NIIT (NIITLTD) Q4 03/04 earnings summary

Executive summary

• 18-month period to Mar 31, 2004 focused on restructuring; reported results are not comparable with the prior 12-month period, and consolidated revenue included 18 months of Learning and 6 months of Global Solutions.

• Global Solutions was demerged into NIIT Technologies Limited; the remaining business combines Global Learning and Knowledge Solutions.

Financial highlights

• Consolidated revenue was Rs 7,076.5m; consolidated profit attributable to equity shareholders was Rs 63.8m and EPS was Rs 2.47 for the 18-month period.

• Standalone revenue from operations was Rs 4,376.3m, profit after tax Rs 457.5m and EPS Rs 17.76; the period included six months of software revenue after the demerger’s appointed date.

• Combined-group systemwide revenue was Rs 14,231m; operating profit was Rs 1,182m and operating margin 10%, versus 7% in the previous financial year.

• Operating cash flow was Rs 1,402.6m consolidated; cash and bank balances ended at Rs 392.1m, excluding Rs 603.1m in short-term debt and money-market funds.

Outlook and guidance

• Priorities include expanding Learning internationally, especially in China, growing corporate training, developing new products and managing costs while maintaining quality and service.

• Institutional order book was Rs 3,280m at Mar 2004, with 50% executable in the 12 months to Mar 31, 2005.

• New industry-endorsed, multiple-track GNIIT was designed to address emerging IT and ITES workforce needs.