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NIIT reports standalone net profit of Rs.13.46 crore in Q4FY16 vs net loss of Rs. 14.77 crore in Q3FY16

The company’s standalone revenue stood at Rs. 105.68 crore, up 16.3% qoq and 24.46% yoy.

May 10, 2016 1:27 IST | India Infoline News Service
NIIT
NIIT, leading IT training company, reported standalone net profit of Rs.13.46 crore for the quarter ended March 31, 2016. However, it had reported standalone net loss of Rs.14.77 crore in the preceding quarter and Rs. 108.58 crore in the corresponding quarter of the previous year. The company’s revenue stood at Rs. 105.68 crore, clocking growth of 16.3% qoq and 24.46% yoy.
It reported standalone operating profit of Rs. 11.02 crore for the quarter as compared to operating loss of Rs. 6.74 crore in the preceding quarter and Rs.9.77 crore in the similar quarter of the previous year. Operating profit margin for the current quarter at 10.43%, for the quarter ended . The company had reported operating loss in the preceding quarter and similar quarter of the previous year.
For the year ended March 31, 2016, the company reported standalone net profit of Rs. 0.11 crore as compared to net loss of Rs. 8.71 crore in the corresponding period of the previous year. It's standalone revenue for the current period stood at Rs. 381.45 crore, registering growth of 9.44% yoy.

NIIT's core operating profit for the current period stood at Rs. 5.83 crore, increasing by 11560% yoy. Operating margin for the current period at 3.46% expanded by 345 bps yoy.


NIIT Q4FY16:- Better than estimates

NIIT reported PAT of Rs. 13.46 crore as against net loss of Rs. 105.32 crore in the corresponding quarter of the previous year, driven by higher other income and exceptional item. The company’s other income at Rs. 11.10 crore, grew by 128.39% qoq and Rs. 12.46% yoy. Meanwhile, the company reported exceptional item of Rs. 2.64 crore for the quarter under review as against Rs. 0.45 crore in the preceding quarter and loss of Rs. 83.59 crore in the corresponding quarter of the previous year.

Bloomberg estimated the company’s consolidated net profit at Rs. 15.50 crore.

The company's EPS for the quarter stood at Rs. 0.81.

Corporate Action: Mr. Sapnesh Lalla, Group President, Corporate Learning of NIIT said, “ During the year, in spite of softness in the oil sector, we focused on growing our existing clients and investing in newer sectors like BFSI and Life Sciences to drive steady consistent growth. Significant process on the productivity program was also achieved, leading to improved EBITDA which was re-invested in building sales capacity and delivery platforms. Our funnel today is healthy. We have also strengthened our learning advisory services capability”.

On the company's performance during the quarter, Mr. Rahul Patwardhan, Chief Executive Officer, NllT limited said, "The business transformation program has delivered to plan and ensured turnaround of our Skills & Careers Group {SNC} business back to growth and profitability. With its keen understanding of the market, NllT has now completely re-aligned SNC business to the critical Digital transformation skills needs of the IT Industry. The Corporate Learning business has delivered rock steady consistent growth and profitability. 11

"Over the year, each quarter we have delivered steadily accelerating top line YoY growth. Further, the revenue from all N/IT Go-Forward businesses, which excludes geographies and businesses that we had defocused and exited, grew by a robust 11% during the year, thus indicating strong demand and an healthy growth momentum for ourfocused strategy",added Mr. Patwardhan.

Stock Commentary:

NIIT Ltd is currently trading at Rs. 85.45, up by 2.65 points or 3.2% from its previous closing of Rs. 82.8 on the BSE.

The scrip opened at Rs. 83.4 and has touched a high and low of Rs. 87.4 and Rs. 83.2 respectively. So far 5173078(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1370.35 crore.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 107.4 on 29-Dec-2015 and a 52 week low of Rs. 36.45 on 03-Jun-2015. Last one week high and low of the scrip stood at Rs. 83.45 and Rs. 78.2 respectively.

The promoters holding in the company stood at 34.12 % while Institutions and Non-Institutions held 23.46 % and 42.42 % respectively.

The stock is currently trading below its 200 DMA.


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