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NIIT: Software services shine…

Oct 27, 2003

NIIT, India’s largest IT education and training company, has reported a 4.5% and 348% rise in its topline and profits, respectively, for 4QFY04. For FY04 (NIIT is a September ending company), while the rise in revenues has been almost similar to 4QFY04, profits have risen by 98%. The substantial gains in profitability were a result of improvement in operating margins as well as tax benefits (deferred tax assets).

NIIT: Uncertainty looms large

Jul 30, 2003

NIIT, India’s largest IT training and education company has reported poor YoY performance for 3QFY04 (ending June, 2003). While the topline growth has been a dull 4%, bottomline has taken a big hit of 79% YoY. For 9MFY04, also, the performance has been dismal. While the topline has grown a meagre 2%, bottomline has shown a substantial growth of 58%, mainly contributed by substantial tax benefits. But for the tax benefits the bottomline growth would have been marginal.

NIIT: Improvement continues

Jul 30, 2002

Though NIIT’s numbers look disappointing at first glance, a deeper analysis reveals that the company’s prospects are improving. The company has posted a 20% decline revenues for 1QFY03 and the drop in net profits has been steeper at 56%.

NIIT: Turning around?

Jun 1, 2002

The NIIT’s 2QFY03 results were below expectations as the topline and bottomline fell sharply. The street’s disappointment was evident from selling seen in the stock subsequent to the results. Though at first glance the numbers look disappointing, a deeper look reveals what could be initial signs of a turnaround.

Software Education: Dancing in the dark?

Jun 1, 2002

The smooth sailing for software companies ended just about a year ago. With the US economy slowing down, corporates cut IT spends. This in turn led to decline in the demand for software professionals and as a cascading effect software was no longer a coveted career option. Therefore, the business prospects of software education companies were adversely impacted.

Rolta: Steady growth

May 15, 2002

Rolta has posted a 2% growth in revenues for 1QFY03, on a YoY basis. Inspite of operating margins improving significantly, the bottomline has also grown by 2%. The rise in operating margins did not result in bottomline growth due to increased depreciation costs and taxation.

SSI: Competition takes toll

May 8, 2002

SSI’s results for 3QFY02 did not spring any surprises. The company’s revenues dropped to almost half of what they were in the corresponding quarter of the previous year. A steep fall in operating margins caused the bottomline to slide by a significant 77%. This drop would have been higher but for a significant other income component.

NIIT: Same Story

Apr 29, 2002

NIIT has once again reported a 96% decline (YoY) in net profits for 2QFY03. This is including an extra-ordinary expense of Rs 14 m. Excluding the extra-ordinary item, net profits have declined by 92%. The numbers are way below market expectations (85% decline in net profit).

Aptech: Hard hit

Mar 13, 2002

Erstwhile Aptech Limited that had two revenues streams, training & education and software services, has been de-merged into two separate entities from April 1, 2001. The approval from the High Court came in December 2001. Therefore, financials for the newly formed entities are available only for 4QFY02 and FY02. According to the terms of the demerger, the training and education business has been hived off into a separate entity known as Aptech Training Limited (ATL).

SSI: Slow going continues

Feb 25, 2002

SSI, for 2QFY02, posted a sharp 43% fall in revenues. The drop in net profits has been even steeper at 93%, after accounting for an extraordinary loss of Rs 27 m. Excluding this item, the fall in bottomline was 94%. While the dismal performance is partly due to the tough business environment the education industry is going through, SSI’s performance in the software services segment too has been abysmal.

NIIT: Other income saves the day

Jan 29, 2002

NIIT has posted a drop of 88% in net profits for 1QFY03 (compared to 1QFY02). This is largely due to a 30% decline in revenues. The software education companies are not finding many takers for their offerings in wake of the technology slowdown. For FY02, NIIT had posted an 8% drop in revenues and a 57% decline in net profits.

Software education: The bleeding continues

Nov 15, 2001

For the past two quarters all the three software education majors Aptech, NIIT and SSI have been posting significant dip in net profits. The dip has been in the range of 80% plus.

Aptech: The abyss gets deeper

Nov 9, 2001

The software education majors continued to post very weak numbers in September quarter due to decline in demand. The companies have been also hit by competition from the unorganised sector. Aptech like SSI and NIIT posted a significant dip in topline and bottomline for its 3QFY02. The company’s topline declined 54% YoY and the net profit figure fell by significant 96%.

SSI: Troubled times

Oct 29, 2001

SSI has posted a steep drop of 90% in net profits for 1QFY02, on a YoY basis. The decline in revenues is 18%. The sharp fall in net profits is not only due to operating margins heading south, but also due to decline in other income and increase in depreciation. On a sequential basis the company has shown a 8% drop in topline and net profits have dropped by 49%. The decline in net profits has been calculated excluding the Rs 200 m write off SSI made in 4QFY01.

NIIT: No surprises this time

Oct 22, 2001

NIIT has posted a drop of 86% in net profits for 4QFY02, on a YoY basis. The dip in topline is 24%. The numbers are more or less in line with market expectations. The markets were expecting a 90% plus dip in the bottomline, in tune with the performance for 3QFY02. However, a positive element is that the company’s operating margins stood were 11% compared to the abysmally low 7% for 3QFY02. This is due to the cyclical nature of the company’s education business. The July to September quarter sees

SSI: No show

Sep 11, 2001

SSI that had posted a loss for its 4QFY01 expects the weakness in the education business to continue throughout the fiscal FY02. The company had posted a loss due to weakness in both its business areas, software and education, and an investment write off of Rs 200 m. While the education business (58% of total revenues) had posted an 8% drop in revenues in 4QFY01 on a sequential basis, the figure for the software business (42% of total revenues) was 14%.

SSI: Investment concerns

Aug 28, 2001

In 4QFY01, SSI has posted a loss of Rs 145 m compared to a net profit of Rs 309 m in 4QFY00. This was due a provision of Rs 200 m for an investment made in a subsidiary company The company however, has posted operating profits of Rs 155 m.

NIIT: A long wait

Aug 20, 2001

NIIT’s new strategy

After the disastrous performance in 3QFY02, NIIT’s management has outlined a three-pronged strategy to improve its performance in the education business. The company is looking at growth in revenues from the business by increasing volumes (customer base).

NIIT: Growth concerns

Aug 6, 2001

NIIT’s performance for the quarter ended June 2001 was way below expectations. Infact, the consensus estimates pointed to net profits in the range of Rs 480 m to Rs 530 m. But when the figures actually came out NIIT had net profits of just Rs 53 m, a 93% drop compared to the quarter ended June 2000. The question is what happened? (The company has not given quarterly break up of revenues. However, the breakup for consolidated revenues is available)

Aptech: Bad run continues

Jul 31, 2001

Aptech has beaten NIIT, by posting a 94% drop in profits (compared to 2QFY01) for 2QFY02. The YoY decline in revenues for the quarter is a significant 45%. However, on a sequential basis the company's revenues have grown by 14% and net profits have declined by 19%. In this quarter too (like 1QFY02), the company has managed to ensure profitability due to a significant other income component of Rs 35 m.

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