YoY Income soars by 70%, EBITDA jumps 5X
Chennai (Tamil Nadu) [India], August 13: Veranda Learning Solutions Limited, a public listed Education company (BSE: 543514, NSE: VERANDA) and a pioneer in the industry offering end-to-end Education services solutions, announced its financial results for the first quarter ended June 30, 2024. Carrying on its momentum from FY24,the company sustained its impressive growth as it capitalizes on the exciting opportunities and continues to deliver outstanding performance. During the quarter, the operating revenue stood at Rs.118.99 crores, reflecting a growth of 72.69% from Rs. 68.90 crores in the same period last year despite Q1 being a traditionally off-season period.
In addition, the company reported deferred revenue of Rs 98.70 crores, positioning it strongly for its continued success in the upcoming quarters. The total cash collection by the company exceeded Rs. 150 crores for the quarter.
The company has achieved a robust EBITDA of Rs. 27.61 crores, up significantly from Rs. 5.64 crores reported in the same quarter last year. This substantial increase highlights the company’s enhanced operational efficiency and effective execution of its strategies. The Total number of students trained by the Veranda Group for Q1FY25 stood at 113,262.
| Particulars (Rs. Crores) | Q1 FY25 | Q1 FY24 | Y-o-Y | Q4 FY24 | Q-o-Q |
| Revenue from Operations | 118.99 | 68.90 | 72.69% | 102.61 | 15.96% |
| Other Income | 7.43 | 1.58 | 1.30 | ||
| Total Income | 126.42 | 70.48 | 79.37% | 103.91 | 21.66% |
| Gross Profit | 72.61 | 38.38 | 89.16% | 62.94 | 15.35% |
| Gross Profit Margin (%) | 61.02% | 55.71% | 61.34% | ||
| Operating Expenses | |||||
| Advt & Business Promotion | 16.05 | 10.27 | 56.25% | 13.31 | 20.58% |
| Corporate Costs | 5.87 | 5.58 | 5.11% | 6.42 | (8.53)% |
| Other Expenses | 29.29 | 16.93 | 21.36 | ||
| Non-Operating Expenses | |||||
| ESOPs/RSU | 1.22 | 1.53 | 0.44 | ||
| EBITDA | 27.61 | 5.64 | 389.60% | 22.71 | 21.55% |
| Finance Cost | 29.92 | 8.45 | 39.50 | ||
| Depreciation | 22.33 | 18.96 | 22.55 | ||
| Tax Expenses | 0.51 | (2.44) | (0.80) | ||
| PAT | (25.16) | (19.33) | (38.54) |
Key Consolidated Financial Highlights:
- Total Income stood at Rs. 126.42 crores inQ1FY25compared to Rs. 70.48 crores in Q1FY24 a growth of 79.37% YoY
- Gross Profit for Q1FY25 was at Rs. 72.61 crores compared to Rs. 38.38 crores in Q1FY24, a growth of 89.16%; and the reported Gross Profit margin was at 61.02% in Q1FY25 compared to 55.71% in Q1FY24
- Advertising and business promotion expenses for Q1FY25 stood at Rs. 16.05 crores.
- The Company reported an EBITDA of Rs. 27.61 crores in Q1FY25 compared to Rs. 5.64 crores in Q1FY24
- The ESOP expense for the quarter stood at Rs. 1.22 crores and the adjusted EBITDA for the quarter stood at Rs. 28.83 crores.
- The Finance cost for the quarter stood at Rs. 29.92 crores. This includes Rs. 9.01 crores, cash interest paid on the NCDs issued and non-cash expenses of Rs. 13.11 crores pertaining to the unwinding of acquisition related liabilities and accrued premium on the NCDs issued.
- The Depreciation cost for the quarter includes non-cash expense of Rs. 13.45 crores arising out of amortisation of intangible assets pertaining to the acquisitions completed.
Speaking on the robust financial performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said,
“I am delighted to announce that we have achieved stellar growth in Q1FY25, surpassing expectations during what is traditionally an off-season for the education industry. This
performance underscores the strength and resilience of our business model, even in the face of cyclical challenges.
Our efforts to deepen our presence in various verticals are yielding tangible results. The synergy within our ecosystem is palpable, as we leverage the strengths of our acquired brands to enhance the overall quality and reach of our educational offerings. We are focussing on organic growth in all our existing segments with at least a double-digit YoY revenue growth. This quarter’s performance is a clear indication that our focus on building sustainable and profitable operations is on the right track.
As we look to the future, our optimism is buoyed by our strong start to the year. We are steadfast in our goal to achieve a revenue target of Rs 600 crore in FY25, a milestone that reflects our commitment to excellence and our confidence in the sector’s potential. Our unwavering focus on delivering consistent operational and financial results is key to maintaining the investor confidence and propelling Veranda Learning Solutions to new heights. We are excited about the journey ahead and remain committed to our mission of transforming the educational landscape.”
Q1FY25 Key Business Highlights:
Expanding Footprints in Eastern India
Veranda K-12 and Cambridge are expanding their partnership to introduce educational programs in Eastern India. The company, is expanding its support to schools in Eastern India, starting with Kolkata, in collaboration with the International Education group at Cambridge University Press & Assessment. Veranda K-12 assists schools in aligning with Cambridge’s educational standards. This partnership aims to integrate 500 new Indian schools into the Cambridge educational network. With a growing demand for global education, particularly in Tier 2 and Tier 3 cities and this collaboration with Cambridge will assist schools throughout the entire affiliation and implementation of the Cambridge curriculum. This support encompasses initial orientation, teacher training, ongoing assistance, and performance monitoring to ensure schools meet their educational goals.
Strategic partnership with Pearson
Pearson, a leading learning company is strengthening its strategic alliance with Veranda Race, a Veranda Learning enterprise renowned for test preparation, to launch an extensive and hybrid test preparation program for the Bank Probationary Officers (Bank PO) examination in India. This partnership will focus on delivering advanced learning solutions and credentials that prepare students for success in their chosen fields. The tie-up is expected to leverage Pearson’s expertise in education and Veranda’s commitment to academic excellence, creating valuable pathways for students and contributing to their professional growth.
Veranda XL Learning Solutions Private Limited and Sri Krishna Arts and Science College in Coimbatore signed a MoU
This MoU aims to offer a B. Com course with the added benefit of ACCA (Association of Chartered Certified Accountants) accreditation and this program is designed to provide enrolled students with exemptions from 9 out of the 13 required ACCA coursework exams, significantly speeding up their journey toward professional certification. Additionally, it will highlight the company’s commitment to offering students innovative educational experiences that go beyond traditional limits. The B.Com course with ACCA accreditation reflects the company’s dedication to academic excellence and prepares students to excel in the evolving financial sector. Over the next 5 years, the company anticipates to train more than 300,000 students through these collaborations.
Veranda partners with KSDC to launch upskilling programs
Veranda Learning Solutions Limited has commenced its work as a Training Partner as per the terms of the MoU with the KSDC (Karnataka Skill Development Corporation) to assist in the implementation of Wealth Management Course. This course is part of the Kalike Jothege Kaushalya, a state government initiative to provide skill development and career guidance to students in government colleges. The program will be delivered as a pilot project in Raichur and Gulbarga, enhancing Veranda’s presence in Karnataka. Veranda’s collaboration with KSDC is a
key step in expanding its geographic footprint while continuing to deliver high-quality skill development programs across India.
ABOUT VERANDA LEARNING SOLUTIONS:
Founded in 2018, by the Kalpathi AGS Group – Veranda Learning Solutions is a public listed education technology company that offers a bouquet of training programs for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes. Veranda Learning Solutions’ platform combines technology, processes, and methodologies to provide high-quality, in-depth,personalised learning opportunities and content to learners across the country. Dedicated to creating an impact on students and delivering successful academic outcomes, Veranda adopts a multi-modal delivery system backed by a rigorous and disciplined learning framework. The company provides services through its subsidiaries: Veranda RACE, Veranda IAS, Edureka – the customer-facing brand of Brain4ce Education Solutions, Six Phrase, Veranda HigherEd, Edureka Learning Centre, SmartBridge, BAssure Solutions, Talent Academy and Publications, Sreedhar’s CCE, Veranda K12, Tapasya and PHIRE. Veranda Learning has forayed into high-demand financial courses such as Chartered Accountancy through its partnership with India’s premier CA test-preparation institute, J. K. Shah Classes.
DISCLAIMER:
Certain statements in this document that are not historical facts, are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political, or economic developments, industry risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Veranda Learning Solutions Limited will not be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
