Q2FY24: Operating Income registers a robust growth of 167% YoY

Chennai (Tamil Nadu) [India], November 10: Veranda Learning Solutions Limited, a publicly listed Education company (BSE: 543514, NSE: VERANDA) and a pioneer in the industry offering end-to-end Education services solutions, announced its financial results for the second quarter and the half year ended September 30, 2023. The company has reported a robust Revenue of Rs. 100.27 crores for the quarter compared to Rs. 38.77 crores in the same period last year. Veranda continues to focus on delivering high-quality, result-oriented preparatory courses for aspirants in India.

The company announced an EBITDA of Rs. 22.39 crores for H1FY24 marking a substantial recovery from the operating loss of Rs. 28.41 crores in the corresponding period of the previous Financial year. This was possible on the back of a remarkable revenue surge, arising out of a year-on-year operating revenue growth of 157.06 %. Their total revenue for H1FY24 stood at Rs. 170.75 crores, a significant increase compared to the Rs. 67.40 crores recorded in H1FY23.

The total number of students trained by the Veranda Group for H1FY24 stood at 4,21,327 with 2,00,574 students trained this quarter.

Consolidated Financial Highlights:

Particulars (Rs. Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y

Revenue from Operations 98.37 36.88 166.70% 68.90 42.77% 167.27 65.07 157.06%

Other Income 1.90 1.89 1.58 3.48 2.33

Total Revenue 100.27 38.77 158.63% 70.48 42.26% 170.75 67.40 153.34%

Gross Profit 60.18 15.06 299.53% 38.38 56.80% 98.57 26.96 265.57%

Gross Profit Margin (%) 61.18% 40.84% 55.71% 58.92% 41.43%

Operating Expenses

Advt & Business Promotion 14.46 10.69 35.31% 10.27 40.77% 24.74 19.16 29.11%

Corporate Costs 4.53 5.36 -15.47% 5.58 -18.88% 10.11 10.29 -1.71%

Non-Operating Expenses – – – – –

ESOPs/RSU 1.10 3.36 -67.17% 1.53 -27.96% 2.64 5.44 -51.49%

Growth Investment – 4.99 – – 6.37

EBITDA 16.75 -15.00 5.64 196.99% 22.39 -28.41

Finance Cost 10.31 1.07 862.00% 8.45 22.03% 18.76 2.79 572.15%

Depreciation 6.17 6.47 -4.72% 18.96 -67.47% 25.12 12.61 99.27%

Tax Expenses 1.80 -1.42 -2.44 -0.63 -2.61

PAT -1.53 -21.13 -19.33 -20.86 -41.19

Key Consolidated Financial Highlights:

▪ Total Operating Revenue stood at Rs. 98.37 crores in Q2FY24 compared to Rs. 36.88 crores in Q2FY23 a growth of 166.7% YoY; Total Operating Revenue for H1FY24 stood at Rs. 167.27 crores compared to Rs. 65.07 crores in H1FY23 witnessing a growth of 157.06% YoY.

▪ The Total Revenue stood at Rs. 100.27 crores in Q2FY24 compared to Rs. 38.77 crores in Q2FY23 a growth of 158.6% YoY; Total Revenue for H1FY24 stood at Rs. 170.75 crores compared to Rs. 67.40 crores in H1FY23 witnessing a growth of 153.34% YoY.

▪ The Gross Profit stood at Rs. 60.18 crores with a Gross Profit margin of 61.18% in Q2FY24 compared to Rs. 15.06 crores and Gross Profit margin of 40.84% in Q2FY23; In H1FY24 the Gross Profit stood at Rs. 98.57 crores with a Gross Profit margin of 58.92% in H1FY24 compared to Rs. 26.96 crores and Gross Profit margin of 41.43% in H1FY23.

▪ Advertising and business promotion expenses for Q2FY24 & H1FY24 stood at Rs. 14.46 crores and Rs. 24.74 crores respectively

▪ The Company reported an EBITDA of Rs. 16.75 crores in Q2FY24 compared to a loss of Rs. 15.00 crores in Q2FY23. The EBITDA for H1FY24 stands at Rs. 22.39 crores as compared to a loss of Rs. 28.41 crores in H1FY23; The adjusted recurring EBITDA for the quarter Q2 FY24 stood at Rs 17.85 crores and Rs 25.02 crores for H1FY24.

Speaking on the strong financial performance, Mr. Suresh Kalpathi, Executive Director and Chairman, of Veranda Learning Solutions said, “I am thrilled to share with you the outstanding performance of our company during Q2FY24 and H1FY24. The numbers speak for themselves – our revenue has surged by an impressive 167% in Q2FY24. This is a clear testament to the hard work and dedication of our teams, as well as the validation of our strategic decisions. The improvement in EBITDA margin shows the strength and resilience of our business operations and the acquisitions.

After a challenging period of assimilating assets in the education ecosystem over the past two years, we can proudly say that we are now reaping the rewards. We have successfully stitched a fabric through strategic acquisitions, further enhancing our competitive advantage in the market. We are close to achieving the dream of being present across the entire education value chain.

We are confident that this momentum will persist, as we continue to drive growth from both our existing and newly acquired businesses. The future looks promising, and we remain committed to delivering exceptional results and value for our stakeholders.”

BUSINESS VERTICAL PERFORMANCE UPDATES:

Veranda RACE

Veranda RACE is a premier competitive exam test‑prep institute, preparing students and providing courses in the areas of Tamil Nadu Public Services Commission (TNPSC), Banking, and Kerala Public Service Commission (PSC), Railway Recruitment Board (RRB) and insurance examination for over 10 years. During Q2FY24 the Revenue for the vertical stood at Rs. 29.41 crores compared to Rs. 16.77 crores in Q2FY23 a strong growth of 75.29%. Reported an Adjusted EBITDA of Rs. 7.17 crores compared to Rs. 1.61 crores in Q2FY23. The enrolment during the quarter stood at 17,924 compared to 12,859 in Q2FY23 a growth of 39.39%

Edureka (Brain4ce)

Edureka is a platform for imparting the latest tech skills to technology professionals through curated courses to bridge the gap between industry demand and talent supply. During Q2FY24 the Revenue stood at Rs. 23.27 crores compared to Rs. 19.94 crores in Q2FY23 a robust growth of 16.76% YoY. The reported Adjusted EBITDA of Rs. 2.92 crores in Q2FY24 compared to a loss of Rs. 3.41 crores in Q2FY23. The enrolments for Q2FY24 were at 8,032 vs 9,196 in Q2FY23.

JK Shah Classes

JK Shah Classes, a pioneer in coaching CA, CS, and CMA aspirants for the last 39 years collaborated with Veranda Learning Solutions Limited in October 2022. The unparalleled legacy and leadership position in the Chartered Accountancy Test prep course and other Commerce courses JK Shah classes have built a platform for sustained growth. The Revenue for Q2FY24 stood at Rs. 33.84 crore compared to Rs. 27.42 crore in Q1FY24 a growth of 23.4% QoQ. The Adjusted EBITDA was at Rs. 13.73 crore in Q2FY24 compared to Rs. 11.18 crore in Q1FY24 a growth of 22.82% QoQ. The enrolments for Q2FY24 were at 20,618 vs 16,153 in Q1FY24.

Veranda Higher Education Business

Veranda Higher Education offers long-term degrees and certification programs in collaboration with prestigious institutions such as IIM Raipur, IIM Shillong, XLRI, IIT – Guwahati, Goa Institute of Management, and Sastra University, as well as tie-ups with international universities to offer long term degree and certification programs. The Revenue for Q2FY24 stood at Rs. 2.93 crore compared to Rs. 0.29 crore in Q1FY24. The enrolments for Q2FY24 were at 764 vs 480 in Q1FY24 and bookings grew to Rs 15.40 crores in Q2FY24 as against Rs 8.85 crores in Q1 FY24.

New Acquisitions Performance

This quarter we also consolidated results from the new acquisitions which were completed on Aug 23 in wholly owned subsidiary Veranda Administrative Learning Solutions Pvt Ltd (VALS). This business which included Educare Infra, Six Phrase, Phire, Neyyar Academy, Neyyar Education, and Bassure reported Revenue of Rs. 8.44 crores and Adjusted EBITDA of Rs. 3.37 crores. In addition, the Company announced investment in SmartBridge Educational Services Private Limited this quarter whose acquisition is expected to be completed by 31st Jan 2024. It also entered into a Business Transfer Arrangement with Sreedhar’s College of Competitive Exams (CCE), a prominent test-prep institute in Andhra Pradesh and Telangana during the quarter.

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ABOUT VERANDA LEARNING SOLUTIONS

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is a publicly listed ed-tech company that 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 programs in trending technologies. Veranda Learning Solutions aims to offer a robust learning platform riding on a network of strong mentors, educationists, and tech experts.

Veranda Learning Solutions’ platform combines technology, processes, and methodologies to provide high-quality, in-depth, personalized learning opportunities and content to learners across the country. Dedicated to creating an impact on learners 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: Veranda Race, Veranda IAS, JK Shah Classes, and Edureka – the customer-facing brand of Brain4ce Education Solutions.

MEDIA CONTACT FOR VERANDA LEARNING SOLUTIONS

CAPE Agency

Puneet Chadha – 9884 440937puneet@capeagency.in

Rose Stephanie Justin – 8680 810342 stephanie@capeagency.in

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