Submission Details
• Date of submission: February 26, 2024
• Conference call date: February 22, 2024
• Addressed to: BSE and NSE, in compliance with SEBI regulations
• Participants:
• Mr. Kalpathi S. Suresh (Executive Director and Chairman)
• Ms. Saradha Govindarajan (Chief Financial Officer)
• Moderated by: Ms. Mahalakshmi Venkatachalam (EY Investor Relations)
Company Vision and Performance
• Mission: Provide high-quality, affordable education across various formats (online, offline, blended)
• Strategic acquisitions: Focus on profitable brands with growth potential
• Successful integrations: Examples include Chennai Race and Edureka
• Operational presence: Over 300 cities in India
Educational Offerings and Growth Strategies
• Expansion of delivery channels: Edureka Learning Centers in Tier 2 and Tier 3 cities
• Diversification of J.K. Shah Classes: Broader commerce curriculum
• Higher education segment growth: Bookings expected to rise from INR 7.5 crores to INR 100 crores in FY '25
• Introduction of Veranda Privilege program for customer benefits
Financial Performance
• Q3 FY '24 revenue: INR 91.84 crores (92% YoY increase)
• Gross profit: INR 56.02 crores (61% margin)
• Nine-month results: Total operating revenues of INR 259 crores (130% increase)
• Revenue growth target: Doubling to INR 800 crores by FY '25
Future Plans and Acquisitions
• Planned acquisition: 50% of Tapasya Education Institution for INR 120 crores
• Additional acquisitions anticipated in study abroad and managed school services
• Focus on organic growth rates of 40% to 45% annually post-acquisitions
Leadership and Operational Resilience
• Ongoing leadership development program for second-level leaders
• Pandemic-proof operations: Hybrid model for quick transition to online
• Debt strategy: Maintain a debt-to-EBITDA ratio of 1.5 to 1.75
Investor Questions and Management Responses
• Financial outlook: Anticipated revenue of INR 400 crores with EBITDA margin of 16% to 18%
• Clarifications on EBITDA discrepancies and future offerings in engineering and management
• Regulatory concerns: Minimal direct impact on programs due to age restrictions
• Talent retention strategies: Stock options and improved working conditions
Closing Remarks
• Confidence in meeting targets and sustaining long-term growth beyond FY '25
• Call concluded with thanks to participants