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NIIT's global revenues up 36 per cent to Rs 8.8 billion

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Net profit at Rs 1.428 billion after providing for extra depreciation of Rs 159 million is up 32 per cent (Rs 1.084 billion).

Cash profits increased to Rs 1.86 billion against Rs 1.38 billion for the corresponding period last year, representing an increase of 35 per cent.

The audited results of NIIT were approved at the meeting of the board of directors of NIIT, headed by Chairman Rajendra S Pawar on October 15.

The board has also recommended a dividend of 40 per cent (37.5 per cent) on an enhanced equity of Rs 386.6 million after the 1:2 bonus issue during 1998-99.

NIIT's international business, which constitutes 52 per cent of its total revenues, saw a growth of 46 per cent to touch Rs 4.539 billion (Rs 3.12 billion).

The US geography continued its strong growth rate at 53 per cent to contribute Rs 2.074 billion (Rs 1.350 billion) to the total revenues.

Software Solutions business recorded revenues of Rs 3.983 billion, representing a growth of 47 per cent (Rs 2.712 billion).

Software Solutions revenues today constitute 45 per cent of the NIIT's global revenues.

Operating margin at 33.6 per cent has improved (33.5 per cent) as a result of deployment of EVA based performance management system leading to overall improvement on all productivity parameters.

Provisional EVA for the last year went up by 40 per cent to touch Rs 720 million (Rs 513 million).

NIIT President and CEO Vijay Thadani said that as result of an efficient capital management and a focus on EVA in all businesses resulted in reducing interest element for the year to Rs 8 million (Rs 107 million).

The gross revenues per person month went up by 15 per cent while net profits per person month increased by 12 per cent.

As a result of efficient capital management NIIT emerged as a debt-free company signifying NIIT's strong financial strength.

Since last year NIIT has been following the US GAAP norms of depreciation.

This year NIIT has been even more conservative and has made a higher depreciation of Rs 159 million over and above our stated depreciation policy.

Announcing these results NIIT Chairman Rajendra S Pawar said, "I am pleased with NIIT's consistent track record of exceeding its growth projections, while managing its rapid transition into an e-business corporation through significant investments in Internet and other technologies and its own IPR creation."

"With our renewed e-commerce delivery capability, internal strengthening initiatives and enhanced market access we are well poised to harness the vast opportunities in the next century," Pawar added.

NIIT Chief Operating Officer P Rajendran said "last year we deployed our core competence in systems integration, infrastructure planning, and project management to successfully launch the computer training in 371 schools in Tamil Nadu."

NIIT Director Arvind Thakur said "Assessment at SEI Level 5 signifies NIIT's capability to manage and control software development risks related to the project, processes and technology." He said that in order to deploy e-commerce as a composite sales and support channel for its products, NIIT launched eNIIT, the comprehensive Web based global sales, distribution and delivery system.

Dwelling on the directions being pursued for the future, Pawar said, "Emergence of Internet is causing a fundamental shift in products, markets and technologies. NIIT is transitioning this discontinuity smoothly from being a projects, to products, to an e-commerce solutions company while successfully leveraging NIIT's unusual business model. NIIT is not just Learning Solutions or a software solutions company. The close integration of knowledge from these two seemingly distinct businesses and the consistent performance will transform NIIT into a shining example of a Knowledge Corporation of the 21st century."

Thadani said, "NIIT will be leveraging capability created by assessment at SEI CMM Level 5 quality processes, implementation of enterprise resource planning solution for internal systems. On the product > delivery front NIIT will continue to create more products and components that will go into offering cost-effective e-commerce solutions to global customers. The investments made in building a high-profile sales and marketing teams and building the eNIIT brand will contribute significantly to NIIT's continued growth.

Thadani stated that NIIT at present has no plans for equity dilution and the strategic alliance initiative launched in the USA is progressing well. He did not reveal any other details.

NIIT Director Gopal Chakravarthy said that successful implementation of e-commerce projects in Europe had bagged orders from organisations like Mysis in addition to repeat orders from British Airways.

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