Chennai: Veranda Learning Solutions has announced its financial results for Q4FY23 and FY2023. The total revenue for Q4FY23 stood at Rs. 488.00 million compared to Rs. 294.12 million in Q4FY22, a growth of 65.92% year-on-year. The total revenue for FY23 was Rs. 1999.21 million, an impressive 164.44% year-on-year surge from Rs. 756.02 million in FY22.
After announcing the results Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions, stated that FY23 has set the stage for the company to witness accelerated growth, increased revenues, and enhanced profitability in FY24.
“FY23 was a foundational and formative year that has set a strong base for our next phase of growth. Our Company’s revenue from operations grew by 115.03% year-on-year, while operating losses have come down compared to the previous year,” said Suresh Kalpathi.
Speaking about the company’s strategy of offering high quality education, Suresh Kalpathi said, “In FY23, the Company successfully acquired J. K. Shah Classes, one of the largest test prep organizations in India. In addition to that, we recently signed acquisition/investment agreements with seven companies which possess deep synergies to our existing businesses. On the organic front, our Higher Education division has signed crucial agreements with several renowned universities. We have also launched residential programs in Tamil Nadu to cater to IAS and Banking aspirants. Veranda RACE, our competitive exam prep brand, has been successful in penetrating southern states such as Kerala, Karnataka, Andhra, and Telangana, whilst enjoying leadership position in Tamil Nadu. In total, we have over 280 centres across the group where our students are provided with state-of-the-art facilities.”
Suresh Kalpathi firmly believes FY 23-24 will be crucial for Veranda Learning’s growth trajectory.
“Substantial part of the investments that we have made in FY23 are a one-time expense needed to drive the company’s growth. This non-recurring expenditure will catapult profits in the coming years. Another crucial indicator forecasting our growth has been our student enrolment numbers. The constant rise in the number of student enrolments is a strong sign that we are on the right path. The enrolments for FY23 stood at over 4 lakhs compared to about 60 thousand in FY22, including students who trained with us as part of our expansion into the B2B2C space. The Company has prioritised expanding and strengthening the product portfolio as well as in building a robust technology platform for our aspiring students. With these initiatives, we expect the proforma EBITDA to reach over INR 100 Cr in FY23-24,” said Suresh Kalpathi.
Key Consolidated Financial Highlights:
- Total Revenue stood at 488.00 million in Q4FY23 compared to Rs. 294.12 million in Q4FY22 a growth of 65.92% YoY; Total Revenue for FY23 stood at Rs. 1,999.21 million compared to Rs. 756.02 million a strong of 164.44 % YoY
- Gross Profit for Q4FY23 was at 238.51 million compared to 209.98 million in Q4FY22 a growth of 13.59%; Gross Profit for FY23 stood at Rs. 498.36 million compared to Rs. 293.03 in FY22 a growth of 70.07% YoY. Reported a Gross Profit margin of 49.27 % in Q4FY23 and 30.89 % in FY23.
- Advertising and business promotion expenses for Q4FY23 and FY23 were 115.37 million and Rs. 422.42 million respectively.
- During Q4FY23, the company incurred 56.26 million in expenses towards one-time Transaction Costs. This was spent on due diligence fees, legal fees, and market studies related cost to identify and engage with the acquisition targets; such one-time costs for the year FY23 stood at Rs. 231.26 million
- During FY23, the company continued its growth investment which stood at 242.43 million including towards setting up its Higher Education business.