Emkay: Result Update: NIIT Technologies

[Rajesh Desai]

Result Update (January 15, 2014)

Result Update   NIIT Technologies Ltd. Reco: ACCUMULATE CMP: Rs 389 Target Price: Rs 450 On the improvement trail ·      Dec’13 qtr revenues were tad short on expectations, margins improved by ~120 bps QoQ to 16.3% for the 2nd quarter in a row aided by lower Hardware/India business ·      Strong order intake during the quarter (US$ 377 mn) led by the largest renewal TCV deal for the company. DSO improved to 96 days led by business mix improvement ·      Company continues to emphasis on targeting better revenue mix (greater share of International business) and thus we see an improving margin trajectory ahead ·      Raise FY15E EPS by ~5% to Rs 45. Introduce FY16E EPS at ~Rs 50.2. Valuations remain inexpensive given improvement in financial performance ahead. ACCUMULATE, TP Rs 450 Recommendation History Recent Research Reports NIIT Technologies Ltd.: Soft performance, inexpensive valuations IT Services; US Immigration Bill risks on radar NIIT Technologies Ltd.: Soft quarter, inexpensive valuations help keep the faith IT Services; Continental Europe: Doors opening up NIIT Technologies Ltd.: Inline performance, retain ACCUMULATE IT Services; In the pink of health NIIT Technologies Ltd.: Inline show, retain +ive view on inexpensive valuations IT Services; Realigning EPS est to revised currency assumptions NIIT Technologies Ltd.: Inline op performance, PAT miss on forex losses IT Services; US Immigration Bill: Requires tweak to business model NIIT Technologies Ltd.: Inline revenues, profit beat driven by forex gains IT Services; Sound Strategy NIIT Technologies Ltd.: Inline results, retain ACCUMULATE IT Services Sector Update; Earnings upgrades led by lower currency assumptions NIIT Technologies Ltd.: NIIT Technologies Initiating Coverage; Value beckons, Initiate with ACCUMULATE; Target: Rs250 IT Services Sector Update; Trimming estimates for Tier II coverage   IT Services Sector Update; Cutting estimates to factor in worsening macro   NIIT Technologies Ltd.: On the improvement trail   Click here to read report: Result Update

 

Thanks & Regards,

Emkay Equity Advisory | Emkay Global Financial Services Ltd. | www.emkayglobal.com

7th Floor, The Ruby, Senapati Bapat Marg, Dadar (W), Mumbai– 400 028| Board No.: +91-22-66121212 | Fax : +91 22-6612 1299

 

--
CA. Rajesh Desai