The Hindu Business Line : Aptech announces 10 pc dividend

APTECH Ltd has announced a 10 per cent dividend for the year ended December 2003. Since the demerger of the training division from its parent (which had the same name and was also in the software development business) in 2000, this is the first time it has announced a dividend.

For the same period, the company reported a 78 per cent growth in profit after tax to Rs 11.27 crore from Rs 6.35 crore for the year ended December 2002.

Revenues grew 10 per cent to 167.9 crore (Rs 152.6 crore). Global billings amounted to Rs 426 crore (Rs 338 crore). Typically, revenues from global billings accrue through royalties to the Indian company.

Speaking to the media, Mr Pramod Khera, CEO and Managing Director, Aptech Ltd, said that the company now is less dependent on its domestic retail education business as compared to the earlier years. Institutions, Government and the retail education business abroad have all grown faster.

Mr Khera did not comment on expenditure incurred by the company, nor did a communiqué, released later, give out that piece of information.

According to him, the domestic retail education business now accounts for 45 per cent of revenues as compared to about 60 per cent in the previous year.

Business from institutions account for 25 per cent, while that from the Governments between 15 per cent and 20 per cent. Revenues from learning services make up between 10 and 15 per cent of total revenues. He added that the order book position from the Government business would be between Rs 30 crore and Rs 40 crore, over the next five years.

Mr Khera said, "This change in mix of revenues is good since we no longer depend on one stream of revenues." He added that the slump in 2001-02 affected the company severely because it did not spread its risks.

Last year, the company finalised plans to enter the formal education sector. With its Aptech University in Raipur, Chhattisgarh, the company would begin offering IT and management related courses beginning June this year.

It would also open about five colleges across the country, one each in the four geographic zones and one in Raipur itself within the same time. An amount of Rs 25 crore had earlier been earmarked for the university. "Between Rs 2 crore and Rs 4 crore would be invested in each college," he said.

He added that each college would have between 150 and 200 students and that each student would be charged between Rs 10,000 and Rs 20,000 per year depending on the choice of the course.

Mr Khera said that the investments in the university and colleges would come from the $14.4 million that Aptech recently raised through issue of global depository receipts (GDRs). The company would also use part of that sum for acquisitions.

He said that Aptech is in talks with about four companies for possible acquisitions. According to him, 30 per cent of revenues in the next three years would come from acquisitions.