NIIT Learning Systems Limited — Investor Presentation 2024

Aug 1, 2024

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August 1, 2024

The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

The Manager

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

Sub: 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 June 30, 2024.

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: 2024.08.01 13:15:09 +05'30' Deepak Bansal Company Secretary & Compliance Officer

Encl.: a/a

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Financial Results Q1 FY25 August 1, 2024

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Environment

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The IMF expects global GDP to grow by 3.2% in 2024 - third consecutive year of deceleration in growth rates. Uncertainty remains high due to persistent inflation, high interest rates, elevated debt levels, continuing conflicts, upcoming elections, and their implications for geopolitics, policy, and growth rates.

While decision making remains slow, outsourcing conversations seeing an increase driven by transformation and cost pressures. Rapid transformation including GenAI driving increasing gap in internal capability versus specialist providers.

Macro uncertainty continues to weigh on business sentiment, volume of training consumption remains impacted by cuts in discretionary spending.

Use of AI expected to create opportunities to drive greater efficiency and effectiveness in training. Companies open to consolidation of spends especially in Transversal Skills for cost rationalization.

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2

Q1 FY25: In Perspective

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• Revenue at INR 4,072 Mn; up 7% YoY and up 2% QoQ

• In CC, Revenue up 5% YoY and up 2% QoQ

• EBITDA at INR 1,024 Mn, up 11% YoY and up 3% QoQ

• OM at 25%, up 99 bps YoY and up 14 bps QoQ

• PAT at INR 600 Mn up 9% YoY; EPS of INR. 4.4

• Net Cash at Rs 6,489 Mn; higher by INR 830 Mn QoQ

• During the quarter, company added 3 new MTS customers, expanded scope with 3

• customers and renewed 1 contract.

• Number of MTS customers at 89; Revenue Visibility at $ 350 Mn vs $ 335 Mn last qtr

• Net Cash INR Rs 6,489 Mn, up INR 830 Mn vs QoQ

Resilient sequential growth driven by ramp up of new customers and scope expansions. Green shoots in training consumption across a subset of customers

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Key Financials

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INR Mn Q1 FY25 Q4 FY24 QoQ Q1 FY24 YoY
Net Revenue 4,072 3,979 2% 3,823 7%
Operating expenses 3,048 2,984 2% 2,900 5%
EBITDA 1,024 995 3% 924 11%
EBITDA% 25% 25% 14 bps 24% 99 bps
-
Depreciation & Amortisation 140 127 10% 153 8%
-
Net Other Income/ (Expense) (72) (29) 144% (88) 19%
-
Operational PBT 812 839 3% 683 19%
-
Tax 212 294 28% 131 62%
PAT 600 544 10% 552 9%
EPS (INR) 4.4 4.0 10% 4.1 8%
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*Net Other Income / (Expenses) includes a) treasury income of INR 82 million, b) scheme related transitory expenses of INR 12 Mn pertaining to ESOPs of NIIT Limited held by employees of NLSL at the time of demerger c) acquisition related expenses of INR 59 million including notional charge of INR 42 Mn due to fair value adjustments for future earnout liability and INR 17 Mn towards Interest expense on loan related to the acquisition, and d) Other expenses of INR 82 million including forex loss of INR 27 million and exceptional expenses of INR 29 million related to inorganic growth initiatives and net other expenses of INR 26 million

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4

Revenue Mix: By Sector

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22% 22% 20% 19% 20%
10% 10% 10%
9% 10%
8% 8% 9% 9% 10%
10% 12% 12% 12% 11%
9%
9% 11% 14% 14%
17%
15%
13%
15% 15%
25% 24% 24%
21% 20%
Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
Technology & Telecom Management Consulting & Professional Services Life Sciences And Healthcare
Energy & Commodities BFSI Aviation & Aerospace
Others
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Revenue from BFSI and Lifesciences continues to see growth. Volumes in Technology and Management Consulting (although up QoQ on seasonality) have been impacted due to the environment

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People

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2,468
2,417
2,390 2,396
2,358
Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
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Headcount down 38 QoQ and down 32 YoY

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* excludes project retainers

Share Holding Pattern

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31.0% 30.4% 31.2% 29.4% 29.8%
13.3% 15.8% 16.4% 17.8% 17.3%
20.8% 18.9% 17.8% 18.2% 18.3%

34.8% 34.8% 34.7% 34.6% 34.6%
Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
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Promoters FPIs DIIs Individuals and Corporates

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* 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