Q1 (April-June 2008)

Insight@NIIT:Vol.1

Investor Communication

Contents

Contents

Quarter1
(April-June'2008) Highlights

NIIT
in News

Campaigns

Environment
Scan

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NIIT Limited Q1 (Apr-Jun
‘08) Consolidated Results 2008-09

Rajendra S.
Pawar
Chairman
NIIT Limited

Our drive
to develop global talent has been strengthened with
launch of the JV with Genpact for the BPO sector.

Vijay K.
Thadani
CEO
NIIT Limited

Strong
enrollments coupled with significant wins in schools and
corporate learning solutions led to a record order
intake of Rs. 500 Cr. Accelerating revenue growth
resulted in operating profit improvement of 29%.

P
Rajendran
COO
NIIT Limited

With new
offerings and addition of a record 2,124 schools, School
Learning Solutions has strengthened its leadership
position.

System-wide Revenue up 25% YoY at
Rs. 366.4 Cr

Operating Profit up 29% YoY

Global Career Enrollments up
28%

Fresh Order Intake crosses Rs. 500
Cr

NIIT
Limited
Consolidated Financials at a
Glance (in Rs. Cr.)

Qtr ended
Jun 30, 07

Qtr ended
Jun 30, 08

Growth
YoY

Global System-wide
Revenue

293.5

366.4

25%

Net
Revenue

225.4

259.5

15%

Operating
Profit

14.5

18.7

29%

Profit After
Tax

15.4

17.0

10%

For the first quarter ending June 30, 2008,
NIIT Limited, the leading Global Talent Corporation has
recorded net revenue of Rs. 259.5 Cr, representing a 15%
increase YoY. Operating Profit grew 29% to Rs. 18.7 Cr. The
company reported Profit After Tax at Rs. 17.0 Cr versus Rs.
15.4 Cr recorded during the previous year.

NIIT Limited recorded 25% growth in global
system-wide revenue, which stood at Rs. 366.4 Cr, for the
quarter.

The results were taken on record at the
meeting of the Board of Directors of NIIT Limited here
today.

During the first quarter of FY 2008-09, NIIT
launched NIIT Institute of Process Excellence — a JV with
Genpact, to create talent pool for Business & Technology
Services industry. The new company will offer programs in
business processes, language skills and business
communication, followed by other areas including finance and
accounting, banking, insurance and supply chain management.
NIIT Institute of Process Excellence programs are designed for
students aspiring to build sustainable careers in the high
growth business and technology services industry.

Overall Individual Learning Solutions
enrollments crossed the 1,00,000 mark during the quarter.

Individual Learning Solutions in IT recorded
growth in net revenue of 34% YoY backed by 28% growth in
global career enrollments. During the quarter, NIIT expanded
presence in key global markets including China and Africa.

India career enrollments grew by 25% driven
by strong response from the graduates and engineers segments.
In the domestic market, NIIT added 12 new centres in the
quarter and expanded seat capacity by 15% YoY.

In China, NIIT set up state-of-the-art model
training facilities in Tiandi Software Park in Dalian, and
started its model learning centre in Chongqing. This took the
overall tally of NIIT centres in China to 177 across 24
provinces.

Finance & Management Training (FMT)
recorded 104% growth in net revenue. The FMT business extended
its reach to 22 locations across the country, by setting up
new state-of-the-art learning facilities in Jamshedpur,
Ludhiana and Jaipur.

With the addition of two new executive
management programs for family owned businesses and frontline
managers, FMT has extended its offering to 22 programs and 6
partner institutes.

For the BFSI sector, FMT enhanced its
offering in Insurance and Financial Planning taking the total
to 6 programs while adding new banks as its partners.

School Learning Solutions show robust growth
of 42% in net revenue driven by strong demand for its
solutions from Government and Private schools. During the
quarter, NIIT received mandate to provide computer aided
education in more than 2,000 State Government Schools in
Andhra Pradesh. The company also received order extensions in
Chattisgarh and Bihar. In private schools, NIIT has
strengthened its offering with the launch of MathLab and
Education Resource Planning Solutions for schools.

Fresh Order Intake crosses Rs. 500 Cr during
the quarter
This included a fresh order intake of more
than Rs. 200 Cr for IT and IT enabled education from schools
and USD 39.2 million for its Corporate Learning
Solutions.

ACKNOWLEDGEMENTS

NIIT’s innovative Smart Science
Station-Computer Aided eXperience (CAX) kit was awarded
‘Letter of Commendation’ by UNESCO at its Annual Convention
on ‘Innovative Practices in ICT in Education’.

NIIT received prestigious ‘Digital
Opportunity Award’ at World Congress on IT (WCIT) 2008 for
its path-breaking Hole-in-the-Wall Education
initiative.

In line with its commitment to
harness talent pool from semi-urban India, NIIT laid the
foundation of its second District Learning Centre (DLC) at
Barkuhi, near Chhindwara, MP. This is NIIT’s second DLC in
the region.

NIIT strengthens China
presence with the addition of new state-of-the-art model
centres in Dalian & Chongqing

Prakash Menon

President
NIIT China

We have
been closely involved with China for the last 10 years
for developing IT talent. The addition of our new
state-of-the-art model centres in Dalian & Chonqing
will further contribute towards this purpose and help
produce ‘Global Professionals’ for tomorrow.

NIIT made significant announcements, in its
endeavour to develop Human Capital Infrastructure for the IT
sector in China. NIIT signed a Memorandum of Understanding
(MoU) with Shui On to set up state-of-the-art model training
facilities inside the upcoming Tiandi Software Park being
built by the leading Chinese real estate developer in Dalian,
an IT hub. At the same time NIIT also commenced operations
from its model centre in Chongqing.

The new model centres
together are expected to train over 2000 professionals in the
first year and about 10,000 students annually by 2010. The
NIIT model centres in Dalian & Chongqing will offer
globally acclaimed IT training programs.

NIIT HiWEL receives
‘Digital Opportunity Award’ at WCIT 2008

First Indian company to
receive this prestigious recognition by World Information
Technology and Services Alliance (WITSA), for its innovative
efforts in spreading computer education in remote areas and
improving quality of education.

Hole-in-the-Wall
Education Ltd. (HiWEL)—an initiative of NIIT, a leading Global
Talent Development Corporation and International Finance
Corporation—has been conferred the coveted ‘Digital
Opportunity Award’ for its path breaking work in spreading
computer literacy and improving the quality of education at
the grass root levels, by the World Information Technology and
Services Alliance (WITSA).

Mr. Phil Bond, President
Information Technology Association of America (ITAA) gave away
the award to NIIT CEO Vijay K Thadani at 16th World Congress
on IT (WCIT) 2008 Awards’ Ceremony—the annual congregation of
world’s leading technology companies and associations held at
Kuala Lumpur.

WITSA Global ICT Excellence Awards held
every two years, aim at identifying and honouring the most
outstanding users of Information and Communication Technology.
NIIT (HiWEL) has been honoured for its commitment and efforts
to help underserved groups bridge the digital divide, by
offering exciting and effective education and learning
experiences through innovative technologies in remote areas.

Jaipur gets its first Playground Learning
Centre from HiWEL

Hole-in-the-Wall Education Ltd. (HiWEL), in
partnership with Jaipur Municipal Corporation (JMC) and
Rajasthan Council of Elementary Education (RCEE) have
dedicated 5 Playground Learning Centers (PLC) to the school
kids of Jaipur. HiWEL is a joint venture between NIIT, and the
International Finance Corporation, a World Bank Affiliate.

HiWEL PLCs provide free and unsupervised
access to computers for children belonging to economically and
socially marginalized populations, in remote rural locations
and urban slums. HiWEL PLCs come with the unique Minimally
Invasive Education approach and encourage children to take
responsibility for their own learning. As part of the
agreement, HiWEL will set up 200 such PLCs with 400 computers
in 200 low-income schools in and around slum locations in
Jaipur.

Union Minister Kamal Nath and leading
technology companies converge at NIIT Centre in
Chhindwara

Kamal Nath
Hon'ble
Union Minister for Commerce & Industry

Government of India

I am happy
to see the industry come forward for nurturing the
inherent talent base in rural India. NIIT’s Model DLC in
Chhindwara will go a long way in inducting our youth
into the mainstream industry.

Following its commitment to
harness talent pool from semi-urban India, NIIT, announced the
setting up of its 2nd District Learning Centre in Chhindwara.
Hon’ble Union Minister for Commerce & Industry Mr. Kamal
Nath had laid the foundation stone for NIIT’s new District
Learning Centre in neighbouring Barkuhi town in Chhindwara
district. The Minister was joined by Mr. R Sivakumar, Managing
Director, Sales & Marketing, South Asia, Intel; Mr. Harish
Krishnan, Director, Global Policy & Government Affairs,
Cisco India; Mr. Rajendra S. Pawar, Chairman, NIIT; Mr. Vijay
K. Thadani, CEO, NIIT, and senior representatives from leading
IT organizations like Cisco, IBM, Infosys, TCS, and Wipro, to
flag off the 2nd DLC, and address at the 1st Convocation
Ceremony at NIIT DLC in Chhindwara. Students passing out of
the first batch of NIIT Chhindwara were awarded their
certificates by the Minister.

Genpact-NIIT JV to Create
Skilled Talent Pool for
Business &Technology

Ashish
Basu
President
New Business
Incubation

NIPE, a
landmark initiative by NIIT and Genpact is a blend of
strengths of both the partners aimed at providing
extensive training curriculum for aspirants and
employees of business services and technology companies.
By offering a large talent pool of professionals with
business processing knowledge, NIPE seeks to cater to a
strong demand for professionals in this arena.

NIIT Institute of Process Excellence to Offer
Training Programs in Business Process ServicesGenpact (NYSE:
G), which manages business processes for companies around the
world, and NIIT have formed a joint venture — NIIT Institute
of Process Excellence Ltd — to address the increasing demand
for skilled workers in the business & technology services
industry by providing training programs in relevant areas. The
new company will initially offer training programs in areas
such as business processes, language skills and business
communication, and intends to add additional offerings in
other areas including finance and accounting, banking,
insurance and supply chain. NIIT Institute of Process
Excellence is designed for students aspiring to build
sustainable careers in the high growth business and technology
services industry.The joint venture was announced by Mr.
Pramod Bhasin, Vice Chairman, NASSCOM and President & CEO,
Genpact; Mr. Rajendra S. Pawar, Chairman, NIIT; and Mr. Vijay
K. Thadani, CEO, NIIT.Mr. Bhasin said, “This is a significant
milestone that we believe will benefit not only Genpact, but
the entire business and technology services industry. Genpact
and NIIT are committed to building a world class training
organization that will focus on developing talent and
increasing employability to meet the growing demand for a
skilled workforce in the countries where we operate.”Sharing details about the training facilities,
NIIT CEO Vijay K. Thadani said, “NIIT Institute of Process
Excellence training programs will be offered to students
through our state-of-the-art learning centers in key metros,
mini metros and Tier II towns in India, followed by China and
the Philippines”.

UNESCO recognition for
NIIT’s Innovation in ICT in Education

P
Rajendran
COO
NIIT Limited

We are
delighted that NIIT has brought India on the global map
of Innovation in ICT in Education.

NIIT has been honoured for its
state-of-the-art ‘Smart Science Station—Computer Aided
eXperience Kit’—at UNESCO’s Annual Convention on ‘Innovative
Practices in ICT in Education’, at Bangkok
recently.

‘Smart Science Station—Computer Aided
eXperience (CAX)’ kit, part of NIIT’s eGuru solution, is a
breakthrough innovation in teaching strategies for Science in
schools. The kit enhances learning capabilities of children by
making Science fun and interesting, thus improving academic
performance. The innovative learning solution has already been
installed in 50 schools across the country and has received
encouraging response from teachers and students.

NIIT enters into a
strategic alliance with Infospectrum

L.
Balasubramanian
President
School Learning
Solutions
NIIT Limited

This
project has taken NIIT’s total presence to 2663 schools
in the State of Andhra Pradesh alone. NIIT will also
train over 50,000 AP Government school teachers in the
next 5 years as part of this new engagement.

Viswanathan
Anand
Grandmaster

NIIT
MindChampions Academy is a unique initiative to provide
a platform to young minds to get initiated into the Game
of Chess.

NIIT signed an agreement with Infospectrum, a
global software product development and technology services
enterprise, to offer highly customizable Educational Resource
Planning Solutions in schools. Following this alliance, NIIT’s
School Learning Solutions will extend its current offering for
schools, to include Educational Resource Planning, thus making
it a completely integrated solutions provider for schools.
Infospectrum will continue to undertake research & product
development for these state-of-the-art solutions.

An agreement to this effect was signed
between Mr. L. Balasubramanian, President -NIIT’s School
Learning Solutions and Mr. Jay Chopde, CEO& Founder-
Infospectrum. The strategic alliance results in offering
‘Quick SchoolTM’ an Educational Resource Planning tool for
schools. QuickSchoolTM is an integrated and comprehensive
solution that spans across all functional requirements and
departments of educational institutions.

NIIT to implement computer education across
2005 Schools in Andhra Pradesh

Having successfully provided school learning
solutions in over 663 government schools of Andhra Pradesh in
the last five years, NIIT has now received the Letter of
Intent to provide computer and computer aided education in
additional 2,005 schools in Andhra Pradesh, at a value of Rs.
1728 Million.

NIIT will cover over 4.2 million children
across 2005 schools in the state of Andhra Pradesh over a
period of five years.

NIIT has been at the forefront of providing
computer education in the state of Andhra Pradesh since 2002.
This project further strengthens NIIT’s leadership in the
School Learning Solutions space.

NIIT bags new orders to impart computer
education to 1.9 million school students in Bihar and
Maharashtra

NIIT has received the mandate for providing
computer and computer aided education to 1.9 million students
in 900 State Government Schools in Maharashtra and Bihar. As
per two back to back orders bagged by its School Learning
Solutions Business, NIIT will train nearly 1.3 million
students in 500 State Government Schools in Maharashtra, and
600,000 children in 400 Schools in Bihar, in the next five
years.

NIIT’s comprehensive learning solutions will
be provided from classes 8 to 12 in specified Secondary and
Higher Secondary Government Schools on turnkey basis model. As
per the agreement with Bihar State Electronics Development
Corporation (BSEDC), NIIT will also provide a dedicated Help
Desk in Patna to log in calls and enable smooth implementation
and running of the project.

World Chess Champion Viswanathan Anand flags
off NIIT MindChampions Academy 2008-09 Series, nationally

Anand addresses students live across 12
cities, and unveils the MCA trophy

Signifying the nationwide launch of ‘NIIT
MindChampions Academy (MCA) 2008-09 Series’, World Chess
Champion Viswanathan Anand flagged off the popular Chess
initiative, by unveiling the horse head shaped ‘Chess Master’
mascot, while engaging in a technology driven workshop with
school students and media, across 12 Indian cities.

Welcoming Anand, and the children,
Mr P Rajendran, Chief Operating Officer, NIIT said, “NIIT has
been developing talent globally, by equipping the youth with
skills necessary for the knowledge economy. The NIIT Mind
Champions Academy aims at exposing young minds to the Game of
Chess to enable their all-round growth and better
performance”.

Nearly 300 school children
participated in the live tutorial by Anand, and witnessed the
MCA launch ceremony across—Ahmedabad, Bangalore, Bhubaneshwar,
Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, New
Delhi, Pune and Vishakhapatnam—facilitated by NIIT Imperia’s
synchronous learning technology. Anand gave playing tips to
young Chess enthusiasts and responded to their queries, using
NIIT Imperia’s national network which is being used by premier
business schools such as the IIMs (Ahmedabad, Indore, Kolkata)
and others, to offer their executive management education
programs to working professionals across the
country.

NIIT launches Kolkata’s
first ‘NIIT eGuru Math Lab’

Dr. Smarajit
Dey
President
Strategic
Initiatives
NIIT Limited

NIIT’s
Finance & Management Training Business has enriched
its portfolio through new partnerships, and is extending
reach to Tier II & III towns, for developing talent
for emerging sectors.

Launching a breakthrough initiative that aims
at making the vital subject of mathematics simpler, easier and
fun to learn to school students, NIIT installed the first
‘NIIT eGuru Math Lab’, at Ballygunge Shiksha Sadan in
Gariahat, Kolkata. This also marks the establishment of the
first such Math Lab in the city of Kolkata.

CBSE, the apex body for
secondary education in schools had issued directives to all
schools following the CBSE curriculum, to install a Math Lab
for promoting the subject.

Imperia brings Management Programs from
country’s premier B-Schools for Executives in Jamshedpur

NIIT launched the NIIT Imperia, Centre for
Advanced Learning in Jamshedpur with the principal aim to
bring executive management programs from country’s premier
B-schools for working professionals in the city. NIIT
Imperia’s state-of-the-art learning centre will bring short
and long term programs in general and functional management
from prestigious institutions such as the IIMs—Ahmedabad,
Calcutta, Indore & Lucknow; IMT Ghaziabad, and IIFT New
Delhi.

The new centre will use the innovative
Synchronous Learning technology enabling the classroom to be
connected live with the faculty teaching at
institutes.

The content, teaching and certification for
the programs being offered through NIIT Imperia, is from the
management institutions, while the technology, synchronous
classrooms across the country, and the management of the
distributed education system is being provided by NIIT.

CII and NIIT join hands
for ICT development in Africa

G
Raghavan
President
Individual Learning
Solutions
NIIT Limited

Through
strategic alliance of NIIT with CII we aspire to
cultivate talent in Africa by extending state-of-the-art
educational resources for the global IT industry. Our
joint efforts are aimed at exploring the modalities of
embedding the IT education and targeting possibilities
of Talent Development in Africa.

CII, India's apex industry body and NIIT have
formed an alliance to help create ICT infrastructure and
foster International Software Talent in the African continent.
As part of this capacity building and skill development
endeavor, NIIT and CII will share high quality education
resources from India and involve other appropriate players
from the Indian industry to help Africa develop human capital
for the global IT industry.
As part of the agreement, NIIT
will provide relevant IT curricula in line with international
IT trends, and content for IT, soft skills and
entrepreneurship for training in Universities and Colleges in
Africa. CII on the other hand will facilitate internship with
the Indian industry.

NIIT and CII will work together and will
consider including NIIT's industry endorsed IT training
programs in the curriculum of universities and colleges in
Africa, under its 'NIIT Inside' model. Both organizations will
also look at possibilities of establishing 'Centers of
Excellence' for Talent Development in different African
countries.

NIIT in
News

CII, NIIT to give Africa an edge in
IT, The Financial Express, April 17,
2008

Experimenting with Maths, Hindustan
Times, April 23, 2008

Indian trainer makes IT happen for
the Chinese, The Hindu, April 20,
2008

Climbing Ladders, Hindustan Times,
May 28, 2008

Anand's tips makes them happy, The
Times of India, May 10, 2008

NIIT wins Digital Opportunity Award,
The Financial Express, May 29,
2008

Nath, lead technology companies
converge at NIIT Centre, DNA Money,
May 28,
2008

Campaigns

Environment
Scan

IDC sees 9.5% growth in
manufacturing IT spends- July 2,
The Hindu
Business Line

IT MNC's to hire 40, 000 in India-
The Times of India, April 24

IT sector grows 28% in 2007-2008,
says Nasscom- The Times of India, July
10

IT boosts companies' profits by 30%
- Business Standard, May 6

IT industry to expand footprint -
The Times of India, June 16

IT spend by small, medium cos set to
rise 22%: Study - The Hindu Business Line, April
4

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Copyright © 2008 NIIT
Limited