Arihant Capital recommended hold rating on NIIT Technologies with a target price of Rs 1461 in its research report dated July 23, 2019.
Arihant Capital's research report on NIIT Technologies
NIIT Technologies came out with stable set of numbers, mostly in line with our estimates except some one-offs. Consolidated revenue for Q1FY20 came at Rs 9,627mn, broadly in line with our estimate of Rs 9,752mn, registering 16.7% YoY growth, while on QoQ basis in Constant Currency terms, revenue growth excluding GIS business was 4%. Reported EBITDA grew 5.3% YoY to Rs 1,385mn, while EBITDA margin contracted by 155bps YoY to 14.4% against 15.9% YoY due to some one-off expenses. Adjusting for one-offs margin stood at 17.1% against our estimate of 16% for the quarter.
Reported PAT was flat (+2.1% YoY) at Rs 876mn, however adjusted for one-offs stood at Rs 1,006mn, mostly in line with our estimate of Rs 1,024mn. We keep our positive view intact on NIIT Tecnologies and maintain our Hold rating with a revised target price of Rs 1461.
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