NIIT Learning Systems Limited — Investor Presentation 2025

Jan 22, 2025

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January 22, 2025

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 and nine months ended December 31, 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: 2025.01.22 13:34:46 +05'30' Deepak Bansal Company Secretary & Compliance Officer

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Financial Results Q3 FY25 January 22, 2025

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Environment

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While business confidence has seen some improvement, macro uncertainty continues to weigh on discretionary investments. Volume of training consumption remains impacted as companies target further cost reduction.

US Fed has reduced rates by 100 bps since Sept’24. However, rate cut trajectory remains uncertain on mixed economic indicators, geo-political tensions and continuing regional conflicts.

Use of AI expected to create opportunities to drive greater efficiency and effectiveness in training. Rapid transformation driving increasing gap in internal capability versus specialist providers.

Outsourcing conversations seeing an increase driven by cost pressures. Companies open to consolidation of spends especially in Transversal Skills for cost rationalization.

In times of uncertainty “Cost is King”

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2

Q3 FY25: In Perspective

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• Revenue at INR 4,189 Mn; up 7% YoY and up 5% QoQ

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

• EBITDA at INR 946 Mn, up 1% YoY and up 1% QoQ

• OM at 23%, down 129 bps YoY and down 97 bps QoQ

• PAT at INR 617 Mn up 9% YoY; EPS of INR 4.5

• Net Cash at INR 6,999 Mn; higher by INR 445 Mn QoQ

• 2 new MTS clients added during the quarter; 3 contract renewals; 2 Scope expansions

• Number of MTS customers at 92; Revenue Visibility at $ 391 Mn vs $ 368 Mn last qtr

• Business continues to invest in growth initiatives

Resilient growth due to new customers ramping up and wallet share increase in existing clients.

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3

Key Financials

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INR Mn Q3 FY25 Q2 FY25 QoQ Q3 FY24 YoY
Net Revenue 4,189 3,974 5% 3,913 7%
Operating expenses 3,243 3,039 7% 2,979 9%
EBITDA 946 936 1% 934 1%
- -
EBITDA% 23% 24% 97 bps 24% 129 bps
Depreciation & Amortisation 159 153 4% 143 12%
Net Other Income/ (Expense) 26 (38) 170% (16) 266%
- Treasury Income/ (Expense) 95 117 -23 mn 65 29 mn
- Scheme related (Expense) (5) (7) 2 mn (11) 6 mn
- Startegic growth Initiatives (Expense) (33) (91) 59 mn (48) 16 mn
- Others Income/ (Expense) (30) (57) 26 mn (22) -8 mn
Operational PBT 813 745 9% 776 5%
-
Tax 195 175 12% 208 6%
PAT 617 570 8% 568 9%
EPS (INR) 4.5 4.2 8% 4.2 8%
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• Net Other Income / (Expense) includes

• Treasury Income lower QoQ due to MTM impact

• Scheme related Expense of Rs 5 Mn pertaining to ESOPs of NIIT Limited held by employees of NLSL at the time of demerger

• Strategic growth & Acquisition expense of INR 33 Mn includes a gain of Rs 23 Mn due to fair value adjustment in Future Acquisition Liability for StC (LQ: expense of Rs 43 Mn), Rs 14 Mn towards Interest expense on Loan related to the acquisition and Exceptional expenses of Rs 42 Mn related to inorganic growth initiatives

• Other Expense of Rs 30 Mn includes forex loss of Rs 14 Mn, Interest on Lease Liabilities Rs 9 Mn, Bank Charges of Rs 9 Mn and Misc Income of Rs 2 Mn

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4

Revenue Mix: By Sector

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Technology & Telecom Management Consulting & Professional Services Life Sciences & Healthcare Energy & Commodities BFSI Aviation & Aerospace Others 20% 19% 20% 19% 17% 10% 10% 10% 9% 9% 9% 9% 10% 14% 13% 12% 12% 11% 11% 11% 11% 14% 14% 13% 14% 13% 15% 15% 11% 10% 24% 21% 20% 23% 24% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25	Technology & Telecom Management Consulting & Professional Services Life Sciences & Healthcare Energy & Commodities BFSI Aviation & Aerospace Others 20% 19% 20% 19% 17% 10% 10% 10% 9% 9% 9% 9% 10% 14% 13% 12% 12% 11% 11% 11% 11% 14% 14% 13% 14% 13% 15% 15% 11% 10% 24% 21% 20% 23% 24% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25
Energy & Commodities
BFSI
Aviation & Aerospace
Others
	Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25

Tech & Telecom starting to see recovery. BFSI & Lifesciences saw robust YoY growth on account of new customers and expansion in a select set of customers. Volumes in Management Consulting have been impacted due to the environment and push for cost reduction

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5

People

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2,417
2,396
2,358 2356
2,323
Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25
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Headcount up 33 QoQ and down 61 YoY

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6

* excludes project retainers

Share Holding Pattern

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26.4%
31.2% 29.4% 29.8% 29.1%
16.4% 17.8% 17.3% 18.7% 21.5%
17.8% 18.2% 18.3% 17.7% 17.6%


34.7% 34.6% 34.6% 34.5% 34.5%
Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25
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Promoters FPIs DIIs Individuals and Corporates

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7

*Includes impact of exercise of ESOPs on holding percentages

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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