1 month ago
Learning and development firm NIIT Learning Systems believes that GenAI will open new doors for the company in times to come.
“The potential that GenAI offers in significantly transforming Learning & Development (L&D) is very high and while it will enable us to open doors, the bread and butter will continue to be L&D programmes. Practices that are well-established will help organisations outsource learning and development so that they can focus on the core business of their organisation,” said Sapnesh Lalla, CEO, NIIT Learning Systems.
Lalla sees that in future GenAI will transform the L&D space. “We think that GenAI is an opportunity that can significantly transform how L&D gets done better and we feel that we will continue to invest disproportionately in that technology,” he added in an interview post its Q1 FY25 results.
For NIIT Learning Systems, the overall macro uncertainty has created more outsourcing opportunities, but it has impacted the deal closure time.
He added, "There continues to be significant macro uncertainty, which is driving a lot of organisations to restructure, to change, to cut costs. Those are things that result in increased opportunities for outsourcing. However, as those opportunities increase, given the restructuring and uncertainty, it also causes delays in decision-making.”
“So, we see our pipelines grow. We see our customer acquisition activity is growing, but the decision-making is taking longer and it's getting longer for contracts to get fructified,” he added.
NIIT Learning Systems announced their results on Thursday. The learning and development (L&D) solution company reported a profit growth of 8.7 per cent to Rs 60.02 crore in the quarter ended June 2024 as against Rs 55.17 crore during the same period last year.
During the April to June 2024 quarter, the company recorded a consolidated net revenue of Rs 407 crore, up 7 per cent Y-o-Y and up 2 per cent Q-o-Q.
EBITDA stood at Rs 102.4 crore, up 11 per cent on a yearly basis and 3 per cent sequentially, while the EBITDA margin stood at 25 per cent.
The firm added three new managed training services (MTS) contracts during the quarter, taking the total MTS contracts tally to 89.
Amongst different verticals, BFSI and life sciences led the growth for the company in Q1, while technology and telecom declined both sequentially and on a yearly basis.
“The technology market segment continues to be challenged. We are seeing growth in BFSI and life sciences and given that those two segments are seeing growth, while the others are staying stagnant, therefore, the share of life sciences and BFSI has grown,” said Lalla.
