NIIT Ltd. share price target

Over the past decade NIIT Ltd. (NIIT) has established itself as a reliable and trusted partner for the training services needs of global corporations. These training services are provided under the Corporate Learning Segment (CLS) vertical and contribute ~88% to the overall revenues of NIIT.

NIIT Ltd 2QFY19 revenue were above our estimates at Rs.22.9bn v/s our estimate of Rs.22.3bn. Margins at 9.58% were about 15bps above our estimates. The beat was on the back of higher than expected growth in SNC...

declined by 3.8% QoQ. EBIDTA margin at 8.9% were too below our estimates by about 50bps due to lower than expected margins in SNC (-1.6%) and school business (-23%). Corporate Learning Group (CLG). CLG (65% of revenue) has been leading the performance and is expected to continue the momentum...

NIIT Ltd declared results below our expectations with revenue growth of 6% yoy and core operational PAT of Rs38mn (we expected 8.3% yoy growth and, core PAT of Rs85mn). Traction in Corporate Learning continued with 28% yoy growth - backed organic growth of ~12% yoy and inorganic addition of ~Rs176mn from the integration of Eagle Productivity business it acquired in the quarter. We expect momentum in this segment...

growth in Constant Currency terms and OPM improvement of 96bps for the quarter. The company added new deal TCV of about US$130mn (V/S US$122mn in Q2FY18) for the quarter driven by three large deals in the quarter (one renewal deal). Management is...

NIIT Ltd 2QFY18 results came below our expectation largely due to sharp de growth in SLG and S&C; segment of 49% and 21% YoY respectively. CLG reported growth of 10% YoY (14% YoY in CC Terms) in line with our expectation. SLG segment degrew mainly on account of planned ramp down of government business and lower than expected revenue from IP led business which contributes 73% of SLG revenue. S&C; de growth was predominantly due to changes in spending pattern of Indian banking sector, though management remains confident of pikup in revenue from 3Q onwards. EBITDA margins too were below...

NIIT Ltd., one of the leaders in the global corporate training business declared Q4FY17 results. The topline growth and margin performance was lower than our expectations as ramp...

NIIT Ltd, one of the leaders in the global corporate training business declared Q3FY17 results.

BUY NIIT Ltd at Rs. 73 and on dips to Rs. 73 - 63 for the Target of Rs. 105

The launch of the comprehensive business programme will enable the operating margins in the coming period.

We believe NIIT is sweetly positioned to garner advantage of growth in learning and skill development business.New management and business restructuring will help the company to grow much faster.

EBITDA margins to increase due to growing international business and reducing dependence on government engagements: Revenues from NIIT's Government business has declined 48% and Government business now contributes only 3% of the overall revenue mix. We believe the company will be able to post revenue growth of 14% CAGR over FY15-17E and the EBITDA margins to increase by 110 bps on change in revenue mix on account of increasing share of international business and decreasing focus on government business.

lower than expectation. Management alluded to (1) higher digital revenues and un signedcontractsnotreflectedintheorderbook,(2)noincrementalbusinessfromthe government,and(3)unabletowinonemajordealin2Q....

Background: NIIT Technologies has got a strong prowess in application development & maintenance, system integration and enterprise solutions including managed services and BPO. As on September 2012, NIIT Technologies headcount stood at 7,617 people catering to clients across insurance, financial services, travel, transportation & logistics, manufacturing, retail and healthcare. Its marquee client list includes British Airways,...