NIIT (NIITLTD) Q4 00/01 earnings summary

Executive summary

• FY ended Sep. 30, 2001 global revenue fell 8% to Rs 11,389 Mn, the first decline since inception; lower demand in the global slowdown and reduced low-margin software distribution contributed.

• NIIT Ltd profit after tax fell to Rs 960 Mn from Rs 2,241 Mn; operating margin declined to 16% from 35%.

• International revenue was 53% of global revenue; Learning contributed 45% and Software 55%.

Financial highlights

• NIIT Ltd revenue from operations was Rs 6,875 Mn, down 8%; other income rose 22% to Rs 233 Mn.

• NIIT Ltd operating profit was Rs 1,103 Mn and operating margin 16%; profit before tax was Rs 1,051 Mn and profit after tax Rs 960 Mn.

• Consolidated global revenue was Rs 11,389 Mn vs Rs 12,371 Mn; consolidated operating profit Rs 1,152 Mn, PAT Rs 710 Mn, and EPS Rs 24.83.

• Personnel expense rose 24.88% to Rs 1,188 Mn; development, production and execution expense rose 21.84% to Rs 3,033 Mn.

Outlook and guidance

• Global slowdown and the September 11 events further challenged the business environment; leadership anticipated stronger IT demand as recovery took hold.

• Software priorities: Finance & Insurance and Legacy Maintenance & Modernisation; Learning ambition: become a world leader during the decade.

• Software fresh order intake was Rs 4,921 Mn for the year; pending order book stood at Rs 2,771 Mn.