| Established track record of operations and experienced management
DKSS has been in operations since 2006. The founder, Mr. Ramdas Zol along with other trustees namely Mrs. Maya Zol, Mr. Rana Suryawanshi and Ms. Jaymala Baldal who have more than two decades of experience in the field of education. With experience of trustees the trust has set up 9 institutes and promote girl child education. The institute has a total of 182 qualified faculty members .
Acuité believes that the established track record and experienced management will continue to benefit DKSS over medium to long term.
Steady improvement in operating performance
The operating performance of the trust has been steady albeit a slight decline in the intake of students. The operating income of the trust stood at Rs.34.17 crore in FY24(Prov) as against Rs. 33.01 crore in FY22 and Rs.28.88 crore in FY22. Approximately 85% of the trust’s income is generated by various colleges of trust. The total actual intake of all the technical courses offered by the trust decreased to 2363 students from 2470 students in FY23 and 2177 students in FY22. The trust during 2023-24 introduced a new M. Pharm 2 year course with a sanctioned intake capacity of 60 students along with the latest courses introduced in 2024-25 BBA & BCA with the sanctioned capacity of 60 & 120 students respectively and fees around Rs. 50000 per student per annum in Dattakala Group of Institutions. The first round of admission has just completed in both the courses. The occupancy levels of pharma courses stood around 70.79% and of engineering and management courses stood around 67.37%.
The operating margins of the trust stood at 12.15 percent in FY24(Prov) as against 12.21 percent in FY23. The PAT margins of the trust stood at 0.57 percent in FY24(Prov) as against 0.69 percent in FY23 and 0.70 percent in FY22.
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| Intensive working capital operations
The working capital operations of the trust are intensive marked by GCA days of 202 days in FY24(Prov) as against 230 days in FY23 and 369 days in FY22. The GCA days remain driven by the debtor collection period. Approximately 60% of the seats are for students who receive scholarships under certain schemes of the government. Hence the fees for such students are received from the welfare department where the recovery takes around a year. Further, the fees are cleared by the students in the month of May-June and when exams are held and hence the debtor collection period as on balance sheet date remain elongated. The debtor collection period of the trust stood at 191 days in FY24(Prov) as against 216 days in FY23 and 282 days in FY22. The reliance of the trust on bank limits for its working capital requirements remains low as the trust has a sanctioned limit of Rs. 0.50 crore and an average utilization of ~32 percent for 12 months ended August 2024.
Average financial risk profile
The financial risk profile of the trust is average marked by moderate net worth, high gearing and average debt protection metrics. The tangible net worth of the trust stood at Rs. 11.81 crore as on March 31, 2024(Prov) as against Rs. 11.61 crore as on March 31, 2023, and Rs. 11.38 crore as on March 31, 2022. The increase in net worth is on account of increased accretion of profits to reserves. The total debt of the trust stood at Rs. 21.16 crore as on March 31, 2024(Prov) as against 22.12 crore as on March 31, 2023, and Rs. 25.23 crore as on March 31, 2022. The total debt of the trust includes Rs. 15.53 crore of long-term debt, Rs. 2.27 crore of unsecured loans and Rs. 0.13 crore of short-term debt of Rs.3.34 crore of current maturities of term loans. The trust makes prepayment of its loans. Gearing (Debt to Equity) of the trust stood at 1.79 times as on March 31, 2024(Prov) as against 1.91 times as on March 31, 2023 and 2.22 times as on March 31, 2022. Th TOL/TNW of the trust stood at 2.59 times as on March 31, 2024(Prov) as against 3.02 times at March 31, 2023 and 3.61 as on March 31, 2022. The debt protection metrics of the trust remained stretched marked by DSCR of 0.70 times in FY24(Prov) as against 1.00 times in FY23 and 1.71 times in FY22. The ICR of the trust stood at 1.88 times in FY24(Prov) as against 2.00 times for FY23 and 2.03 times for FY22. Going forward, the trust has high repayments of its debt obligations on account of ballooning repayments.
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