (LPI), UK.

The international Corporate Learning Group (CLG) contributed 66% to the overall revenue of NIIT in Q3. Corporate Learning in India additionally contributed 8% to NIIT's revenue as recorded in Q3 FY17.  This took the overall contribution of corporate training to NIIT's global revenue to 74% in Q3.

With a proven global track record and strategic partnerships with many market-leading clients in North America and Europe, NIIT has charted out an aggressive strategy to emerge as one of the leading corporate training providers in India. NIIT is already working with leading Indian corporates like Wipro, ICICI, Genpact, Reliance, Vodafone, Gionee, Ericsson, Maruti-Suzuki, Deloitte among many other blue-chip Indian & MNC firms in the country, offering services like Technology Training, Sales Enablement Training, Soft Skills Training, and Source-Train-Hire services across sectors.

Mr. Sapnesh Lalla, Group President, Corporate Learning Group (CLG), NIIT Limited said, “NIIT’s Corporate Learning Group delivered a strong revenue growth of 18% YoY for the 9M Year To Date period. The overall CLG revenue visibility at Q3 stood at USD 221 Mn up 13% YoY”.

StackRouteTM, a pioneering initiative from NIIT successfully created a talent pool of hundreds of Digital innovators for the IT industry in a short span of a year. The initiative has received an overwhelming response from the industry. StackRoute currently services three of the Top Indian IT Services firms in Bangalore, Chennai & Delhi NCR. Based on an immersive product development experience, the path–breaking program focuses on creating elite full-stack programmers who are at the core of Digital Transformation initiatives worldwide.
NIIT further strengthened its operations for Training.com - a multi-modal learning platform, by entering into a partnership with IIM Calcutta to launch an exclusive program called LEAD - Learn Enhance Aspire and Deliver. The program is specifically designed for CXOs who seek to renew their business knowledge, managerial capabilities and sharpen their leadership acumen. Training.com also unveiled cutting edge programs in Mastering Angular 2 and a range of programs in Digital Marketing. Angular 2, recently unveiled by Google, is a complete rewrite of the Angular framework that would enable higher productivity in building modern web applications with dynamic improvement in performance and responsiveness. The cutting-edge career programs in Digital Marketing aims to create a trained manpower pool for the fast-evolving digital marketing sector in India by training 10,000+ professionals in next three years.

Training.com competed 100 days in Q3. Within a short span of time, it has generated more than a quarter million visitors. Training.com has built a portfolio of 23 advanced courses including 5 marquee programs from IIM Calcutta. The learning platform has seen over 300 paid registrations to date, and generated a revenue visibility of Rs 1.5 Cr. The programs have seen encouraging feedback from users and high course completion at 96%.

Commenting on Training.com, Mr. Udai Singh, Chief Strategy Officer, NIIT Limited said, "NIIT has played a pioneering role in redefining the education and training sector in India through technological and pedagogical innovations in the space. With a strong focus to develop digitally skilled workforce we have further strengthened our multi-modal platform – Training.com during Q3. Through this platform we aim to make high quality education and training available to aspiring professionals and youth across the globe using hi-tech delivery models.”

Skills and Careers Group (SNC) recorded a net revenue of Rs. 72.4 Cr down 13% YoY during Q3, impacted by low cash circulation due to demonetisation.  Historically, 70% of NIIT’s India retail clients pay fees in cash, with even higher percentages in the Tier 2/3/4 towns.
Speaking on the occasion, Mr. Prakash Menon, President, Global Skills & Careers Group, NIIT Limited said, “During the quarter, our digiNxt career programs have received phenomenal response. While we did experience the adverse impact of demonetization this quarter, we see it as a transient issue for a couple of quarters.”
NIIT.tv – a disruptive innovation by NIIT completed one year of empowering learners towards meeting the vast education, training and skilling needs of today's youth. Since inception, NIIT.tv has registered over 6,00,000 users from 175 Countries. In the initial phase, over 20 skill-based training programs in IT, Banking and Finance, Retail and Management were made available, which has now scaled up to 5800 "live" as well as "on-demand" courses for various segments from school children to college students to working professionals for free.

NIIT unveiled its biggest Big Data talent training base at Guiyang City in China to conduct IT and Big Data training for university graduates, working professionals and government employees in Guizhou province. Through this flagship training centre NIIT aims to train 2000 candidates per year. NIIT further expanded presence in China through two strategic partnerships in Ningxia province. The company signed an MoU with Yinchuan City Economic and Technology Development Zone to open a training centre and train 2500 learners from universities, colleges and enterprises in next 5 years with financial support from Ningxia provincial government. The company also joined hands with Ningxia University to provide IT training through NIIT Inside Model.

During the quarter NIIT Imperia - Centre for Advanced Learning Institute along with IIM Ahmedabad announced a fresh batch for Accelerated General Management Program (AGMP). Further Advanced Program in Strategic Management (APSM) in association with IIM Calcutta was also announced.  NIIT Imperia along with IIM Calcutta also announced a fresh batch for Advanced Program in Supply Chain Management (APSCM).  This is a unique program specially designed to equip managers and practitioners with advanced concepts and practices of Supply Chain Management which will help them contribute directly to overall corporate success.
NIIT Institute for Finance, Banking and Insurance (IFBI) - a subsidiary of NIIT Ltd., and United Bank of India entered into a strategic tie up to launch a 12-month Post Graduate Diploma in Banking and Finance.  The course, offered at NIIT University, will help the newly recruited probationary officers with robust skills sets and vital insights needed to undertake various roles as versatile banking professionals.

MindChampion Learning Systems Limited (MLSL) registered net revenue of Rs. 17.4 Cr during the quarter. It added 51 new school clients, up 34 % YoY.
Mr. Gavin Dabreo, CEO of MLSL said“Our efforts towards delivering outcome linked products is helping. We will increasingly focus on this goal with all our products and services”.
Other Highlights:
·         NIIT named to TrainingIndustry.com’s Top 20 IT Training Companies List. TrainingIndustry.com continually monitors the training marketplace for the best providers of IT training services/technologies in support of corporate learning and development
·         NIIT named to TrainingIndustry.com’s Top 20 Gamification Companies List

About NIIT
Established in 1981, NIIT Limited, a global leader in Skills and Talent Development, offers multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals in over 40 countries. NIIT has three main lines of business across the globe- Corporate Learning Group, Skills and Careers Group, and School Learning Group.
NIIT's Corporate Learning Group (CLG) offers Managed Training Services (MTS) to market-leading companies in North America, Europe, Asia, and Oceania. The comprehensive suite of Managed Training Services includes custom Curriculum Design and Content Development, Learning Administration, Learning Delivery, Strategic Sourcing, Learning Technology, and Advisory Services.
With a team of some of the world's finest learning professionals, NIIT is dedicated to helping customers increase the business value of learning and development (L&D). Built on the sound principles of 'Running Training like a Business', NIIT's Managed Training Services and best-in-class training processes enable customers to align business goals with L&D, reduce costs, realise measurable value, benefit from rock-solid operations, and increase business impact.

NIIT's Skills and Careers Group (SNC) delivers a diverse range of learning and talent development programs to millions of individual and corporate learners in areas including Banking, Finance & Insurance, Retail Sales Enablement, Management Education, Multi-Sectoral Vocational Skills, Digital Media Marketing, and programs in digital transformation technologies. These programs are delivered through a hybrid combination of the 'Cloud Campus' online platform, satellite-based 'Synchronous Learning Technology' and a physical network of hundreds of learning centers in India, China, and select markets in Asia & Africa. The flagship multi-disciplinary course offerings include the industry-endorsed GNIIT – Digital Transformation program and a set of DigiNxt Programs for students from different streams, apart from a wide range of specialist short duration programs.
To further strengthen its SNC portfolio in India, NIIT has tied up with industry majors like ICICI Bank for NIIT Institute of Finance Banking & Insurance Training Limited, IFBI; leading business schools in India for NIIT Imperia; and Genpact for NIIT Uniqua. Besides this, for the China market, NIIT has tied up with governments and software parks in Guian, Chongqing, Wuxi, Suzhou, Changzhou, Zhangjiagang, Haikou and Dafeng, for state-of-the-art public-private partnership centres.
The Training.com learning platform, is an NIIT initiative for advanced career programs, which are delivered live by industry experts in an immersive and interactive online mode, combining instructor-led classrooms with the convenience of accessing the training sessions from anywhere.

NIIT has introduced - StackRouteTM, an initiative to produce the world's best full stack programmers.  StackRouteTM aims to create multi-skilled, and multi-disciplinary programmers who can become key members of high-performance teams in top notch product engineering companies, start-ups, and IT firms. Further the company has also launched NIIT.tv – a digital learning initiative that brings skilling from NIIT classrooms to every digitally connected Indian, for free, at any time and place of their choice.

As NIIT's wholly owned subsidiary for its K-12 school learning initiative - MindChampion Learning Systems Limited, is providing technology based learning to around 2,000 private schools across India, reaching out to more than a million students. The futuristic NIIT nGuru range of learning solutions for schools comprises Interactive Classrooms with digital content, technology-driven Math Lab, IT Wizard programs and Quick School - an Education Resource Planning software.
As the Most Trusted Training Brand in India for 4th year in a row (Brand Trust Report, 2016), NIIT's learning and talent development solutions, continue to receive widespread recognition globally. NIIT has been named among the Top 20 Training Outsourcing Companies for the past nine consecutive years by Training Industry, Inc. USA. Further, leading Indian ICT journal Dataquest has conferred upon NIIT the 'Top Training Company' award successively for the past 20 years, since the inception of this category. NIIT has also been featured as the 'Most Respected Education Company'- 2016 by leading financial magazine, Business World. NIIT.tv – a disruptive innovation by NIIT, won the prestigious award for 'Educational Technology, at the Indo-American Education Summit 2016. 
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