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NIIT vs. Educomp: The winner?

(Apr 7, 2011)

Equitymaster gives a comparative analysis of two NIIT and Educomp, based on balance sheet strength and valuations

NIIT vs. Educomp: The numbers

(Mar 24, 2011)

Equitymaster gives a comparative analysis of two NIIT and Educomp, based on their key financials

NIIT vs. Educomp: The right choice?

(Mar 22, 2011)

Equitymaster give a comparative analysis of two companies in the IT based education sector, NIIT and Educomp

NIIT Limited: Our key assumptions

(Feb 7, 2006)

NIIT Limited (NIIT) is India’s largest IT education and training company. The company has a presence across the country and caters to the retail, institutional (government) and corporate segments. NIIT also derives a significant portion of its revenues from international business (53% in FY05). It has a presence in over 30 countries. In FY04, the company segregated its businesses into software services and IT education. This was done in order to enable the company to focus separately on these tw

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: Chugging along

(Apr 21, 2003)

NIIT has posted a 14% growth (YoY) in consolidated revenues for 2QFY04. This is on the back of a 10% growth in revenues from the education business and a heartening 24% growth in the company’s software business. On a sequential basis, revenues from the software business grew by 8%. This performance indicates stability in the company’s revenue streams and therefore, points to the fact the worst seems to be over for the company.

NIIT: Portfolio expansion

(Feb 5, 2003)

The downturn in the IT industry and therefore, the slack in demand for IT education and intense competition have forced NIIT to look at other alternatives. Consequently, the company is expanding its portfolio of offerings from IT education to IT-assisted education. To develop competencies is this domain NIIT has chosen the inorganic route and has acquired eGurucool.com.

NIIT: The worst may be over

(Dec 6, 2002)

The IT training and software services major NIIT has, on a standalone basis, reported a 49% fall in its topline, while its bottomline has declined by 91%. This due to disastrous performance in the first three quarters for the fiscal. Prima facie, the 4QFY03 also look disappointing, as the company has reported a loss at the pre-tax level and the bottomline is in the black due to a tax write back and extraordinary income.

NIIT: Buying growth

(Sep 18, 2002)

NIIT’s trouble’s started with the slowdown in the IT services industry in 4QFY01. With lesser jobs available, the optimism towards IT as a career subsided. Consequently, IT education companies witnessed a sharp decline in business. The decline was so steep that NIIT for four consecutive quarters of posted a 85% plus decline in net profits (YoY). However, company’s IT training business has shown signs of improvement since, 2QFY03 (quarter ended March 2002). Better realisations per student, improv

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.

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).

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.

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

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)

NIIT: Rock bottom

(Jul 19, 2001)

NIIT has posted a YoY drop of 25% in revenues for the 3QFY02. Last year for the same quarter the company had shown a YoY growth of 33%. The drop in net profit has been significant, 93.5%.


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