NIIT Learning Systems Limited — Interim / Quarterly Report 2024

Oct 30, 2023

==> picture [169 x 158] intentionally omitted <==

October 30, 2023

The Manager The Manager BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Listing Department 1[st] Floor, New Trading Ring, Exchange Plaza, Rotunda Building, 5[th] Floor, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (E), Mumbai - 400 051

Subject: Presentation made to the Analysts and / or Institutional Investors

Scrip Code: BSE - 543952; NSE - NIITMTS

Dear Sir/Madam,

Pursuant to the requirement of Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the presentation to be made to the Analysts and/or Institutional Investors on the Unaudited Financial Results of the Company for the quarter ended September 30, 2023.

The same shall be available on our website i.e., www.niitmts.com.

This is for your information and records.

Thanking you,

Yours sincerely,

For NIIT Learning Systems Limited

DEEPAK Digitally signed by DEEPAK BANSAL Date: 2023.10.30 BANSAL 13:59:53 +05'30' Deepak Bansal Company Secretary & Compliance Officer

Encl.: a/a

==> picture [380 x 61] intentionally omitted <==

==> picture [185 x 58] intentionally omitted <==

Financial Results Q2 FY24 October 30, 2023

==> picture [206 x 75] intentionally omitted <==

Environment

==> picture [74 x 5] intentionally omitted <==

Global growth is projected to fall from 3.5 percent in 2022 to 3.0 percent in 2023 (IMF). Despite signs of resilience in H1 2023, the impact of policy tightening to reduce inflation is expected to cool economic activity going forward. Continuing war in Europe and escalating geopolitical conflicts across various parts of the world adding to increased uncertainty

Outsourcing seeing an increase across segments with increased deal flow. However, cost prioritization and cuts in discretionary spending due to uncertainty impacting near term volumes

The resolution of the US debt ceiling standoff earlier this year and strong action by authorities to contain turbulence in US and Swiss banking, reduced the immediate risks of financial sector turmoil. However, the balance of risks to global growth remains tilted to the downside (IMF)

Real Estate Market in North America which had seen a sharp decline last year, is starting to see some stabilization in demand at lower levels, although uncertainty persists. Demand for RE careers is expected to follow similar trend

==> picture [30 x 30] intentionally omitted <==

2

Q2 FY24: In Perspective

==> picture [74 x 5] intentionally omitted <==

• Revenue at INR 3,819 Mn; up 27% YoY and flat QoQ; CC Revenue growth at 21% YoY and down 2% QoQ

• Organic revenue up 7% YoY and up 2% QoQ

• EBITDA at INR 910 Mn, up 58% YoY and down 2% QoQ

• OM at 24%, up 464 bps YoY and down 34 bps QoQ

• PAT at INR 469 Mn; EPS of 3.5 (including one-time expenses related to the demerger and notional costs related to consolidation of StC)

• Net Cash at Rs 4,809 Mn (including impact of investment in EIT InnoEnergy and temporary increase in working capital due to transfer of contracts from NIIT Limited to NLSL)

• 4 new MTS customers added during the quarter; 4 renewals and 2 scope expansions

• Number of MTS customers at 85; Revenue Visibility at $ 350 Mn down vs $ 360 Mn last qtr and vs $ 305 Mn last year

• Strategic investment of Euro 3 Mn in EIT InnoEnergy

==> picture [30 x 30] intentionally omitted <==

Acceleration in deal flow. However, continuing hesitancy in ramping up consumption

3

Key Financials

==> picture [74 x 5] intentionally omitted <==

==> picture [662 x 238] intentionally omitted <==

----- Start of picture text -----

INR Mn Q2 FY24 Q1 FY24 QoQ Q2 FY23 YoY
Net Revenue 3,819 3,823 0% 3,003 27%
Operating expenses 2,910 2,900 0% 2,427 20%
-
EBITDA 910 924 2% 576 58%
-
EBITDA% 24% 24% 34 bps 19% 464 bps
Depreciation & Amortisation 170 153 11% 108 57%
-
Net Other Income/ (Expense) (66) (88) 25% (41) 63%
-
Operational PBT 674 683 1% 428 58%
Tax 205 131 56% 58 256%
-
PAT 469 552 15% 370 27%
EPS (INR) 3.5 4.1 -15% 2.8 26%
----- End of picture text -----

• Depreciation & Amortization includes notional amortization cost on consolidation of StC (INR 32 Mn) and amortization charge related to rental premises in addition to normal depreciation expenses. The QoQ increase is primarily due to full quarter of rental expense for office facilities

• Net Other Income/ (Expenses) includes Treasury Income (INR 64 Mn), Forex gain (INR 14 Mn), Scheme related expenses (INR 59 Mn), Acquisition related Interest cost (INR 19 Mn) and notional charge (INR 60 Mn), Other Financial Charges (INR 16 Mn) and Other Misc. Income (INR 10 Mn)

==> picture [30 x 30] intentionally omitted <==

4

AI Based Learning Simulations/Roleplay For Customers

==> picture [74 x 5] intentionally omitted <==

==> picture [353 x 171] intentionally omitted <==

Simulating Tough Customer Calls for Customer support Executives

==> picture [376 x 183] intentionally omitted <==

==> picture [153 x 181] intentionally omitted <==

Simulating Customer Enquiries and negotiations for Sales Executives

==> picture [390 x 190] intentionally omitted <==

==> picture [30 x 30] intentionally omitted <==

Simulating a launch of a DRUG in pharma industry

Simulating scenarios to conduct a realistic TAX Audit

5

Revenue Mix: By Sector

==> picture [74 x 5] intentionally omitted <==

==> picture [918 x 311] intentionally omitted <==

----- Start of picture text -----

100%
90% 21% 21% 22% 22%
25%
80%
9% 9% 9% 10%
7%
70%
10% 8% 8% 8% 8%
60%
9%
12% 10%
12%
14%
50%
10%
9%
11% 9%
40%
13%
0% 9% 17% 17% 15%
30%
20%
32%
29%
26% 25% 24%
10%
0%
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
----- End of picture text -----

Technology & Telecom Management Consulting & Professional Services Life Sciences And Healthcare Energy & Commodities BFSI Aviation & Aerospace Others

==> picture [30 x 30] intentionally omitted <==

6

People

==> picture [74 x 5] intentionally omitted <==

==> picture [483 x 338] intentionally omitted <==

----- Start of picture text -----

2468
2,390
2,361
2,335
2,321
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Headcount up 78 QoQ and up 147 YoY
----- End of picture text -----

==> picture [30 x 30] intentionally omitted <==

7

* excludes project retainers

Share Holding Pattern

==> picture [74 x 5] intentionally omitted <==

==> picture [669 x 223] intentionally omitted <==

----- Start of picture text -----

32.0% 32.4% 31.3% 31.0% 30.4%
11.9% 12.3% 13.1% 13.3% 15.8%
21.2% 20.5% 20.7% 20.8% 18.9%
34.9% 34.9% 34.8% 34.8% 34.8%
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
----- End of picture text -----

Promoters FPIs DIIs Individuals and Corporates

==> picture [30 x 30] intentionally omitted <==

8

* Includes impact dilution of shareholding percentage due to of exercise of ESOPs

==> picture [148 x 148] intentionally omitted <==

==> picture [29 x 30] intentionally omitted <==

A T L A N T A | B E R G E N | D U B L I N | G U R U G R A M | L O N D O N | R O C H E S T E R | S H E F F I E L D | S H A N G H A I | T O L O U S E | V A N C O U V E R