Aptech Ltd Q3 FY23 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- Retail business growth expected at 30% to 40% over next 2-3 years, combining same-center sales growth (~20-22%) and new center additions (8-18%).
- Institutional (Enterprise) business anticipated to grow similarly by 30% to 40%, despite longer sales cycles (~9 months).
- Existing centers showing strong same-center sales growth, 53% in FY23, which supports revenue expansion.
- Expansion strategy includes growth in Tier 2 and Tier 3 cities (currently covering 150-160 cities) and international markets targeting new towns and countries.
- New verticals like gaming, aviation, and online platforms expected to contribute to future growth.
- Overall, margins expected to improve due to operating leverage as revenue grows.
- For H2 FY23, institutional business expected to add about INR 135 crores revenue, indicating healthy momentum.
See what Aptech Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
See what Aptech Ltd management said on order book — free account, 30 seconds.
Capex plans
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Margin guidance
Category 3- Aptech expects sustainable growth over the next 2-3 years, with retail and institutional business growth projected at 30% to 40%.
- Same-center sales growth has been strong, with FY23 showing a 53% increase, supporting profitability.
- Profit Before Tax (PBT) is expected to grow even faster than revenue; if revenues grow by 30%-40%, PBT could grow by 40%-50% or higher.
- Margins are expected to improve due to operating leverage and fixed costs being contained.
- The retail business anticipates about 20%-22% growth from existing centers and 8%-18% from new center additions.
- New initiatives (online platforms, aviation, preschool) are expected to contribute meaningfully in the near future.
- The company aims to turn new business units profitable within 18 months, else exit.
- Overall, EPS grew 43% over 9 months FY22 and is 63% higher than FY20, reflecting strong earnings momentum.
Order book
Yes- The company won an order from an autonomous education body associated with the Central Government.
- In Q3 FY23, a good number of tests for this order have been delivered.
- A significant chunk of this order will be executed in the fourth quarter of FY23.
- The total order value targeted for the second half (H2) of FY23 is INR 135 crores.
- The company is well on track to achieve this order value in H2 FY23.
- The overall performance indicates steady execution and timely delivery of pending orders.
How does Aptech Ltd rank vs peers in Other Consumer Services?
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What Aptech Ltd's management said in earlier quarters
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