NIIT Q1 profit doubles to 11.5 cr
IT training company NIIT today said its net profit has more than doubled to Rs 11.5 crore for the April-June 2012 quarter on the back of strong growth in the corporate and school learning solutions (SLS) business.india Updated: Jul 25, 2012 16:51 IST
IT training company NIIT on Wednesday said its net profit has more than doubled to Rs 11.5 crore for the April-June 2012 quarter on the back of strong growth in the corporate and school learning solutions (SLS) business.
The company's net profit was Rs 5.5 crore in the same period last fiscal.
"There has been growth across businesses. The SLS business grew 17%, while corporate learning solutions was up 20% despite the challenging environment that we see," NIIT chairman Rajendra S Pawar told reporters in New Delhi.
It is an overall good quarter, but some sections are challenged, he added.
The net revenue of the company for the quarter rose 4% at Rs 227.5 crore, from Rs 219 crore in Q1 last fiscal.
The CLS recorded net revenues of Rs 73 crore, while SLS logged in Rs 47 crore.
"The growth in corporate training business was driven by managed training services, a reflection of strong customer confidence," NIIT CEO Vijay K Thadani said.
However, the individual learning solutions business had a challenging quarter as IT enrolments were lower on account of weak consumer sentiment, slower hiring by industry and delayed joining dates by IT industry.
"...specially in the IT segment, we did face a challenging and weak quarter where enrolments have declined over the same period last year even though the overall enrolments are at 129,000," Thadani said.
The slowdown in IT enrolments was partly compensated by growth in non-IT segments of the business typically finance, banking and management oriented courses, he added.
"Focus in the coming quarters will be to arrest the decline in the IT enrolments which will be contributed to by the improvement that we forsee towards the later part of the year in the IT sector," Thadani said.
The company continued with its strategy of expanding focus on private schools than government schools.
"During the quarter, we closed one of the contracts whose term has completed in Assam and therefore to that extent, the government part of the revenue would have declined which was more than compensated by the improvement in the private school revenue," Thadani said.
The company added 267 private schools during the quarter.
Asked about the slowdown in the IT industry, Pawar said the sentiment is weak as global economic situation remains uncertain.
"People tend to become conservative because, on a normal growth level, you keep hiring for the future. So when you are little uncertain, even if you slow down hiring, you still have a bench...I think that is coming from little bit of uncertainity...However, if you look on the year-on-year basis, its not that bad," Pawar said.