NIIT Limited announces Q3 FY22 results and initiates reorganization of CLG Business as a separately listed company
New Delhi : NIIT Limited (NSE: NIITLTD), a leading global talent development corporation, today reported its results for the third quarter ending December 31, 2021. During the quarter, the company recorded Net Revenue of Rs. 383.6 Cr, up 51% YoY. EBITDA was Rs. 82.7 Cr, up 75% YoY and the EBITDA margin stood at 21.6%, up 295 bps YoY. Profit After Tax was recorded at Rs. 55 Cr, up 32% YoY.
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The results were taken on record at the meeting of the Board of Directors held today. The Board also approved an interim dividend of Rs. 3 per share.
Further the Board of Directors approved the Composite Scheme of Arrangement which would result in CLG Business and SNC Business to be reorganized as separate publicly listed companies. The proposed scheme is subject to necessary statutory and regulatory approvals including the approval of the NCLT, SEBI, Stock Exchanges, shareholders and creditors.
Commenting on the proposed reorganisation, Vijay K Thadani, Vice Chairman & Managing Director, NIIT Limited said,“With talent emerging as the top priority for every organisation globally, NIIT with its strong balance sheet and market-leading offerings, is uniquely positioned to take advantage of the current environment. Creating two independently run businesses with significant growth capital will propel both CLG and SNC to realize their true potential and create value for all stakeholders”.
Corporate Learning Group (CLG) recorded net revenue of Rs. 296.1 Cr, up 36% YoY and 9% QoQ. CLG added 4 new MTS contracts during the quarter – one in aerospace sector, one in Information technology consulting space, one in business intelligence space and one in the BFSI sector. Further, CLG did 3 contract expansions and 3 contract renewals during the quarter. The number of MTS customers stands at 65 and revenue visibility for CLG, at the end of the quarter was at $326 million up from $294 million last quarter.
Skills & Careers Group (SNC) recorded net revenue of Rs. 87.4 Cr during Q3, up 144% YoY and 108% QoQ. The India business is starting to see recovery driven by StackRoute and TPaaS (Talent Pipeline as a Service) which grew 20% QoQ. SNC has transitioned its customers to the NIIT Digital platform. NIIT completed the acquisition of RPS Consulting on October 1, 2021 and integrated its financials in SNC performance.
Commenting on the strong quarter performance, Sapnesh Lalla, CEO and Executive Director, NIIT Ltd. said, “Both the Corporate Learning Group (CLG) and the Skills and Careers Group (SNC) have witnessed robust growth and acceleration in customer addition during Q3. The integration of RPS Consulting into the NIIT family is proceeding as per plan and creating opportunities for expanding share of wallet with our customers”.