NIIT's Q4 PAT below Rs1cr, down 97% yoy

NIIT's Q4 PAT was squashed to merely Rs0.6cr compared to a profit of Rs23.2cr of Q4FY19.

Jun 04, 2020 04:06 IST India Infoline News Service

The IT training service provider NIIT Limited, on Thursday, registered a 97% decline in its consolidated net profit during the March 2020 (Q4FY20) result. NIIT's Q4 PAT was squashed to merely Rs0.6cr compared to a profit of Rs23.2cr in the corresponding period of the previous year. On the contrary, revenue declined by 4% to Rs211.2cr in the quarter against Rs219.2cr of Q4FY19.

Vijay K Thadani, Vice Chairman & Managing Director, NIIT Limited said: “Agile response and decisive strategic actions, resulted in containment of adverse effect and yet enabled the organisation to leverage the massive digital learning opportunity, through NIIT Digital.”

Other key highlights from the result were:
  • FY20 PAT recorded at Rs1327.5cr including gains on the divestment of stake in NIIT Tech.
  • FY20 Revenue at Rs889.2cr, up 3% yoy with EBITDA margin at 10%.
  • Corporate Learning Group (CLG) grows 10% YoY during Q4.
  • Adds 14 MTS (Managed Training Services) customers in FY20, taking the revenue to $263M.
  • Accelerates transformation for the next stage of growth through ‘NIIT Digital”.
In its meeting held on Thursday, the company's board recommended a final dividend of Rs2 per share (100% of the face value of Rs2 per share). This follows an interim Dividend of Rs8 per share declared in February 2020.

As of March 2020, NIIT has a cash balance of Rs1208.8cr indicating a strong liquidity position.

After the result announcement, NIIT stock price plunged by over 4% ending at Rs88.30 per piece on Sensex.

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