Aptech Ltd

About

Aptech Ltd. is a pioneer in the non-formal education and training business in the country with a significant global presence.
It was established in 1986 and has 800 centers. It has a presence in diverse sectors ranging from IT training, media & entertainment, retail & aviation, beauty & wellness, banking & finance, and pre-school segment amongst others. It has successfully trained students, professionals, universities & corporates through its two main streams of business - Individual Training and Enterprise Business Group [1]

Key Points

Individual Training (Retail Business)- (73% of the Revenue)
Catering to individual students through a network of branded franchise centers offering in-classroom learning programs that provide skills for pre-job, job-oriented, and after-job requirements. The Company offers its training programs directed at different verticals and target customer segments through 6 retail brands. Its learning centers are present in nearly 40 countries worldwide, with a leadership position in many markets. [1]

The system-wide collection from students for the franchise business in the Retail segment was Rs. 425 Cr in FY19 and went up to Rs. 465 Cr in FY20. (Domestic Retail was 75% and for International Retail was 25%) [2]
The Company operates through the franchise-based business model. Its asset-light nature, scalability, and replicability are the main reason for the choice. [3]

See full details
  • Market Cap 1,267 Cr.
  • Current Price 311
  • High / Low 319 / 110
  • Stock P/E 68.1
  • Book Value 40.8
  • Dividend Yield 0.72 %
  • ROCE 6.02 %
  • ROE 5.76 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 95.11%
  • Debtor days have improved from 129.50 to 95.51 days.

Cons

  • Stock is trading at 7.63 times its book value
  • The company has delivered a poor sales growth of -11.36% over past five years.
  • Tax rate seems low
  • Company has a low return on equity of 5.78% for last 3 years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
50.64 42.90 63.27 51.56 71.53 53.84 29.57 14.01 34.22 25.91 29.45 19.59
38.23 39.57 54.97 44.66 53.68 43.54 35.75 20.26 29.56 16.13 21.75 19.09
Operating Profit 12.41 3.33 8.30 6.90 17.85 10.30 -6.18 -6.25 4.66 9.78 7.70 0.50
OPM % 24.51% 7.76% 13.12% 13.38% 24.95% 19.13% -20.90% -44.61% 13.62% 37.75% 26.15% 2.55%
Other Income 1.28 0.39 0.83 1.26 1.20 1.35 1.41 1.93 1.61 1.33 1.86 1.32
Interest 0.00 0.00 0.08 0.33 0.37 0.18 0.18 0.60 0.52 0.34 0.02 0.05
Depreciation 2.76 2.71 2.61 3.39 3.00 3.48 2.24 2.24 3.24 1.94 1.86 1.59
Profit before tax 10.93 1.01 6.44 4.44 15.68 7.99 -7.19 -7.16 2.51 8.83 7.68 0.18
Tax % 24.70% -70.30% 26.86% 30.63% 30.04% 15.89% -1.25% 8.66% 26.69% 18.12% -26.56% 194.44%
Net Profit 8.23 1.72 4.71 3.08 10.98 6.72 -7.28 -6.53 1.84 7.23 9.71 -0.18
EPS in Rs 2.06 0.43 1.18 0.77 2.75 1.68 -1.81 -1.62 0.46 1.78 2.39 -0.04

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
158 191 174 172 177 170 162 212 228 207 158 89 109
140 170 150 142 146 145 142 183 200 177 132 74 87
Operating Profit 18 21 24 29 31 25 20 29 28 29 26 15 23
OPM % 11% 11% 14% 17% 18% 15% 13% 14% 12% 14% 16% 17% 21%
Other Income 12 39 62 19 13 5 4 4 21 4 5 7 6
Interest 4 3 0 1 1 1 1 0 0 0 1 2 1
Depreciation 16 13 10 9 8 10 10 11 11 11 9 8 9
Profit before tax 10 43 76 39 36 19 13 23 37 22 21 12 19
Tax % 332% 1% 1% 19% 16% 18% 21% 15% 10% 19% 36% -1%
Net Profit -22 45 76 31 30 16 10 19 33 18 14 12 19
EPS in Rs -4.80 9.22 15.58 6.42 7.46 3.92 2.55 4.84 8.24 4.57 3.36 3.01 4.59
Dividend Payout % -21% 27% 19% 62% 60% 83% 39% 62% 42% 77% 134% 75%
Compounded Sales Growth
10 Years:-7%
5 Years:-11%
3 Years:-27%
TTM:-35%
Compounded Profit Growth
10 Years:-12%
5 Years:4%
3 Years:-16%
TTM:378%
Stock Price CAGR
10 Years:10%
5 Years:13%
3 Years:23%
1 Year:175%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:6%
Last Year:6%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
47 49 49 49 40 40 40 40 40 40 40 41
Reserves 153 226 284 292 185 183 189 202 239 239 219 125
Borrowings 24 0 0 0 0 0 0 0 0 0 28 1
26 55 43 54 43 37 31 45 45 52 54 55
Total Liabilities 250 330 375 395 268 260 260 286 324 330 341 221
40 106 98 95 32 32 29 33 28 28 29 17
CWIP 1 1 3 3 1 2 3 3 3 2 1 1
Investments 108 118 113 111 111 111 111 127 138 132 132 24
100 104 162 186 123 115 116 124 155 168 180 179
Total Assets 250 330 375 395 268 260 260 286 324 330 341 221

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-41 37 13 25 11 17 14 29 12 14 -10 41
-111 7 -42 -24 46 -21 -14 -24 2 0 22 -6
2 -36 0 -0 -60 -1 -0 -0 -14 -17 -18 -24
Net Cash Flow -151 8 -29 1 -4 -4 1 5 -0 -3 -6 11

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 63 37 50 56 68 72 91 72 99 122 171 96
Inventory Days
Days Payable
Cash Conversion Cycle 63 37 50 56 68 72 91 72 99 122 171 96
Working Capital Days 81 -36 -6 -22 12 18 37 37 68 85 188 153
ROCE % 4% 19% 25% 9% 13% 9% 6% 10% 8% 8% 8% 6%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
49.30 49.49 49.49 49.43 49.43 49.43 48.98 48.96 48.95 48.61 48.48 48.42
9.31 9.34 9.05 8.82 9.92 10.30 10.38 10.33 10.37 9.89 9.92 9.79
0.23 0.16 0.26 0.28 0.22 0.23 0.84 0.16 0.01 0.08 0.00 0.01
41.16 41.01 41.20 41.48 40.43 40.05 39.80 40.54 40.67 41.42 41.60 41.78

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