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earnings | IST

NIIT Q3: Steady Q3 amidst changing environment; management says new contracts have higher margins

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NIIT reported its third quarter numbers on Wednesday. Revenue was up 4 percent and margins expanded from 12 percent to 19 percent. Vijay Thadani, Vice Chairman and Managing Director at NIIT spoke to CNBC-TV18 about the earnings picture and outlook ahead.

NIIT reported its third quarter numbers on Wednesday. Revenue was up 4 percent and margins expanded from 12 percent to 19 percent. Vijay Thadani, Vice Chairman and Managing Director at NIIT spoke to CNBC-TV18 about the earnings picture and outlook ahead.
On the earnings for the quarter, Thadani said, “EBITDA has come out of numbers of initiatives. First is the switching over to the digital learning environment, the lower establishment cost, and travel cost all those are lower and at the same time some newer contracts are at better margins those are contributors to this.”
On the road ahead, he said, “In the medium term, there is an issue that we have to see how the new contracts settled down. We have a healthy pipeline and then we have to also look at how the outcome of the digital transformation initiatives which organisations are taking, how they settled down so that they can hopefully start spending more on training and other initiatives.”
On corporate learning group, Thadani said, “The corporate learning group has been growing every quarter slightly better than the previous quarter so it has been a gradual improvement as new contracts made up for while some of our older customers are adjusting themselves to the new normal.”
For detailed management commentary, watch the video