Aptech's turnover grew by 24 per cent to Rs 202.2 crore as against Rs 163.29 crore in 1996. This is a bit lower when compared with the first half turnover growth of 26.5 per cent. The computer education division saw a slowdown with growth slowing down to 18 per cent from 22 per cent in the first half. This caused overall sales growth to a slow down. Intense competition in the computer education market has been affecting the established players. Aptech is strengthening its position by forging tie-ups with some leading international universities.
Aptech will still find it difficult to sustain growth, and, like NIIT which has diversified into software exports, Aptech is planning to widen its portfolio to include high growth areas like developing enterprise resource packages (ERP).
Though it managed to restrict hike in expenditure to 20.66 per cent (compared with the sales growth of 23.81 per cent), a quantum hike in depreciation by 179.9 per cent to Rs 5.06 crore and income tax by 239.7 per cent to Rs 6.13 crore affected net profit growth which grew by 21.2 per cent to Rs 20.62 crore.
Apart from improving performance, the company also needs to address investors' problems on the odd lot front.
