Veranda Learning Solutions Limited announced its financial results for the first quarter ended 30 June 2024.
Veranda Learning Solutions is a public listed education company (BSE: 543514, NSE: VERANDA) and a pioneer in the industry offering end-to-end education services.
Momentum
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, say sources from Veranda Learning Solutions.
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.
Deferred Revenue
In addition, Veranda Learning Solutions 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.
EBITDA
Veranda Learning Solutions 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, say sources from Veranda Learning Solutions.
Key Highlights
▪Total Income stood at Rs. 126.42 crores in Q1FY25 compared 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, say sources from Veranda Learning Solutions.
▪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 amortization of intangible assets pertaining to the acquisitions completed.
Performance
Speaking on the robust financial performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said he was delighted to announce that they 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, he said.
‘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, said Executive Director and Chairman, Veranda Learning Solutions.
We are focusing on organic growth in all our existing segments with at least a double-digit YoY revenue growth, he said.
This quarter’s performance is a clear indication that our focus on building sustainable and profitable operations is on the right track, he said.
Future
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, said Suresh Kalpathi.
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, he said.
Expansion
It is interesting to note that Veranda K-12 and Cambridge are expanding their partnership to introduce educational programs in Eastern India.
MoU
It is also to note that Veranda XL Learning Solutions Private Limited and Sri Krishna Arts and Science College in Coimbatore signed an MoU.
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The 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.
About Veranda Learning Solutions
Founded in 2018, by the Kalpathi AGS Group – Veranda Learning Solutions is a public listed education technology company.
It 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.
They are 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 are also the subsidiaries.
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.