NIIT (NIITLTD) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached INR 825 million, up 32% year-on-year and 11% quarter-on-quarter, driven by BFSI, technology, and enterprise segments.

• PAT rose to INR 78 million from INR 22 million year-on-year, with EPS increasing to 0.6 from 0.2.

• New CEO Pankaj Jathar joined on July 1, 2024, bringing experience in enterprise and consumer go-to-market strategies.

• Hosted annual customer conference “Confluence” and initiated CEO roundtables to boost visibility and market access.

• Completion of demerger of CLG Business Undertaking into NIIT Learning Systems Limited, with related expenses recognized.

Financial highlights

• Q1 revenue was INR 825 million, up 32% year-on-year and 11% quarter-on-quarter.

• EBITDA was near breakeven at -INR 2 million, a significant improvement from -INR 64 million last year.

• PAT rose to INR 78 million, and EPS increased to 0.6, up 256% year-on-year.

• Net other income was INR 155 million, mainly from treasury income and interest on tax refund.

• Net cash at quarter-end was INR 7,185 million, unchanged from the previous quarter.

Outlook and guidance

• Sequential revenue growth of about 10% expected in Q2.

• Full-year revenue guidance remains at INR 380-400 crores with a low single-digit margin.

• Operating expenses are expected to exceed revenues by 200-300 basis points in the near term due to ongoing investments.

• Anticipates positive full-year margins as IT hiring accelerates in the second half.

• Indian economy projected to grow 6.5%-7% in FY25, supporting demand in private consumption and services.