Dear Shareholders,
I must start by first expressing sorrow at the passing away of our former Chairman
Shri. Rakesh Jhunjhunwala last year. His contribution to the company goes much beyond his
position. He was a mentor to guide us, a strong pillar to lean on and a guiding light to
show us the vision. Needless to say that the void left by him is impossible to fill.
And again recently in August this year, nature dealt another blow when our Managing
Director & CEO – Dr. Anil Pant, passed away. Anil played pivotal roles in helping
Aptech reach the current peak of success and left an indelible mark on the business. This
has left a heaviness in our hearts which we are still coming to terms with.
Please join me in a silent prayer to the souls of both these illustrious leaders. The
best way for the team at Aptech to honour their legacies and express our gratitude will be
to continue to put in their best efforts to fulfil their aspirations for the Company.
With those words, I present to you the Company's Annual Report for the financial year
2022-23.
In the financial year 2022-23, the Company has set new benchmarks by recording an
all-time high revenue of Rs. 470 crores with a CAGR of 28% in 3 years as also an all-time
high PBT of Rs. 82 crores with a CAGR of 69% in 3 years. While establishing and
maintaining a consistent and transparent accounting system, your company, has over a
period of time, built up a solid Balance Sheet reflecting the desired liquidity in terms
of cash and a trend reflecting improving financial ratios. Your company recorded an
all-time high cash and cash equivalents of Rs. 214 crores with a Net cash flow from
Operating activities of Rs. 133 crores.
Your company's decision to migrate to the Student Delivery system has also ensured
better academic progress, improved fee realisations and timely completion of courses
paving the way for better capacity utilisation of the infrastructure facilities of your
company.
It is well recognised that India is poised to take its rightful position as a leading
global economic and world power. For the country to continue on its growth trajectory the
most fundamental requirement is that of rightly skilled manpower. For more than 35 years
Aptech has been playing a key role in enabling an able India with its focus on providing
relevant training to the youth to make them employable as well as in the Digital
Assessment & Testing space. The Company is well placed to leverage this growth
momentum of the country and deliver sustainable high performance for its shareholders. As
many of you would be aware, Aptech started its journey in 1986 and played a foundational
role in building the Software Industry in India. Over the years the Company has spotted
emerging trends well in time and expanded into new verticals for providing trained
manpower to Animation, Visual Effects, Gaming, Beauty, Retail, Aviation, Travel and
Hospitality Industries in large numbers. The company also expanded its footprint in dozens
of countries globally and in the process becoming the market leader and a well-recognised
name in several of them.
To enable effective and industry-relevant training the company has made effective and
appropriate use of technology in customer acquisition, academic delivery, student
engagement as well as the placement processes. Use of such technologies in the entire
student life cycle has distinguished the company from many of its competitors.
The major industries for which the company trains students have a large potential. For
example as per the report of the AVGC Promotion Task Force, 2022 (Animation, Visual
Effects, Gaming, Comics), constituted by the Ministry of I&B, the AVGC industry can
grow by 14-16% in the next decade.
As per Skill Gap Study conducted by the Beauty
& Wellness Sector Skill Council (March 2023) The manpower requirements in the
Beauty & Salon Industry is expected to increase from an estimated 7.9 crores in 2022
to 18.2 crores in 2030 which implies a CAGR of about 11%. Some of the key International
markets for the company are also in a high growth phase. The economy of Vietnam, for
example, is expected to grow between 6-7% for the next 5 years with the IT industry
growing faster than the overall rate.
As I mentioned above, the company has been at the fore front of technological
innovation in the best interest of its customers. Many of the student learning materials
use Augmented Reality to enhance the learning effectiveness. Students get access to latest
learning methods, peer-to peer engagement opportunities, complementary and supplementary
learning content through dedicated platforms like Creosouls and Online Varsity. Regular
interactions and seminars are conducted by industry experts for the benefit of the
students. The faculty members also receive training on a regular basis to ensure that
their skills too, remain sharpened at all times.
To summarise, the company has developed inherent strengths over the years, has been
performing commendably and the tailwinds and positive trends favour the Company, in the
future. The company, therefore, continues to remain confident of creating value for all
our stakeholders including the shareholders.
On behalf of the Board of Directors and the Management I wish to thank all the
shareholders for reposing their trust and hope that we will continue to get your support
in our future endeavours.
Anuj Kacker
Chief Executive Officer
(Interim)