Aptech Certain Of Gains From 'Phygital' Education Beyond Pandemic
Covid-19 transformed education from largely offline to “phygital”, a combination of physical and digital. According to vocational training company Aptech Ltd., this new model will persist.
The mixed online-offline model helps the company enhance the capacity of its centres by 50-60%, and it has seen benefits in teaching and placements, said Anil Pant, managing director and chief executive officer at Aptech. The company launched its edtech platform, ProAlley.com, in September and is looking to expand the retail business.
In the quarter ended September, Aptech posted the highest-ever profit before tax in the last 10-12 years. Revenue rose 60% and profit after tax surged sixfold year-on-year. Pant expects the performance to sustain over the next three to five years.
According to Pant, they are looking to expand to three times its size, and to 10 times in five years. Key drivers to growth will be the number of job offerings in media and entertainment.
With greater demand than supply, Aptech’s business can also grow multifold, he said.
Pant expects ProAlley.com to show traction over the next 12-18 months. The company is not in a race to derive a valuation upside from it as they see a long-term potential, he said.
Aptech split business into two divisions:
Retail unit that focuses directly on consumers—learners in this case.
Institutional business or training and tests for conducted from corporates.
Despite doing well in the second quarter, Aptech decided to exit the institutional business and look for strategic buyers. According to Pant, the decision was taken for judicious deployment of capital. The board was of the view that while the institutional business is doing well, it's sucking out capital that could be better used in the retail business, he said.
The company is also not looking to raise capital, Pant said, as it has enough cash to meet working capital needs for at least a year.
Aptech may venture into new areas of business in the retail space, Pant said, adding that the company might add another business line over the next two to three quarters.
Watch the full interview here: