New Delhi
A report indicates that educational institutes are expected to experience revenue growth of 12-14 percent this fiscal year. This increase is attributed to higher enrolments and students seeking new courses. The growth is notable despite a previous high revenue base in recent years.
Increased enrolments and better use of resources are expected to cover rising salary costs for faculty and expenses for new courses. This should help maintain an operating margin around 28 percent. It has been noted that educational institutes will continue to invest in infrastructure and expand intake capacities.
A study of 96 educational institutes revealed that enrolments in K-12 schools will increase due to the demand for quality education and better affordability as income levels rise. The government aims to boost the gross enrolment ratio for higher education to 50 percent by 2035 from below 30 percent now by promoting new institutions and enhancing existing ones.
It is expected that capacity utilisation rates for schools and higher education will improve to 86-87 percent this fiscal year from 85 percent last year. High enrolments in medical colleges and schools are driving fee income growth, allowing educational institutes to adjust fees periodically. Working capital needs are projected to remain low as fee collections are controlled at 45-50 days.
