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NIIT's education revenues, as a percentage to its total revenues, had dropped to 20% for 2005 compared to 45% in 2004. Moreover, net profits declined by 57% from Rs 2.24 billion in 2005 to Rs 960 million in 2005. NIIT's market capitalization had also come down to Rs 90 billion in 2005 from Rs 240 billion in 2004.
The company's market share in the IT education business had steadily declined from 70% in 1992 to 41% in 1996 and further down to 36% in 2005. Considering all the above factors, the company was forced to opt for the 'money-back' campaign. However, NIIT denied that the 'money-back' campaign was a desperate attempt to improve profitability by getting more student enrolments...
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