Drishti IAS Institute, an online teaching organization, generated more over Rs 400 crore in income in the preceding fiscal year, which concluded in March 2024. Furthermore, the profits for Vikas Divyakirti's firm reached Rs 90 crore within the same period.
Drishit IAS's operating revenue climbed by 30.6% year on year to Rs 405 crore in FY24, up from Rs 310 crore in FY23, according to the consolidated financial accounts filed by its parent (VDK Eduventures Private Limited). This demonstrates exceptional development over the last four years, with the Delhi-based company's sales increasing from Rs 40 crore in FY21 to Rs 119 crore in FY22, and then to Rs 310 crore in FY23.
The 26-year-old educational portal focuses on offline coaching to help students prepare for the Civil Services Examination (CSE). Coaching services generated 94.8% of total operating revenue, which climbed by 37.6% to Rs 384 crore in FY24 from Rs 279 crore in FY23.
The remaining money comes from the sale of study materials, such as pen drives holding coaching classes, books, test papers, and other relevant resources. The firm also added Rs 15.3 crore, primarily from interest on investments, bringing total revenue to Rs 421 crore in FY24 from Rs 314 crore in FY23.
Drishti IAS runs seven institutes: two in Delhi (Karol Bagh and Mukherjee Nagar), three in Uttar Pradesh (Noida, Prayagraj, and Lucknow), and one each in Jaipur and Indore. Mukherjee Nagar Institute is Dirshi IAS' greatest revenue provider, accounting for 58% of overall coaching revenues, followed by Prayagraj, Jaipur, and Karol Bagh.
Drishi IAS's personnel benefits and faculty (teacher) expenditures accounted for 40% of its total costs. This cost rose by 41% to Rs 117 crore in FY24 from Rs 83 crore in FY23. Drishi increased its advertising budget by 3.4 times to Rs 51 crore in FY24.
Notably, Drishti IAS paid Vikas Divyakirti a total of Rs 15.17 crore, including Rs 3.97 crore in rent, Rs 5.2 crore in salaries, and Rs 6 crore in faculty fees. In addition, his wife Taruna Verma earned Rs 2.4 crore in FY24. Its total expenditure in FY24 increased to Rs 289 crore from Rs 197 crore in FY23 due to rent, power, legal fees, study material procurement, travel, and other overheads.
Higher spending on employee benefits and advertising resulted in a slight 3.4% increase in net earnings to Rs 90 crore in FY24, up from Rs 87 crore in FY23. The company's ROCE and EBITDA margins were recorded at 55.7% and 33.73%, respectively, with an expense-to-revenue ratio of Re 0.7a1. As of March 2024, the company's total current assets were worth Rs 88 crore, including cash and bank balances of Rs 54 crore.
The Rs 90 crore PAT is uncommon in privately held enterprises in India, and Drishti IAS stands out for this reason. A great brand, track record, strong word-of-mouth, and a priceless alumni network have all combined to make it a force to be reckoned with, despite a modest topline. The firm has grown based on what is essentially a single exam, making a lot of money and valuing itself at upwards of $600 million, according to peers. However, given its strategic location, it is unlikely to go public or sell anytime soon. In many ways, an anomaly that continues to astonish
