Chennai: Veranda Learning Solutions Limited, a leading Education company (BSE: 543514, NSE: VERANDA), reported strong financial results for Q4 and fiscal year 2024, with a notable YoY revenue growth of 111.98%. Operating revenue for the quarter was 102.61 crores, up from 48.41 crores last year.
In FY24, the company achieved an EBITDA of Rs. 62.29 crores and an adjusted EBITDA of Rs. 68.99 crores, marking a strong recovery from the previous year’s Rs. 33.67 crores operating loss. This positive shift resulted from organic growth and strategic acquisitions, with total operating revenue for FY24 reaching Rs. 361.73 crores, a significant improvement over FY23’s Rs. 161.36 crores, underscoring Veranda Learning’s growth and financial strength.
This year, the company’s finance and depreciation costs increased due to accounting adjustments related to completed acquisitions. The depreciation costs include a non-cash expense of Rs 36.38 crores from intangible assets amortization. Additionally, finance costs have non-cash expenses like Rs 14.63 crores for unwinding acquisition liabilities, Rs 9.92 crores for accelerated loan processing charges, and a one-time Rs 10.25 crores cost for loan prepayment.
The Total number of students trained by the Veranda Group forFY24 stood at6,93,874 with1,36,194 students trained during this quarter.
Consolidated Financial Highlights:
| Particulars (Rs. Crores) | Q4FY24 | Q4FY23 | Y-o-Y | Q3FY24 | Q-o-Q | FY24 | FY23 | Y-o-Y |
| Revenue from Operations | 102.61 | 48.41 | 111.98% | 91.84 | 11.73% | 361.73 | 161.36 | 124.18% |
| Other Income | 1.30 | 0.39 | 3.51 | 8.29 | 38.56 | |||
| Total Revenue | 103.91 | 48.80 | 112.93% | 95.36 | 8.97% | 370.02 | 199.92 | 85.08% |
| Gross Profit | 62.95 | 23.85 | 163.94% | 55.06 | 14.33% | 213.03 | 73.69 | 189.10% |
| Gross Profit Margin (%) | 61.35% | 49.27% | 59.95% | 58.89% | 45.67% | |||
| Operating Expenses | ||||||||
| Advt. & Business Promotion | 13.31 | 11.54 | 15.39% | 10.60 | 25.57% | 48.67 | 42.24 | 15.22% |
| Corporate Costs | 6.00 | 4.52 | 32.74% | 5.35 | 12.15% | 19.76 | 44.15 | (55.24)% |
| Other Expenses | 19.11 | 26.31 | 19.65 | 75.60 | 23.33 | |||
| Non-Operating Expenses | ||||||||
| ESOPs/RSU | 1.82 | 1.68 | 2.25 | 6.71 | (2.37) | |||
| EBITDA | 22.71 | (20.20) | 17.19 | 32.13% | 62.29 | (33.67) | ||
| Finance Cost | 39.50 | 5.15 | 19.91 | 78.17 | 10.30 | |||
| Depreciation | 22.55 | 17.67 | 17.70 | 65.37 | 45.46 | |||
| Tax Expenses | (0.80) | (4.34) | (3.71) | (5.15) | (10.22) | |||
| PAT | (38.54) | (38.68) | (16.71) | (76.11) | (79.21) |
Key Consolidated Financial Highlights:
In Q4FY24, Total Operating Revenue was Rs. 102.61 crores (111.98% growth YoY) compared to Rs. 48.41 crores in Q4FY23. For FY24, Total Operating Revenue stood at Rs. 361.73 crores (124.18% growth YoY). Gross Profit in Q4FY24 was Rs. 62.95 crores with a margin of 61.35%, while for FY24 it was Rs. 213.03 crores with a margin of 58.89%. Advertising expenses for Q4FY24 and FY24 were Rs. 13.31 crores and Rs. 48.67 crores respectively. EBITDA in Q4FY24 was Rs. 22.71 crores, compared to a loss in Q4FY23, and for FY24 was Rs. 62.29 crores compared to a loss in FY23. ESOP expense for the quarter stood at Rs. 1.82 crores, and adjusted EBITDA was Rs. 24.53 crores. Finance costs include various expenses like pre-closure charges and unwinding of acquisition-related liabilities. Depreciation costs also included expenses related to amortization of intangible assets.
Commenting on the strong financial performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said,
“It is with great pride that I address you today to celebrate a milestone year for our company. In FY24, we have not only seen our operating revenues double to surpass Rs. 360 crores, but we have also achieved a positive EBITDA for the first time. This is a testament to our team’s dedication. This has been driven by strategic consolidation of high-quality brands into our portfolio, significantly enhancingour market presence and performance.
This year, we have exceeded our ambitious targets, achieving a remarkable year-over-year revenue growth of over 100% while maintaining a solid EBITDA margin of 17%. These accomplishments underscorethe resilienceof our business model and our unwavering commitment to financial stability.Looking ahead, we remain confident in sustaining our strong performance and are steadfast in our pursuit of leadership in India’s education sector. We will innovate, excel and expand our footprintto empower even larger number of learners nationwide.
As we set our sights on FY25, we anticipate maintaining this momentum to achieve revenues exceeding Rs. 550crores withan ambitious EBITDA margin of 25%.”
Acquisitionof Tapasya Educational Institutions
Veranda Learning Solutions has acquired 51% of equity shares of Tapasya Educational Institutions Private Limited (“TEIPL” or “Tapasya”) through its subsidiary, Veranda XL Learning Solutions Pvt Ltd, valuing TEIPL at Rs 240 crores.The acquisition of Tapasya will strengthen Veranda’s presence in both Telangana and Karnataka. This collaboration will mark the beginning of a new era of growth and opportunity for Veranda. Also, the company is excited to team up with Tapasya, to combine the expertise, innovate and improve the learning experience for students throughout the region.
Successful Fund Raise of Rs. 425 crores
Veranda Learning has obtained debt financing of Rs 425 crore via senior, secured, redeemable, unlisted, and unrated non-convertible debentures from BPEA Investment Managers Private Limited (BPEA Credit). These funds are raised through one or more series and/or tranches, facilitated by BPEA Investment Managers Private Limited (BPEA) or other investors identified by BPEA, to provide inter-corporate loans to group companies, refinance existing loans, support working capital, and fulfil general corporate purposes. Thissubstantial financial injection is a crucial and timely move for Veranda, supporting its growth strategy within the rapidly evolving educational industry landscape.
Veranda XL Learning acquires Logic Management Training Institute
Veranda Learning Solutions has acquired Logic Management Training Institutes Pvt. Ltd., a Kerala-based institution known for its professional financial courses. With this agreement, Veranda will expand its educational offerings across India, leveraging Logic’s eight branches and nearly 5,000 annual students. The acquisition includes collaboration with JK Shah Classes, part of Veranda’s Commerce Education initiative, aiming to enhance educational value and reinforce Veranda’s dedication to innovation in the education sector.
Tie up with Cambridge University Press & Assessment India Pvt. Ltd
Veranda is appointed as an Associate Partner for Cambridge in India to play an important role in recruiting, onboarding, and supporting schools in the Cambridge community with a specific focus on tier 2 and tier 3 cities. This partnership will enhance Veranda’s comprehensive resources and design support, empowering the company to implement the Cambridge Pathway with confidence. This includes expert teachers, teacher training programs, a focus on academic excellence, and essential tools to help students achieve their educational goals. This will further strengthenthe company’s dedication to empowering schools with top-notch education on a broader scale.
