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IT training firm NIIT Ltd today posted 52 per cent dip in net profit to Rs 11.6 crore for the quarter ended September 30,2012,due to high costs,adverse product mix and low business volume.
The company’s net profit stood at Rs 24.2 crore in the corresponding quarter last year on a continuing business basis.
NIIT had divested its stake in Element K for a cash consideration of USD 110 million during the third quarter of 2011-12.
NIIT’s revenues were flat at Rs 279.1 crore in thequarter compared to Rs 278.5 crore in the same quarter last year.
“There were challenges to profitability. High inflation,adverse product mix and overall low volumes impacted profit numbers. Revenues were also flat,” NIIT Chief Executive Officer Vijay K Thadani told reporters here.
Despite a challenging market environment,NIIT improved its market share from 50 per cent to 54 per cent in the IT education space,he added.
NIIT’s strategic decision to focus on the four platforms of growth – Cloud Campus,Managed Training Services,Nguru & NIIT Yuva Jyoti – continued to drive the business momentum for the company,Thadani said.
“The second quarter saw the NIIT Cloud campus initiative foraying overseas even as it continued to gain momentum in India,” NIIT Chairman Rajendra S Pawar said.
NIIT’s vocational skills training initiative – NIIT Yuva Jyoti,established in partnership with National Skill Development Corporation (NSDC) added 13 new centres this quarter,taking the total number of centres to 21 with over 2300 enrolments since commencement.
During the quarter,Corporate Learning Solutions (CLS) recorded net revenues of Rs 75.4 crore,up 31 per cent year-on-year on a continuing business basis. Order intake stood at USD 13.8 million,up 20 per cent y-o-y.
“The corporate training business recorded a strong annuity based growth of 31 per cent y-o-y,with a revenue visibility of USD 127 million over the next five years,”
Thadani said.
The company’s school learning solutions (SLS) recorded net revenue of Rs 54.1 crore during the quarter,up 34 per cent y-o-y.
“Our Schools campaign,conceptualised together with world chess champion,Viswanathan Anand,showcased the holistic education offerings provided on the NIIT Nguru platform. This contributed significantly to the growth of SLS business,which added 205 new private schools orders in Q2,up 54 per cent
y-o-y,” NIIT Chief Operating Officer P Rajendran said.
Career Building Solutions (CBS) recorded net revenue of Rs 149.4 crore,backed by strong enrolments for the cloud campus initiative,which crossed the cumulative 20,000 mark.
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