NIIT stock has made considerable gains during the last few trading sessions after the company reported a strong quarter of revenue growth and profitability owing to sustained business development, digital transformation, and optimised business operations.
NIIT share rose 17 per cent to hit an all-time high of Rs 259.40 on the BSE in intra-day trade today. It opened 1.24 per cent higher at Rs 224 against the previous close of Rs 221.25.
As per the share price history, NIIT share on BSE closed at Rs 187.6 on May 31, 2021. It hit an intraday high of Rs 259.40 in today's morning session. In a week, the stock has delivered 38 per cent returns. Market cap of the firm rose to Rs 3,358.31 crore.
The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has gained 180 per cent in the last 12 months and risen 25 per cent since the beginning of this year.
Jitesh Ranawat, Head Institutional Sales at Marwadi Shares and Finance Ltd, told Business Today, NIIT is a midcap IT services company that is into managed training in IT, banking, finance, and marketing field. It has strong financials which is evident from the strong cash and liquid investments on the balance sheet of the company.
"The improvement in margins was driven by a better product mix, higher productivity (due to the transition to digital learning). Going forward, we will have to look at whether the margins are sustainable as travel expenses and fixed costs might go up once things normalise," he added.
He further said that the company has upside till 280 and one can look at booking some profits on the upside.
Earlier in the quarter, the shareholders of the company approved a proposal for buyback of up to 98.75 lakh equity shares at a price of Rs. 240 per equity share. Post statutory approvals, the buyback offer was completed in May 2021.
For FY21, revenue from operations grew 7 per cent to Rs 949.5 crore from Rs 889 crore in the previous year. Net profit stood at Rs 143 crore against Rs 132.7 crore in the previous year.
Revenue from operations grew 30.5 per cent to Rs 275.5 crore in the March-ended quarter against Rs 211.2 crore a year ago. The company reported the fourth-quarter profit after tax (PAT) at Rs 46.5 crore against Rs 0.6 crore in the year-ago period.
Corporate Learning Group (CLG) recorded revenues of Rs 235.3 crore, up 8 per cent QoQ during Q4FY21. Full-year revenue for CLG stood at Rs 825.4 crore, up 19 per cent YoY.
Skills & Careers Business (SNC) recorded net revenue of Rs 40.2 crore for the quarter ended March 2021, up 12 per cent on a year-on-year basis.
"In a challenging year marked by the pandemic, NIIT has shown resilience, decisiveness, and agility. The Corporate Business continues to accelerate," said Vijay K Thadani, Vice Chairman & Managing Director, NIIT Limited.
"The investment in Digital transformation of the business has created new opportunities for growth and improvement in profitability," he added.
The board has also recommended a 125 percent dividend at Rs 2.5 per share.
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