About Maharashtra Knowledge Corporation (MKCL) Limited Unlisted Shares

Maharashtra Knowledge Corporation Limited (MKCL) was promoted by the Department of Higher and Technical Education (H & TE), Government of Maharashtra (GoM), India and was incorporated under the Companies Act, 1956. MKCL commenced its business operations in April 2002 over the entire state of Maharashtra ( the most industrialized state in India admeasuring about 300,000 sq. km. and having the population exceeding 100 million) and in a span of seventeen years it has emerged as a high-tech and high-touch initiative focused on design, development, and delivery of innovative eLearning, eGovernance, and empowerment technologies, solutions, and services to its ever-growing base of millions of customers in public at large, Universities, Governments, and Communities.

In order to make the capabilities of MKCL available to all the departments of Government of Maharashtra, governmental coordination of the affairs of the company has been handed over from January 05, 2018, to the General Administration Department (GAD) from Department of Higher & Technical Education. Subsequently, it was allocated to the Directorate of Information Technology under GAD.

MKCL Unlisted Share FY22-23 Highlights

1. The company's revenue grew by approximately ₹57 crores, increasing from ₹145 crores in 2022 to ₹203 crores in 2023.

2. EBITDA witnessed a remarkable increase, from ₹43.96 crores in 2022 to ₹67.41 crores in 2023

3. Profit After Tax (PAT) saw a growth of ₹8 crores, moving from ₹41crores in 2022 to ₹49 crores in 2023.

4. The company's Net Profit Margin (NPM) increased significantly, from 28% in 2022 to 23.50% in 2023.

5. The company's net worth rose by ₹26.94 crores, from ₹470 crores in 2022 to ₹496.94 crores in 2023.

6. Return on Net Worth (RoNW) improved slightly, increasing from 8.7% in 2022 to 9.61% in 2023

MKCL Unlisted Share FY21-22 Highlights

1. MKCL’s total Income for the fiscal year ended March 31, 2022 was Rs.145 Cr as compared to Rs.102 Cr in the previous year, an increase of 44% over last year.

2. The total learner count in FY 2021-22 was 4.81 lacs learners, compared to 3.17 lacs learners in FY 2020-21, representing a comparative increase of 1.64 lacs learners in FY 2021-22 over FY 2020-21.

3. Profit after tax (PAT) increased from Rs.19 Cr in F.Y. 2020-21 to Rs.42 Cr in F.Y. 2021-22 i.e. increase of 126.84%.

4. The company has not grown since FY20 ( we are not taking Fy21 as it was covid affected year ). Even if you look at the last five years of performance, there is very little growth. Making money in the stock market without growth is extremely difficult.

FY20-21 Highlights

1. The revenue has gone down drastically from 181 Crores to 102 Crores in FY20-21 due to covid situation. MKCL all Authorized Learning Centers (ALCs) were closed during period of lockdown resulting in loss of revenue.

2. The number of learners also reduced to 3,17,532 learners as against learner count of 6,96,618 in F.Y. 2019-20.

3. Another reason for decrease in revenue is due to closure of learning centers in Bihar, due to the COVID-19 pandemic, MKCL was implementing the Skill Development Program under Bihar Skill Development Mission (BSDM).

4. The Profits before Tax have decreased from Rs.68 Crores in F.Y.2019-20 to Rs.2o Crores in F.Y.2020-21 i.e. decrease of 70.18%.

FY18-19 Highlights

1. Total revenues for the year ended March 31, 2019, amounted to Rs.19,007.16 Lakhs as against Rs.17,663.44 Lakhs for the corresponding previous year, the increase in total revenues is Rs.1,343.72 Lakhs i.e. 7.61% over last year. There is an increase in turnover from MS-CIT as compared to the previous FY’s turnover. MSCIT is an Information Technology (IT) literacy course started by MKCL in the year 2001. The MS-CIT learners count in FY 2018-19 was 746707 as against 724348 for FY 2017-18 which is an increase by 22359 learners i.e a 3.09% increase as compared to the previous FY. Another reason for the increase in total revenue and profits was due to revenue from the Mission Mode Skill Development Program (MMSDP) of Rs.3228.13 Lakhs as against Rs.2787.72 Lakhs for the previous FY 2017-18 which is an increase of Rs.440.41 Lakhs I .e.15.80% higher than the previous year.

2. The Profits after tax and before OCI for the year ended March 31, 2019, amounted to Rs.4506.82 Lakhs as against Rs.3281.51 Lakhs for the previous Financial Year (FY), which is an increase of Rs.1225.31 Lakhs i.e. 37.33% higher than the previous Financial year.

3. The company has recommended a final dividend @ Rs.3/- per equity share of Rs.10/- each.

4. The company is debt-free.

Financial Highlights FY19-20

1. Revenue from operations for the F.Y.2019-20 is Rs.15,790.37 Lakhs as against Rs.16,442.12 Lakhs in the previous F.Y.2018-19 i.e. decrease by Rs.651.75 Lakhs. The main reason for the decrease in revenue is due to the COVID-19 pandemic situation resulting in mandatory Lockdown being imposed in India from March 23, 2020. Hence, all the Authorised Learning Centers were closed. As a result of the Lockdown, there were no MS-CIT admissions for March 2020 batch.

2. The Learner count for KLiC courses has increased from 62,664 learners in F.Y.2018-19 to 70,720 Learners in F.Y.2019-20 i.e. increase by 8056 learners which is 12.86% increase as compared to previous F.Y.

3. Revenue from Mission Mode Skill Development Program (MMSDP) of Rs.3,317.28 Lakhs in F.Y. 2019-20 as against Rs.3,228.13 Lakhs for the previous F.Y. 2018-19 which is an increase of Rs.89.15 Lakhs i.e. 2.76% higher than the previous year. The number of learners under Kushal Yuva Program of Bihar, under skill development in F.Y. 2019-20 was 387407 as against 363254 in the previous F.Y. 2018-19 i.e. increase by 24153 i.e. 6.65% over last year.

4. The company is debt-free.

Valuation of MKCL Unlisted Share:

CMP of MKCL = 400

No. of shares outstanding = 80 Lakh

Mcap = 320 Crores

Mcap/Revenue = 1.5x P/E = 6x