NIIT Ltd net profit at Rs 2.2 crore in June qtr

New Delhi: NIIT Limited on Friday reported a net profit of Rs 2.2 crore for the first quarter ended June 30, 2023.

The company had posted a loss of Rs 4.5 crore in the same period a year ago, the company said in a regulatory filing.

The revenue from operations reduced by 33 per cent to Rs 62.5 crore in the June quarter, from around Rs 94 crore in the year-ago period.

"Despite the challenging environment, we have arrested the decline in Q1. We expect to see strong growth in Q2 and the rest of the year, driven by the significant mandates received for training, especially in BFSI and advanced technology programmes," NIIT co-founder Vijay K Thadani said.

The company's robust balance sheet enables it to invest in both organic and inorganic initiatives to take advantage of the opportunities, he added.

The company also announced that during the quarter, NIIT acquired the remaining 10 per cent shareholding in RPS Consulting.

"With this, RPS Consulting now becomes a wholly-owned subsidiary of NIIT," the company said.

"The board approved the results for Q1 which are at a net revenue of Rs 62.5 crore compared to Rs 60 crore last quarter. The business went through a massive dip in Q4 because of the literal freeze in recruitment by the IT and IT-enabled services sector," NIIT Group Chairman and co-founder Rajendra S Pawar said.

Pawar said the company registered a profit after tax at Rs 2.2 crore compared to a loss of Rs 9.4 crore in the previous quarter on the back of the company's swift response to the IT hiring freeze.

"As soon as this news of freeze happened, we spread our outreach efforts to cover tier-two companies who were still hiring and that helped us recover," he said.