Veranda Learning Solutions Limited has informed the Exchange about press release dated 12-Nov-2022 titled Press Release - Veranda Learning Solutions reports robust growth in Q2 & H1 FY23 and Investor ...
12th November, 2022
BSE Limited Dept of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001
Veranda Learning Solutions Limited (formerly Veranda Learning Solutions Private Limited) (formerly Andromeda Edutech Private Limited)
National Stock Exchange of India Limited The Listing Department, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 051
Scrip Code: 543514
Symbol : VERANDA
Sub: Press Release - Veranda Learning Solutions reports robust growth in Q2 & H1 FY23 and
Investor Presentation.
Dear Sir/Madam,
Please find enclosed the press release regarding the Companies robust growth in the 2nd Quarter and First Half Year for the Financial Year 2022-2023 and Investor Presentation.
A copy of the same will also be uploaded on the Company’s website www.verandalearning.com.
Kindly take the same on record.
Thanking you,
For Veranda Learning Solutions Limited
M. Anantharamakrishnan Company Secretary & Compliance Officer
contact@verandalearning.com
www.verandalearning.com
+91 44 4296 7777
34,Thirumalai Road, T.Nagar,
Chennai, Tamil Nadu-600017
CIN: U74999TN2018PLC125880
Press Release
Veranda Learning Solutions reports robust growth in Q2 & H1 FY23
Chennai, November 12th, 2022: Veranda Learning Solutions Limited (“Veranda” BSE: 543514, NSE: VERANDA), a publicly listed company announced its financial results for the quarter and half year ended September 30, 2022.
Key Consolidated Financial Highlights for Q2 & H1 FY23:
Total Revenue stood at Rs. 387.70 million in Q2FY23 compared to Rs. 107.92 million in Q2FY22; a growth of 259.25% year-on-year; Total Revenue for H1FY23 stood at Rs. 674.01 million compared to Rs. 156.60 in H1FY22 witnessing a growth of 330.40% year-on-year.
The Gross Profit stood at Rs. 150.64 million and Rs. 269.62 million for Q2FY23 and H1FY23
respectively recording a Gross Profit margin of 40.84% in Q2FY23 and 41.43% in H1FY23.
Advertising and business promotion expenses for Q2FY23 and H1FY23 were Rs. 106.89 million and Rs. 191.59 million, respectively. The company is investing in several advertising campaigns across all its verticals which will serve to boost visibility and long-term value development through brand recall.
The company has incurred an expense of Rs. 33.64 million towards ESOPs / RSU in Q2FY23.
During the quarter, the company invested Rs 49.86 million to expand its offline centres under Edureka brand, named Edureka Learning Centres and in setting up of the Higher Education business.
The Operating Profit before growth investment expenses and ESOPs/RSU stood at Rs. (64.15)
million in Q2FY23 as against (98.86) million in Q1FY23.
The total number of student enrolments stood at 22,135 for the quarter.
Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions, said “We are pleased to report a strong second quarter which reinforces our commitment to take quality and affordable learning to the masses. With our growth strategy at play, we are within striking distance of the revenue of FY 22 by the first half of FY 23. While our expenses during the quarter surged due to ESOPs, new business growth initiatives, and ongoing brand promotion initiatives, we believe that the operating efficiencies will improve going forward and help us turn EBIDTA positive by the end of the current fiscal.
We are happy with the new tie-ups during the quarter, particularly with the Tamil Nadu Skill Development Corporation towards the implementation of the Naan Mudhalvan initiative. We have successfully completed fundraising of Rs. 270 crores during H1FY23 to fuel our growth ambitions. Besides these announcements, a feather in our cap was our acquisition of the prestigious J. K. Shah Classes, India’s top provider of CA test preparation which allows us to expand our portfolio in the CA test prep segment. Currently, the Company is concentrating on expanding its range of offerings and investing in brand building, which keeps our profitability under check. We believe that the growth of our organic business combined with acquisitions will augment our profitability in the coming quarters.”
Consolidated Financial Highlights:
Particulars (Rs. Million) Total Revenue Gross Profit Gross Profit Margin (%) Operating Expenses Advt & Business Promotion Expenses Corporate Costs Non-Operating Expenses ESOPs/RSU Growth Investment EBITDA Finance Cost Depreciation Tax Expenses PAT
Key Business Updates:
Subsidiary & Proforma Performance:
Q2FY23 Q2FY22 107.92 387.70 44.70 150.64 42.18% 40.84%
Q1FY23 286.31 118.98 42.21%
H1FY23 H1FY22 156.60 66.48 42.99%
674.01 269.62 41.43%
FY22 756.02 293.07 39.05%
106.89 53.57
54.07 42.98
84.70 49.30
191.59 102.87
62.78 68.51
222.48 177.04
33.64 49.86 (147.65) 13.11 64.71 (14.22) (211.26)
15.70 - (104.83) 13.38 15.07 (1.95) (131.33)
20.73 13.80 (133.40) 17.85 61.36 (11.92) (200.68)
54.37 63.67 (281.05) 30.96 126.07 (26.14) (411.94)
31.10 - (150.53) 13.67 20.59 (2.08) (182.71)
71.20 - (390.52) 83.32 138.25 (27.13) (584.95)
During Q2FY23, the revenue from the subsidiary Veranda RACE stood at Rs. 167.78 million and Rs. 199.36 million from Edureka; accounting for 45% and 54% of total consolidated revenue, respectively. The enrolments for Veranda RACE and Edureka were at 12,859 and 9,235 respectively.
During H1FY23, the revenue from the subsidiary Veranda RACE stood at Rs. 265.55 million and Rs. 382.14 million from Edureka; accounting for 41% and 59% of total consolidated revenue, respectively. The enrolments for Veranda RACE and Edureka were at 23,470 and 16,938 respectively.
Fund Raising of ~Rs. 270 crores:
The Company has completed a preferential allotment of Rs. 193 crores and a debt raise of Rs. 82 crores, which is utilised towards strategic acquisitions to boost inorganic growth. The equity raised through a preferential issue includes an investment by the promoters in the form of convertible warrants.
Geographical Expansion and New Tie-ups:
Veranda signed 59 Edureka Learning Centres (ELC) taking the total signups to 105 during H1FY23 and 13 new B2B customers were added during the quarter. In Q2FY23, the company added 8 RACE Centres under the Veranda RACE brand, bringing the total number of RACE Centres to 39 by H1FY23. Furthermore, the company has signed collaborations with several new universities and colleges including IIT Guwahati, IIM Shillong, Sastra University and Annamalai University. Veranda trained 40,369 students in the first half of the current FY against 26,511 students in the same period previous FY.
Key Partnerships & Achievements
Partnered with J. K. Shah Classes:
Veranda Learning Solutions has forayed into an imperative segment of high-demand financial courses such as Chartered Accountancy through the acquisition of India’s premier CA test-preparation
institute, J. K. Shah Classes. The acquisition is for consideration of Rs. 337.82 crores and will be funded through a combination of debt and equity. Additionally, at end of October 2022, the company acquired 61.7% of the issued and paid-up share capital of J. K. Shah Classes.
Partnered with TNSDC to be part of the Naan Mudhalvan Scheme:
Veranda signed a MoA with the Tamil Nadu Skill Development Corporation (TNSDC) to assist in the implementation of the Naan Mudhalvan initiative, which aims to give students in government colleges skill development and career assistance. The Company will help students from all streams gain industry-based skills and improve their career readiness through this cooperation.
Tie-up with E&ICT Academy IIT Guwahati:
The Electronics and Information, Communication Technology (E&ICT) Academy at IIT Guwahati and Veranda collaborated to develop advanced certificate programmes for upskilling. With a vision to build a talent pool of qualified workers in cutting-edge fields, this relationship will assist the business in co- developing specialized courses on Product Management, Supply Chain & Project Management, and Digital Business Management.
Signed-up Delivery Partner for 100th centre in India:
The Company signed up the Delivery Partner for its 100th offline centre in India under the Edureka brand and the first centre in Indore. The centres earlier branded as 'Veranda Acacia, powered by Edureka,' are now known as Edureka Learning Centres (ELCs). At the beginning of FY23, Edureka commenced to open Delivery Centres across the nation. With this Edureka has become one of the fastest Indian Education company to sign up 100 centres in a short span of four months.
Veranda RACE produced Seven All-India Rankers:
In the RRB Clerk Preliminary Examination 2022, Veranda RACE delivered seven All-India rankers with a remarkable score of 80/80. The candidates successfully cleared SBI JA, IBPS RRB (Regional Rural Banks) PO, IBPS RRB Clerk, Clerk and SO category examinations in 2022 and secured 760 positions in Tamil Nadu and Kerala.
About Veranda Learning Solutions:
Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is a publicly listed company that offers a bouquet of training programs for competitive exams preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes in trending technologies. Veranda Learning Solutions aims at offering 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, personalised learning opportunities and content to learners across the country. Dedicated to creating an impact on students 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 four of its wholly owned subsidiaries: Veranda Race, Veranda XL (represented as Veranda CA), Veranda IAS, and Edureka – the customer-facing brand of Brain4ce Education Solutions.
Company Contact:
Mrs. Saradha Govindarajan, CFO
Veranda Learning Solutions Limited
saradha.g@verandalearning.com
Investor Relations: Mr. Abhishek Bhatt Ms. Mahalakshmi Venkatachalam Ernst & Young LLP Abhishek.bhatt3@in.ey.com Mahalakshmi.venkatachalam@in.ey.com
Visit us at www.verandalearning.com | CIN U74999TN2018PLC125880
DISCLAIMER:
Certain statements in this document that are not historical facts, are forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties like government actions, local, political, or economic developments, industry risks, and many other
factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Veranda
Learning Solutions Limited will not be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances
Veranda Learning Solutions
Affordability | High-quality Content | Outcome-oriented Approach
Investor Presentation | November 2022
Safe Harbor
• This presentation and the following discussion may contain “forward looking statements” by Veranda Learning Solutions Limited (“Veranda
Learning” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to
future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions,
expectations, estimates, and projections of the management of Veranda Learning about the business, industry and markets in which
Veranda Learning operates.
• These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors,
some of which are beyond Veranda Learning’s control and difficult to predict, that could cause actual results, performance or achievements
to differ materially from those in the forward looking statements.
•
Such statements are not, and should not be construed, as a representation as to future performance or achievements of Veranda Learning.
In particular, such statements should not be regarded as a projection of future performance of Veranda Learning. It should be noted that
the actual performance or achievements of Veranda Learning may vary significantly from such statements.
2
Agenda
01 Result Highlights
02 Company Overview
03 Growth Strategy
04 Industry Overview
05 Financials
Q2 & H1 FY23 Performance
Key Financial & Business Highlights
Total Revenue
Q2FY23
Gross Profit
Q2FY23
Consolidated
YoY Growth %
Consolidated
YoY Growth %
₹388 Mn
259%
₹151 Mn
237%
H1FY23
H1FY23
Consolidated
YoY Growth %
Consolidated
YoY Growth %
₹674 Mn
330%
₹270 Mn
306%
Key Business Highlights
Acquired J K Shah Classes
Successful Fund Raise of ~ Rs. 270 crores
Expanding Presence - Signed
59 New Edureka Learning Centres 12 New B2B customers 08 New RACE Centres In Q2FY23
5
From the Chairman’s Desk
Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions, said
“We are pleased to report a strong second quarter which reinforces our commitment to take quality and affordable
learning to the masses. With our growth strategy at play, we are within striking distance of the revenue of FY 22 by the
first half of FY 23. While our expenses during the quarter surged due to ESOPs, new business growth initiatives, and
ongoing brand promotion initiatives, we believe that the operating efficiencies will improve going forward and help us
turn EBIDTA positive by the end of the current fiscal.
We are happy with the new tie-ups during the quarter, particularly with the Tamil Nadu Skill Development Corporation
towards the implementation of the Naan Mudhalvan initiative. We have successfully completed fundraising of Rs. 270
crores during H1FY23 to fuel our growth ambitions. Besides these announcements, a feather in our cap was our
acquisition of the prestigious J. K. Shah Classes, India’s top provider of CA test preparation which allows us to expand
our portfolio in the CA test prep segment. Currently, the Company is concentrating on expanding its range of offerings
and investing in brand building, which keeps our profitability under check. We believe that the growth of our organic
business combined with acquisitions will augment our profitability in the coming quarters.”
6
Consolidated P&L Highlights
Particulars
Total Revenue
Gross Profit*
Gross Profit Margin (%)
Advertisement & Business Promotion
Corporate costs
ESOP/RSU
Growth Investment
EBITDA
Finance Cost
Depreciation
Tax expense
PAT
Q2 & H1 FY23 Highlights:
Q2 FY23
Q2 FY22
Q1FY23
387.70
150.64
40.84%
106.89
53.57
33.64
49.86
107.92
44.70
42.18%
54.07
42.98
15.70
-
286.31
118.98
42.21%
84.70
49.30
20.73
13.80
H1FY23
674.01
269.62
41.43%
191.59
102.87
54.37
63.66
H1FY22
156.60
66.48
42.99%
62.78
68.51
31.10
-
FY22
756.02
293.07
39.05%
222.48
177.04
71.20
-
(147.65)
(104.83)
(133.40)
(281.05)
(150.53)
(390.52)
13.11
64.71
(14.22)
(211.26)
13.38
15.07
(1.95)
(131.33)
17.85
61.36
(11.92)
(200.68)
30.96
126.07
(26.13)
13.67
20.58
(2.08)
83.32
138.25
(27.13)
(411.94)
(182.71)
(584.95)
Total Revenue in Q2FY23 grew by 259.25% YoY and in H1FY23 grew by 330.40% YoY
Investing in several advertising campaigns across all its verticals which will serve to boost visibility and long-term value development through brand recall
During the quarter, invested Rs 49.86 million to expand its offline centres under the Edureka brand, named Edureka Learning Centres, and set up the
Higher Education business
The company has incurred an expense of Rs. 33.64 million towards ESOPs / RSU in Q2FY23
The Operating Profit before growth investment expenses and ESOPs/RSU stood at Rs. (64.15) million in Q2FY23 as against (98.86) million in Q1FY23
*Gross profit calculation: (Revenue –Other Income– Direct Costs) | GP Margin: GP / (Revenue –Other Income)
7
Veranda Company Overview
Veranda Learning – A Quick Glance
Veranda Learning Solutions is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline
blended formats to students, aspirants, and graduates professionals and corporate employees
S H T
G N E R T S Y E K
Strong Leadership:
Promoters have a collective experience of over 40 years in the education sector and proven track record
of entrepreneurial success
Diversified Offerings:
Provides a wide range of learning solutions through courses including UPSC, competitive exams courses,
professional courses, short term upskilling and reskilling courses to students and professionals
Presence across Platforms:
Courses offered through online, offline hybrid, offline blended, campus in campus and online live
instructor led learning models in various languages
Established Strong Brand:
SSC and ,creating niche online education platform across all segments. Edureka, is a recognised online
Established a strong presence in competitive exam-oriented courses like Banking, SPSC, Insurance, RRB &
education platform for IT professionals offers upskiiling & reskilling courses
9
Our Journey so far
Key Acquisitions
• July’21: Launched CA course offered
by Veranda CA
Public Lisitng
Acquisition of J. K. Shah Classes & Launch of Edureka Learning Centre (ELC)
• Apr’22: Listing on
BSE & NSE
• May’22: Launched Edureka Learning
Centre
• Oct’22: Acquired J. K. Shah Classes
Acquisition of Chennai RACE
• Dec’20: Acquired Content, brand,
education materials through Veranda
Race; commenced operations
• Aug’21:
Launched UPSC course
offered by Veranda IAS
2022
2022
• Sep’21: Acquired Edureka, enabling Veranda to establish global footprints
• Dec’20: Launched own mobile app
2021
comprising all integrated courses
Incorporation
Nov-2018
2020
10
Strong presence in test preparations & professional skilling segments
Career-defining competitive exams
Hybrid Courses
•
•
•
TNPSC Group 2
• SSC
TNPSC Group 4
• Railways
TN TET
• Kerala PSC
• Banking
• CA Foundation
Professional courses
Exam-oriented courses
Upskilling and Reskilling courses
Online Courses
TNPSC Exam Coaching: • Group 2 & 2A • Group 4
Test Series: • TNPSC • Banking Test Batch • CA -all levels
Banking & SSC Exams: • Tamil • English • Malayalam • Telugu • Kannada
CA Exam Coaching: • CA Foundation • CA Intermediate • CA Final • CA Revision
UPSC Exam •
Integrated Learning Programme
• Prelims Learning
Programme
Kerala PSC Exam Coaching TNUSRB SI
Developed 340+ courses offered in Online, Offline Hybrid & Offline Blended
11
Edureka – A leading player in emerging technology training
Edureka Learning Centres
• A comprehensive learning platform aimed to
bridge the workplace-ready IT skills gap
Pioneering Instructor Led Live Online training
Industry leader in online professional & higher education segment
Upskilling & Reskilling courses
Online Courses
Visit us Link
Global customer presence majorly from US & UK
• Veranda acquired Edureka to build a full-stack
Education business virtually
• Launched Edureka learning with the first set of
Delivery Centres across 105 locations
Courses Offered
• Cloud Computing
• Architecture & Design
• DevOps
• BI Visualization
• Data Science
• Programming & Frameworks
Patterns
• Artificial Intelligence
• Databases
• Data Warehousing and ETL
• Operating Systems
• Frontend Development
• Digital Marketing
• Mobile Development
• Software Testing
• Project Management
• Robotic Process Automation
• Blockchain
& Methodologies
• Data Science
12
Established a result oriented unique 360o Approach
Weekly lectures by
subject matter experts
with Q&A
Mentors assigned to
every student to track
and ensure progress
Right blend of offline &
online materials to support
the learning outcomes
Textbooks for all courses
for in-depth structural &
methodical learning
Chapter and paper level
mock tests for practice
Multi-level practice
programmes
13
Veranda Learning – Coaching centres across India
150+ Centres
(across all courses)
Wide Presence
Strong Hold in South India
Diversified Footprint across India
Building presence across India
Established strong offline presence in Tamil Nadu and Kerala
14
Proficient Team to drive the business
More than a decade of experience in the Education industry
Founded SSI in 1991, providing software education and IT training; key milestones include listing on NSE and BSE, formed a JV
with NASDAQ, acquired Albion Orion Company LLC and acquired controlling stake in Aptech Limited
Founded AGS Entertainment in 2003, a production house and later ventured into film exhibition via AGS Cinemas
Kalpathi S Suresh
Chairman & Executive Director
Founded Kalpathi Investments in 2007, a NBFC which invests in various ventures
Awarded the ‘Outstanding Entrepreneur of the Year’ in 1999 by Ernst & Young, India
Bachelor’s degree of Technology in Electrical Engineering, Master’s Degree in Electrical Engineering
Kalpathi S Aghoram
Non-Executive Director
Kalpathi S Ganesh
Non-Executive Director
Kalpathi Aghoram Archana
Non-Executive Director
Bachelor’s degree in Commerce
A decade of experience in finance,
Bachelor’s degree in Applied Sciences,
Master ‘s degree in Software Systems
education, IT, entertainment
A decade of experience in finance,
Previously associated with TNCA and BCCI
education, IT, entertainment
Master’s degree in Computer Science
15
Director of AGS Cinemas; producer of AGS Entertainment
Executive
15
Veranda Learning – Key Team Members (1/2)
Praveen Kumar President, Corporate Strategy
Saradha Govindarajan Chief Financial Officer
Pravin Menon Chief Marketing Officer
25+ years of experience in cross border acquisitions & pre-acquisition process in M&A
Previously worked with SSI and Deloitte
Haskins and Sells
Member of ICAI and ICWAI
11+ years of experience in the areas of
Finance, Strategy and Operations
Previously
led Qube Cinemas and Dr. Agarwal’s Eye Hospital as CFO & SVP, Strategy & Operations
BE from College of Engineering, Guindy and
MBA from XLRI, Jamshedpur
26+ years of experience in marketing in
EdTech, Media and Publishing businesses
Previously worked with Worldwide Media, Vikatan, Bennet Coleman & Network Digitech
Bachelor’s degree from University of Mumbai
Rajesh Pankaj Chief Program Officer
Lovleen Bhatia CEO, Co-Founder, Edureka
30+ years of
industry experience spanning technology, education & content development
Previously worked with Pearson, MPS, HCL
TalentCare, Everon Education and Hurix
B.Sc in Chemistry from Mahatma Gandhi
University and PG Diploma from NIIT
18 years+ of technical
leadership and R&D
experience
B.Tech from IIT BHU
16
Veranda Learning – Key Team Members (2/2)
Vineet Chaturvedi Chief Business Officer, Co-Founder Edureka
Bharat Seeman Business Head, Co-Founder RACE
Santhoshkumar P Head of Operations
17+ years of experience in building several large-scale data driven platforms of scale
Held several
leading positions at Edureka
including Sales, Marketing and Operations
B.Tech from ITS Engineering College
10+ years of experience in business
leadership
Master’s degree in Technology from Anna
University
7+
years of experience in operations
management at Veranda RACE
MBA from Illinois
Tech Stuart School of Business and Master’s degree from Great Lakes Institute of Management
17
Sivakumar Ganesan VP, Sales & Field Force Marketing
4+ decades of leadership and entrepreneurial sales & marketing and
experience across education domains
Previously worked with SSI, Aptech and Dunlop
B.A.
in Economics from University of Madras
and PGDM in Marketing from AIMA
17
Offerings through Subsidiaries
Background
Courses Offered
- In December 2020, Veranda Race acquired the content, brand and education materials from Chennai Race Coaching Institute
- Incorporated in 2011 in
- Commercially launched in
- Commercially launched in
Bengaluru, Edureka is one of the recognised online education platform for technology professionals
July’21
Aug’21
- Engaged Trans learning LLP for
- Engaged SAI IAS Academy for
creating and delivering digitalized CA content
creating and delivering digitalized IAS content
- SSC - State PSC - Banking & Insurance - RRB
- Short term skilling - Courses - Long term courses - Corporate learning - Courses (B2B)
- CA Foundation - CA Intermediate - CA Final
- Integrated Learning - Program - Prelims, Mains &
personality tests - State PSC Group I
Languages
Tamil, Kannada, Telugu, English, Malayalam, Hindi
English
English
English
Fee Structure
₹9,000 - ₹15,500
₹5,000-₹2,75,000
₹9,999 - ₹39,500
₹30,000-₹75,000
Avg Duration
3-12 months
2-12 months
6-24 months
12 months
Modes of Delivery
- Online: Recorded & Live - Offline blended model - Offline hybrid model
- Online live instructor led
platform
- Online: Recorded & Live - Offline blended - Campus - in- Campus
- Online - Offline blended - Campus - in- Campus
Total Enrolments FY22
58,628
18
Veranda Growth Strategy
Veranda Learning – Growth Strategy
I
S E G E T A R T S C N A G R O N
-
I
I
I
S E G E T A R T S C N A G R O
I
Strategic Acquisitions
Expansion Through PDCs
Evaluate targets for acquisitions and seek opportunities to acquire
brands and businesses which complement
its service offerings,
strengthen or establish its presence in the targeted domestic and
international market
Expand presence in existing & new markets, by increasing number of
PDCs*
through arrangements, wherein company operates online
blended and offline blended model of learning under revenue sharing
arrangements
Addition of new courses and offerings
Engaging with educational institutions like K-12 schools & colleges to deliver high-
quality digital content
Exam oriented courses for college entrance & admissions to universities
Expand its services to working professionals
Expand focus on B2C and B2B models
Expand focus on B2C^ and B2B# spectrum of the education sector
Significant growth opportunity in the B2C & B2B spectrum of education sector
*Preferred Delivery Centres #Business-to-business where company delivers services to the Corporate/ educational institutes ^Business-to-consumer where company delivers services directly to consumer such as Student / Learner
20
Strategic Acquisitions & New Launches to Scale business Operations
Veranda RACE
Edureka
Edureka Learning Centres
J.K Shah Classes
Acquired Chennai RACE in December 2021
Acquired Brain4ce Education Solutions (“Eduerka”) in September 2021
Launched Edureka Learning Centres in May 2022
Acquired in October 2022
Dec
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2020
2021
2022
Veranda RACE
Edureka
J. K. Shah Classes
Edureka Learning Centres (ELC)
Chennai RACE was engaged in in Tamil running coaching institutes Nadu, Kerala and Punjab. With this acquisition, Veranda expanded offline & Hybrid operations.
Veranda expanded its offerings in academic learning, professional skilling in & corporate trending to technologies.
training services
courses
related
Through J. K. Shah Classes Veranda collaborates with India’s leading brand to offer courses like CA, CS, CMA, CFA, ACCA, etc
The company intends to deliver high quality, affordable, and experienced instructor led courses across tier 2 and tier 3 towns.
Revenue Contribution in FY22 Revenue Contribution in FY22
Revenue Contribution in FY22 Revenue Contribution in FY22
Acquired Majority Stake in J. K. Shah Acquired Majority Stake in J. K. Shah
50.5% 50.5%
47.5% 47.5%
61.7% 61.7%
21
Collaboration with J. K. Shah – India’s leading institute for CA test prep
Forayed into an imperative segment of high-demand financial courses such as Chartered
Accountancy through acquisition of India’s premier CA test-preparation institute, J. K. Shah Classes.
Veranda acquired J. K. Shah Classes (JKSC)
Veranda will provide its rich technological expertise meanwhile leveraging J. K. Shah’s strong
brand recognition and legacy; additionally Veranda will aid JKSC to establish presence in
the South, North, & East of India, along with strengthening its online and hybrid offerings.
Synergy of Veranda & J. K. Shah Classes
39 years of legacy
~75 Centres in India
1,870 CA Rankers Since 2001
214 CS Rankers since 2016
Deal Status
Revenue Trend (Rs. Cr)
The deal
is for the consideration of Rs. 337.82 crores and Veranda has acquired 61.7%
stake as on 31st October 2022.
89.7
94
JKSC’s alumni includes marquee names like Mr. Kumar Mangalam Birla, India’s leading industrialist and
Chairman of the Aditya Birla Group; Mr. Piyush Goyal, Hon’ble Minister of Commerce and a member of
the Rajya Sabha; Mr. Nilesh Shah, MD of Kotak Mahindra AMC.
FY20
FY21
FY22
Marquee Alumni
80.3
22
Industry Growth Drivers
Geographical Segmentation - Global
Region
Market Size (2021)
Market Size (2027)
Growth Rate CAGR (2021-27)
Asia Pacific Countries (APAC)
$107.63 BN
$277.39 BN
17.09%
North America
$52.62 BN
$109.27 BN
12.95%
Europe
$39.62 BN
$92.26 BN
15.13%
Latin America
$29.68 BN
$72.95 BN
16.17%
Middle East & Africa
$25.25 BN
$53.52 BN
13.34%
Source: Arizton Advisory & Intelligence Report
24
Indian Ed-tech Sector – Market Size
Growth Rate
19.17% CAGR
(2021-2027)
90
80
70
60
50
40
30
20
10
0
Edtech Market in India 2021–2027 ($ billion)
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Revenue Growth Rate
2021
27.41
2022
30.48 11.20%
2023
35.23 15.56%
2024
41.98 19.18%
2025
51.25 22.07%
2026
63.25 23.41%
2027
78.5 24.12%
Source: Arizton Advisory & Intelligence Report
25
Indian Sector – Boom for Upskilling & Reskilling Courses
Upskilling and Reskilling – A budding requirement
A McKinsey global survey in February 2020 found that 9 in 10 executives and managers are either already facing skills gaps in their organizations or expect gaps to develop within the next 5 years
HR providing employees with Upskilling & Reskilling Training
Model of employees receiving Upskilling & Reskilling Training
Employees prefer to work with company providing Upskilling & Reskilling Training
KEY SURVEY RESPONSES
Upskilling
31%
Reskilling
2%
Both
59%
69%
20%
26%
11%
Never
8%
Source: McKinsey global survey in February 2020
Online Offline
Both
Yes No
74%
26
Financial Performance
Consolidated P&L Highlights
Particulars
Total Revenue
Gross Profit
Q2 FY23
Q2 FY22
Q1FY23
H1FY23
H1FY22
FY22
387.70
150.64
107.92
44.70
286.31
118.98
674.01
269.62
156.60
66.48
756.02
293.07
Gross Profit Margin (%)
40.84%
42.18%
42.21%
41.43%
42.99%
39.05%
Advertisement & Business Promotion
106.89
Corporate costs
ESOP/RSU
Growth Investment
EBITDA
Finance Cost
Depreciation
Tax expense
PAT
53.57
33.64
49.86
54.07
42.98
15.70
-
84.70
49.30
20.73
13.80
191.59
102.87
54.37
63.66
62.78
68.51
31.10
-
222.48
177.04
71.20
-
(147.65)
(104.83)
(133.40)
(281.05)
(150.53)
(390.52)
13.11
64.71
(14.22)
13.38
15.07
(1.95)
17.85
61.36
30.96
126.07
(11.92)
(26.13)
13.67
20.58
(2.08)
83.32
138.25
(27.13)
(211.26)
(131.33)
(200.68)
(411.94)
(182.71)
(584.95)
Gross profit calculation: (Revenue – Other Income - Direct Costs) | GP Margin: GP / (Revenue –Other Income)
28
Consolidated Balance sheet
Particulars (INR mn)
1. ASSETS
Non-current assets
Property, plant and equipment
Intangible Assets
Right of use Assets
Intangible Assets under development
Goodwill
Income tax assets (net)
Deferred Tax assets
Other non-current Assets
Total non-current assets
Current assets
Inventories
Financial assets
Trade receivables
Cash and cash equivalents
Bank balances
Loans
Other financial assets
Current Tax assets (net)
Other current assets
Total Current Assets
Total Assets
Sep’22
Mar’22
Particulars (INR mn)
Sep’22
Mar’22
30.40
692.36
92.06
5.98
14.76
800.10
0.00
0.00
1743.60
1730.76
42.31
14.05
6.65
37.63
11.41
3.03
2627.40
2597.69
1. EQUITY
Equity share capital
Other Equity
Total equity
2. LIABILITIES
Non-current liabilities
Provisions
Borrowings
Other Financial Liabilities
Lease Liabilities
Other non-current liabilities
Total non-current liabilities
8.69
6.37
Current liabilities
49.73
314.96
68.91
-
47.28
-
427.26
916.82
3544.22
34.50
487.01
276.41
-
47.56
0.00
361.85
1213.70
3811.39
Financial liabilities
Borrowings
Trade payables
Other financial liabilities – Lease Liabilities
Other Financial Liabilities
Provisions
Other current liabilities
Total current liabilities
Total liabilities
Total Equity and Liabilities
557.76
411.77
1,206.41
358.03
1,764.17
769.80
14.74
11.30
740.79
1,206.39
284.12
283.71
80.93
-
165.81
189.66
1,286.39
1,691.05
18.67
254.09
12.73
0.19
4.97
826.24
352.01
-
4.02
3.98
203.02
164.29
493.67
1,350.54
1,780.06
3,041.59
3,544.22
3,811.39
29
Financial Highlights
Total Revenue Total Revenue
EBITDA EBITDA
Revenue Break-up (H1FY23) Revenue Break-up (H1FY23)
756.02
674.01
25.44
FY21
FY22
H1FY23
Enrolments Enrolments
58,682
42,000
FY21
-76.25
FY22
H1FY23
-281.05
-390.52
41%
59%
Online %
Offline %
ARPUARPU
Brain4ce (Edureka)
Veranda Race
26,619
11,860
10,927
22,135
25,834
FY21
FY22
H1FY23
H1FY22
H1FY23
H1FY22
H1FY23
30
Veranda Learning Solutions
Mrs. Saradha Govindarajan, CFO
saradha.g@verandalearning.com
Let’s Connect
Ernst & Young, LLP
Mr. Abhishek Bhatt
abhishek.bhatt3@in.ey.com
Ms. Mahalakshmi Venkatachalam
mahalakshmi.venkatachalam@in.ey.com
Veranda Learning Solutions Ltd, 34, Thirumalai Pillai road, T. Nagar, Chennai, Tamil Nadu – 600 017