Any current/future new fundraising through debt or equity?

No concrete information on new fundraising through debt or equity was disclosed during the call. When asked about potential acquisitions or use of cash, the management stated it cannot be shared on the call. The company has a large cash balance of ₹237 crore as of March 31, which includes student advances. Saurabh Gada mentioned that although cash is high, other needs for the money exist that the board has considered. There are ongoing conversations and interest from FIIs and DIIs regarding shareholding, but no specific fundraising details or agreements have been revealed yet. Management empha

Any current/future capex/capital investment/strategic investment?

No concrete details on specific current or future capex or strategic investment were disclosed during the call. The company mentioned significant investments in content development for ProAlley but noted that customer acquisition in that segment is still a work in progress without aggressive spending. The board retains cash (~237 crores as of March 31) including student advances; plans for cash usage beyond dividends were not shared on the call due to confidentiality. The company is opening over 100 new retail stores (including international stores) this year, implying capital deployment

Future growth expectations in sales/revenue/volumes?

Aptech aims for 70% to 100% growth in the next three years, targeting revenues between ₹430 to ₹500 crores. (Page 7) The company plans to open 100+ new stores in the current year, averaging one store every 3-3.5 days, driving new revenue growth. (Page 7) Growth will come from both same-store sales (close to 50% growth in FY23) and expansion into smaller cities (class 3 and 3A towns). (Pages 7-8) International expansion includes increasing presence in Africa (from 13 to 23 countries) and Vietnam (30+ centers). (Page 8) Institutional business order book stands at ₹250 crores for FY24, with e

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects 70% to 100% growth in earnings over the next three years, implying revenues between ₹430 to ₹500 crores (Page 7). Retail business growth is driven by same-store sales (~50% growth in FY23), new store additions (100+ stores planned in the year), and innovative franchise models catering to tier-3 cities (Pages 3, 7). Institutional (Enterprise) business has a ₹250 crore order book for FY24 against ₹172 crores revenue in FY23, with expected additional ₹20-30 crores orders; high fixed cost leverage anticipated to boost profitability (Page 6). Profit Before Tax (PBT) grew by 89%

Current/ Expected Orderbook/ Pending Orders?

The company has an order book of approximately ₹250 crores at the start of FY24, compared to revenue of ₹172 crores in the previous year for the Institutional Business. Apart from this, they expect to secure an additional ₹20-30 crores worth of orders to be delivered during the year. These orders are mostly billable and expected to contribute to revenue growth without diluting margins, as fixed costs remain constant. The company is optimistic about winning similar large orders going forward but cannot disclose customer names due to confidentiality. The strong order book indicates a hig

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Aptech LtdQ1 FY23Other Consumer Services

Aptech Ltd Q1 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹106P/E: 19.9Market Cap: ₹564 CrSector: Other Consumer Services

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→Aptech aims for 70% to 100% growth in the next three years, targeting revenues between ₹430 to ₹500 crores. (Page 7)
→The company plans to open 100+ new stores in the current year, averaging one store every 3-3.5 days, driving new revenue growth. (Page 7)
→Growth will come from both same-store sales (close to 50% growth in FY23) and expansion into smaller cities (class 3 and 3A towns). (Pages 7-8)
→International expansion includes increasing presence in Africa (from 13 to 23 countries) and Vietnam (30+ centers). (Page 8)
→Institutional business order book stands at ₹250 crores for FY24, with expectations of strong growth beyond this, supported by large customer wins. (Pages 3, 6)
→Retail business forecasts 40%+ YoY growth, with 18% core student-enrollment revenue growth. (Page 4)
→Preschool and aviation segments are new growth areas, with preschool expanding slowly post-COVID due to potential large market size. (Page 14)

Margin guidance

Category 3

→The company expects 70% to 100% growth in earnings over the next three years, implying revenues between ₹430 to ₹500 crores (Page 7).
→Retail business growth is driven by same-store sales (~50% growth in FY23), new store additions (100+ stores planned in the year), and innovative franchise models catering to tier-3 cities (Pages 3, 7).
→Institutional (Enterprise) business has a ₹250 crore order book for FY24 against ₹172 crores revenue in FY23, with expected additional ₹20-30 crores orders; high fixed cost leverage anticipated to boost profitability (Page 6).
→Profit Before Tax (PBT) grew by 89% year-on-year; adjusted for like-to-like basis, up 85%; margins are expected to improve disproportionately with sales growth (Pages 5, 9).
→EPS is at a record ₹16.32 with a strong trajectory due to robust operating leverage and expanding businesses (Page 5).

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Fundraise plans

→No concrete information on new fundraising through debt or equity was disclosed during the call.
→When asked about potential acquisitions or use of cash, the management stated it cannot be shared on the call.
→The company has a large cash balance of ₹237 crore as of March 31, which includes student advances.
→Saurabh Gada mentioned that although cash is high, other needs for the money exist that the board has considered.
→There are ongoing conversations and interest from FIIs and DIIs regarding shareholding, but no specific fundraising details or agreements have been revealed yet.
→Management emphasized they are cautiously approaching growth and investments, not burning money aggressively like some edtech companies.

Order book

Yes

→The company has an order book of approximately ₹250 crores at the start of FY24, compared to revenue of ₹172 crores in the previous year for the Institutional Business.
→Apart from this, they expect to secure an additional ₹20-30 crores worth of orders to be delivered during the year.
→These orders are mostly billable and expected to contribute to revenue growth without diluting margins, as fixed costs remain constant.
→The company is optimistic about winning similar large orders going forward but cannot disclose customer names due to confidentiality.
→The strong order book indicates a high growth trajectory for the Institutional Business over the next two to three years.

Capex plans

Yes

→No concrete details on specific current or future capex or strategic investment were disclosed during the call.
→The company mentioned significant investments in content development for ProAlley but noted that customer acquisition in that segment is still a work in progress without aggressive spending.
→The board retains cash (~237 crores as of March 31) including student advances; plans for cash usage beyond dividends were not shared on the call due to confidentiality.
→The company is opening over 100 new retail stores (including international stores) this year, implying capital deployment in store expansion.
→Innovative franchise/business partner models for tier-3 cities involve lower franchisee investment but do imply infrastructure support from Aptech centrally.
→No public announcements on acquisitions or large-scale strategic investments.
→Focus remains on organic growth, cautious expansion, and not burning cash for customer acquisition like some edtech peers.

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