In This Article:
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Revenue: INR907 million, up 10% quarter on quarter and 11% year on year.
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EBITDA: INR21 million, compared to negative INR2 million last quarter and INR22 million last year.
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Net Other Income: INR188 million, predominantly from treasury.
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Profit After Tax (PAT): INR118 million, up 53% quarter on quarter and 11% year on year.
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EPS: INR0.9 per share, compared to INR0.6 in Q1 and INR0.8 last year.
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Revenue from BFSI and Other Programs: Up 17% quarter on quarter and 19% year on year.
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Revenue from Technology Programs: Up 6% quarter on quarter and 7% year on year.
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Days Sales Outstanding: 56 days, compared to 53 days last year and 54 days last quarter.
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CapEx: INR97 million for the quarter.
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Net Cash: INR7,201 million, up from INR7,185 million in Q1 FY24 and INR6,974 million last year.
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Headcount: Reduced by 108 year on year and 17 quarter on quarter, totaling 735 employees.
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Guidance: Full year revenue expected between INR380 crores to INR400 crores with a low single-digit margin.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NIIT Ltd (BOM:500304) reported a 10% quarter-on-quarter and 11% year-on-year increase in revenue for Q2 FY25, indicating a strong recovery trajectory.
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The company has successfully incorporated generative AI into all its offerings, launching new initiatives that have received encouraging responses.
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Profit after tax increased by 53% quarter-on-quarter and 11% year-on-year, showcasing improved profitability.
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NIIT Ltd (BOM:500304) has expanded its reach with new customer additions across product lines and innovative programs.
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The company won a record 18 Brandon Hall Awards, highlighting its excellence and recognition in the learning industry.
Negative Points
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NIIT Ltd (BOM:500304) is still in an investment cycle, which affects overall profitability despite some business segments being profitable.
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The company faces challenges due to the hiring freeze in the IT sector, impacting its new hire training programs.
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There is a dependency on the timing of order execution, which could affect the ability to meet the upper end of revenue guidance.
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Headcount has been reduced due to subdued early career programs, reflecting adjustments to the current market realities.
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The company anticipates low single-digit margins for Q3 due to planned investments, indicating pressure on profitability in the short term.
Q & A Highlights
Q: What are the key drivers for NIIT's revenue outlook of INR380 crores to INR400 crores, and how does seasonality affect the business? A: Vijay Thadani, Executive Vice Chairman and Managing Director, explained that the revenue outlook is driven by a strong pipeline and order book, particularly from GCCs and select GSIs. Seasonality typically affects Q3 negatively due to holiday seasons, but the current recovery phase may offset this, allowing for continued growth.