In an interview with CNBC-TV18, Anuj Ahuja, Group CEO, DMC Education says, the new acquisition (Plan Steps) should bring in at least Rs 3-4 crore of top-line with about Rs 1.5-2 crore of bottom-line to the group.
Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Reema Tendulkar. Also watch the accompanying video. Q: Tell us about this acquisition, Plan Steps that you have done, what does it entail for the company? A: Plan Steps is focused company into career counseling, ethical career counseling in the eastern sector. With DMC, it brings a footprint all over India with our 20 offices. We plan to extend this all over the country with ethical counseling for students in our core business of education. Q: You spoke about expanding this tie-up that you have. How much of an investment will you require to expand? What is your expansion plan? A: As of now, we have our own offices, but we have plan to open 50-60 more offices all over the country. Those offices will provide ethical counseling to students almost free of cost. But then we have a business model where the existing colleges would pay up. We are already into study abroad business, skill development and other tutorial business. So, this is a natural fit for us because we cater to more than 1,000 students. Q: Wanted to know in terms of rupee crore, how much are you planning to invest going forward? A: It would be around Rs 50 lakh for the present year, for the Plan Steps acquisition only. Q: What would this do to your revenues? How much do you think you could grow your revenues by once this acquisition is completed? A: We have been growing 100% for the last two-three years. We plan to increase our revenue from Rs 12.5 crore to around Rs 25-30 crore range. Plan Steps itself should bring in at least Rs 3-4 crore of top-line with about Rs 1.5-2 crore of bottom-line to our group turnover. We are in tutoring business, we are in skill development, the B2B power training so that would add almost 20% to our complete portfolio. Q: What about your margins? A: The margins, as of now, it has got 30-35% margins. We hope that with our offices it would amortise the rentals and other staff cost would be reduced for Plan Steps. With shared infrastructure, it would only go up. Q: Any other acquisitions that you have planned, apart from Plan Steps and now that thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
