Dear Shareholders,
The Financial Year 2023-24 has been transformative for NIIT, marked by
the successful demerger of our Corporate Learning Business into NIIT Learning Systems
Limited (NLSL) and our strategic response to a challenging economic environment. I believe
the adversity we face is like the tempering of steel-under the intense heat and pressure,
what may seem fragile is forged into something stronger, more resilient, and ready to
withstand the challenges ahead. Despite facing headwinds, particularly in the technology
sector, which constitutes a significant portion of our business, NIIT demonstrated
resilience and adaptability, laying a strong foundation for future growth.
Business Performance:
Navigating a Challenging Environment
The IT industry experienced a continued freeze in hiring and
compression of spending on training, particularly among large technology customers. This
led to a sharp decline in business volumes from existing customers. Your Company responded
with agility by pivoting focus to Tier 2 and Tier 3 Global System Integrators (GSIs) and
Global Capability Centres (GCCs). Also, given the hiring freeze, the Company focused on
advanced technology skills for Working Professionals. In addition, the Company increased
penetration within large private banks and broadened offerings for large Indian
Enterprises. Growth from these initiatives helped the business recover the significant
impact experienced throughout the year.
In tandem with these efforts, we at NIIT have been at the forefront of
integrating Generative AI (GenAI) into our curriculum and learning solutions. Over the
past year, we have embedded GenAI into all our courses, focusing on both technical and
non-technical applications.
This initiative has highlighted the transformative potential of GenAI
across various industries, including BFSI, IT, retail, healthcare, and supply chain
management. By equipping our students with the skills to utilize GenAI effectively, we
ensure they are prepared to meet the demands of a rapidly evolving professional landscape.
In addition to these advancements, our financial performance this year
reflects our commitment to maintaining an upward trajectory in a dynamic market. NIIT
Limited recorded a revenue of Rs. 3,035 million in FY24, down 11% YoY. However, it is
important to note the sequential recovery throughout the year, with strong YoY growth in
Q4. This demonstrates the company's agility and ability to adapt to a challenging
environment. The business also achieved operational efficiency and improved EBITDA despite
the impact on volumes. Additionally, net profit saw a significant increase to Rs. 384
million, up from Rs. 32 million in FY23, leading to EPS of Rs. 2.85.
Leadership Transition
I am pleased to announce the appointment of Mr Pankaj Jathar as the
Chief Executive Officer of NIIT Limited, effective July 1, 2024. Pankaj's return to
NIIT, where he began his career, marks a significant milestone for the company. With over
25 years of experience in leading global corporations in eCommerce, consulting, and
technology solutions, Pankaj is exceptionally well-suited to lead NIIT into its next phase
of growth. His leadership is expected to drive focus on India's flourishing skills
and career landscape, capitalizing on emerging opportunities through the integration of
GenAI and other advanced technologies.
Future Outlook
With a young population (600 million under the age of 25) and growing
enrolments in higher education (over 43 million learners enrolled in higher education with
Gross Enrolment Ratio of 28.4%, which is projected to grow to 50% by Academic Year
2034-35), India is poised to be a hub of global demand for talent.
Demand for upskilling/reskilling from working professionals is expected
to increase across sectors like Technology, Fintech, Health Tech, Logistics, EdTech, and
more. Despite the near-term slowdown in hiring, the acceleration of digital transformation
is expected to continue to drive demand for professionals with deep skills in new-age
technologies and ways of working.
Our strategic focus will remain on deep skilling in Technology and BFSI
sectors, which offer significant growth potential. Additionally, we see new vectors of
growth in industries such as manufacturing, supply chain management, and decarbonization.
NIIT plans to continue to invest in accelerating the transformation and achieving scale.
The increasing adoption of digital learning, a trusted brand, strong
pedagogy that creates superior learning outcomes, an industrial-strength learning delivery
platform to enable scale, strong balance sheet, and a strong leadership team creates an
opportunity to re-establish NIIT as the premium choice for career seekers and working
professionals.
In conclusion, as we reflect on our achievements and the successful
demerger, I want to express my deepest gratitude to our shareholders, customers, and
employees for their unwavering support and confidence in NIIT Limited. We are excited
about the future and remain committed to delivering sustained value to all our
stakeholders and driving digital transformation for NIIT and the nation.
Thank you for your continued trust and confidence in NIIT Limited.
Warm regards, Rajendra Singh Pawar NIIT Limited