Niit Limited · NSE:NIITLTD
Niit — FY2006 Earnings Presentation
14 slides from Niit's earnings presentation, Jun 29, 2006
Slide 1: Financial Results FY 2006
Financial Results FY 2006 June 29, 2006
Slide 2: Agenda
Agenda • Environment • Results Highlights • Consolidated Financials • Business Operations • Headcount • Shareholding pattern 2
Slide 3: Environment that we faced
Environment that we faced • India – IT & ITES Industry recorded YoY growth of 32%; Exports grew 33%; employee base expanded to 1.3 mn people – Training industry growth estimated to be approx 10% – NIIT strengthened its competitive position • China – An IDC study shows that the demand for computer ta
Slide 4: Annual Financial Highlights
Annual Financial Highlights • Improved Profits & Profitability – Operating Profit for the year at Rs 603Mn, up 23% – Operating Margin @13%, improvement of 107 basis points – PBT grows 22% to Rs. 266Mn – Basic EPS at Rs.21.4, up 19% – PAT grows 12% to Rs.401Mn • Acceleration in Revenues – Net Revenue
Slide 5: FY'06 Consolidated Financials
FY’06 Consolidated Financials Growth (Rs in mn) FY’06 FY’05 YoY(%) System Wide Revenue 7,112 6,363 12% Net Revenues 4,507 3,984 13% Operating Expenses 3,904 3,493 12% Operating Profit 603 490 23% OPM 13% 12% 107 bps Depreciation 374 345 8% Other Income 36 72 -50% Profit Before Taxes 266 217 22% Prov
Slide 6: Consolidated Revenue Mix
Consolidated Revenue Mix System wide revenues – Up 12% Corporate Corporate 30% 28% Individual Individual Institutional Institutional 51% 55% 19% 17% FY’05 FY’06 Individual business share increases, Corporate maintains, Institutional share reduces Net Revenues – Up 13% Corporate Individual Individual
Slide 7: Individual Business financials
Individual Business financials (Rs in mn) FY'06 FY'05 Growth YoY% System Wide Revenue 3,912 3,200 22% Net Revenues 1,670 1,322 26% Operating Expenses 1,542 1,325 16% Operating Profit 128 -3 4316% OPM 8% 0% 788 bps ¾India revenues clock a 36% growth – contribute 57% to total Individual biz. SWR ¾Chin
Slide 8: Individual Business Metrics
Individual Business Metrics •Overall Enrolments at 274,873 up 13% YoY Others 7% •Increased contribution from Career segment in India •Revenues up 27% FY'06 •Enrolments up 21% YoY ¾Placements grow 124% YoY Career 93% Others 9% ¾Academic alliance with UK Open University FY'05 ¾ Provincial Govt partner
Slide 9: Institutional Business financials
Institutional Business financials (Rs in mn) FY'06 FY'05 Growth YoY% Net Revenues 1,175 1,192 -1% Operating Expenses 962 936 3% Operating Profit 213 256 -17% OPM 18% 22% (334) bps 1,400 ¾New Contracts from Assam, Himachal P’desh, Chattisgarh & Tripura 1,200 1,000 ¾Order Intake Rs. 1,319 Mn 800 Net R
Slide 10: Institutional Business Metrics
Institutional Business Metrics Rs. mn 2,500 44% executable in next 12 months 2,044 2,105 2,000 1,763 1,689 1,763 1,645 1,502 1,501 1,500 1,000 513 387 356 419 500 94 21 63 31 - AMJ'04 JAS'04 OND'04 JFM'05 AMJ'05 JAS'05 OND'05 JFM'06 Order Intake Pending Order Book New Orders: Assam, Chattisgarh Hima
Slide 11: Corporate Business financials
Corporate Business financials (Rs in mn) FY'06 FY'05 Growth YoY% Net Revenues 1,662 1,470 13% Operating Expenses 1,400 1,233 14% Operating Profit 262 237 10% OPM 16% 16% (38) bps 2,000 ¾New wins in Indian Govt ¾New Contracts – Multi year hosted e-learning 1,600 solutions 1,200 ¾Technology vertical –
Slide 12: Corporate Business Metrics
Corporate Business Metrics US$ Mn 66% executable in next 12 months 35 29.2 30 25 22.2 22.3 22.6 22.6 20.7 19.1 19.4 20 14.3 15 10.4 11.3 9.3 9.0 9.7 10.4 10 8.9 5 - AMJ'04 JAS'04 OND'04 JFM'05 AMJ'05 JAS'05 OND'05 JFM'06 Order Intake Pending Order Book Order intake of $ 45.7 mn Pending order book at
Slide 13: Head Count
Head Count 2259 2103 1964 1995 295 1838 311 1663 1729 1755 300 310 286 482 258 266 435 250 418 417 404 419 401 406 1,482 1,246 1,268 1,357 1,070 1,085 1,133 1,007 AMJ'04 JAS'04 OND'04 JFM'05 AMJ'05 JAS'05 OND'05 JFM'06 Direct Indirect S&M
Slide 14: Shareholding Pattern
Shareholding Pattern 20% 22% 17% 24% 30% 27% 29% 29% 9% 8% 20% 10% 10% 8% 7% 11% 34% 33% 22% 22% 33% 26% 18% 30% 37% 37% 37% 40% 40% 40% 33% 34% AMJ'04 JAS'04 OND'04 JFM'05 AMJ'05 JAS'05 OND'05 JFM'06 Promoters FIIs Financial Institutions & Mutual Funds Individuals & Corporates 19.3 Million Equity S