Niit Limited · NSE:NIITLTD
Niit — Q1 FY18 Earnings Presentation
13 slides from Niit's earnings presentation, Jul 28, 2017
Slide 1: Financial Results Q1 FY18
FINANCIAL RESULTS Q1 FY18 July 28, 2017
Slide 2: Environment
Environment • Global GDP growth expected to improve to 3.5% in 2017 vs 3.1% in 2016. However risks remain due to monetary policy normalization, geopolitical uncertainty and increased protectionism (IMF) • Uncertain macro environment and volatile forex rates & commodity prices continue to impact pace
Slide 3: NIIT Growth Platforms
NIIT Growth Platforms Corporate Skills & Careers Schools MTS Digital Transformation nGuru (DT) 36 global MTS 3 DT courses. 157 School contracts vs customers vs 34 in Q4 cumulative 3,681 139 in Q1 FY17 FY17 enrolments; 57% Focussed IP led private Revenue visibility at growth in enrolments s
Slide 4: Transitioned to Ind AS
Transitioned to Ind AS CONCEPTS:- • Retrospective application of all the standards unless exempted • Concept of Substance over Legal form of the arrangement • Certain optional exemptions are available for the ease of transition to Ind-AS. Under this Fair Valuation of Land and Investments in Subsidia
Slide 5: Q1 FY18: In Perspective
Q1 FY18: In Perspective Corporate Learning Group (CLG): Continued Strong performance • Revenue at INR 1,175 Mn up 7% YoY; Constant currency Revenue up 14% YoY • EBITDA margin at 15% • Added 2 MTS customers; 36 MTS customers now contribute 94% to CLG revenue • Order Intake of $ 20.6 Mn (up 23% YoY);
Slide 6: Key Financials
Key Financials INR Mn Q1 FY18 Q1 FY17 YoY Q4 FY17 QoQ System wide Revenue 3,587 3,405 5% 4,011 -11% Net Revenue 2,099 2,100 0% 2,113 -1% Operating expenses 1,936 1,916 1% 1,945 0% EBITDA 163 184 -11% 168 -3% EBITDA% 8% 9% -100 bps 8% -19 bps Depreciation 102 119 -14% 109 -6% Net Other Income -44 -93
Slide 7: Business Mix
Business Mix Q1 FY18 System-wide Revenue Q1 FY17 Schools Online Schools Online 7% 0% Growth 8% 0% Skills & Skills & Corporate 11% Careers Careers 24% Skills & Careers -5% 26% Corporate Schools -12% Corporate 69% 66% Online 0% NIIT 5% Q1 FY18 Net Revenue Q1 FY17 Online Schools Schools 1% Growth 13% 1
Slide 8: Corporate Learning Group
Corporate Learning Group INR Mn Q1 FY18 Q1 FY17 YoY Q4 FY17 QoQ System wide Revenues 2,490 2,247 11% 2,745 -9% Net Revenues 1,175 1,095 7% 1,134 4% EBITDA 172 161 6% 153 12% EBITDA % 15% 15% -13 bps 14% 106 bps • Revenue at INR 1,175 Mn up 7% YoY; Constant currency Revenue growth at 14% YoY • Signed
Slide 9: Skills & Careers Group
Skills & Careers Group INR Mn Q1 FY18 Q1 FY17 YoY Q4 FY17 QoQ System wide Revenues 854 895 -5% 1,004 -15% Net Revenues 681 741 -8% 717 -5% EBITDA 3 11 -8 mn 16 -12 mn EBITDA % 1% 2% -101 bps 2% -167 bps • Revenue at INR 681 Mn down 8% YoY; Constant currency Revenue from focused Biz up 1% • Beyond-IT
Slide 10: School Learning Group
School Learning Group INR Mn Q1 FY18 Q1 FY17 YoY Q4 FY17 QoQ Net Revenues 232 263 -12% 258 -10% EBITDA 18 21 -15% 28 -37% EBITDA % 8% 8% -26 bps 11% -324 bps • Revenue at INR 232 Mn down 12% YoY • Overall revenue impacted due to planned ramp down of government school projects • Revenue from Focussed
Slide 11: People
People 2,533 2,466 2,443 2,342 2,262 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Headcount down 80 QoQ and down 204 YoY * excludes project retainers 11
Slide 12: Share Holding Pattern
Share Holding Pattern 43% 40% 40% 43% 39% 14% 13% 10% 10% 12% 10% 12% 13% 13% 17% 34% 34% 34% 34% 34% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Promoters FIIs & FPIs FIs and Mutual Funds Individuals and Corporates Percentages may not add to 100% due to rounding 12
Slide 13: Niir doN\xt — training: e090 ~
Niir doN\xt — training: e090 ~ ___NIIT STA ngurues—siéS>: meee ROUTE