NIIT 2023-24 Annual Report Analysis

Mon, 9 Sep

NIIT has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

NIIT Income Statement Analysis

• Operating income during the year fell 11.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.4% in FY24 as against 1.3% in FY23.
• Depreciation charges increased by 11.6% and finance costs increased by 20.8% YoY, respectively.
• Other income grew by 69.9% YoY.
• Net profit for the year grew by 259.0% YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 13.2% in FY24.

NIIT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,415	3,035	-11.1%
Other income	Rs m	381	648	69.9%
Total Revenues	Rs m	3,796	3,683	-3.0%
Gross profit	Rs m	-43	12	NA
Depreciation	Rs m	164	184	11.6%
Interest	Rs m	14	17	20.8%
Profit before tax	Rs m	159	459	188.3%
Tax	Rs m	48	60	24.8%
Profit after tax	Rs m	111	399	259.0%
Gross profit margin	%	-1.3	0.4
Effective tax rate	%	30.2	13.1
Net profit margin	%	3.3	13.2

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NIIT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -12.5%.
• Current assets rose 0% and stood at Rs 8 billion, while fixed assets rose 4% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 1%.

NIIT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,728	10,038	3.2
Current Liabilities	Rs m	1,297	1,135	-12.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,411	11,579	1.5
Current assets	Rs m	8,092	8,123	0.4
Fixed Assets	Rs m	3,318	3,457	4.2
Total Assets	Rs m	11,411	11,579	1.5

NIIT Cash Flow Statement Analysis

• NIIT's cash flow from operating activities (CFO) during FY24 stood at Rs 92 million, an improvement of 345.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 53 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -226 million, an improvement of 33% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -99 million from the Rs -48 million net cash flows seen during FY23.

NIIT Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	21	92	345.7%
Cash Flow from Investing Activities	Rs m	266	53	-79.9%
Cash Flow from Financing Activities	Rs m	-337	-226	-
Net Cash Flow	Rs m	-48	-99	-

Current Valuations for NIIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.0, stands at 54.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 26.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	25.4	22.5
TTM Earnings per share	Rs	0.8	3.0
Diluted earnings per share	Rs	0.8	2.9
Price to Cash Flow	x	39.0	26.9
TTM P/E ratio	x	96.6	54.6
Price / Book Value ratio	x	1.6	1.6
Market Cap	Rs m	15,208	15,647
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for NIIT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.2x during FY24, from 6.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 28.0x during FY24, from 12.3x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 4.0% during FY24, from 1.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 4.7% during FY24, from 1.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 3.6% during FY24, from 1.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	6.2	7.2
Debtors’ Days	Days	33	46
Interest coverage	x	12.3	28.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.1	3.6
Return on equity	%	1.1	4.0
Return on capital employed	%	1.8	4.7

To see how NIIT has performed over the last 5 years, please visit here.

NIIT Share Price Performance

Over the last one year, NIIT share price has moved up from Rs 82.4 to Rs 184.0, registering a gain of Rs 101.6 or around 123.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,895.2 (up 0.1%). Over the last one year it has moved up from 32,697.8 to 42,895.2, a gain of 10,197 points (up 31.2%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for NIIT and quarterly results for NIIT)