NIIT has posted sales of Rs 2.1 bn (YoY growth of 25.5%) and net profit of Rs 610 mn (YoY growth of 34.4%) in the third quarter ended 30th June 1999. According to the company, its revenues from the US markets recorded a growth of 63% to contribute Rs 1.55 bn to the total revenues of the company. The company has also pruned its debt to negligible levels, resulting in lower interest costs.
NIIT is India's sixth largest IT company (FY99 Revenues Rs 4.57 bn). A pioneer and forerunner in the business of computer education and training (domestic market share - 40%), it is the fifth largest computer training institute in the world. NIIT has a diverse business mix with interests in IT training (40% of revenues), software solutions/multimedia/systems integration (41% of revenues) and multimedia (16% of revenues).
NIIT generates its revenues from five markets - US (43%), Europe (26%), Japan (6%) and SE Asia (25%). This reduces its over-dependence on any single market. Moreover, with only 3% of its revenues coming from Y2K related activities the company is more or less insulated to the decline in revenues from such activities.
Analysts have rated the stock as a 'BUY' mainly on account of it's diversified IT product mix and a low exposure to Y2K related activities.
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