NIIT Limited (NSE: NIITLTD) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Unidentified Speaker
Sapnesh Lalla — Chief Executive Officer
Vijay Kumar Thadani — Vice Chairman & Managing Director
P. Rajendran — Joint Managing Director & Co-Founder
Sanjay Mal — Chief Financial Officer
Rajan Venkataraman — Chief Digital Officer
Babita Karki — Chief People Officer
Pankaj Jathar — Chief Executive Officer
Kapil Saurabh — Vice President and Head of M&A and Investor Relations
Analysts:
Unidentified Participant
Ankit Dharamshi — Analyst
Ganesh Shetty — Analyst
Kunal Tokas — Analyst
Rahul Jain — Analyst
Presentation:
operator
Good day and welcome to the NIIT Limited Quarter 4N FY25 Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
I now hand the conference over to Mr. Vijay Thadani, Vice Chairman and Managing Director, NIIT Limited. Thank you. And over to you, sir.
Vijay Kumar Thadani — Vice Chairman & Managing Director
Thank you. Good afternoon. Welcome everyone to this particular briefing session where we are going to talk about quarter four as well as the full year financial year 2425 results. To start with, thank you very much for your continued interest in NIT Limited and we enjoy these conversations because your questions make us rethink our strategy as well as refine our communication and strategy going forward. Today’s agenda includes an Update on quarter 4 as well as the full year FY25 results. We would also like to provide an update on some key strategic developments, including an inorganic initiative which you would have already read about and some other corporate actions that were discussed in today’s board meeting as well as also the way forward for this business which we are indeed very exciting times.
Bit uncertain, a bit more volatile than normal, but nevertheless they are exciting times with newer technologies coming in and changing the landscape, the way we work, the way we live. And we are looking forward to continuing to play a very important role in this new environment. I would just give a small context to the last quarter that we went through and then I will we will jump straight into the Raj. So we had a very uncertain and volatile macroeconomic environment. I think most of you are actually experiencing it, so I don’t have to even amplify that.
But despite that, I think we’ve delivered a fairly resilient performance from swift and deliberate actions that were taken last year have enabled us to return to growth. In the year prior to that, we had declined in revenues. So despite continuing headwinds and uncertainty that we had from time to time during the year, I think we were able to deliver a certain amount of growth. We would have liked it to be better and I think we discussed that we would have liked it to be better. We had planned for it to be better. We were nearly killed to deliver to that.
However, there have been reasons and we will discuss that as we go forward. But while we were battling this uncertainty, there were three initiatives which I thought I should talk to you about one in this process, with our new leadership team that came in under the leadership of Panka Jathar who took over as CEO, I think we have been able to broaden our customer base fairly significantly. We have deepened our penetration in gsi, gccs and private sector banks and now even expanding ourselves to the rest of the banking sector and financial services sector. We’ve expanded our portfolio of offerings fairly substantially, whether it is Genai cybersecurity, data engineering, analytics, whether it is for enterprises or it is for consumers.
And we continue to invest in creating newer and newer offerings whether it is to train enterprise architects or digital architects. And lately I think with the new education policy’s focus on providing an integration between higher education and the industry and skilling part, we were very keen to get involved in that part and some steps that we have taken have resulted in an inorganic opportunity which got materialized so in the month of April, but we nevertheless talk about it today which is nit acquiring IM Neo, an AI powered SaaS platform which is focused on deep industry relevant scaling.
So we’ll be talking about all this in the background and I had introduced Pankaj to you a few quarters ago. In one quarter he lost his voice because of a sore throat. In the second one he had found his voice back and this time I think he has a stronger voice than before. So this is also his first time when he will be presenting the annual results of NIT Limited. So it’s a very exciting milestone for us. So with that I hand you over to him.
Pankaj Jathar — Chief Executive Officer
Thank you Vijay and good afternoon to all of you. Thank you for joining the call. I’m happy to be presenting NIIT’s results on this call. I’ll walk you through the financial performance for Q4 and the pull lab and also share some insights into the road ahead starting with the Q4 financials. As previously communicated, Q4 is typically a seasonally weak quarter, particularly for VFSI due to fiscal year end slowdown. A year on year view is more reflective of our trajectory. Revenue for Q4 was rupees 863 million up 16% year on year and down 12% quarter on quarter.
This is the fifth successive quarter of double digit year on year growth despite the volatile and uncertain environment that we have faced. Having said that, of course we expected to see better growth for the quarter, but we were impacted by increased volatility and the growing uncertainty in the environment. I’ll briefly talk about the product mix that we’ve seen. Revenue from technology programs is up 20% year on year Revenue from BFSI and other programs is up 8% year on year under technology. Technology is to BFSI. The ratio technology to BFSI and others the mix is at 67.67 33 whereas last year it was 64 is to 36 and last quarter 65 is to 35.
The broad basin that Vijay talked about. So the broad base year on year growth led by technology and reinforced by continuing growth in BFSI and other programs in what is traditionally a seasonally soft quarter. Technology spends improving BFSI training spends softened due to regulatory development. These are some of the reasons why we saw the kind of numbers that we saw in Q4 in terms of learner mix. The early careers program was up 40% year on year and workflow programs were down minus 6% year on year. The mix between early career and workflow is now at 5743 versus 48.
52 year on year reflecting improved hiring sentiment in the technology space. Decline in the workflow programs reflects the impact of environment on training. Spends for that particular EBITDA was at 4 million consistent with our guidance due to the investments in this quarter, depreciation was 59 million as compared to 61 million last quarter due to rationalization of lease premises. Net other income for the quarter was Rs. 221 million which is predominantly contributed by treasury income. Income on lease assets, adjustment in payout obligations of acquisitions, et cetera. Tax was 28 million with an effective tax rate of 17%.
Minority interest was 6 million. Loss from discontinued operations at Rupees 1 million. Profit after tax was 131 million versus the same 112 million for last year. Profit after tax is up 18% year on year. Earnings per share was Rupees 1 per share in Q4 versus Rupees 1 in Q3 and 0.8 of KC Paisa per share last year. Now for the full year FY25 results, revenue was at 3576 million up 18% year on year. This is a significant turnaround in performance as compared to the 11% decline in FY24 in terms of product mix. All round growth in both technology and BFSI and other programs with technology started to gain momentum starting mid year and BFSI programs saw some moderation due to regulatory actions towards the end of the year.
Technology programs were up 12% year on year. BFSI and other programs were up 32% year on year. In terms of MICS technology issues of BFSI and others, MICS was at 66. 34% versus 6931 last year the Learner Mix the growth in revenue for both early career as well as worthcore learners is what we saw. Revenue from early career programs was up 23% year on year and revenue from work Pro programs was up 13% year on year. Early career into work Pro mix was at 52. 48 versus the 50s to 50 mix last year. We’re starting to see some cautious pickup in hiring although the environment continues to remain volatile.
EBITDA was at 115 million as compared to 48 million last year. The business continues to be in investment mode and we are ramping up our growth initiatives. Depreciation for the year was rupees 232 million as compared to 184 million last quarter. Net other income was rupees 707 million versus 594 million last quarter. This resulted in a full PAT of rupees 461 million versus PAT of 384 million last year. PAT is up 20% year on year and earnings per share for the full year 3.4 per share versus 2.9 last year. I will run through some of the balance sheet metrics.
Balance sheet metrics remain strong. DSO was slightly higher at 51 days compared to 46 days last year and 68 days last quarter. Down quarter on quarter due to seasonality consistent with the investment cycle the company is in. CapEx for the quarter was 83 million in platform software licenses, cash and cash equivalents at the end of the quarter at rupees 7580 million versus 7395 million in Q3FY25 and rupees 7185 million last year. Employee headcount was at 722 at the end of the year up two numbers quarter on quarter down by about 31 year on year. While continuing to invest in growth, the company has been focused on adapting its expense structure to convert fixed expenses to variable costs.
A Matured Business the broad basing of our go to market that the company deployed over the last year resulted in consistent recovery in the business. This is the fifth successive quarter of double digit year on year growth. As you know, business was impacted last year due to a virtual freeze in hiring by large IT services firms during the events of the last two, three weeks that led to some deference and cancellation. We are seeing an improving trend in consumption over the past year. We feel that this trend has megged and will continue once we get past the current uncertainty.
Swift actions that your company took to broadbase to go to market for technology programs. We expanded coverage in GCCS and Tier 2 GSIS increased focus on upskilling reskilling with a number of advanced programs such as Enterprise Architect, Cybersecurity, AI, ML and Genai Digital architects and engineering managers for BFSI and other programs. Deeper penetration in the banking sector where we work with the top four private banks for training both early career and working professionals Adding new logos across the board, broad based offerings for India enterprises, building Genai based portfolio and adopting an AI first approach across the entire organization.
These actions resulted in a suitable and profitable growth platform for the company. The company continues to build on these actions. Some of the macro trends and strategic positioning we are witnessing Transformative shifts in technology education, workforce Dynamics led by AI and multiple industry transformations at play. EV, ERND, BioPharma digital banking these are some of the areas that are making these changes. NIIT is strongly positioned to lead in this environment of continuous skilling and upskilling demand. We now serve learners across universities preparing students for college to corporate transition Industry onboarding, upskilling and reskilling for career progression Consumer GTM Employability enhancement Some of the tailwinds that we are seeing Genai driven innovation reshaping industry, government focus on employability and Vixit VARAT vision a lower GER and about 10.7 million annual graduates, only 51% of whom are employable.
According to an economic survey from 2024, over 11 million professionals in it and VFSI require significant upskilling and reskilling. The need for large number of skilled professionals in er and D EV, new age manufacturing, etc. NEP led transformation of higher education now coming to our guidance. Current situation as observed still has a lot of volatility and uncertainty. We had planned for a strong growth for Q1 and we are seeing a little bit of an impact this quarter given the environment. However, year on year growth is expected to be better than Q4 growth. We expect the growth to improve from Q2 given that the local environment seems to be resolving itself for the full year.
We expect growth to be over 25% in FY26. We would need to revisit this every quarter given the volatility and uncertainty in the environment over the medium to long term. We continue to see a large opportunity ahead of us and remain committed to our stated long term goals. I need to reiterate NIIT has a strong and trusted brand differentiated deep skilling methodology delivered at a scale and using AI to power the delivery 200/ Active corporate partnerships Customers with revenue greater than 90% from repeat customers More than 30 OEM partnerships that give us early access to cutting edge technology, A strong balance sheet to continue investments in innovation and growth A significant business transformation cycle ahead which would create demand for specialized talent.
We are well poised for growth. The focused entity enables us to be nimble and agile. As we address this market, we continue to look for opportunities for both organic and inorganic goals. We completed one in April of a young, fast growing, profitable and innovative company.
I invite Vijay to provide us an update about it.
Vijay Kumar Thadani — Vice Chairman & Managing Director
Thanks Mankar. So during this quarter which is on 17th of April to be size, NIT acquired 70% stake in a company called IAM Neo Edtech Private Limited, a leading provider of deep skilling technology training solutions through a scalable AI powered SaaS platform. So the induction of AI powered scalable SaaS platforms, especially for deep scaling solutions is extremely relevant to NIIT’s go forward strategy. This transaction was approved by NIT’s board of directors at its meeting on April 17th. As I mentioned, under this agreement NIT will acquire the remaining 30% shareholding in phases from imeo’s promoters subject to the achievement of BID financial milestones.
IMEO will function as a subsidiary of NIT Ltd. With IM Neo’s founding leadership continuing in their existing roles, ensuring seamless continuity of operations. This strategic acquisition unlocks substantial growth opportunities enabling NIIT and IMEO to deliver robust outcome driven learning solutions at scale for undergraduates and early career professionals. This will be done through universities where IMEO has a strong and large footprint through industry relevant technology programs including automated technology labs, assessments, student placement preparation and placement process management. IMD also works with corporates through platform led immersive talent onboarding and employee upskilling programs, IT skills assessment and campus recruitment management.
We are very excited about this investment and warmly welcome Ionneo’s founders and their talented team to the NIMC funding. Ionio’s innovative solutions significantly enhance our capability to deliver impactful digital transformation curricula at scale. This acquisition will provide us access to more than 6,000 plus private engineering colleges, a significantly underserved market and also it will add many other universities and colleges as a new channel which is very relevant in today’s environment given the focus of integrating higher education with skills skills development as well as needs of the industry. This initial transaction value was 613 million which included 100 million primary infusion up to 513 million second repurchase subject to closing adjustments and true up so totally 613 million invested at this point of time and balance 30% will be acquired over FY26 to FY30 subject to defined milestones.
I must point out that the transaction is expected to be growth margin and EPS excited from the very first year itself. The second update I wanted to give was a corporate action which has been taken during the quarter where NIIT has agreed to buy the stake of IJIC Air bank limited in the joint venture or NIIT Institute of Finance, Banking and Insurance which has been running for a while and this transaction was also announced during the quarter and this is subject to completion of various other formalities while the agreement has been in place, but the closing is yet to happen.
The third thing which I want to talk about was on the dividend today in the board meeting. The board also looked at the performance of the organization, the results that the company has as well as the outlook that is available in the future, along with the investments that are proposed to be made and consistent with the dividend policy that the company has followed of giving a consistent dividend across the year, the board recommended a dividend of rupees 1 per share for FY25. This is obviously subject to approval by the shareholders and the shareholder meaning and then dispersed accordingly.
So I will stop at this point of time and open it. Open the floor for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star then one on your touch tone phone. If you wish to remove yourself from the question queue, you may press Star then two participants are requested to use handsets while asking a question. Ladies and gentlemen, please wait for a moment while the question queue assembles again. To register for a question, please press Star then one. Our first question comes from Ganesh Shelby, an individual investor, please.
Ganesh Shetty
Good evening sir. My first question is regarding our new offering gniit and I want to know how it is being received by the student community in this difficult period of it. IIT.
Vijay Kumar Thadani
Said it’s your first question. You can tell it for others also. We can then respond to them in one shot. Okay.
Ganesh Shetty
My second question is regarding our investment in inorganic as well as organic initiatives. So will the investment will be reduced for the coming period so that we can have a significant improvement in EBITDA margins? Your take on this. And my third question is regarding our strategy for our AI skills and AI agents and whether we can use these skills for any other upskilling initiatives other than technology and dhsr. Thank you sir. These are my three questions.
Vijay Kumar Thadani
Yeah, so I’ll address these questions.
Pankaj Jathar
So first question on the GNIIT program. I think so far we’ve seen a good reception from the customer base on gniit and we are now in the part of the year where we expect more audience to be receptive to this offering as audiences are just transitioning from an exam time to the starting of the course time. So we are working on our marketing campaigns are on right now and the strategy is to push GNIIT as much as we can. We will come back in Q1 with the results of Q1 to tell you more about how successfully we’ve managed to place the product offering of GNIIT with the market.
Your second question was on investment. I will answer this and Uday, you can or Sanjay you can add to it. So we will continue to be in an investment cycle. Janesh, we are still building this business. We have set forth an ambition of doing this into a large business. So for at least the next few quarters we will continue to remain in an investment cycle as we build out our product offerings and our marketing. So I see us continuing to be in investment cycle for few more quarters. Ujay, if you want to add anything to that.
Vijay Kumar Thadani
Yes. So I think what he’s referring to is organic. I will add the inorganic flavor. I think one of your questions was whether the inorganic investment that we made in recent times, will that be accretive? Yes, it is growth margin as well as EPS accretive. So it will add to our profit. It will add to our growth percentage as well as it will add to the bottom line that we finally deliver to shareholders significantly. I think we have a very exciting time ahead as we integrate that organization’s offerings into our own. And as the IM NEO team integrates the offerings which NIT has and offers to their customer base, we will be continuing to be on the lookout and add more companies selectively in our portfolio.
As you know, our approach to inorganic is that either we should build a new capability or a new segment as well or in a new offering. So in this case all three are checked out. And to that extent I think this acquisition will contribute a great deal for our future and I think it will be a mutually beneficial situation to both the organizations and to the larger organization. Going forward, we will look for similar opportunities. It does take time, but as we have moving forward, I think we’ll have more such opportunities available to us. Your third question was on AI skills and AI agents and how are we taking advantage of those? Again, I’ll ask Pantash to comment on this.
Pankaj Jathar
Thank you Jay. And thanks Manish. That’s an Interesting question. You specifically said whether we can take it as a strategy beyond technology and BFSI customers. So you’re right. Now we are taking our AI skills offering and agentic AI offerings to technology and BFSI companies. But there is also very large opportunity that we see with the India enterprise customer base. And currently we have a large funnel of AI skill kind of opportunities with the India enterprise customer base that we are working on. And we have some very interesting solutions that we are creating with them. Not only training people but also trying to create tools and agents that companies can use for their own productivity gains.
And definitely as a strategy we are approaching the market with our skills offerings and agency KI offerings and we see receptivity for our offerings from all segments that we work with, technology, BFSI and media enterprise.
Ganesh Shetty
Thank you very much sir for the detailed response and all the best for the future. Thank you very much.
operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press star then one on your touchstone phone. Our next question comes from Ankit Taramshi from RNM Capital Trust. Please go ahead. Yes, if you’re using a speakerphone or a headset. Okay. Maybe request to use the handset mode.
Ankit Dharamshi
Please give me a second.
operator
Go ahead Ankit, we can hear you.
Ankit Dharamshi
Yeah, yeah. So thanks for the opportunity. So my question was just a follow up question since GNIT program. I think this was an old program, which was there edited earlier. Just wanted to understand how. How is this different this time and what is the duration and fee of this program? I think it is back when this program was launched because and kind of a parallel program offer to an engineering. I mean people who are not able to enroll for engineering can’t of used to do gnip. Is it on the same lens? If you can do some more color on that?
Pankaj Jathar
Sure. Thanks Ankit. And by any chance are you a GNIT graduate?
Ankit Dharamshi
I knew one friend who was in GNIT graduation.
Pankaj Jathar
Okay. Okay, cool. So you are right, it used to be what we call a dual qualification, right? So where you did this program in parallel to your primary degree or qualification and it was one of the most successful programs of its nature in the country. And when we relaunched it, the basic principle remains the same. It is still a dual qualification kind of a program where you use it to augment your primary degree or primary education qualification that you are doing. In this case it could be an engineering degree that you are doing and you could still do GNIIT because this connects you to the industry and the real world where you gain skills that will make you directly employable in the real world job market.
The structure is we’ve changed a lot in how we structured it. This is now a very flexible stack based program. There are multiple stacks and you build it based on how you want to approach your skilling. So very skill backward program that we created where you decide what are the skills you want to acquire and then you build up the stacks based on the skills that you want to acquire in parallel to your primary education. And the duration again depends on how quickly someone is able to go through those different skill programs that we’ve put together, how quickly you can go through the stacks and build them up in your portfolio.
So you could do this program in 18 months, you could do it in three years depending on your approach. It also involves industry practice. The original GNIT program had one semester of industry practice and we replicated something similar with the relaunch as well. So in many ways it is similar in theory. The concept of it, the actual practicum is updated to the current world requirements and create a lot of flexibility in how you enter the program, how you exit and how you structure the components of the program to build it as per your requirements.
Vijay Kumar Thadani
I think the only other dimension I will add is compared to the earlier the NID program which itself provided enormous flexibility to the students. In this case that flexibility is of one order of magnitude more you can actually decide to change the skill mix that you will graduate with as on the go. You could have had prior qualifications, prior skills and you can get credit for that. Number three, you could take up internships and work in the middle of the program in case your time permits as well as your so there are a number of flexibilities which offer very designed to the Gen Alpha’s needs and very aligned with the way Gen Alpha thinks.
Gen Alpha learns Gen Alpha behaves so the name GNIT remains the same to talk about the solidity the industry endorsement as well as a methodology which is very very very learner centric but I think in content it will be very different. The methodology will also be very different. It will be very very strong hands on driven project driven learning and I am saying will I should be saying is because it’s a program which is already running as we speak. I hope that answers the question if you like to know more or you would like us to come and talk to a bunch of youngsters we are always willing to come and talk.
Ankit Dharamshi
Thanks thanks for the details. Just one follow up question. Do we also have and collaboration with any companies for this B scope programs using GNIT program.
Vijay Kumar Thadani
His question was do you have any collaboration or partnership with companies for the Bisco GNIT program or. Yes, that’s on the cards. But not as of now because at this time the entrance into the J90 program are entering at the first semester level. Of course you can have advanced standing in case you are in the second, third or fourth year, but all those will follow. Obviously it is in strong partnership with industry and very, very aligned to industry needs. So what you just mentioned are things which will happen as we go forward.
Ankit Dharamshi
Okay, thanks. Thanks Viriti.
Vijay Kumar Thadani
Thank you.
operator
A reminder to all the participants, if you wish to register for a question, Please press star then 1. Our next question comes from the line of Kunal Tokas from fvc. Please go ahead.
Kunal Tokas
Hello.
Vijay Kumar Thadani
Yes, please go ahead.
Kunal Tokas
Okay, so this two questions. First is that despite great confidence in the future of NIIT and where it is placed and a very good brand and many consecutive quarters of growth, it doesn’t show up in. I mean shows up in the top line but not in the profitability. If you remove the interest income and you say it has been in an investment mode. But still I want to understand more what the bottleneck is here. Is it. Is is it pricing or is it inflated expenses or is it a scale issue where you also mentioned you’re trying to variableize more cost.
So if you can help me understand that a little better. And second question was on IM new acquisition you said you got 70% and will get 30% increases till 2030. So the promoters also retain some stakes right now, but eventually will they be given equity in niit? And is this the structure that you will follow for any future MMA where the founders stay on and maybe eventually get equipping and thank you.
Vijay Kumar Thadani
So let me answer the second question first since. And then I can. I can give a shot the first one also. So otherwise. So first the IM NEO acquisition, by the way, your question was is this a construct that we have we will be using in future in most of our acquisition philosophy has been that there is a young entrepreneur or an entrepreneur, a founder who has brought up the company thus far in either struggling to get capital or wanting to attach themselves to a larger engine or has a dream which is much larger than what the current capability of the organization is and if we can provide that the avenue, then it creates a win win opportunity.
To that extent this construct of fixed upfront and an earn out based or a phase buyout state phase structure has worked out very well for us. Actually we have in large, various constructs have done. I think somebody on the phone has some construction activity happening at the background. If you can put yourself on.
Kunal Tokas
I think that’s me.
Vijay Kumar Thadani
Oh, okay, no problem. So in this particular case, the construct is so that we have the original founders with us over the next five years and then they become fully integrated into the organization. And then obviously their growth and their future depends on what they would like to do and what we would like to do. But the organization I am near would have become fully integrated within the NIT system. System. And hopefully we will be able to have the benefit of having them over with us as well as grow the company together to a much, much larger entity.
I think in this particular case they bring some phenomenal technology expertise as well as they understand learning, which is very, very important. And the third is I think both from their background, their age as well as the work that they have done, the innovative spirit gets a major push within the overall NIT structure as well. So I think we look forward to some very exciting times together. I answered your second part. This contract has worked well for us and we do use this contract as we go forward. At the same time, we are not wedded to this construct.
It depends on each situation and each situation has to be dealt with in its own particular way. I think I answered your second part. On the first part you talked about the fact that we are in an investment phase. To that extent our profitability is depressed. What I would like to say is that there are portions of the organization which are already operating to between 11 to 15% margin. I would say four out of six businesses or four out of six offerings that we have in 15% or thereabouts operating margin. So to that extent stable.
There are others which are in an investment sales and obviously IMEO that we added that is in a very solid state. So I think that is how it is evaluative. I think as soon as the investment cycle starts paying its results, we would be able to see the benefit of the steady state EBITDA margin that we look forward to in this business, which is 15 to 20%. Your question was where is this money going? The investment that we are going, it’s going in marketing. And Panpel will talk about that. In building the customer acquisition capability, it is building a very robust structure which can deliver education at scale.
Remember, NIT stands as a very strong brand which depicts enormous trust. And to that extent, when we scale to deliver the same quality of education that we were able to Deliver at smaller volumes is an extreme key and that is a disproportionate investment required to maintain that quality level through processes as well as other policies and things that you implement. So to that extent, that is an investment, but that will pay off when we start achieving that. And the third, obviously is you need a large team. Whether you have one passenger or you have 300, the plane and the crew remains more or less the same.
That used to be the case in an education center. In the new format that we have, we have much more flexibility. But nevertheless, there is a fixed cost structure which remains, which we will try to variables as we go forward. So that was a long answer, but maybe Pankaj will add some dimensions to it.
Pankaj Jathar
I think you have covered almost everything we did. But one of the areas that we will continue to invest in is also product development. So just a few minutes ago we talked in detail about the DNIIT offering. That is an outcome of investment in product development. So we will keep investing in things like that and like Vijay mentioned, people will be part of the effort of growing the business and we are continuing [Technical Issues]
Vijay Kumar Thadani
Operator, Are we still connected? Hello.
Kunal Tokas
Sorry, I lost you for a few seconds at the end. I’m sorry.
Vijay Kumar Thadani
Okay. Is. Is it something that. Well, we didn’t say anything in the last few seconds. We were looking for you.
Kunal Tokas
Did you, did you say anything after? After. When, when Mr. Pankas took over, he was talking about investing, product development. That’s what I lost you.
Vijay Kumar Thadani
Yeah, yeah. But you can repeat what you just said. He talked about product development, product development and marketing.
Pankaj Jathar
That was it. We didn’t talk after that. If you heard that sign, otherwise I can repeat.
Kunal Tokas
I. I heard that. So follow question.
Pankaj Jathar
Yeah, go ahead.
Kunal Tokas
Okay. So first about your acquisition philosophy. So to what extent do you. Do you take command of the operations of the enterprise that you acquire and to what extent do you let the founders run it as they have always been running it and you sort of are there when they need the capital or any support? That’s the first question. And you also talked about having a large sort of upfront capital, upfront investments that will eventually allow you to scale up. Well, so do you capitalize these costs in the. Do you capitalize any of these costs or do all of these flow through the P and L and.
Yeah.
Vijay Kumar Thadani
So I think you are talking about to what extent do we allow the founders to run their companies? We would like the founders to run their companies but give them the governance oversight that they would need to deliver it at scale once they become a Part of the public company, then they have certain fiduciary responsibilities as well. And therefore, to bring that discipline third, we bring the mentorship [Technical Issues]. The conflict is now. Hello? Hello, operator, can you hear us?
operator
Yes, sir, we can hear you. Sorry for that, sir. Please go ahead.
Vijay Kumar Thadani
No, there was a lady’s voice in between.
Pankaj Jathar
And we had heard some echo. If it is clear, we can continue.
operator
Please go ahead.
Vijay Kumar Thadani
Okay, so yes, as I said, the founders have the freedom to run the organization based on their own ambition and aspiration. But within the guardrails of running a public company, being part of a public company, within the guardrails of the SBA that they have, we have defined the businesses that we will be in and the strategy that we follow. And it runs like a board run outfit otherwise, which found us having other degrees of freedom. Also, I must say there are two other constants. One is the brand and the second is the value systems. These two mean a lot to us.
And I think those we insist on business flexibility is typically available to the firms. Did that answer your question, Kunal?
Kunal Tokas
Yeah, it does. If you can address the second question as well about capitalizing the cost.
Vijay Kumar Thadani
So when we use the word investment, it falls in two categories, one which goes through the BNL and one which do get capitalized. So anything which is permitted, whose benefits will come over a longer term and are permitted within the competition standard, and we also believe that they indeed are of that quality. We do capitalize. So for example, we create new content. That means a new program. In that case we would capitalize because typically the benefits of that program will flow through over a three year odd period. And to that extent, that initial investment gets amortized over the three year period and we follow the standard depreciation policy.
So that’s the capitalization. And it’s also shown as a part of our capital expense. There are others which are of expense nature and those get expensed out. So all those could be marketing people, deployment. Those could be implementing a certain process or implementing a certain, a new mechanism. I mean, I’m just trying to imagine. But typically to do with customer acquisition and typically to do with customer service, all those issues are taken through the pnl. Okay, thank you very much.
Kunal Tokas
I can’t answer my question. Have a good day.
Vijay Kumar Thadani
Thank you very much. I’m sorry the system is not working exactly the way it normally does. But in case you have any follow up questions, we’ll be happy to take them on on a one on one basis or whichever way you want. All right, operator, we can switch to the Next question.
operator
Thank you. Our next question comes from the line of Rahul Jain from Dollar Capital. Please go ahead.
Rahul Jain
Yeah, I hope my line is fine. And I have few questions. Firstly on the congrats on the transaction that you did. And my question first set of question are related to that. So first of all if you could [Technical Issues] total consideration we might shell out even if all earn out [Technical Issues]. Second thing is that how the business [Technical Issues] under our ownership anything on the current as well as sustainable, you know growth for this business. If you could give color on that part? And [Technical Issues] application also expect they have a corporate part of the business. So is it B2B and if yes, how is it different than RPS? Because it also deals around GSI and GCC.
So inputs on this.
Vijay Kumar Thadani
Thank you. Okay, so first of all we paid 613 million for 70% of the company. Of which 100 million was a primary investment into the company. And five secondary investment which itself is in two parts. One upfront and one which will happen closing our bid adjustments. But that all will happen as we stay the balance part which is the balance 30% which will be acquired over five years is subject to certain performance milestones. And if all those milestones are met the overall consideration that we may end up paying will be 160 crores which is the maximum that we take into account which is all the accelerators and all those things put in.
But if we end up paying 160 crore then that company will be at that point of time. Kapil, what would that be? The revenue of the company.
Kapil Saurabh
We should give a forward guidance right now. But there is significant growth ahead.
Vijay Kumar Thadani
That will mean something like a 10x performance today in five years from now or something similar to that. We can share that number with you but it’s a very substantial number. The second question was their own growth. So the CAGR growth that they are looking at and saying we are looking at as IMDM is 30% plus. And at this point of time I think we are very well equipped to handle that. It’s consistent with the growth that NIIT looks forward to. And to that extent it’s very heartening to see that there are accelerators as synergy kicks in.
So I think those further synergies kick in. I think those are all good. I think I’ve answered all three of your questions. If you have any more just.
Rahul Jain
Yeah, so.
Vijay Kumar Thadani
Oh yeah. Okay. So the most of their businesses what I would say goes to what we call the consumer part. Why? Because they’re dealing with the student in a university and the Part which they do address corporate will perhaps remain in the enterprise part. At this point of time I would say it is about 60, 40, 60% is towards universities, 40% towards corporate. But I think the university part is growing faster and also has a higher scalability opportunity.
Kapil Saurabh
And how is the enterprise part different from rps?
Vijay Kumar Thadani
And the enterprise part is very different from what RPS does is very different from what Stackroot does. It is complementary.
Rahul Jain
So just clarification one or two clarification to your inputs I heard is 160, 160 for on the full payout basis is what you said. And second thing you said is that 30% CAGR which is also in line with NIT’s growth. So you are saying NIT is organic growth is what you said organically.
Vijay Kumar Thadani
Now you are putting words in my mouth. I am talking about the second part. First I am saying NIIT from the time down that we’ve been talking, we’ve always been talking of 30% trust growth, isn’t it? Over the years. And I think that is the context in which I was saying I’m not right now giving a guidance of a 30% growth year on year for next five years. But I’m giving you that it’s a high growth company like the way NIIT is designed to be at this point of time and it is only in that context in the product lab.
NIT will grow faster than that.
Rahul Jain
So essentially just to reassure, we are saying this business, the new acquired business has potential to compound at 36%. But for NIT organic business you’re not seeing any numbers for it at this point.
Kapil Saurabh
Not giving guidance for that niit.
Vijay Kumar Thadani
Yeah, yeah. We are not giving a guidance for five years for nit. We are giving a. I’m just explaining you that their CAGR over the next five year period because that should be documented. If this arrangement has to be worked out is 30% plus.
Rahul Jain
And any qualitative color you would like to give for the organic business for this year if not numerical.
Vijay Kumar Thadani
Okay, qualitative cover color. Pankaj, please give.
Pankaj Jathar
The qualitative color is green. It continues to be a time of uncertainty, right? So the things that transpired in the last two weeks and that are continuing add to the uncertainty in the environment, the volatility that we have to deal with events like this cause sudden cancellations of confirmed delivery and that then impacts our numbers directly. So we are going to be in this kind of an environment while the local thinking global uncertainty continues. And it is the environment we are in. We have to have the ability to deal with it. And we’ve shown some of that over the last couple of years where the company has turned around or pivoted some of its offerings to take advantage of new opportunities and cut costs in opportunities which didn’t exist anymore.
So we will continue to do that. We will continue to evolve our offerings and remain agile with changing market conditions and keep evolving, keep changing to grow. We have made commitments of growth and we will pursue those irrespective of the headwinds that we encounter in the market.
Rahul Jain
That’s pretty helpful. Just one clarification on the enrollment data just to understand. Is it unique enrollment added during the quarter that we publish, or is it the total number of build enrollments per quarter?
Vijay Kumar Thadani
I think it is total number of build enrollments in the quarter. Most of them would be unique because the repetitions are low. Correct? I’m sorry. A lot in these kind of programs that we do. Having said that, I would just want to add a little bit. You wanted a qualitative color. I just wanted to give one or two dimensions. I think over the last one year we have been able to one and a half years we’ve been able to broad based our offerings quite a bit. Now add to those offerings the additional flavor of, let’s say an AI powered platform.
It significantly improves the value that we deliver and I think that will benefit us both in market share as well as the realizations that we get in anything and everything we do. Similarly, I think IMEO will benefit a lot from the offerings that we have, which are very distinct. As I mentioned, there is hardly any commonality. So I think to that extent, both those benefits of synergy which are additional to what we have already foreseen, I think are things which you can think of giving some additional benefit in times to come. The broad basing that we did with our customer segment of going From GSI Tier 1 to GSI Tier 2, now 3, as well as broad basing our banks rather than staying with the top four banks now moving on to other banks and wherever possible even NBFCs and BSUs, then I think that will also provide additional benefit.
Then there is the whole area of generative AI. Because generative AI by itself is changing the nature of just about every job that exists. And there is a huge amount of reskilling and upskilling which is happening in organizations other than GSI’s and GCCS. And I think we stand back and I think we stand to benefit from that as well, given the coverage that we have. So some of these elements and the stronger sales force that we have invested in specific efforts improve the sales and marketing capability of the organization. I think we should start seeing the benefits of that and that’s why I making the statement that despite the hard times that may happen, I think some of the things which we have in our which we have capabilities that we are building should help us in overcoming some of the swings which happen in the environment from time to time.
I think that’s the context we are talking about. Remember all this is in a degree of uncertainty which may rise higher and higher than whatever else we are doing which is what you saw in the last two weeks. The events which happened, nobody could have imagined that it will be the kind of event nobody could have imagined the way they have recovered themselves also. So I think all this will remain a part of the.
Rahul Jain
Sure, sure. Thank you. That’s it from my side.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Vijay Kumar Thadani
Thank you very much and once again we really appreciate you being part of this meeting. This is the results season and at this time for you to have spent this one hour plus with us. We truly appreciate your questions as usual, give us lots to think about and do contribute to our thinking as well as next actions that we take. I would say the same for these 6570 minutes that we spent together. If there are any further questions. Kapil Saurabh, Kapil Saurabh and Saurabh Dash both will be available for any further questions and so is Pankaj and myself and Sanjeev Bansal the cfo.
And we look forward to also meeting you in person in case there is an opportunity in your future. I believe there are some conferences in future as well as some one on one meetings planned so we look forward to interacting with you. Meanwhile, if you know of anybody who wants to do GNIIT, please do ask them to benefit from NIIT’s reemergence as GNIT operators. Thank you.
operator
Thank you on behalf of NIIT limited That concludes this conference. Thank you for joining us. You may now disconnect your lines.