NIIT Learning Systems Limited — Interim / Quarterly Report 2024

Jan 31, 2024

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January 31, 2024

The Manager BSE Limited Corporate Relationship Department, 1[st] Floor, New Trading Ring, Rotunda Building, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

The Manager National Stock Exchange of India Limited Listing Department, Exchange Plaza, 5[th] Floor, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (E),Mumbai - 400 051

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

Scrip Code: BSE - 543952; NSE - NIITMTS

Dear Sir,

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 December 31, 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 BANSAL Date: 2024.01.31 13:26:11 +05'30' Deepak Bansal Company Secretary & Compliance Officer

Encls: a/a

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Financial Results Q3 FY24 January 31, 2024

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Environment

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World Bank expects global to slowdown to 2.4 percent in 2024—the third consecutive year of deceleration—reflecting the lagged and ongoing effects of tight monetary policies to rein in decades-high inflation, restrictive credit conditions, and anemic global trade and investment

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

Despite expectations of rate cuts in 2024, balance of risks to global growth remains tilted to the downside, including an escalation of the recent conflict in the Middle East and associated commodity market disruptions, financial stress amid elevated debt and high borrowing costs, persistent inflation.

Use of AI expected to create opportunities to drive greater efficiency and effectiveness in training

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Q3 FY24: In Perspective

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• Revenue at INR 3,913 Mn; up 8% YoY and up 2% QoQ; CC Revenue growth at 5% YoY and up 3% QoQ

• OM at 24%, flat YoY and up 6 bps QoQ

• PAT at INR 568 Mn; EPS of 4.2; both up 21% QoQ and up 23% YoY

• Free Cash Flow at INR 1,099 Mn for Q3

• Net Cash at INR 5,599 Mn; up INR 790 Mn QoQ after payout of payout INR 336 million towards dividend during Q3.

• Added 2 new MTS customers during Q3; 4 renewals and 1 expansion signed during the quarter

• Number of MTS customers at 86; Revenue Visibility at $ 348 Mn (vs $ 350 Mn last qtr and $ 321 Mn last year)

Sequential growth driven by addition of new logos and retention of existing customers, despite consumption remaining constrained

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Key Financials

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INR Mn	**Q3 FY24 **	Q2 FY24	QoQ	Q3 FY23	YoY
Net Revenue	3,913	3,819	2%	3,633	8%
Operating expenses	2,979	2,910	2%	2,766	8%
EBITDA	934	910	3%	867	8%
EBITDA%	24%	24%	6 bps	24%	0 bps
Depreciation & Amortisation	143	170	-16%	118	21%
Net Other Income/ (Expense)	(16)	(66)	76%	(184)	91%
Operational PBT	776	674	15%	566	37%
Tax	208	205	2%	105	98%
PAT	568	469	21%	460	23%
EPS (INR)	4.2	3.5	21%	3.4	23%

• Depreciation & Amortization includes INR 32 Mn on account of amortization of Intangibles related to acquisition.

• Net Other Income/ (Expenses) includes Treasury Income of INR 65 Mn, Acquisition related expenses/charges of Rs 48 million (including interest on loans of Rs. 19 million); Demerger related NonOperating / Transitory expenditure of Rs 11 million and Other Misc. Expenses of Rs 22 million

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Revenue Mix: By Sector

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29% 9% 11% 12% 8% 9% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%	26% 17% 10% 9% 8% 9% 21%		25% 17% 9% 10% 8% 9% 22%		24% 15% 9% 12% 8% 10% 22%	24% 13% 11% 12% 9% 10% 20%
Q3 FY23	Q4 FY23		Q1 FY24		Q2 FY24	Q3 FY24
Technology & Telecom Energy & Commodities Others	Management BFSI		Consulting & Professional Services		Life Sciences And Healthcare Aviation & Aerospace

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People

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2468
2417
2,390
2,361
2,335
Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24
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No of Nationalities 39 Women Employees 44%

Headcount down 51 QoQ and up 56 YoY

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* excludes project retainers

Share Holding Pattern

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32.4% 31.3% 31.0% 30.4% 31.2%
12.3% 13.1% 13.3% 15.8% 16.4%
20.5% 20.7% 20.8% 18.9% 17.8%

34.9% 34.8% 34.8% 34.8% 34.7%
Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24
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Promoters FPIs DIIs Individuals and Corporates

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

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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