Emergence of the Internet is causing a fundamental shift in products, markets and technologies. NIIT has anticipated this shift much ahead of time. It is transitioning itself from product company to an e-commerce company. This is likely to benefit the company in several ways.
NIIT has shown excellent financial performance for the six-month ended March 2000. The company’s profit after tax grew by 94% to Rs 562.9 m and consolidated total income witnessed an increase of 34% to Rs 5.6 bn over the corresponding previous period. During the same period its operating profit margin increased to 20.8% (from 18.6%) as a result of transformation to software solution business from learning solution. The company’s software solution business consisting of 60% of its total income witnessed an astounding growth of 50% during the first half of FY2000.
NIIT, in a move to become a global player, has increased its exposure to international markets. The company derives 29% of its total income from US. In the first half of the current year, its US business witnessed a jump of 51% to Rs 1.64 bn over the corresponding previous period. As on March 2000, the company had orders of US $68 m with 30 new global clients. America enjoys the share of 60% in the global technology market. The company has plans to increase the income from US business from the present 29% to 60% in the next three years as its main growth area.
NIIT’s move into e-commerce has been very rapid and market with the launch of a number of products. The company’s future business focus will be on technology solutions including e-business, e-learning and e-transformation. Recently the company has tied up with Relativity Technology to fulfil the global demand of e-transformation. It has also developed e-commerce products and components, which includes:
It enables an enterprise to set up an electronic bill presentment and payment system
It is a ready to use product that helps create a shopping mall on the web.
It helps to create an entry point on the web for surfers.
It provides a convenient national connect for electronic transformation.
The company has plans to become global player in the area of e-commerce, for the purpose it will develop e-commerce solutions, e-knowledge solutions and e-learning solutions. Today NIIT is the most visible e-commerce solution provider company from India. At the current market price, there is very little downward risk in the business of NIIT.
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