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%.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
Diluted Earnings per share*
The decline in the topline growth has adversely affected NIIT's operating margins. The OPM for 3QFY02 was a marginal 6%. Traditionally, for the first two quarters, NIIT has operating margins in the range of 20% to 23% and the last two quarters have operating margins in the range of 40% plus.
As the numbers are for NIIT Ltd. (and not consolidated) the contribution of education business is almost 74%, thus, the education business too seems to be facing tough times along with the software services business.
At the current market price of Rs 296, the stock is trading at a P/E mulptiple of 54 times its 3QFY01 annualised earnings. The stock is likely to see a further downside due to this dissapointing performance.
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