NIIT (NIITLTD) Q4 20/21 earnings summary

Executive summary

• FY21 revenue rose 7% to Rs. 9,495 million and EBITDA more than doubled to Rs. 1,753 million, despite COVID-19 disruption and weaker Skills & Careers results.

• Digital delivery, cost controls and working-from-home measures supported continuity and margin recovery; Corporate Learning drove growth while Skills & Careers improved sequentially through the year.

Financial highlights

• Consolidated revenue was Rs. 9,494.94 million, up 7% YoY; operating expenses fell 4% to Rs. 7,742 million.

• EBITDA rose 106% to Rs. 1,753 million; EBITDA margin expanded 888 bps to 18.5%. EBIT was Rs. 1,163 million versus Rs. 254 million.

• Profit after tax attributable to owners was Rs. 1,430 million versus Rs. 13,275 million; FY20 included a one-time divestment gain. Excluding that gain, like-for-like PAT growth was 134% YoY.

• Consolidated basic EPS was Rs. 10.09 versus Rs. 82.87; FY20’s comparison included the divestment gain.

Outlook and guidance

• Corporate Learning sees headroom in a USD 370 billion global L&D market, with training outsourcing penetration below 5%; outsourcing demand is expected to increase as organizations prioritize efficiency and digital transformation.

• Planned investment includes innovation, advisory services, sales and marketing, large annuity contracts, digital learning, deep-skilling products and learner acquisition; inorganic opportunities remain under evaluation.

• Skills & Careers is expected to return to growth and profitability over time as NIIT Digital scales, acquisition metrics improve and demand for digital skills recovers.