NIITís financial performance continues to be disastrous, though the stock is riding high for some strange reason. At Rs 352.12 crore, income from operations for the year ended September 30, was 49 per cent below last yearís income of Rs 687.51 crore.
Other expenditure came down 25 per cent while staff costs were down 17 per cent from the same period last year. Though costs were down 46 per cent from last year, revenues having dropped more in percentage terms.
Operating profits at Rs 42.58 crore (Rs 110.22 crore) were 61 per cent below those of the last year, while the OPM shrank to 12 per cent from 16 per cent during the previous corresponding period. Other income at Rs 15.09 crore (Rs 12.41 crore) was 22 per cent above last yearís income but rising interest and depreciation provisioning has hit overall profitability.
Despite having written back Rs 4.36 crore towards taxes against a provision of Rs 9.10 crore during the previous corresponding period, net profits sank to an abysmal Rs 9.09 crore (Rs 88.55 crore) down by a massive 90 per cent from last year. Last year the company reported an extraordinary income of Rs 7.41 crore, which if considered would further widen the gap in the comparative profit figures.
This has been the sixth consecutive quarter where NIIT has reported a year-on-year decline in income from operations, which at Rs 98.09 crore (Rs 164.08 crore) was 40 per cent below the previous corresponding quarter. Sequentially, however, it was up 14 per cent from the June quarter income of Rs 85.74 crore. The savings in costs not being in proportion to the decline in revenues, margins have taken a big hit with the company reporting its lowest ever operating profits in the past 10 quarters. At Rs 8.36 crore (Rs 17.75 crore) the same were 53 per cent below the previous corresponding quarter and 37 per cent down from the June quarter profits of Rs 13.26 crore.
OPM stood at 9 per cent against 11 per cent during the previous corresponding quarter and 15 per cent in the preceding quarter. Despite a tax write-back of Rs 3.81 crore it has reported a net loss (excluding extraordinary items) of Rs 0.10 crore against a profit of Rs 17.64 crore during the previous corresponding quarter and Rs 2.31 crore during the June quarter. Even after such a sorry performance the stock, gets discounted by a crazy 79 times to its full year EPS of Rs 2.35.