X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
IT services, software development go hand in hand - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • May 3, 1999

    IT services, software development go hand in hand

    Highlights  

    • NIIT, promoted by the HCL (Shiv Nadar) group, is involved in IT training, software solutions and multimedia products. It is India's second largest IT services company and fourth largest software exporter
    • NIIT commenced operations as an IT training company to become the ninth largest computer training institute in the world (by revenue), and India's leading IT trainer with 45% market share, training approx. 100,000 students every year, with an alumni base of more than 600,000 students. In all it has over 750 training centres, of which more than 30 are overseas (17 countries) concentrated in Asia and Africa. The company's management has reduced risk and capital investment in its training centres by employing franchisees (more than 500) as a preferred way of expansion.
     
    • Its other business is providing software solutions, which it commenced in the mid-1980s as a software trading business. Over the years, this business has evolved into systems integration and applications software development. 
    • In multimedia products,NIIT develops and sells own-brand, computer based educational products, and develops products for third-party vendors.
     
    • NIIT is currently rated SEI Level 3 for software solutions. The rating determines productivity and maturity of work undertaken. The company has set a target to reach SEI Level 5 by year 2000.
    • Over the years, it has developed relationships with some of the leading software companies across the world. For instance, it has sole distribution rights for Oracle, the leading database management system, and has tie-ups with 13 other companies including Microsoft (only non-US course vendor), Computer Associates (for preparing its courseware) 3Com (networking solutions), Sybase (distribution of Powerbuilder products in India), Digital Tools and Mentor Graphics Corporation, USA for reselling and distribution of products. 
    FY98  
    • In FY98,NIIT became the first Indian IT company to cross the Rs 1 bn mark. Software (42% of revenues) is now the single largest business, and has overtaken the contribution from IT training (40%). In future, contribution from software is expected to increase further. In any case, the software business grew much faster (52% over FY97) than the IT training business (40%). Educational Multimedia (269 titles) contributing 18% of revenues, posted 77% growth. 
    • Exports contributed 48% of revenues.
    • Y2K accounts for only 5% of NIIT's revenues. Therefore, it has lower reliance on this lucrative yet temporary source, when compared to companies like Infosys and Satyam for whom Y2K accounts for more than 20% of revenues. 
    • As yet,NIIT has had little success in moving up the value-chain, and is to prove its expertise in providing value-added services. 
    Future   
    • NIIT's strategy for growth includes: 
      • Enhancing its presence in the education business by adding 100 centres every year, in India and overseas. 
      • Offering courses to training audiences beyond those that are IT-centric 
      • Tapping the enormous potential of the Internet.
       
    • The company plans to acquire a software company in the US, and go in for an American Depository Receipt (ADR) issue.

     

     

    Equitymaster requests your view! Post a comment on "IT services, software development go hand in hand". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    HCL Tech: Ends FY17 on Expected Lines (Quarterly Results Update - Detailed)

    Jun 29, 2017

    Volvo partnership caps a good year for HCL Technologies.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    NIIT LTD SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK NIIT LTD

    • Track your investment in NIIT LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    NIIT LTD 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE NIIT LTD WITH

    MARKET STATS