New Delhi, May 5 (IANS) Learning management company NIIT Ltd (NIIT) on Tuesday said it has underwent a net loss of 50.52 percent during 2014-15 as its profit declined to Rs.114.06 crore against Rs.230.53 crore for the corresponding timeframe during 2013-14.
Its revenues during the time period under review, however, increased marginally by 2.9 percent at Rs.2,372.50 crore against Rs.2,304.99 crore in 2013-14.
“It has been a tumultuous year as the company addressed changing expectations of the market. With major issues behind us and a well-defined agenda we can look forward to a period of sustained growth and profitability,” said chairman Rajendra S.Pawar in a statement.
The company said reduced focus on domestic government business led to a decline by 38 percent over previous year in the government sector and the company encountered client specific issues in the US during April-June 2014.
“A dispute had arisen between one of the company’s subsidiaries and its client in the APAC region. The dispute was resolved by concluding a settlement agreement which released the company of its obligations towards execution of the programme. The financial impact of this one off event during the quarter (January-March 2015) is Rs.80 crore” it said.
As part of a strategic investment, NIIT said it has signed a “definitive agreement” with a business process management firm, Incessant Technologies to acquire a 51 percent stake in the company.
“Incessant provides us with the capability to be a significant player in the digital integration space with digitization and automation of business processes for seamless customer experience,” said chief operating officer Sudhir Chaturvedi.