NIIT LTD

It is surprising that NIIT stock price closed strongly in the green, despite the poor QoQ performance, deciding to instead concentrate in YoY numbers. For IT companies, it is usually sequential results which make sense and the picture does not look great QoQ.

The company’s net revenue was down 4% at Rs.262 crore and operating costs rose 1%. EBTDA fell by a big 35% to Rs.16 crore. Margins fell 302 bps to 6% and net profit came in at Rs.14 crore, down 34%. Growth was largely driven by Corporate Learning Group (CLG) whose revenue rose 9% (QoQ) and EBITDA was up 8%. It added one new MTS client  and this now contributes 91% to CLG revenue.

The cog in the wheel was skills and career segment which showed a 21% drop in revenue and a huge 93% fall in EBITDA. Even the School Learning group did not do too well. Its revenues showed a 10% drop and EBITDA declined by a whopping 285%. It added 38 schools and there was an order intake of Rs.6 crore.

Its headcount was down 27% sequentially and down 323% YoY.