NIIT Q3 net profit remains flat at Rs 55 cr

NewsDrum Desk
31 Jan 2023

New Delhi, Jan 31 (PTI) Talent development corporation NIIT Ltd on Tuesday posted almost flat consolidated net profit at Rs 55 crore for the third quarter ended December 31, 2022 mainly on account of acquisitions that the company made in the US.

The company had posted a net profit of Rs 54.9 crore in the same period a year ago.

The consolidated revenue from operations of NIIT Ltd grew by 18.2 per cent to Rs 454.6 crore during the reported quarter, from Rs 394.3 crore in the December 2021 quarter.

"In the midst of an uncertain macroeconomic environment, NIIT further strengthened its market position by recording a revenue growth of 16 per cent quarter-over-quarter and 18 per cent YoY," NIIT Ltd, Vice Chairman & Managing Director, Vijay K Thadani said.

He attributed flat net profit during the quarter to acquisitions that the company made in the US.

"During the quarter, we acquired St Charles Consulting Group and we could only get two months of their revenue.

"The acquisition of St Charles Consulting Group is aligned with NIIT's stated strategy to deploy its growth capital for the purpose of expanding its capability set and accessing new market segments," Thadani said.

The company through its US-based subsidiary acquired 100 per cent stake in St Charles on November 4 for about USD 65 million.

The deal comprises fixed consideration of USD 23.43 million subject to certain adjustments as per the agreement and USD 41.66 million based on annual performance over the next four years.

NIIT's Corporate Learning Group (CLG) reported a growth of 22 per cent in net revenue to Rs 363.6 crore on YoY basis and renewed contract with all the existing customers and closed the quarter with 71 MTS customers with a revenue visibility of USD 321 million.

The Skills and Careers Group (SNC) division of the company grew by 4 per cent to Rs 91 crore during the reported quarter.

"As industries are going through multiple transformations and disruptions, skilled talent continues to be a top priority for CEOs. We see significant and robust opportunities for growth in both the CLG and SNC businesses," NIIT, CEO and Executive Director, Sapnesh Lalla said.

He said that the economic uncertainty will remain for next few quarters and the company will leverage its CLG division and expansion of business in new geographies to mitigate the impact. PTI PRS DRR

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