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School projects, JV trigger NIIT net to dip by 60 percent
By siliconindia
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Wednesday, 21 January 2009, 21:31 IST
Bangalore: Owing to new business launch and new projects, NIIT reported a year-on-year 60 percent drop in its net profits for the third quarter FY09, which stood at 
5.5 crore. "The launch of NIIT Uniqua, the joint venture (JV) between NIIT and Genpact and increased depreciation due to new school projects impacted the profit for the quarter," said Vijay Thadani, CEO, NIIT.
The company has expanded its presence to over 7,800 schools, an increase of 3,000 schools compared to the same quarter last year. The net profit in the same quarter in FY08 for the company was 13.9 crore.
The profit after tax (PAT) was also hit as an associate firm of NIIT where it hold 25 percent of stake, NIIT technologies had reported a forex loss. Despite the dip in profits, the net revenue rose 17 percent to 278.9 crore for the quarter, against 238.8 crore a year ago, on higher volumes and growth across segments such as Individual Learning Solutions (ILS), School Learning Solutions (SLS) and Corporate Solutions (CS). While ILS recorded 20 percent growth in net revenue YoY and 23 percent growth in enrolments, the SLS recorded a growth of 74 percent in net revenue and CS witnessed a growth of seven percent in net revenue.
5.5 crore. "The launch of NIIT Uniqua, the joint venture (JV) between NIIT and Genpact and increased depreciation due to new school projects impacted the profit for the quarter," said Vijay Thadani, CEO, NIIT.
The company has expanded its presence to over 7,800 schools, an increase of 3,000 schools compared to the same quarter last year. The net profit in the same quarter in FY08 for the company was 13.9 crore.
The profit after tax (PAT) was also hit as an associate firm of NIIT where it hold 25 percent of stake, NIIT technologies had reported a forex loss. Despite the dip in profits, the net revenue rose 17 percent to 278.9 crore for the quarter, against 238.8 crore a year ago, on higher volumes and growth across segments such as Individual Learning Solutions (ILS), School Learning Solutions (SLS) and Corporate Solutions (CS). While ILS recorded 20 percent growth in net revenue YoY and 23 percent growth in enrolments, the SLS recorded a growth of 74 percent in net revenue and CS witnessed a growth of seven percent in net revenue.