NIIT suffers Q4 loss of Rs151 crore
IT training firm NIIT Limited on Wednesday reported a net loss of Rs 151.2 crore for the fourth quarter ending March 31, 2015, on account of restructuring of its business. The city-based firm had initiated a business transformation <g data-gr-id="27">programme</g> in the second quarter of 2014-15 to streamline the group operations.
“The company conducted a reassessment of the existing business, <g data-gr-id="33">products</g> and geographies with a view to exit less attractive business and focus on asset-light, growth-oriented businesses,” NIIT Vice Chairman and Managing Director Vijay Thadani told reporters. This resulted in a one-time net provision amounting to Rs 136.3 crore to be taken in the fourth quarter financials, he added. On a continuing basis (without the impact of the restructuring), the company reported a net loss of Rs 14.9 crore compared to a net profit of Rs 14 crore in the January-March 2014 quarter.
Its revenue declined to Rs 223.5 crore in the reported quarter as compared to Rs 232.9 crore in the year-ago period. On a continuing basis, NIIT reported a net loss of Rs 2.2 crore for the financial year ending March 31, 2015 against <g data-gr-id="37">profit</g> of Rs 17.8 crore in 2013-14. Its revenues increased to Rs 957.4 crore in 2014-15 from Rs 951 crore in 2013-14. Rahul Keshav Patwardhan, who was appointed as the CEO Designate for NIIT in October 2014, will take charge as the CEO of the company on May 28. “It is exciting to lead NIIT in its next phase of growth. Global Corporate Training Outsourcing is growing steadily; the multi-sector Indian market for quality Career Skills Training has huge potential; while technology and policy shifts are creating space for disruptive new training business models,” NIIT CEO Designate Rahul Patwardhan said.
“Intense hard work has gone into executing the restructuring phase during the last quarter to get NIIT ‘Fit for Growth’, he added. “Going forward, the focus will simultaneously be on Driving Growth and enabling the Technology Transformation that will take NIIT to its next frontier,” he said.
Corporate Learning Group (CLG) recorded net revenues of Rs 115.7 crore, up eight per cent year-on-year during the fourth quarter of 2014-15. Overall revenue visibility was at $179 million with an order intake of $20 million in the fourth quarter. The Managed Training Services (MTS) portfolio continued to gain traction, contributing 88 per cent to overall CLG revenue in the fourth quarter, Thadani said.