MIRA INFORM REPORT
|
Report Date : |
02.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
NIIT LIMITED |
|
|
|
|
Registered
Office : |
8, Balaji Estate, First Floor, Guru Ravi Das Marg, Kalkaji, New Delhi
– 110019 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
02.12.1981 |
|
|
|
|
Com. Reg. No.: |
55-015865 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 330.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1981PLC015865 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELP00091A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN0085D |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
|
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 18000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record. There seems drastic dip in the profit of the company during 2013. However,
liquidity position of the company seems to be decent. Trade relation are reported to be fair. Business is active. Payment
terms are reported to be usually correct. The company can be considered for business dealing at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non-cooperative. (Tel. No.: 91-11-26817341)
LOCATIONS
|
Registered Office : |
8, Balaji Estate, First Floor, Guru Ravi Das Marg, Kalkaji, New Delhi
– 110019, India |
|
Tel. No.: |
91-11-26817341 / 41675000 |
|
Fax No.: |
91-11-41407120 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
85, Sector 32, Institutional, Gurgaon - 122001, India |
|
Tel. No.: |
91-124-4293000 |
|
Fax No.: |
91-124-4293333 |
|
E-Mail : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr.
Rajendra Singh Pawar |
|
Designation : |
Chairman & Managing Director |
|
Date of Birth/Age : |
55 years |
|
Qualification : |
B.Tech. |
|
Experience : |
34 years |
|
Date of Appointment : |
02.12.1981 |
|
Previous Employment : |
HCI Limited,
Corporate Planning Manager |
|
|
|
|
Name : |
Mr. Vijay K. Thadani |
|
Designation : |
Chief Executive Officer & Whole-time Director |
|
|
|
|
Name : |
Mr. P. Rajendran |
|
Designation : |
Chief Operating Officer & Whole-time Director |
|
|
|
|
Name : |
Mr. Subroto Bhattacharya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surendra Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Khosla |
|
Designation : |
Director |
|
|
|
|
Name : |
Madhabi Puri Buch |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Arora |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ashok Arora |
|
Designation : |
Group Chief Financial Officer |
|
|
|
|
Name : |
Mr. Rohit Kumar Gupta |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6773714 |
4.10 |
|
|
49699621 |
30.09 |
|
|
56473335 |
34.20 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
56473335 |
34.20 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
20783618 |
12.59 |
|
|
86814 |
0.05 |
|
|
15000 |
0.01 |
|
|
607627 |
0.37 |
|
|
22325464 |
13.52 |
|
|
43818523 |
26.53 |
|
|
|
|
|
|
8921233 |
5.40 |
|
|
|
|
|
|
33844712 |
20.49 |
|
|
16620871 |
10.06 |
|
|
5466923 |
3.31 |
|
|
3287136 |
1.99 |
|
|
2157287 |
1.31 |
|
|
22500 |
0.01 |
|
|
64853739 |
39.27 |
|
Total Public
shareholding (B) |
108672262 |
65.80 |
|
Total (A)+(B) |
165145597 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
165145597 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
|
|
|
Subsidiaries: |
|
|
|
|
|
Associates : |
|
|
|
|
|
Parties in which the Key Managerial Personnel of the Company are
interested : |
|
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs. 2/- each |
Rs. 500.000 millions |
|
2500000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs. 250.000
millions |
|
|
TOTAL |
|
Rs. 750.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
165095597 |
Equity Shares |
Rs. 2/- each |
Rs. 330.190 Millions |
|
Add : |
Forfeited Shares (amount originally paid-up) |
|
Rs. 0.010
Million |
|
|
Total |
|
Rs. 330.200 Millions |
Reconciliation of the
number of shares outstanding
|
Equity Shares |
As on 31.03.2013 |
|
|
|
No of Shares |
(Rs. In Millions) |
|
Shares outstanding at the beginning of the year |
165095597 |
330.190 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding
at the end of the year |
165095597 |
330.190 |
Rights, preferences
and restrictions attached to shares:-
Equity Shares: The Company has one class of equity shares having a par value of Rs. 2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Shares held by each
shareholder holding more than 5% shares in the Company
|
Equity Shares |
As on 31.03.2013 |
|
|
|
No of Shares |
% of holding |
|
Pace Services Limited |
22557547 |
13.66% |
|
Global Solutions Private Limited |
21580980 |
13.07% |
|
FID Funds Mauritius Limited |
10139408 |
6.14% |
|
Total |
54277935 |
32.87% |
Shares reserved for
issue under Employee Stock Option Plan (ESOP)
|
Equity Shares |
As on 31.03.2013 |
|
|
|
No of Shares |
(Rs. In Millions) |
|
Equity shares |
3761216 |
7.520 |
|
|
3761216 |
7.520 |
Aggregate number of
Equity shares issued as bonus shares during the immediately preceding five
years
|
|
As on 31.03.2013 |
|
Allotted as fully paid up by way of bonus shares |
54869490 |
|
|
54869490 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
330.200 |
330.200 |
330.200 |
|
(b) Reserves & Surplus |
4194.130 |
4503.200 |
3832.880 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4524.330 |
4833.400 |
4163.080 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1010.370 |
751.940 |
1381.440 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
130.750 |
139.980 |
74.960 |
|
(d) long-term provisions |
4.760 |
5.350 |
6.140 |
|
Total
Non-current Liabilities (3) |
1145.880 |
897.270 |
1462.540 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
175.500 |
131.840 |
870.880 |
|
(b) Trade payables |
1160.060 |
1416.590 |
976.580 |
|
(c) Other current liabilities |
1748.730 |
1535.130 |
1294.310 |
|
(d) Short-term provisions |
377.750 |
378.540 |
351.980 |
|
Total
Current Liabilities (4) |
3462.040 |
3462.100 |
3493.750 |
|
|
|
|
|
|
TOTAL |
9132.250 |
9192.770 |
9119.370 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1186.620 |
1496.300 |
1242.370 |
|
(ii) Intangible Assets |
709.630 |
563.300 |
432.730 |
|
(iii) Capital work-in-progress |
0.000 |
0.000 |
72.350 |
|
(iv) Intangible assets under
development |
116.900 |
167.140 |
249.020 |
|
(b) Non-current Investments |
2071.280 |
2044.280 |
1924.660 |
|
(c) Deferred tax assets (net) |
103.780 |
103.780 |
27.060 |
|
(d) Long-term Loan and Advances |
489.490 |
584.050 |
612.110 |
|
(e)Trade Receivable |
369.610 |
361.960 |
77.600 |
|
(f) Other Non-current assets |
110.640 |
257.980 |
364.050 |
|
Total
Non-Current Assets |
5157.950 |
5578.790 |
5001.950 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
105.900 |
|
(b) Inventories |
87.170 |
112.660 |
136.380 |
|
(c) Trade receivables |
2554.010 |
2700.000 |
2565.060 |
|
(d) Cash and cash equivalents |
555.640 |
182.770 |
234.330 |
|
(e) Short-term loans and
advances |
383.290 |
340.800 |
445.810 |
|
(f) Other current assets |
394.190 |
277.750 |
629.940 |
|
Total
Current Assets |
3974.300 |
3613.980 |
4117.420 |
|
|
|
|
|
|
TOTAL |
9132.250 |
9192.770 |
9119.370 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
6414.670 |
7381.280 |
6480.140 |
|
|
Other Income |
666.120 |
462.590 |
294.180 |
|
|
TOTAL
(A) |
7080.790 |
7843.870 |
6774.320 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Purchase of Traded Goods |
985.880 |
1319.990 |
1042.210 |
|
|
(Increase)/ Decrease in
Inventory |
25.490 |
23.720 |
(35.050) |
|
|
Employees benefits expense |
1737.020 |
1782.560 |
1430.060 |
|
|
Professional and Technical
Outsourcing Expenses |
1239.780 |
1286.180 |
1029.340 |
|
|
Other expenses |
2064.720 |
2242.500 |
2044.510 |
|
|
Exceptional items |
(1.920) |
(856.510) |
(136.080) |
|
|
TOTAL
(B) |
6050.970 |
5798.440 |
5374.990 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1029.820 |
2045.430 |
1399.330 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
166.510 |
217.900 |
268.860 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
863.310 |
1827.530 |
1130.470 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
782.400 |
684.030 |
577.040 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
80.910 |
1143.500 |
553.430 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
69.340 |
180.960 |
56.040 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H)
(I) |
11.570 |
962.540 |
497.390 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Purchase of Traded Goods |
201.130 |
291.040 |
424.440 |
|
|
Capital Goods |
31.360 |
10.820 |
12.280 |
|
|
TOTAL
IMPORTS |
232.490 |
301.860 |
436.720 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
0.07 |
5.83 |
3.01 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.16 |
12.27 |
7.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.26 |
15.49 |
8.54 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.25 |
17.55 |
8.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
0.24 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.26 |
0.18 |
0.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.15 |
1.04 |
1.18 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
330.200 |
330.200 |
330.200 |
|
Reserves & Surplus |
3832.880 |
4503.200 |
4194.130 |
|
Net
worth |
4163.080 |
4833.400 |
4524.330 |
|
|
|
|
|
|
long-term borrowings |
1381.440 |
751.940 |
1010.370 |
|
Short term borrowings |
870.880 |
131.840 |
175.500 |
|
Total
borrowings |
2252.320 |
883.780 |
1185.870 |
|
Debt/Equity
ratio |
0.541 |
0.183 |
0.262 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6480.140 |
7381.280 |
6414.670 |
|
|
|
13.906 |
(13.095) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6480.140 |
7381.280 |
6414.670 |
|
Profit |
497.390 |
962.540 |
11.570 |
|
|
7.68% |
13.04% |
0.18% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Finance Lease Obligation |
25.610 |
51.940 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Inter Corporate Deposits from Subsidiary |
175.500 |
126.000 |
|
|
|
|
|
Total |
201.110 |
177.940 |
FINANCIAL HIGHLIGHTS
During the year, the Company’s consolidated income from operations is Rs. 9,608 million as against Rs. 12,603 million in the previous year and Net Profit (after Associates’ Profit) is Rs. 263 million as against Rs. 1,102 million in the previous year.
The income from operations for the year for the Company on a stand-alone basis is Rs. 6,415 million as compared to Rs. 7,381 million in the previous year and Net Profit reached Rs. 12 million as against Rs. 963 million in the previous year.
BUSINESS OPERATIONS
In the financial year 2012-13, the Global Economy faced fresh downside risks that continue in light of renewed setbacks in the Euro area and continued risks of excessive fiscal consolidation in the United States.
Current state of Indian economy makes it necessary for the government to put in place a robust and implementable plan of action for its revival. The economy has experienced a consistent fall in GDP growth, alarmingly high levels of twin deficits i.e. Current Account Deficit (CAD) and Fiscal Deficit as well as worrying volatility in the inflow of foreign investments. Though inflationary pressure has receded in the last quarter of 2012, it still remains above the target level. This along with other worrying economic indicators has put the Indian economy in a challenging pathway in the short term.
The Individual Learning Solutions offerings included training and career building services in IT, BFSI, Management, BPO and English and Professional life skills. For this, the Company leverages its global presence across India, China and other developing countries for reaching out to the students as well its alliances with large technology companies in USA and Europe to provide the requisite solutions. During the year , the deceleration in growth of the IT Industry impacted the enrollment in IT courses, whereas non-IT training showed encouraging growth. Though the hiring in IT Industry dropped by 20% over the previous year, the Company’s placement of students was lower than the previous year by only 4%.
In the School Learning Solutions business, the Company provided solutions and services for IT training and technology enabled learning and teaching for schools, teachers’ training and learning for underserved children. The Company offered NIIT nGuru solution comprising of ‘Interactive Classrooms’, ‘Math lab’ and ‘IT Wizard’ for students and ‘Quick School’ an Education Resource Planning solution for school management. During the year, 817 schools signed up with the Company for its various offerings.
In the Corporate Learning Solutions business, the Company focused on the Managed Training Services business and achieved traction with acquisition of five new customers providing a total revenue visibility of USD 143 million. This growth was backed by aggressive sales and engagement management teams with robust delivery performance. Corporate Learning Solutions continued to register a healthy growth of 19% year over year and achieved a profitability level of 11%, up from 6% in the previous year.
In Skill Building Solutions, the Company has an objective of enhancing skills and employability of youth across India, with emphasis to offer job oriented training to applicants mainly from low and middle income households in semi-urban and rural areas. The Company has developed skills development curriculum for new sectors like Retail, Hospitality, Auto Retail, Showroom Retail, BPO and other informal sectors. The Company has 34 centers operational across six states viz. Haryana, Uttar Pradesh, Uttarakhand, Delhi, Punjab and Madhya Pradesh. The Company has also entered into industry tie-ups in aforesaid sectors enabling placement of its trained students.
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY PERFORMANCE
NIIT started the year with moderate expectations of growth. However, the business environment, especially in IT training market turned weak in India and other emerging countries. Student sentiment towards IT training was affected by the temporary squeeze in hiring and continuing delays in joining dates of fresh graduates with job offers. Despite robust performance by Corporate Learning Solutions (CLS) and School Learning Solutions (SLS), NIIT’s financials were affected by the weak performance of Individual Learning Solutions (ILS), due to decline in revenue from IT training. The decline in revenues in ILS impacted margins due to high operating leverage in the business.
The Company responded to the adverse environment by accelerating efforts of business restructuring and cost rationalization, which helped the Company to moderate the overall impact.
BUSINESS OVERVIEW
In FY'13, NIIT continued its focus on strengthening the four identified platforms of growth, which were launched last year, and on improving capital efficiency of the business through reallocation of capital, and increasing balance sheet strength. While parts of the business were impacted by the environment, each of the identified platforms continues to show strength and is poised for continuing growth.
The management believes that these four platforms would help the Company to return to the path of growth. The company also exited capital intensive business models across businesses that had dragged company’s cash flows over the last few years. The company has reduced its debt levels substantially in the last two years, through business restructuring. As these capital-intensive projects get over, the working capital tied up in these projects would get released and would help the company return to being cash-positive. This would also help the Company to improve the ROCE profile of the business.
FUTURE OUTLOOK
The Company remains focused on its four platforms of growth
- Individual: Cloud Campus
- Corporate: Managed Training Services
- Schools: nGuru
- Skills: Yuva Jyoti
Individual: During FY’13, the business has been impacted by a temporary squeeze in hiring by IT sector. The company is focusing on its Non-IT portfolio and New Age IT programs with higher realization, to help recover growth. The Cloud Campus platform will help the company to expand reach and drive efficiency in the business.
Corporate: Growth is expected to continue on strength of significant order book and strong growth in Managed Training Services business. Volume growth and leverage of enabling expenses would drive margin improvement.
Schools: Continued selectivity on Government BOOT contracts and focus on nGuru solutions for private schools will result in significant improvement in business mix in favor of NGSA. In addition, the Company expects improved liquidity due to release of working capital tied up in receivables in government contracts.
Skills: Focus on capacity utilization and on introduction of new products.
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
Quarter
Ended |
Nine
months Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
|
|
|
|
|
|
Net Sales/Income from Operations |
1144.300 |
1448.600 |
3861.300 |
|
|
Other operating income |
0.000 |
0.000 |
0.000 |
|
|
Total Income |
1144.300 |
1448.600 |
3861.300 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
Purchase of stock in trade |
90.800 |
141.200 |
363.900 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
21.800 |
4.300 |
23.600 |
|
|
Employee benefits expenses |
404.400 |
386.200 |
1186.300 |
|
|
Professional &
technical outsourcing expenses |
204.200 |
258.300 |
728.900 |
|
|
Depreciation and amortization expenses |
154.200 |
157.600 |
499.000 |
|
|
Other expenses |
418.800 |
569.000 |
1498.200 |
|
|
Total Expenses |
1294.200 |
1516.600 |
4299.900 |
|
|
|
|
|
|
|
|
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
(149.900) |
(68.000) |
(438.600) |
|
|
Other Income |
30.000 |
25.900 |
260.200 |
|
|
Profit from Ordinary Activities before Finance Cost and
Exceptional Items (3+4) |
(119.900) |
(42.100) |
(178.400) |
|
|
Finance Cost |
46.500 |
47.800 |
136.700 |
|
|
Profit From Operations after Other Income, Interest and
Exceptional Items (5-6) |
(166.400) |
(89.900) |
(315.100) |
|
|
Exceptional Items |
19.200 |
0.000 |
19.200 |
|
|
Net Profit / (loss) from ordinary activities before tax
(7-8) |
(147.200) |
(89.900) |
(295.900) |
|
|
Tax Expense |
3.300 |
4.800 |
34.900 |
|
|
Net Profit/ (Loss) from ordinary activities after tax
(9-10) |
(150.500) |
(94.700) |
(330.800) |
|
|
Extraordinary item |
0.000 |
0.000 |
0.000 |
|
|
Net Profit/ (Loss) for the period (11-12) |
(150.500) |
(94.700) |
(330.800) |
|
|
Paid-up Equity Share Capital (Face Value of Re. 1/- Each) |
330.200 |
330.200 |
330.200 |
|
|
Reserves Excluding Revaluation Reserve |
|
|
|
|
|
Earning Per Share before extraordinary items |
|
|
|
|
|
a) Basic |
(0.91) |
(0.57) |
(2.00) |
|
|
b) Diluted |
(0.91) |
(0.57) |
(2.00) |
|
|
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
-Number of Shares |
108672262 |
108672262 |
108672262 |
|
|
- Percentage of Shareholding |
65.80% |
65.80% |
65.80% |
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
56473335 |
56473335 |
56473335 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
34.20% |
34.20% |
34.20% |
|
Particulars |
31.12.2013 |
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
19 |
|
Disposed off during the quarter |
19 |
|
Remaining unresolved at the end of the quarter |
-- |
Note:
Under the Employee Stock Option Plan 2005, approved by the
shareholders, during the quarter 25,000 options were exercised, 1,076,988
options lapsed and 2,390,723 options remained outstanding as at the end of the
quarter.
Exceptional Items (net) for the current quarter include:
a) Gain amounting to Rs. 124.200 millions on repurchase (buy back) of shares by
a wholly owned overseas subsidiary of the Company.
b) Expense arising on write down of inventory aggregating to Rs. 24.200
millions and provision for business support aggregating to Rs. 80.800 millions
on account of change in delivery technology.
The sub businesses are fully aligned to global learning business of the Company
and the same are being viewed by the management as a single primary segment,
i.e. Learning Business.
Other expenses includes Marketing and Advertising expenses amounting to Rs.
74.600 millions (previous quarter Rs. 145.100 millions, corresponding previous
quarter Rs. 89.000 millions and previous year Rs. 469.100 millions).
The Standalone Un-audited Results for the quarter ended December 31, 2013 have
been reviewed by the Audit Committee and have been approved by the Board of
Directors of the Company at its meeting held on January 17, 2014.The Limited
review of this statement as required under clause 41 of the Listing Agreement
has been completed by the Statutory Auditors.
Previous period figures have been regrouped/ reclassified, wherever necessary
to conform to the current quarter/ period classification.
FIXED ASSETS
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Office Equipment
- Land-Freehold
PRESS RELEASE
NIIT LIMITED
DECLARES CONSOLIDATED RESULTS FOR Q4 AND FY 2013-14
Q4 EBITDA grows 85% YoY
·
Q4 Net Revenue
at Rs. 2329.000 millions, up 5% YoY; PAT of Rs 140.000 millions, up 415% YoY
·
Corporate
Learning Solutions grows 41% YoY during Q4; order intake of USD 21.8 Mn
·
School
Learning Solutions adds 371 schools during Q4, a growth of 78% YoY
- Board recommends dividend of 80%
Quarter 4 highlights:
|
NIIT Limited: Q4 (Jan- March, 2014)* Consolidated Financials (in Rs. Cr) for Quarter ended March 31, 2014 |
|
|
|
|
|
Qtr ended March 31, 2014 |
Qtr ended March 31, 2013 |
Growth YoY |
|
Net Revenue |
232.9 |
221.6 |
5% |
|
EBITDA |
13.1 |
7.1 |
85% |
|
EBITDA% |
6% |
3% |
244 bps |
|
Profit After Tax |
14 |
2.7 |
415% |
(*All comparisons are on a like to like basis, excluding pass through revenues)
FY 2013- 14
highlights:
|
NIIT Limited: Consolidated Results for FY 2013-14* Consolidated Financials (in Rs. Cr) for Year ended March 31, 2014 |
|
|
|
|
|
Year ended March 31, 2014 |
Year ended March 31, 2013 |
Growth |
|
Net Revenue |
951 |
943.3 |
1% |
|
EBITDA |
62 |
52.3 |
19% |
|
EBITDA% |
7% |
6% |
98 bps |
(*All comparisons are on a like to like basis, excluding pass through revenues)
New Delhi, May 21, 2014: NIIT Limited, leading Global Talent Development Corporation today reported its results for the fourth quarter ending March 31, 2014. During the quarter, the company recorded a Net Revenue of Rs. 2329.000 millions, up 5% YoY with a PAT of Rs. 140.000 millions, up 415% YoY. For the full year, the Company's Net Revenue stood at Rs. 9510.000 millions and the PAT was recorded at Rs. 178.000 millions.
The results were taken on record at the meeting of the Board of Directors here today. The Board also proposed a dividend of 80% i.e Rs. 1.60 on each equity share of face value Rs. 2 each.
During the financial year 2013-14, NIIT announced a breakthrough initiative 'Cloud Campus', aimed at redefining the education landscape by making available new-age skills, to students across the breadth of the country. The extended range of training offerings in IT, Banking, Global Finance, Management, Digital and Social Media Marketing under Cloud Campus TM are aimed at transforming learners into first-day first-hour industry-ready professionals.
Reaffirming its dominant position in the training industry, NIIT received 'Top Training Company Award 2013' for the 20th year in succession by leading IT journal, Dataquest during the quarter.
Commenting on the Company's new launch, Mr Rajendra S Pawar, Chairman, NIIT Limited said, "Our new GNIIT program, which now has many options beyond IT, can be customized by every student"
Recently, NIIT launched 'ReVOLUTION GNIIT'- a path-breaking GNIIT program that maximises career opportunities for class XII and college students by offering a range of future-ready courses in -Banking and Finance, Digital Marketing and Social Media, Cloud & Mobile Software Engineering, Big Data and Business Analytics, e-Commerce & Business Administration and Cloud Computing & IT Management. For the first time ever, this offers students the flexibility to choose options from a range of multiple new-age career programs, aligned to the evolving needs of the knowledge economy.
Career Building Solutions (CBS) recorded net revenue of Rs. 824.000 millions during the quarter, backed by a growth of 16% YoY growth in Non Tech revenue in Q4. The pioneering Cloud campus initiative has now expanded to cover 96 courses, across 211 centres. Cloud Campus enrolments increased by 6,500 in Q4, taking the cumulative number of enrolments to around 60,000.
NIIT Institute of Finance and Banking placed 8,407 students in FY 14, recording a growth of 42% in Banking placements during the year.
During the quarter, NIIT Imperia launched Post Graduate Certificate Program in Brand and Advertising Management in collaboration with Indian Institute of Management - Tiruchirappalli. The program aims to give new insights into the importance and value of strongly differentiated brands and how brand and advertising can be used to build strong and enduring businesses.
Corporate Learning Solutions (CLS) recorded net revenues of Rs. 1076.000 millions, up 41% YoY during Q4.
Mr Vijay K Thadani, Chief Executive Officer, NIIT Limited said, "The Corporate Training Business recorded fresh order intake of USD 21.8 Mn in Q4, up 52% YoY, reflecting strong customer confidence."
School Learning Solutions (SLS) registered net revenue of Rs. 417.000 millions during the quarter, with a robust order intake of Rs. 550.000 millions in Q4 from non government schools.
During the quarter, NIIT NGuru unveiled Math Lab Plus, integrating interactive content into Math Labs. NIIT also trained 9,029 teachers and school principals on CCE, (Continuous and Comprehensive Evaluation) and leadership training across the country, as an empanelled member of CBSE (Central Board of Secondary Education), during FY 14.
Mr P Rajendran, Chief Operating Officer, NIIT Ltd said, "NIIT signed up 371 new schools during the quarter, to offer exciting technology and multimedia based education. The new NGuru solutions strengthened NIIT's leadership position, thereby registering a growth of 78% YoY in new schools added, with a growth of 115% YoY in order Intake, during the quarter."
NIIT's vocational skills training initiative - NIIT Yuva Jyoti, established in partnership with National Skill Development Corporation (NSDC) continued to gain momentum, expanding its reach to over 50 locations with more than 16,000 students trained, since commencement.
Other
acknowledgements and milestones during the year:
- NIIT features as 'India's Most Trusted Training Brand' in Brand Trust Report, India Study, 2014, undertaken by Trust Research Advisory.
- NIIT NGuru has been recognized as the "Best Interactive Solution Provider" at the National Education Excellence Awards 2014 by leading industry body ASSOCHAM (Associated Chambers of Commerce and Industry of India (ASSOCHAM)
- NIIT Foundation Bags "Best CSR Practices Award in Skill Development" 2014 by National CSR.
- Rajendra S Pawar, Chairman, NIIT Group has been honored as the 'IT Gem of India' at INFOCOM 2013, India's largest IT & Telecom event, by the ABP Group.
- NIIT US, receives Brandon Hall Excellence Gold Award in the Best Training Program for the Extended Enterprise category jointly with Allstate
- NIIT US, awarded the Brandon Hall Excellence in Learning 2013 Silver Award in the Best Custom Content category jointly with Shell
- Ranked among Training Industry.com's 2013 Top 20 Content Development Companies
- Ranked among Training Industry.com's 2013 Top 20 IT Training Companies and among the Top 20 Companies in Training Outsourcing
- NIIT China launched a Global Talent Development centre in Haikou city of Hainan province, to train skilled manpower for the growing IT industry in the country.
- NIIT reaffirmed itself as a Youth connect brand, through the hugely successful social media campaign #Wish4Vishy www.wish4vishy.com. The campaign became a national movement with wishes pouring in for NIIT Mind Champion Viswanathan (Vishy) An and prior to the World Chess Championship 2013, reaching out to over 60 lakh fans and well wishers of Vishy across the globe.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 59.03 |
|
|
1 |
Rs. 98.91 |
|
Euro |
1 |
Rs. 80.33 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome
financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.