NIIT Q1 Profit Soars 300%, Revenue Up 32% - Business News

New Delhi, Aug 2 (PTI) Talent development company NIIT on Friday reported a three-fold rise in its consolidated net profits at Rs 7.75 crore in the June 2024 quarter.

It had reported a net profit of Rs 2.18 crore in the year-ago period.

Revenue from operations for the quarter under review came in at Rs 82.47 crore, up 31.86 per cent from Rs 62.54 crore in the corresponding quarter of the previous fiscal.

Seen sequentially, revenue grew 10.93 per cent, but net profit declined 30.5 per cent.

"The growth was driven by expansion in number of customers across private banks, GCCs, Tier II GSIs and large Indian enterprises. All round growth in the business led by 94 per cent YoY growth in BFSI and other programmes and technology programmes up 13 per cent YoY. BFSI & other programmes contributed 34 per cent of revenue in the quarter," the company said in a statement.

NIIT vice chairman and managing director Vijay K Thadani, during the company's earnings press conference, said the revenue is in harmony with expectations and is pleased with the recovery in the business despite the challenging environment.

"Revenue is in line with our expectations, coming from a time when we had hit an all-time low with a freeze in technology hiring. The company has done a major pivot of moving its focus from GSIs, and moving from fresher training to working professional training in technology, and simultaneously increase its focus on BFSI. All four large private banks are getting their training needs fulfilled form NIIT..." he said.

The revenue was driven by growth in BFSI, which grew 94 per cent year on year, he said.

"The BFSI part has grown exceedingly well over the last few quarters, and this time it registered 94 per cent y-o-y growth," Thadani said, adding that technology programmes are also showing a positive trend after a break of many quarters.

With green shoots visible in IT hiring, the firm expects its investments to further accelerate growth for the company, he said.

"Now that the hiring is returning in large, tier-1 GSIs, and GCCs are also increasing their spend, I think this is a positive momentum which will help us, and the pivot that we did three quarters ago would sit on top of that and provide us a lot of opportunities for growth," he said.

During the quarter, the company appointed Pankaj Prabhakar Jathar as its new Chief Executive Officer. He replaced Sapnesh Lalla who continues to serve as non-executive director at NIIT Limited and remains CEO of NIIT Learning Systems (NIIT MTS).

Gurgaon-based NIIT offers online and offline training courses.

NIIT shares settled at Rs 124.75 apiece on the BSE on Friday, up 3.06 per cent from the previous close.