Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Result Update: NIIT Ltd - BUY - TP Rs.110 - Kotak

Posted On: 2018-10-31 09:19:50


NIIT Ltd 2QFY19 revenue were above our estimates at Rs.22.9bn v/s our estimate of Rs.22.3bn. Margins at 9.58% were about 15bps above our estimates. The beat was on the back of higher than expected growth in SNC business and Corporate Learning Business which offset the sharp de growth in School Business.

Key Highlights

- NIIT Ltd 2QFY19 performance was above our estimates on all fronts. Revenue grew by 10% YoY. EBIDTA margin at 9.6% were too above our estimates by about 15bps due to higher than expected margins in SNC business at 1.5%. Corporate Learning Group (CLG) (71% of revenue) grew by 28% YoY and has been leading the performance which is expected to continue the momentum, going forward.

- SNC and school business reported a de growth of 13.6% and 45% YoY respectively. SNC which contributed about 27% of the revenue for the company reported revenue of Rs.617mn for the quarter. EBITDA margins for SNC business were up by 300bps QoQ at 1.5%. School business which contributes about 2% of the total revenue for the company reported revenue of Rs.51mn for the quarter. School business remains a loss making business for the company. Going forward, margins in SNC and school business are expected to improve with revenue growth and completion of cost related to exit of school business.

- Revenue visibility and no of MTS clients remains strong for CLG business at USD 226mn and 40 clients, respectively. Within SNC business share of beyond IT and enrollment was at 37% and 33,966 from 36% and 33,081 in previous quarter. Uptake in share of beyond IT is a bit slower than expected whereas number of enrollment continue to remains strong.

Valuation & outlook

SNC and school business have been a constant drag on overall financial performance of the company, and we believe it would take few more quarters to stabilize. CLG continues to report 25%+ growth and management remains confident of continuing the momentum going forward. We have marginally lowered our revenue estimates and expect revenue growth of 9% CAGR over FY18-20E and EBITDA margin to improve by 190bps (v/s 230bps earlier) over FY18-20E. We maintain BUY with a revised target price of Rs.110 (Rs.125 earlier).

Shares of NIIT LTD. was last trading in BSE at Rs.71.7 as compared to the previous close of Rs. 72.15. The total number of shares traded during the day was 95690 in over 1159 trades.

The stock hit an intraday high of Rs. 74.9 and intraday low of 71.25. The net turnover during the day was Rs. 6990812.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

National Aluminium - Quant Pick - ICICI Securities

Cement - Q1FY21 Result Preview - ICICI Securities

Consumer Discretionary - Q1FY21 Result Preview - ICICI Securities

Paints - Dealer Check - July 2020 - ICICI Securities

Auto and auto ancillary - Q1FY21 Result Preview - ICICI Securities

Real Estate (Sector Update) - Greenshoots visible - HDFC Securities

Cement (Sector Update) - Prices, retail sales hold up despite COVID - HDFC Securities

TCI Express - Branch economics, cost levers as margin tailwinds - ICICI Securities

Mishra Dhatu Nigam - Space order inflow may slow down in FY21 - ICICI Securities

Century Plyboards - Compelling BUY; top pick in building materials - ICICI Securities

Building material - Sector Update - ICICI Securities

ISGEC Heavy Engineering - On a strong footing despite macro headwinds - ICICI Securities

Telecom - Growth breaks due to Covid-19 crisis - ICICI Securities

Pfizer Ltd - Company Update - ICICI Securities

Petronet LNG - Quant Pick - ICICI Securities

Earnings Wrap Q4FY20: Quarter end lockdown takes toll, one-offs rule Q4FY20

Autos & Transportation Sector Update Report - Focus on '3Cs' - HDFC Securities

Banking Sector Credit Trends - Weakness building - HDFC Securities

India Equity Strategy Report - Back to pre-covid levels - HDFC Securities

Strategy: Cyclicals to lead earnings recovery over FY20-22 - ICICI Securities

JK Cement - Ripe for re-rating - ICICI Securities

Phillips Carbon Black - Company Update - ICICI Securities

Information Technology - Q1FY21 Result Preview - ICICI Securities

Motherson Sumi Systems Ltd - Company Update - ICICI Securities

HDFC Ltd - Quant Pick - ICICI Securities

Auto Sales Data for June 2020 - Angel Broking

FMCG - Sector Review 4QFY20 - Disruption visible, growth divergence increases - HDFC Securities

Maintain ADD on ONGC - Impairment loss drags earnings - HDFC Securities

Maintain BUY on Ahluwalia Contracts - Looking ahead - HDFC Securities

RIL-Intel Deal - Angel Broking

Strategy: 'Out of turn' change in NIFTY50 due to Vedanta delisting - ICICI Securities

Time Technoplast - Q4FY20 Result Update - ICICI Securities

Monthly Auto Volumes - July 2020 - ICICI Securities

Oil & Natural Gas Corporation - Q4FY20 Result Update - ICICI Securities

Minda Industries - Q4 FY20 Result Update - ICICI Securities

Auto Sales - June 2020 - Acuité Ratings & Research

Bharat Electronics - Q4FY20 Result Update - ICICI Securities

Petronet LNG - Q4FY20 Result Update - ICICI Securities

Tata Steel - Q4FY20 Result Update - ICICI Securities

Phoenix Mills - Q4FY20 Result Update - ICICI Securities

Jun-20 Volumes expectations: Sales to rise over 2x from May-20 levels for Hero, Maruti - HDFC Securities

Maintain REDUCE on RBL Bank - Risks more evident - HDFC Securities

Maintain ADD on Subros - Expect market share gains to continue - HDFC Securities

Maintain ADD on Petronet LNG - One offs in opex drag profitability - HDFC Securities

Siyaram Silk Mills - Company Update - ICICI Securities

Vardhman Textiles - Company Update - ICICI Securities

Bharat Forge - Q4FY20 Result Update - ICICI Securities

CESC - Q4FY20 Result Update - ICICI Securities

Star Cement - Company Update - ICICI Securities

BUY on GIC Reinsurance - Arduous Road Ahead - HDFC Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019