NIIT Q2 Review - Guidance Upgrade Suggests Further Acceleration: Dolat Capital
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
NIIT Ltd. reported strong results with 4.4% QoQ growth in revenue (our estimate: 0.5%) led by continued traction in corporate learning solutions business and sharp revival in skills and careers business.
Profitability performance was also commendable as Ebit margin stood at 19.1% (our estimate: 16.9%) led by sustained Ebitda margin in CLS business at 28.9% and improved Ebitda margin in SNC business at down 11.2% versus down 13.5% in Q1.
School business (discontinued operations) reported a profit of Rs 1 million.
Outlook for CLS business has been raised for revenues- expects to grow revenues in 30% range (earlier 20%-25% range) in FY22 with an Ebitda margin of mid-twenties (earlier guidance was 21.5% plus).
NIIT has displayed spectacular digital transformation by moving its delivery to digital mode that ensured revenue stability and helped it take a structural leap on operating profit margin.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.