NIIT (NIITLTD) Q4 99/00 earnings summary

Executive summary

• Global turnover reached Rs 12,371 million in FY1999-2000, up 41% YoY; international revenue grew 47% and contributed 54% of the total.

• Net profit after tax for the consolidated group was Rs 2,470 million, up 65%; standalone EPS rose 57% to Rs 57.99.

• Growth was supported by a near-even revenue mix between Software Solutions and Learning Solutions, alongside expanding Internet-based offerings and Knowledge Solutions.

Financial highlights

• Consolidated revenue was Rs 12,371 million versus Rs 8,800 million, up 41%; operating margin rose 43% to Rs 2,953 million.

• Consolidated profit before tax increased 68% to Rs 2,705 million; profit after tax rose 65% to Rs 2,470 million.

• Standalone revenue from operations was Rs 7,499 million, up 29%; profit after tax was Rs 2,241 million versus Rs 1,428 million, up 57%.

• Standalone operating expenses grew 26%, below sales growth; personnel expense rose 24% to Rs 951 million as headcount increased to 4,603.

Outlook and guidance

• Aspiration: grow from Rs 10 billion to Rs 100 billion in revenue and surpass the target early in the second half of the decade, while improving profitability.

• New initiatives are targeted to contribute over 30% of annual business; alliances and acquisitions are intended to generate over 15% within two years.

• Europe and US revenue share is targeted to rise from 39% to over 60% within four years; focus also includes wireless, Knowledge Management and Cognitive Systems.

• Learning plans include global sales expansion, stronger brands, online delivery and growth in K-12; Knowledge Solutions will target finance, insurance and telecom verticals.