NIIT Learning Systems Q4 Profit Up, FY25 Guidance at 12-14%

New Delhi, May 22 (PTI) NIIT Learning Systems on Wednesday posted a marginal growth of 0.92 per cent to Rs 54.43 crore in consolidated net profit for the quarter ended March 31, 2024.

It had reported a net profit of Rs 53.93 crore in the year-ago period.

Net revenue for the reporting quarter was at Rs 397.91 crore, a 3.17 per cent uptick, against Rs 385.68 crore in Q4FY23.

CEO and executive director Sapnesh Lalla attributed the growth to "improved product mix connected with seasonality, which resulted in improved profit margins".

"Our sequential growth expectations were a bit higher at 3 per cent, but we are at 2 per cent. Given the headwinds in the market, over all, we are reasonably satisfied with the quarterly numbers," he told PTI.

For FY24, profit after tax came in at Rs 213.24 crore, as against Rs 192.21 crore in FY23.

Revenue for the year was at Rs 1,553.50 crore, a 14.07 per cent climb from previous fiscal's Rs 1,361.78 crore.

The firm last year acquired US-based St. Charles Consulting Group for a fixed consideration of USD 23.4 million (about Rs 192 crore).

"The company benefited from the acquisition in terms of inorganic activity in our annual growth numbers. Our organic growth is lower, but with the benefit of inorganic activity, we showed 14 per cent year-on-year growth," he said.

Lalla gave a growth guidance of 12-14 per cent for FY25.

"We aim to achieve that by accelerating acquisition of new customers, bringing new capabilities specifically in GenAI as it pertains to training, and getting a higher wallet share from our existing customers," he said.

The company's headcount as of March 2024 was 2,396, an increase of 61 personnel from March 2023.

Refusing to disclose specific statistics regarding the company's hiring plans for FY25, Lalla said the company will maintain its regular hiring practices, which primarily involve recruiting fresh graduates.

"We typically hire about 300 early career candidates each year, and we expect to continue to do that," he said.

Lalla said the company has an active pipeline of acquisitions that it is looking at this year.

The company's board recommended a final dividend of Rs 2.75 per equity share of the face value of Rs 2 per equity share for the financial year 2023-24.

Shares of NIIT Learning Systems at BSE on Wednesday closed at Rs 475 apiece, up 4.82 per cent from the previous close.