40% Year on Year Growth: How Aptech Plans to Reach Rs 700 Crore in Retail Business

40% Year on Year Growth: How Aptech Plans to Reach Rs 700 Crore in Retail Business


Aptech’s MD & CEO, Anil Pant, discusses the company’s growth across institutional, domestic, and international retail business, with a focus on expanding their digital offerings and deep technology courses, including AI, ML, and blockchain, and adding 100+ stores this year.

“The retail business is our pride and joy. The kind of leverage that we have on the retail business beyond the breakeven, it is almost an 83 percent addition to our bottom line and the leverage is tremendously high and we have been growing 40 percent year on year on that business and it is a very, very, very healthy margin business for us both domestic and international,” reveals Anil Pant, MD & CEO, Aptech.

Growth clearly was driven by institutional business. On the other hand, was there a one-off which led to this substantial 2x jump sequentially?
The fact of the matter is the fact that we have 3 engines. The retail domestic, international retail and the institutional business. The institutional business has done very well in Q4. On the other hand, the expansion has been equally led by domestic and international retail. And very pleased to share that on the institutional business for the year we posted revenues of about 170 odd crores and this year we are targeting to do significantly better than that and almost about 90 percent of that order book is indeed in place for the present financial year. And, we expect in order  continuation this growth in this year also.You talked about 170 crore run price for institutional business and you stated it will be significantly better in FY24. What may be that number, 250 crore thereabouts?
Approximately. In reality, slightly better than that.
READ NOW
Coinbase Adds Support for OSMO DeFi Altcoin: What You Need to Know

What? Targeting 300 crores then?
Yes, we already have about 250 crores of order book in place and it is a long lead cycle on this institutional business. And, maybe, yes, maybe another 20-30 crores over that.

On the other hand, talk to us about the retail side as well. It used to be lower margins for you and you had tilted towards institutional. Is the fact that the tendency which is going continuation going forward? What is going to be the split betwixt retail and institutional?
Not at all. In reality, the retail business is our pride and joy. The kind of leverage that we have on the retail business beyond the breakeven, it is almost an 83 percent addition to our bottom line and the leverage is tremendously high and we have been growing 40 percent year on year on that business and it is a very, very, very healthy margin business for us both domestic and international.

READ NOW
Revolutionizing Investments: How Switzerlands Tokenization Law is Making Classic Cars, Wine, Art, and Watches Accessible to Everyone

And, since you have given us a guidance of approximately about Rs 300 crores for your international business, tell us what is the number at work for retail?
We should be in a position this year to post almost about 700 crores plus at an overall level as a company, up from about 400 and odd crores that we have done over the past  financial year, that is almost about a 60-70 percent growth in terms of numbers.

Artificial Intelligence (AI) is clearly the buzzword. Can you just tell us how you as a company are gearing up for it because it will definitely change likewise the skill set that is required going forward.
Definitely true and if you look at how our international business is doing, we are market leaders in at least about 10 geographies where we keep winning awards for the state-of-the-art content that we post and the students that we have in all these geographies get fantastic jobs.

READ NOW
Peter Schiff Joins Bitcoin NFT Craze with Golden Triumph Art Project

Just to give you an example of Vietnam, the average salaries in Vietnam for IT student is about $800. Our students, the minimum salary that they command in the market is about $1200. And, it is a fabulous kind of story that we have in the international market and that is essentially driving our IT business. Similarly, what is doing incredibly well for us is the media and entertainment space, where our foray into animation, VFX, gaming and I am very excited to share that gaming is indeed contributing about next to 12 percent of our revenues in the training space and we expect this to go up to about 20 percent plus this year.

You talked about gaming, media and entertainment, but we likewise wanted to comprehend artificial intelligence as for the other applications that may be there. What are you exploring there, is there many of interest with respect to training and courses around that?
If you look at the deep technology that we talk about, we have courses in Artificial Intelligence (AI). We have courses in ML. We have courses in blockchain tech. If you look at the past few Government decision, especially after the hacking of All India Institute of Medical Sciences, a decision has been taken to move the complete chain of Government business onto blockchain tech and that opens up a substantial opportunity for both professionals likewise as for training corporations like ours to sort of strengthen our offering both in India and abroad. And, we are already there in almost every space of deep technology and cutting-edge IT that you can think of. Content is state of the art and people are doing very well.

READ NOW
Discover the Unique 2% Tax Mechanism Propelling InQubeta (QUBE) to the Top!

And, what is expansion this year ahead going to look like? Are you looking at new centre additions or is digital going to be the focus?
Look at it this way, our same-store sales growth has already been at about 30 percent plus and frankly, it is difficult to sort of move it beyond 30 percent in the same store sales growth. And, many of the future growth is going to be driven by expansion, both digital, we are coming up with a blended model where in tier III and tier IV cities especially the teaching will be done by us and the student acquisition will be the job of the franchisee. International markets, we are looking at a similar story and we expect to add almost 100 plus stores this year.

READ NOW
7 Must-Attend Topics at World Token Summit 2023 in Dubai

Source

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.




Follow us

Latest Crypto News

Share via
Share via
Send this to a friend