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This article is more than 1 year old.

NIIT posts Q2 net profit at Rs 26 cr

NIIT posts Q2 net profit at Rs 26 cr
Skills and talent development company NIIT Ltd on Friday posted a consolidated net profit of Rs 26 crore for the September quarter. The company had registered a net profit of Rs 209.3 crore in the year-ago period. The numbers are not comparable as NIIT had a treasury income from the divestment of shareholding in NIIT Technologies Ltd and a MAT (Minimum Alternate Tax) reversal that had contributed towards the higher PAT (Profit After Tax) in the July-September 2019 quarter.
The company's net revenue was at Rs 218.9 crore in the September 2020 quarter. On a sequential basis, the net revenue was higher by 8 percent.
"The organisation demonstrated tremendous resilience to strengthen its market position and improve operational efficiency, while accelerating the pace of digital transformation in all aspects of the business," NIIT Vice Chairman and Managing Director Vijay K Thadani said.
NIIT's Corporate Learning Group (CLG) business recorded net revenue of Rs 194.1 crore, up 12 percent year-on-year.  The number of Managed Training Services (MTS) customer tally stands at 56 and revenue visibility at the end of the quarter was at USD 259 million.
"CLG continues to see momentum in attracting new customers and retaining and expanding existing relationships. In the first half of the year CLG added 5 new MTS logos, and has strong revenue visibility of USD 259 million," NIIT CEO Sapnesh Lalla told reporters in a virtual briefing.
Skills and Careers Group (SNC) recorded a net revenue of Rs 24.7 crore during the second quarter. The India business is starting to see recovery driven by StackRoute and TPaaS (Talent Pipeline as a Service) which grew 77 percent quarter-on-quarter (q-o-q). SNC has transitioned its customers to the NIIT Digital platform.
"The team has executed well this quarter...Our key revenue drivers in India grew on a quarter-on-quarter basis by 77 percent. These two include StackRoute and TPaaS on the back of green shoots from a hiring perspective, with key IT majors in India, as well as some of the banks," Lalla said.
So, it was an overall good performance on a q-o-q basis and that's the key relevant comparison in the challenging and uncertain business environment, he added.Lalla said while customers continue to face uncertainty across sectors what has enabled year-on-year growth in the corporate business as well as q-o-q growth from an overall perspective is the fact that it has done significant business development over the last 4-6 quarters.
"...the new customers that have ramped up over the last 3-4 quarters have actually offset some of the volume reduction that we've seen because several of our large customers are seeing a tough and challenging business environment," he added.
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