Veranda Learning Solutions Limited announced its financial results for the third quarter and nine months ended December 31, 2023. The company claims to have reported a quarter with the operating revenue standing at Rs. 91.84 crores in Q3FY24 compared to Rs. 47.88 crores in the same period last year achieving a robust growth of 91.83% YoY, as per a press release from the company.
Release further mentioned that the company reported an EBITDA of Rs. 39.57 crores for 9MFY24 with an adjusted EBITDA of Rs. 44.46 crores compared to an operating loss of Rs. 13.71 crores in the corresponding period of the previous financial year. The operating revenue grew by 129.41 % on a YoY basis. The total operating revenue for 9MFY24 stood at Rs. 259.12 crores, a significant increase compared to the Rs. 112.95 crores recorded in 9MFY23.
The Total number of students trained by the Veranda Group for 9MFY24 stood at 5,57,680 with 1,33,863 students trained during this quarter.
Consolidated financial highlights:
| Particulars (Rs. Crores) | Q3FY24 | Q3FY23 | Y-o-Y | Q2FY24 | Q-o-Q | 9MFY24 | 9MFY23 | Y-o-Y |
| Revenue from Operations | 91.84 | 47.88 | 91.83% | 98.37 | (6.64) % | 259.12 | 112.95 | 129.41% |
| Other Income | 3.51 | 35.84 | 1.90 | 6.99 | 38.17 | |||
| Total Revenue | 95.36 | 83.72 | 13.90% | 100.27 | (4.90) % | 266.11 | 151.12 | 76.09% |
| Gross Profit | 56.02 | 22.87 | 144.92% | 56.63 | (1.07) % | 151.03 | 49.84 | 203.06% |
| Gross Profit Margin (%) | 61.00% | 47.77% | 57.56% | 58.29% | 44.12% | |||
| Operating Expenses | ||||||||
| Advt. & Business Promotion | 10.62 | 11.55 | (7.98) % | 14.46 | (26.54) % | 35.36 | 30.70 | 15.16% |
| Corporate Costs | 5.35 | 23.57 | (77.31) % | 4.53 | 18.07% | 15.46 | 33.85 | |
| Non-Operating Expenses | ||||||||
| ESOPs/RSU | 2.25 | -9.48 | 1.10 | 4.89 | -4.05 | |||
| EBITDA | 17.19 | 14.54 | 18.20% | 16.75 | 2.62% | 39.57 | -13.71 | – |
| Finance Cost | 19.91 | 1.95 | 10.31 | 38.67 | 4.91 | |||
| Depreciation | 17.70 | 15.18 | 6.17 | 42.82 | 27.79 | |||
| Tax Expenses | -3.71 | -3.26 | 1.80 | -4.34 | -5.88 | |||
| PAT | -16.71 | 0.66 | -1.53 | -37.57 | -40.53 |
Key consolidated financial highlights:
- Total Operating Revenue stood at Rs. 91.84 crores in Q3FY24 compared to Rs. 47.88 crores in Q3FY23 a growth of 91.83% YoY; Total Operating Revenue for 9MFY24 stood at Rs. 259.12 crores compared to Rs. 112.95 crores in 9MFY23 witnessing a growth of 129.41% YoY.
- The Gross Profit stood at Rs. 56.02 crores with a Gross Profit margin of 61.00% in Q3FY24 compared to Rs. 22.87 crores with a Gross Profit margin of 47.77% in Q3FY23; In 9MFY24 the Gross Profit stood at Rs. 151.03 crores with a Gross Profit margin of 58.29% in 9MFY24.
- Advertising and business promotion expenses for Q3FY24 & 9MFY24 stood at Rs. 10.62 crores and Rs. 35.36 crores respectively.
- The EBITDA for 9MFY24 stands at Rs. 39.57 crores as compared to a loss of Rs. 13.71 crores in 9MFY23.
- The ESOP expense for the quarter stood at 2.25 crores and the adjusted EBITDA for the quarter stood at Rs 19.44 crores.
- The finance cost for the quarter includes a non-recurring expense of Rs. 2.70 crores towards debt repaid. It also includes a non cash expense of Rs. 5.93 crores towards unwinding costs arising out of acquisition related liabilities. The finance cost for the company is 12.12% on the outstanding debt of Rs. 256.56 crores leading to an annual interest expense of Rs 31.1 crores.
- The depreciation cost for the quarter includes a non cash expense of Rs 9.92 crores arising out of amortisation of intangible assets pertaining to the acquisitions completed.
“We are extremely pleased to announce the strong and continued growth of our organisation in Q3FY24, where our revenue has increased by 92 percent YoY. Notably, our achievement of positive EBITDA for this quarter is a milestone moment for us, considering the third quarter was a lean period in general for companies in the education sector. This quarter was mired by delayed enrolments due to the presence of multiple festivals and rescheduling of important exam dates. This achievement signifies that our acquisitions and their integration exercise is paying dividends and would yield even better profits in the coming quarters. Traditionally, Q4 is a strong quarter across all our business verticals. We expect to close the year with revenues of Rs. 380-400 crores. The company expects to register a YoY revenue growth of more than 100%. Veranda will maintain EBITDA margins of 16-18% for FY24,” Suresh Kalpathi, executive director and chairman, Veranda Learning Solutions, said.