NIIT LEARNING SYSTEMS 2023-24 Annual Report Analysis

Tue, 3 Sep

NIIT LEARNING SYSTEMS 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 LEARNING SYSTEMS Income Statement Analysis

• Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.1% in FY24 as against 20.4% in FY23.
• Depreciation charges increased by 25.6% and finance costs increased by 112.1% YoY, respectively.
• Other income grew by 111.8% YoY.
• Net profit for the year grew by 10.9% YoY.
• Net profit margins during the year declined from 14.1% in FY23 to 13.7% in FY24.

NIIT LEARNING SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,618	15,535	14.1%
Other income	Rs m	151	319	111.8%
Total Revenues	Rs m	13,769	15,855	15.1%
Gross profit	Rs m	2,772	3,596	29.7%
Depreciation	Rs m	471	592	25.6%
Interest	Rs m	166	353	112.1%
Profit before tax	Rs m	2,285	2,971	30.0%
Tax	Rs m	363	839	131.2%
Profit after tax	Rs m	1,922	2,132	10.9%
Gross profit margin	%	20.4	23.1
Effective tax rate	%	15.9	28.2
Net profit margin	%	14.1	13.7

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NIIT LEARNING SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 27.7%.
• Long-term debt down at Rs 683 million as compared to Rs 916 million during FY23, a fall of 25.4%.
• Current assets rose 25% and stood at Rs 14 billion, while fixed assets rose 14% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 21%.

NIIT LEARNING SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,397	9,393	27.0
Current Liabilities	Rs m	6,627	8,464	27.7
Long-term Debt	Rs m	916	683	-25.4
Total Liabilities	Rs m	17,234	20,834	20.9
Current assets	Rs m	10,956	13,700	25.0
Fixed Assets	Rs m	6,277	7,135	13.7
Total Assets	Rs m	17,234	20,834	20.9

NIIT LEARNING SYSTEMS Cash Flow Statement Analysis

• NIIT LEARNING SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 82.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -693 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 284 million from the Rs 29 million net cash flows seen during FY23.

NIIT LEARNING SYSTEMS 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	1,528	2,787	82.4%
Cash Flow from Investing Activities	Rs m	-2,550	-1,819	-
Cash Flow from Financing Activities	Rs m	1,005	-693	-
Net Cash Flow	Rs m	29	284	897.4%

Current Valuations for NIIT LEARNING SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.8, an improvement from the EPS of Rs 14.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 513.7, stands at 32.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.4 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.9 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	101.2	114.7
TTM Earnings per share	Rs	14.3	15.8
Diluted earnings per share	Rs	14.2	15.7
Price to Cash Flow	x	0.0	22.9
TTM P/E ratio	x	0.0	32.0
Price / Book Value ratio	x	0.0	6.6
Market Cap	Rs m	0	62,258
Dividends per share (Unadj.)	Rs	0.0	5.3

Ratio Analysis for NIIT LEARNING SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.7x 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 deteriorated and stood at 9.4x during FY24, from 14.7x 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 declined and down at 22.7% during FY24, from 26.0% 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 33.0% during FY24, from 29.5% 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 declined and down at 11.9% during FY24, from 12.1% 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	1.7	1.6
Debtors’ Days	Days	58	53
Interest coverage	x	14.7	9.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.1	11.9
Return on equity	%	26.0	22.7
Return on capital employed	%	29.5	33.0

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

NIIT LEARNING SYSTEMS Share Price Performance

Over the last one year, NIIT LEARNING SYSTEMS share price has moved up from Rs 385.9 to Rs 513.7, registering a gain of Rs 127.8 or around 33.1%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

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