NIIT Learning Systems lists on BSE and NSE: Here’s all you need to know about the demerged NIIT unit

In the 2022-23 fiscal, NLSL recorded a 20 percent revenue growth to Rs 1,361.8 crore while constant currency growth stood at 14 percent. If the St. Charles Consulting Group acquisition is excluded, then the company’s organic rev growth was 11 percent.

During the year, this demerged NIIT unit saw an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 315.4 crore. The profit after tax (PAT) came in at Rs 192.2 crore. Its net cash at the end of FY23 was Rs 456 crore.

In the fourth quarter of the last financial year, NLSL’s revenue rose six percent sequentially and 30 percent on a year-on-year basis. The organic revenue went up six percent YOY. EBITDA was at 25 percent, up 70 basis points on a quarter-on-quarter basis. The margin improvement was driven by optimisation and improved utilisation of resources.

For the current fiscal, NLSL expects to continue to grow at approximately 20 percent on a year-on-year basis (organic growth will be in mid teens) and maintain a margin of upwards of 20 percent.

In its FY24 guidance, the firm had said the uncertainty in the environment continued to affect the business as guided while spends were impacted. It expects uncertainty to lift around the second half of the year.

In the April to July quarter, the company expects to stay challenged and be flat or marginally up as compared to the previous quarter. It is likely to start seeing sequential growth or material sequential growth from the second quarter, and should see most of the year-on-year growth towards the end of the year, it said.