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Veranda Learning Solutions posts profit in Q4 & FY24 after reporting loss last year

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Veranda Learning Solutions Limited, a public listed Education company (BSE: 543514, NSE: VERANDA) offering end-to-end Education services solutions, announced its financial results for the fourth quarter and year ended March 31, 2024. The company continues its growth trajectory, delivering exceptional results for both the quarter and fiscal year of 2024. During the quarter, the operating revenue stood at 102.61 crores, marking an impressive year-over-year growth of 111.98% from Rs. 48.41 crores in the same period last year.

For FY24, the company reported an EBITDA of Rs. 62.29 crores and an adjusted EBITDA of Rs. 68.99 crores, a dramatic turnaround from the operating loss of Rs. 33.67 crores in the previous financial year. This remarkable shift was fueled by both organic expansion and strategic acquisitions. Overall, the total operating revenue for FY24 stood at Rs. 361.73 crores, a significant increase from Rs. 161.36 crores recorded in FY23, showcasing Veranda Learning’s robust growth and solid financial footing.

This year the company has seen an increase in finance and depreciation costs due to accounting adjustments pertaining to the acquisitions completed. The depreciation costs include a non-cash expense of Rs 36.38 crores arising due to the amortization of intangible assets acquired. The finance cost includes a non-cash expense of Rs 14.63 crores arising due to  unwinding  of acquisition related liabilities and a non-cash expense of Rs 9.92 crores due to acceleration of processing charges of the loans prepaid . The finance cost also includes a non-recurring cost of Rs 10.25 crores due to prepayment of existing loans.

The Total number of students trained by the Veranda Group for FY24 stood at 6,93,874 with 1,36,194 students trained during this quarter.

Commenting on the strong financial performance, Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said,“It is with gr eat 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 enhancing our 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 underscore the resilience of 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 footprint to empower even larger number of learners nationwide. 

As we set our sights on FY25, we anticipate maintaining this momentum to achieve revenues exceeding Rs. 550 crores with an ambitious EBITDA margin of 25%.

 

Portfolio growth :

Acquisition of 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. This substantial 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 strengthen the company’s dedication to empowering schools with top-notch education on a broader scal

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