NIIT net profit at Rs 50 lakh in October-December quarter

IT training firm NIIT Ltd today posted a net profit of Rs 50 lakh for the third quarter ended December 31, 2012.

In the corresponding quarter last year, it had reported net loss of Rs 16.9 crore on a continuing business basis, which excludes financials of its earlier unit Element K.

 In October 2011, the company had sold its US-based subsidiary, Element K Corporation, to SkillSoft Corporation for USD 110 million in an all-cash deal.

The company's revenues in the October-December quarter stood at Rs 232.7 crore. The company said revenues in the same quarter a year ago were Rs 239 crore on a continuing business basis.

"This is traditionally a weak quarter for us as schools and corporates have holidays and colleges have their mid-term exams," NIIT chief executive officer, Vijay K Thadani, told reporters here.

During the quarter, Career Building Solutions (CBS) recorded net revenues of Rs 103.4 crore.

"There was a dip in hiring by the IT companies, which also affected the sentiments. Going ahead, as the economy picks up and IT industry sees more demand, hiring should also go up," Rajendra S Pawar, chairman of NIIT, said.

Despite a challenging quarter, NIIT graduates' acceptance by the industry continued to be favourable with 8,879 students getting placed during Q3, he added.

Mr Pawar said that besides IT training, NIIT is focusing on offering courses in banking and other sectors to diversify its interest and has added new courses in applied finance management and digital marketing.

Corporate Learning Solutions (CLS) recorded net revenues of Rs 79.2 crore, up 14 per cent year-on-year on a continuing business basis, led by six Managed Training Services (MTS) orders.

"MTS continued to gain acceptance during the quarter by growing at 18 per cent. It now contributes 70 per cent top our CLS business which now has a revenue visibility of USD 134 million (about Rs 723 crore)," Mr Thadani added.

School Learning Solutions (SLS) posted net revenue of Rs 49.8 crore during the quarter, up 35 per cent year-on-year.

On growth opportunities, Mr Pawar said: "A growth of 33 per cent in fresh career enrolments for banking programs reflects the opportunities in the Banking, Financial Services and Insurance (BFSI) segment."

During the quarter, NIIT also strengthened its IT Training offerings by signing an agreement with software sector body Nasscom to offer industry-aligned training to over one lakh students in the next three years, he added.