• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

BL Research Bureau

Educomp Solutions’ deal wins with the Rajasthan and Jharkhand governments strengthens its presence in the ICT (Instructional and Computing Technologies) segment, the company’s key growth driver.

The ICT segment contributes 35.6 per cent of Educomp’s revenues and is a volume driven business.

The PBIT margins for this business stood at 29.2 per cent as of March this year, compared with the above 50 per cent levels that other segments of its operations such as professional development and smart class (a digital initiative for private schools) enjoy.

For 2007-08, the ICT segment has grown over 200 per cent in revenue terms, the fastest among these four verticals on the back of strong deal wins from central and the various State governments.

Educomp now works with 6399 schools across 11 States and its order book in the ICT segment alone as of March stood at Rs 177 crore. Educomp’s total revenues stood at Rs 262 crore in 2007-08.

The present deal envisages working with a total of 395 schools in the two states of Rajasthan and Jharkhand in areas such as computer-aided learning and multimedia content development in regional languages as a part of these governments’ IT enablement initiatives.

With the budget indicating a higher spend on IT initiatives, Educomp, which has a strong working relationship with State governments appears well placed to tap into opportunities.

While its professional development vertical is the larger contributor to revenues and margins, ICT may pitch in with volumes and if it sustains its growth rate may overtake the former as the key contributor to revenues.

More Stories on : Stocks | IT Training

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line