NIIT Q3FY23 Concall Updates
Key highlights:
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2 strategic acquisitions this qtr 1. St Charles consulting group from USA 2 Further acquisition of the stake in RPS now total ownership 98%.
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SNC solutions serving BFSI experience impressive growth.
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Total rev including St Charles is Rs 363.6 Cr and on stand-alone basis for Stc is 330 crore (so the approx contribution from Stc is 30 Cr)
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Margin improvement was driven by cost optimization and good utilization of resources.
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Acquired 1 new MTS customer from the Insurance company.
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Qtr 4 will be typically weak for SNC as well as CLG as all the companies close their budgets in Q3 and new planning begins from the new FY.
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On the demerger side, final NOC’s pending. The whole scheme of Demerger is on track. Expecting the demerger will come to end by q1FY24.
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SNC domestic business bifurcation: 75% ( Large Tech co’s, OEM) and 25% ( Large private banks + conglomerates).
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Continuing investment phase for B2C markets as far as SNC is concerned.
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Margins range bound for single digits for the next few Qtrs ( SNC).
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Mandatory and Non-Mandatory training constitute 50-50%( BFSI, pharma, mining, energy, life science,energy) have mandatory training.
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Tech & telecom forms the largest base for CLG segment . Training spends for them have compressed.
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CLG growth predominantly on the account of new customer acquisition.
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SNC on the competition with upgrades and others: NIIT’s outcomes are way ahead of the industry benchmark. The company is winning on the basis of creating transformation. It believes to nail it before you scale it rather than scaling it and then burning money.
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In the Last customer survey 1-1.5 months, the company got an NPS score of 9.4 (a very large no of customers are promoters).
Sharing the concall transcript highlighted with important points
NIIT_ Q3FY23.pdf (630.7 KB)
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