Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CL Educate Ltd (BOM:540403, Financial) reported a 5% increase in revenue for H1 FY25 compared to the previous year, growing from 186 crores to 196 crores.
- The company's operating EBITDA grew by 24%, from 15.6 crores last year to 19.3 crores this year.
- The international business segment showed significant growth, with a 32% increase in revenue, particularly in markets like Singapore, Indonesia, and the US.
- The publishing business saw a 19% growth in revenue, with a 28% increase in book volumes sold.
- The company has signed 16 new partners, including in Sharjah and UAE, indicating strong future growth potential in international markets.
Negative Points
- Revenue growth in the tech segment was muted, indicating challenges in this area.
- The EBITDA growth in the March business was only 7%, trailing behind the revenue growth due to competitive pricing pressures.
- The CSAT program, once a strong revenue driver, has faced challenges due to changes in government policy, impacting its market potential.
- The CUET program has not met initial expectations, with a smaller market opportunity than anticipated.
- The test prep business has experienced muted growth, with challenges in maintaining pricing power amidst competitive pressures.
Q & A Highlights
Q: What is the marketing strategy for Keystone's new venture, and how do you propose to reach out to clients?
A: (Unidentified_3) We are focusing on the premium to super premium category, using a laser-focused, below-the-line strategy that involves friends, families, and database-driven approaches. We are still finalizing the business plan and will share more details after board approvals. Thought leadership and an integrated approach will be key components of our strategy.
Q: What is the market outlook for the luxury weddings and social events segment, and what kind of partnerships are you looking for?
A: (Unidentified_3) The luxury weddings and social events market is a $130 billion opportunity, growing at 20%. We are looking for partnerships with established brands and respected individuals in the sector. Keystone's experience in executing exclusive events will be leveraged to manage this new venture.
Q: How is the revenue and competition landscape for DEX, and what are the plans to stay competitive?
A: (Unidentified_3) DEX has been flat for the last three years, but we are laying the groundwork for growth by reaching out to new clients and creating capacity for 2025. The integration process is ongoing, and we expect a positive impact on revenue and profitability in the next 4 to 8 quarters.
Q: How many locations, apart from the Coco Centers, are currently offering student mobility services, and what are the expansion plans?
A: (Unidentified_2) We have four or five locations outside the Coco network offering student mobility services. Our strategy focuses on centralized delivery from our Delhi team, supported by digital activation, to maintain specialized service quality.
Q: What are the plans for CUET programs, and how do you plan to expand this vertical?
A: (Unidentified_2) The CUET market hasn't grown as expected, but we are focusing on competitive admissions like Delhi University. The product has been reshuffled to be more competitive and personalized, targeting a smaller but more competitive market segment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
