Veranda Learning reported a stellar top-line growth of 92% YoY during Q3FY24,Q-o-Q growth in EBITDA

Mumbai (Maharashtra) [India], February 9: 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, announced its financial results for the third quarter and nine months ended December 31, 2023. The company has reported another strong 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. Veranda continues to stay focused on sustainable and profitable growth whilst providing affordable quality education.

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:

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 noncash 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 noncash expense of Rs 9.92 crores arising out of the amortization of intangible assets about the acquisitions completed.

Whilst speaking on an exemplary Q3 FY24 performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said, 

“We are extremely pleased to announce the strong and continued growth of our organization 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 the rescheduling of important exam dates. This achievement signifies that our acquisitions and their integration exercise are paying dividends and will 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.

The company is also looking at corporate restructuring initiatives to address noncash expenditure items currently reflected in the financial statements. This is to ensure the financial statements are a true reflection of the business performance. These initiatives are expected to aid the company to become PAT positive for FY25.”

Strategic Partnerships during the quarter

Veranda Learning Solutions has forged a strategic partnership with Illinois Institute of Technology (Illinois Tech), Chicago’s sole technology-focused university to offer Innovative multi-disciplinary tech-focused courses. This collaboration aims to enhance the educational offerings in both Information Technology and K–12 Dual Credit programs, providing students with unparalleled access to cutting-edge courses and fostering a seamless pathway to higher education.

Veranda Learning to acquire Tapasya Education Institutions  

Acquisition of 50% of Tapasya Educational Institutions Private Limited (TEIPL) would be done by Veranda XL Learning Solutions Private Limited (VXL), a material subsidiary Company of Veranda Learning Solutions Limited (VLS) for a consideration of Rs 120 Crore. Tapasya caters to a wide range of educational and allied needs for colleges offering courses and it offers services to 19 Inter/ PU Colleges and 10 Degree Colleges across 13 locations in Telangana and Karnataka, with over 13,000 students. 

About Veranda 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.

If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.