In this blog, we will share our spotlight on NIIT Ltd.
NIIT Ltd. – Highlights
NIIT Ltd. was trading at Rs.253.20, up by 14.4% on the BSE.
The stock hit a fresh 52-week high of Rs.259.40 in today’s trading session.
The stock rose after the company reported a 30.47 % year-on-year increase in consolidated net revenues for the Mar-21 quarter, which totaled Rs.275.51cr. On a QoQ basis, net sales revenues were up 8.75% compared to total revenues in the Dec-20 quarter at Rs.253.35cr.
Due to pandemic pressures and the closure of training centers, full-year revenues for FY21 were 6.9 % higher year on year at Rs.950cr.
The company had also taken an exceptional loss of Rs.9.3cr in the previous Mar-20 quarter due to the disposal of its Mindchamp subsidiary, which was used to offset the cost of restructuring the subsidiary vertical.
Net profits in the Mar-21 quarter was up multi-fold at Rs.46.52cr, compared to Rs.0.59cr in the Mar-20 quarter. The sharp increase in profit was due to higher sales better absorbing the company’s fixed costs as well as exceptional losses in the Mar-20 quarter.
The net margins for the Mar-21 quarter were 16.89 %, which was significantly higher than the 0.28 % in the Mar-20 quarter. On a QoQ basis, net margins were around 51 basis points higher than in the Dec-20 quarter.
NIIT announced the merger of its wholly owned subsidiary NIIT USA and Eagle International Institute, which is a wholly owned subsidiary of NIIT USA. The Company’s Board of Directors approved the proposed merger as a shareholder of NIIT USA at its meeting on June 4, 2021.
At its meeting on June 04, 2021, the Board of Directors of NIIT Ltd recommended a final dividend of Rs.2.50 per equity share of the Company’s face value of Rs.2 per equity share for the fiscal year 2020-21.
NIIT is a provider of global information technology (IT) learning solutions. The company was incorporated in 1981; currently the company offers learning solutions to individuals, enterprises and institutions across 40 countries. NIIT offers training solutions in area of IT, business process outsourcing (BPO), banking, finance and insurance, executive management education, and communication and professional life skills.
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Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purpose. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.