Financial Results Q1 FY24

August 11, 2023

Environment

The global economy remains in a precarious state amid the protracted effects of the overlapping negative shocks of the pandemic, the continuing war in Europe, and the sharp tightening of monetary policy to contain high inflation. Global growth is projected to slow significantly in the second half of 2023

GDP growth in India expected to

remain robust driven by resilience in private consumption and investment, and growth in the domestic services sector. BFSI & Enterprise India seeing strong growth

GSIs & GCCs already rationalizing spends and holding discretionary investments. This is visible in headcount reduction across sectors, many of which had expected growth to continue post Covid

Net Hiring in IT has turned negative as companies adjust talent inventory for uncertain demand outlook. Large layoffs announced by global tech majors reversing strong hiring during the pandemic. Expectations of recovery in H2 FY24

Banks are expanding Retail Banking operations and Wealth Management practices. High attrition in early careers at Banks

2

Q1 FY24: In Perspective

  • Revenue at INR 625 Mn; down 33% YoY and up 4% QoQ
  • Business volume impacted by temporary freeze in hiring in IT Sector as well as compression in spends, due to increased uncertainty in the environment. Training volume is expected to pick gradually during the year, with growth in second half of FY24
    • Early Career segment at INR 330 Mn (53% of total); down 40% YoY; grows 8% QoQ
    • Work Pro segment at INR 295 Mn (47% of total); down 25% YoY; flat QoQ
  • EBITDA at INR (64) Mn vs INR (95) Mn in Q4FY23 and INR 1 Mn in Q1FY23
  • StackRoute revenue up 5% in Q1 FY24
  • Received significant mandates from top private sector banks, Indian Enterprises and Tech firms to train over 27,000 professionals over the coming 4-6 qtrs for an estimated INR1,057 Mn
  • Received strong traction for Advanced Technology programs including AI, Digital Architects, Cyber Security, Data Science, eR&D among others.
  • NIIT acquired balance 10% stake in RPS Consulting during the quarter
  • Shareholders of NIIT Limited on Record Date (June 8) allotted equivalent shares of NIIT Learning Systems Limited post completion of demerger. NIIT Learning Systems Limited listed separately on BSE & NSE on August 8

Company is bottoming out of the negative growth cycle that started in Q4FY23 and is starting to experience sequential growth and improved profitability; Expect this trend to continue for the rest of the year

3

Key Financials

INR Mn

Q1 FY24

Q4 FY23

QoQ

Q1 FY23

YoY

Net Revenue

625

600

4%

940

-33%

Operating expenses

690

696

-1%

938

-26%

EBITDA*

(64)

(95)

32%

1

-4501%

Depreciation

41

41

-2%

39

4%

Net Other Income/ (Expense)

138

103

33%

(1)

15489%

Operational PBT

33

(34)

197%

(39)

184%

Tax

(7)

(63)

89%

9

-177%

Profit/ (loss) from discontinued

(2)

1

-3 mn

(19)

17 mn

Operations & Assets held for Sale

Non Controlling Interests

(1)

2

-4 mn

(16)

14 mn

PAT

22

(94)

123%

(65)

Net Other Income/ (Expenses) includes Treasury Income and Non-Operating/Transitory Expenses related to the Composite Scheme of Arrangement

4

Key Metrics

BFSI &

Early

Others

Work Pro

23%

Career

47%

53%

Technology

77%

Revenue Mix

29 K

Enrollments in Q1 FY24

Across Early Career &

Working Professionals

>90%

Enterprise Revenue from

Repeat Customers

5

Attachments

Disclaimer

NIIT Limited published this content on 12 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2023 03:00:09 UTC.