According to investindia.gov, India’s education sector is one of the largest globally, comprising approximately 1.49 million schools, 9.5 million teachers, and nearly 265 million students. With a market value projected to grow from $117 billion in 2020 to $313 billion by 2030, it is poised for significant expansion driven by demographic advantages and government initiatives like the National Education Policy 2020.
With a market capitalization of Rs 6,114.51 crore, the shares of NIIT Learning Systems Ltd were trading at Rs 449.65 per share, decreasing around 1.11 percent as compared to the previous closing of Rs 454.70 apiece.
Matter Explanation
As of December 2024, a domestic institutional investor, Sbi Innovative Opportunities Fund bought fresh 4,344,176 equity shares representing 3.2 percent of the company. Moreover, ace investor Ashish Kacholia holds 27,50,000 equity shares which is equivalent to 2.02 percent of the company.
Financial Performance
Analyzing a company’s financial performance, revenue decreased by 27 percent from Rs 16,545 crore in Q2FY24 to Rs 12,087 crore in Q2FY25, during the same time frame, the company’s net profit decreased significantly by 47 percent from Rs 1,191 crore to Rs 629 crore.
The company reported an EBITDA of ₹936 million, reflecting a 3% YoY increase, with an EBITDA margin of 24%, down 27 basis points. Full-year growth is now expected at 7%+ in constant currency terms, revised from the initial guidance of 12-14%.
Market Dynamic
Economic indicators show positivity, but weak customer sentiment and reduced spending by consulting firms and North American real estate businesses impacted revenue. Despite this, the company added two major clients—a top five FMCG leader and a top ten energy company—in Q2 and achieved a 100% customer renewal rate.
Operational Insights
Operational visibility rose to USD 368 million, with MTS customers increasing to 91. DSO improved to 50 days, cash balance stood at ₹7,370 million, and free cash flow reached ₹3,078 million over 12 months. Employee count declined to 2,323, reflecting efficiency efforts, down 35 QoQ and 145 YoY.
Also read….
Strategic Initiatives
The company focuses on investing in generative AI to enhance productivity and learning, while actively pursuing acquisitions over the next 3-4 years. Positioned to capitalize on rising outsourcing trends, it aims to support clients seeking cost efficiency and flexible cost structures through innovative and scalable solutions.
Margin Guidance
Margins are expected to stay at the higher end of the 22%-24% guidance for the year, supported by efficiency improvements and technology investments, despite headcount growth. Management remains confident in sustaining these levels as operations expand and growth resumes.
Company Profile
NIIT Learning Systems Limited provides Managed Training Services to clients in 30 countries. The NLSL provides a comprehensive portfolio of Managed Training Services, including Custom Content and Curriculum Design, Learning Delivery, Learning Administration, Strategic Sourcing, Learning Technology, and L&D consultancy.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
