NIIT posts Q1 net loss of Rs 9.4 cr
IT training firm NIIT Ltd Friday posted a consolidated net loss of Rs 9.4 crore for the first quarter ended June 30, 2013.
New Delhi: IT training firm NIIT Ltd Friday posted a consolidated net loss of Rs 9.4 crore for the first quarter ended June 30, 2013.
The Gurgaon-headquartered firm had reported a net profit of Rs 11.5 crore in the year-ago period.
NIIT Ltd, which provides training solutions in IT, BPO, banking, finance, insurance, among others, posted a 2 percent decline in its consolidated net revenue at Rs 222.2 crore in the April-June quarter this fiscal from Rs 227.5 crore in the same quarter of 2012-13 fiscal.
The reason behind the performance was the foreign exchange mark to market impact of Rs 3.4 crore and dividend distribution tax treatment of Rs 2.7 crore.
NIIT Chairman Rajendra S Pawar said: "The environment has been tough, which led us to make changes, that is bearing fruits now. Our GNIIT enrolment has been positive this quarter after seven quarters and non-IT courses are also doing well."
NIIT Cloud Campus is the cornerstone of NIIT's growth strategy, he added.
During the quarter, Corporate Learning Solutions (CLS) posted net revenue of Rs 84.4 crore, up 16 percent compared to the year-ago period. The order intake for CLS grew 26 percent, giving a revenue visibility of USD 144 million.
Besides, three new international clients were added for managed training services during April-June quarter.
During the quarter, GNIIT series enrolments grew 9 percent year-on-year and cumulative Cloud Campus enrolments crossed 33,000.
"With the long term growth story for the IT sector still holding, NIIT is gearing up for developing talent that will be absorbed as this growth takes place," NIIT Ltd CEO Vijay K Thadani said.
On outlook, Pawar said: Despite market uncertainty, the tough period is on its way out and we expect our GNIIT and non-IT programmes to drive growth as we go forward."
As many as 8,028 NIIT students were placed during the quarter, Thadani said, adding that "Q2 looks better. As we go forward our non-IT, GNIIT and private school management training services will drive the growth for us."
NIIT's shares Friday fell by 5.05 percent to settle at Rs 17.85 apiece from its previous close at the BSE.