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Oct 03, 2011, 07.09 PM IST
S Giridharan, chief executive officer of Edserv Softsystems in an interview to CNBC-TV18 spoke about the latest happenings in the company and the road ahead.
Edserv has also purchased e-learning online content of Prosel Ventures. The company expects this acquisition to reduce cost of execution and boost margins. "This was a strategic move because we won't have to pay royalty for those contents on daily basis," Giridharan added.
With this the company is targeting a revenue growth of around 40-50% this year compared to last year.
Below is the edited transcript of Giridharan’s interview with CNBC-TV18.Also watch the accompanying video.
Q: Can you take us through the 2.7% stake that Dainik Bhaskar has picked up for around Rs15crore. Just take us through that?
A: They have picked up equity warrants which means they would be converting into equity over a period of 18 months. Apart from them, few other publications have also picked up. This helps us to strengthen our brand positioning and campaigning across the country. Our brand is visible dependent and most users are students. The larger population needs to be addressed to in terms of offering.
Q: You also has bought out the e-learning online content of Prosel ventures for about Rs35 crore. What kind of contribution that will have and for FY12 what's the revenue growth that you are expecting?
A: As far as Prosel is concerned, the content comprises of CA, IFRS, CS and ICWA contents. So far we have been working on content only which means the cost of purchasing or using that content has been higher in terms of revenue expenses. With the acquisition mode our cost of execution would reduce and our margins will be higher.
This was a strategic move because we won't have to pay royalty for those contents on daily basis. In terms of revenue growth, we will be growing between 40-50% this year compared to last year. CA learning and CA businesses out of e-learning would contribute a considerable portion to that.
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