NIIT Reports Strong Financial Performance in Q2 FY25, Receives 'Hold' Call from MarketsMOJO

NIIT, a smallcap IT-education company, has recently declared its financial results for the quarter ending September 2024. The company has received a ‘Hold’ call from MarketsMOJO, a leading financial analysis platform.

According to the financial report, NIIT has shown positive performance in the quarter, with a score of 12 out of 14. This is a slight decrease from the previous quarter, but still reflects a strong financial standing. The company’s net sales for the quarter were the highest in the last five quarters, at Rs 90.71 crore. This indicates a positive trend in sales for the near future.

NIIT’s Profit After Tax (PAT) for the quarter was Rs 12.92 crore, showing a growth of 20.3% year on year. This is a positive sign for the company’s profitability, and the near term trend for PAT is also positive. The company’s Earnings per Share (EPS) for the quarter were the highest in the last five quarters, at Rs 0.87. This shows that NIIT has been able to create higher earnings for its shareholders.

However, there are some areas that need improvement for NIIT. The Profit Before Tax less Other Income (PBT) for the quarter was at Rs -5.83 crore, showing a significant decrease of -78.83% year on year. This is a concerning trend for the company’s profitability in the near term. Additionally, the company’s non-operating income was 135.46% of the PBT, indicating a high reliance on non-business activities. This may not be a sustainable business model for the company. The non-operating income for the quarter was also the highest in the last five quarters, at Rs 22.27 crore.

Overall, NIIT has shown positive financial performance in the quarter ending September 2024, with some areas that need improvement. Investors are advised to hold their stocks in the company, as per the recommendation of MarketsMOJO.