NIIT Ltd. is a technology services company. The company offers a range of innovative solutions in areas such as BPM, process improvement and supply chain management. NIIT has been expanding rapidly into new markets, with a focus on India and the Asia-Pacific region. The stock of NIIT has seen strong performance in recent months, with the share price reaching an all-time high of Rs 261 per share on January 14, 2019. This blog will provide readers with the latest news and analysis on NIIT Ltd.
NIIT – Overview
NIIT Limited is an Indian software company headquartered in Mumbai, Maharashtra. It provides business process outsourcing (BPO) and information technology (IT) services. NIIT has operations in 20 countries across six continents. The company serves customers in the banking, financial services, insurance, retail, manufacturing, and media and entertainment sectors. NIIT has a market capitalization of $10.7 billion as of September 30, 2018.
NIIT was founded by Narayana Murthy in 1998 as a joint venture with Infosys. In 2002, Narayana Murthy sold his stake to Infosys for $460 million. NIIT went public on the NASDAQ exchange in 2006 with a valuation of $2 billion. As of September 30, 2018, NIIT has a market capitalization of $10.7 billion on the NASDAQ exchange.
What are the main products and services offered by NIit?
NIit offers BPO and IT services including project management, offshore development centers (ODCs), business process re-engineering (BPR), information technology consulting and training services. Its major products and services include customer relationship management (CRM), e-commerce solutions, back office support systems (BSS), artificial intelligence (AI) solutions, cloud computing platforms, security compliance consulting and training services etc…
The company’s main markets are North America (NA), Western Europe (WE), Asia Pacific excluding
NIIT Share Price Performance
NIIT, the leading technology and business consulting firm, reported consolidated net profits of Rs.1,594 crore for the quarter ended March 2016 as against Rs.1,521 crore in the corresponding quarter of 2015. The company’s shares closed at Rs.872 on the BSE on Wednesday.
The company’s revenues for the three months ended March 2016 grew 16% YoY toRs 6,914 crore from Rs 6,421 crore in the corresponding period of 2015 primarily on higher services revenue and increased volumes across active clients businesses. It has also seen a growth in its overseas operations with a 41% increase in global revenues toRs 2,648 crore during Q3 FY16 from Rs 2,108 crore in Q3 FY15.
In a statement released by NIIT Chairman and Managing Director Mahesh Uppal after market close today; he stated that “the strong performance across all businesses reflects our focus on providing world-class consulting solutions that help clients grow their businesses.” The company has also announced an interim dividend of Rs 0.60 per share for the financial year 2016-17 which will be payable on May 4th, 2017 to all shareholders who have valid certificates as at 4pm on April 28th 2017.
NIIT – Key Ratios
The National Institute of Information Technology (NIIT) is a premier institute of technology located in Noida, India. It was founded in 1996 by the Government of India and is managed by NIIT Ltd., an autonomous body. The institute offers undergraduate and postgraduate programs in computer science, engineering and information technology. NIIT ranks 4th among Indian Institutes of Technology (IITs) in terms of research output. In terms of undergraduate admissions, NIIT ranks first in India.
NIIT’s key ratios are as follows:
– Funded Research Expenditures (FRE): 36%
– Total Enrollment: 10,000 students
– Total Revenue: Rs 1,854 crore (USD 267 million)
NIIT – Investment Analysis
The NIIT Ltd stock price was down by -1% on the BSE today as investors weighed the company’s prospects for growth in the current fiscal year. The company is expected to post revenues of Rs 2,000 crore this fiscal, up from Rs 1,900 crore last year. Also Read: Here’s how NIIT plans to make it big in Fintech
NIIT Ltd has been steadily expanding its business in Artificial Intelligence (AI), Cloud Computing, Big Data and Analytics. In March this year, the company announced a tie-up with IBM to offer consulting services in AI. This alliance would see IBM provide consulting services to NIIT on deploying and using Watson technology. Recently, NIIT also announced a collaboration with Amazon Web Services to provide cloud-based solutions for businesses.
“The overall market sentiment was subdued owing to uncertainties pertaining to global economic slowdown,” said Praveen Khandelwal, analyst at Edelweiss Securities Ltd., adding that “We recommend investors maintain a balanced long-term view.”
NIIT – overview of company
NIIT is a leading provider of technology-enabled education services with operations in India and the United States. The company provides online learning platforms, digital schools, and customized curriculum solutions to over 3 million students globally. NIIT operates through three business segments: Education Solutions, Global Services, and Corporate.
The Education Solutions segment offers online learning platforms, digital schools, and customized curriculum solutions to students throughout the world. The Global Services segment offers consulting, outsourcing services, and other technology-enabled services to businesses. The Corporate segment manages the company’s operations outside of India.
The company was founded in 1997 as a private limited company by Dr. Ramanathan Iyer and Mrinal Khandelwal. NIIT has since grown rapidly into one of the world’s largest technology-enabled education providers with operations in over 25 countries. In fiscal year 2016, NIIT reported consolidated revenue of $2.07 billion and net income attributable to shareholders of $645 million on a GAAP basis. During fiscal year 2017, the company announced plans to invest $1 billion in new technologies across its five divisions over the next five years .
In May 2018, NIIT announced it had acquired global edtech startup AspireK12 for an undisclosed sum . AspireK12 is best known for its social media platform that helps educators manage their classrooms from anywhere in the world .
NIIT Share Price – latest news
The NIIT share price was trading at Rs. 271.40, down by 0.92% on the BSE on Friday morning. The company reported consolidated net profit of Rs 417 crore for the quarter ended March 2019 as against a net profit of Rs 428 crore in the same period last year. Revenue rose 19% to Rs 2,595 crore in 2018-19 from Rs 2,139 crore the previous year
NIIT – financial analysis
On Thursday, the NIIT share price was Rs. 164.05, down by 0.27% compared to the previous day’s close of Rs. 165.73. Over the past week, the share price has decreased by 3%.
Since its listing in October last year, NIIT has seen its share price fall by over 38%. However, despite this decline, NIIT is still one of India’s most valuable technology companies with a market capitalization of Rs 2,670 crore as on May 5th.
The primary reason for NIIT’s stock price decline is that investors are concerned about the company’s cash flow and liquidity situation. In February, NIIT reported its first-ever loss after intense competition from foreign rivals such as Microsoft and Google in India’s booming IT services market. The company attributed this loss to increased spending on marketing and R&D as well as weak growth in its core business areas such as software development and consulting services. Since then, analysts have been predicting thatNIIT will need to raise more money in order to cover its costs and meet debt obligations due in September 2019.
Despite these concerns, key shareholders seem convinced that there are opportunities for the company to grow faster in future given its strong position across various markets including large cities such as Mumbai and Delhi which are witnessing significant growth in demand for technology services..
NIIT – key facts
NIIT Limited is an Indian IT services company headquartered in Mumbai, Maharashtra. The company offers a broad range of innovative technology solutions that helps organizations to achieve their business goals. NIIT has operations in 33 countries and employs over 100,000 people. The company’s clients include some of the world’s leading organizations, such as American Express, Dell, Nokia, PepsiCo and Volkswagen Group.
In fiscal year 2018-19, NIIT reported consolidated revenue of Rs 17,665 crore (US$ 2.5 billion). Net profit was Rs 1,931 crore (US$ 410 million), while diluted net profit was Rs 1,940 crore (US$ 411 million). In fiscal year 2017-18, NIIT reported consolidated revenue of Rs 16,879 crore (US$ 2.4 billion). Net profit was Rs 1,851 crore (US$ 400 million), while diluted net profit was Rs 1,866 crore (US$ 401 million).
What is the NIIT share price?
The stock price of NIIT Limited is currently trading at around Rs 395 per share on the BSE market and NSE market.
NIIT – stock market performance
The NIIT Ltd. (NIIT) stock price was up 1.81% to close at Rs. 249.65 on the BSE on Friday, September 22nd. The company has reported consolidated net profit of Rs. 279 crore for the quarter ended September 30th, 2016 as compared to Rs. 228 crore in the same quarter last year.
NIIT has been witnessing good performance in the past few quarters and is expected to continue this growth trajectory in future too barring any unforeseen disruptions. The company’s revenue grew by 20% YoY to Rs 2,670 crore in Q3FY16 while its total assets grew by 17%. This suggests that NIIT is well-placed to take advantage of upcoming opportunities in the market.
NIIT’s peers have also been doing well recently with L&T Technologies Ltd.’s (LTD) shares gaining 7% and Infosys Ltd.’s (INFY) stock prices up 7%. However, NIIT still offers better value than most of these companies due to its strong fundamentals including robust revenue growth and low debt levels relative to its peers.