IT training company NIIT Ltd has posted a 1 per cent rise in consolidated net profit, at Rs 13.1 crore, for the first quarter ended June 2011. The growth in net profit was dented by higher depreciation as well as “investments made in delivery-readiness across platforms”.
The net revenue was up 16 per cent at Rs 321.2 crore in the first quarter — a period that NIIT said was marked by implementation of new strategies for future growth, including Cloud Campus. But for the adverse impact of exchange rates, the revenue growth could have been higher by 100-150 basis points, the company said.
The EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) rose 7 per cent to Rs 30.7 crore, compared to Rs 28.7 crore in the same period previous fiscal.
“We had earlier said that our Q1 will be subdued…The second quarter will have a smaller impact, not as much. Over the year, we will see growth in profit,” Mr Vijay K. Thadani, CEO, NIIT Ltd, said at a conference.
Hiring on an uptrend
NIIT does not give annual or quarterly guidance. It, however, said that IT industry hiring is showing a positive trend, with companies demonstrating a strong appetite for recruitment. “The placements are up 28 per cent year-on-year, and we should take advantage of that,” Mr Thadani said.
The banking sector, too, is showing a positive hiring momentum and this will contribute to demand during this fiscal, he said. NIIT, in alliance with ICICI Bank, offers programs in banking, financial services and insurance.
Individual Learning Solutions (IT) recorded net revenue of Rs 118 crore, up 16 per cent year-on-year.
This was supported by an 11 per cent increase in global enrolments, with career enrolments growing at 16 per cent. Corporate Learning Solutions recorded a net revenue of Rs 163 crore, up 18 per cent year-on-year.
“In corporate learning solution, the idea is to stabilise the execution of $110 million of managed training services contracts that we had signed at the end of last year.
The growth will come from stabilising that execution,” he said.