Sharing interesting comments on the impact of generative AI by Cousera management. Per McKinsey global survey, most large organisations will need to reskill more than 30% of their workforce on AI. It indicates the potential demand for training and certifications. Could be beneficial for well positioned L&D providers such as NLSL.
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Did a quick comparison between B2B business of Coursera, Udemy along with NLSL.
Interesting to see that while both the international peers experienced decline in B2B revenue growth rate, NLSL was able to maintain 20% growth rate and then accelerate it to 27% in the last quarter. However, NLSL’s growth was propelled by inorganic means (St. Charles acquisition).
NIIT Learning Systems: Q3 FY 24 - Flattish performance
Numbers
Revenue Rs 382 crore, up 8% YoY; Growth excluding St. Charles acquisition: 3%
EBITDA margin maintained at 24%
Revenue visibility down at $348 Mn
EPS went up by 21% due to other income
Guidance
Tax rate will catch in Q4 to end FY 24 at tax rate of 28%
FY 24 guidance: Revenue to grow by 11% to 12% in FY 24 CC and by mid-teens in Rs terms
Long-term guidance: 20% revenue growth and 20% EBITDA margin
Other details
Clients are still cautious about discretionary expenses although some amount of sequential growth is expected
Board to take a call on dividend in Q4
Current EBITDA of 24% will come down as hiring and investments may pick up
Looking to expand across European region
Attrition is below 12%
Just when I thought the quarterly results weren’t that impressive, price shot up 11% in a day. Rest of my week will go in thinking what did I miss 
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$META Q4 earnings call - We ended the fourth quarter with over 67,300 employees, down 22% from a year ago while up 2% from Q3 as our hiring efforts have resumed.
I’m not sure where $Meta stands in in key clients but looks like a strong sign of a bottom. NIIT surprisingly didn’t degrow despite such a slash in client headcount!
Would be similar great if data points for other key clients known in public could be shared.
Company Analysis on Coforge Ltd.