Veranda Learning Solutions Limited has informed the Exchange regarding a press release dated February 09, 2023, titled "Press Release on Financial Results pursuant to Regulation 30 of SEBI (Listing Ob...
9th February, 2023
of
BSE Limited Corporate Dept 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 on Financial Results pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 a n d i n v e s t o r p r e s e n t a t i o n .
Dear Sir/Madam,
Please find enclosed the press release titled ‘Veranda Learning Solutions announces Q3 FY 2022-23 Financial Results” pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.
This information will also be hosted on the Company’s website at www.verandalearning.com.
Request you to 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: L74999TN2018PLC125880
Press Release
Veranda Learning Solutions announces Q3 & 9M FY23 Financial Results
Posts robust YoY Revenue growth
Chennai, February 09th, 2023: Veranda Learning Solutions Limited (“Veranda” BSE: 543514, NSE: VERANDA), a publicly listed company announced its financial results for the quarter ended December 31, 2022.
Consolidated Financial Highlights:
Particulars (Rs. Million)
Q3FY23 Q3FY22
Y-o-Y
Revenue from Operations
478.78
304.84
57.06%
358.41
0.68
Other Income
Total Revenue
Gross Profit
Gross Profit Margin (%)
47.78%
68.01%
Operating Expenses
Q2FY23
368.85
18.85
Q-o-Q
9MFY23
9MFY22
Y-o-Y
FY22
29.80%
1,129.51
459.46
145.83%
750.48
381.70
2.66
5.52
837.19
305.52
174.02%
387.70
115.94%
1,511.20
462.13
227.01%
756.00
228.74
207.32
10.33%
150.64
40.84%
51.85%
498.36
273.79
82.02%
293.03
44.12%
59.59%
39.05%
Advt & Business Promotion
115.46
Corporate Costs
55.42
96.28
46.52
19.92%
19.13%
106.89
53.57
8.02%
3.45%
307.04
158.29
159.05
115.03
93.05%
37.61%
222.48
177.04
Non-Operating Expenses
ESOPs/RSU
(94.82)
15.7
Growth Investment
98.11
-
One time Transaction Costs
175.01
EBITDA
Finance Cost
Depreciation
Tax Expenses
PAT
146.29
(112.38)
20.49
151.82
35.62
59.19
(32.62)
(14.37)
6.59
(192.82)
Key Consolidated Financial Highlights:
-
-
33.6
49.9
-
96.61%
(40.45)
161.77
46.80
-
(147.65)
-
(134.75)
(262.91)
13.11
64.71
(14.22)
(211.26)
51.46
277.89
(58.75)
49.29
79.77
(16.45)
(405.35)
(375.53)
-
-
71.2
-
(390.52)
83.32
138.25
(27.13)
(584.95)
Total Revenue stood at Rs. 837.19 million in Q3FY23 compared to Rs. 305.52 million in Q3FY22; a growth of 174.02
% YoY; Total Revenue for 9MFY23 stood at Rs. 1,511.20 million with a growth of 227.01 % YoY
o During Q3FY23, the other income included a one-time income of Rs. 321.27 million on account of the cancellation and
forfeiture of debentures issued by the company
o The company has incurred a benefit of Rs 112.1 million for Q3FY23 on account of forfeiture of RSU issued to one of the
employees
Gross Profit stood at Rs. 228.74 million and Rs. 498.36 million for Q3FY23 and 9MFY23 respectively, recording a
Gross Profit margin of 47.78% in Q3FY23 and 44.12% in 9MFY23
Advertising and business promotion expenses for Q3FY23 and 9MFY23 were Rs. 115.46 million and Rs. 307.04
million, respectively
The company has incurred expenses of Rs. 175.01 million towards one time Transaction Costs. This was spent on
due diligence, legal fees and market studies to identify and engage with the acquisition targets
The company reported an EBITDA of Rs. 146.29 million in Q3FY23 compared to loss of Rs. 112.38 million in Q3FY22
During the quarter, the company invested Rs. 98.11 million to expand its offline centres set up under the brand of
Edureka Learning Centres and in setting up of its Higher Education business
The Operating Profit before growth investments, transaction costs, ESOPs/RSU stood at Rs. 3.3 million in Q3FY23
as against loss of Rs. 64.15 million in Q2FY23
The total number of student enrolments stood at 22,035 for the quarter
Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions,
said “I am pleased to report that Veranda maintained its growth trajectory during the current fiscal year's first nine
months. During the nine months ended, the company's revenue exceeded that of the previous fiscal year by more than
fifty percent, on the back of our strong in-house brands and recent acquisitions.
At Veranda, we are keeping a close watch on the dynamics of the market. With the observed shift in market preference
for a hybrid and offline model, we have now more than 200 physical centres in addition to a strong online platform.
We have had the privilege of partnering with several distinguished institutions to successfully launch higher education
programmes.
We are confident that new initiatives like Edureka Learning Centres, successful partnerships with renowned universities,
along with important acquisitions like JK Shah Classes, will help the company achieve its objective of turning into a one-
stop solution for offering quality education to aspirants in India.”
Business Updates Q3FY23:
Geographical Expansion:
Veranda signed 42 Edureka Learning Centres (ELC) in Q3FY23 taking the total signups to 142 during 9MFY23 and 5 new
B2B customers were added during the quarter. In Q3FY23, the company added 2 RACE Centres under the Veranda
RACE brand, bringing the total number of RACE Centres to 41 by 9MFY23. Veranda trained 62,617 students in 9MFY23
against 43,951 students in the same period previous year.
Tie-up with PURDUE University to offer online Post Graduate Program Certification:
Edureka entered into a relationship with PURDUE University USA for online professional certificate programs. PURDUE
has been named a Top 10 Most Innovative University by US News & World Report for the previous five years, as well
as a Top 10 University with the Most International Students (Open Doors). These online programmes will cover a wide
range of topics and disciplines, including cloud computing, computer science, and Dev ops.
Partnered with IIM Raipur & Society for Human Resource Management (SHRM) To Launch Execute Post Graduate
Program in HR (Online MBA):
Veranda (through “Edureka”) collaborated with IIM Raipur and the Society for Human Resource Management (SHRM)
to create an Executive Post Graduate Programme (online MBA) in Human Resource Management. This programme is
designed for HR professionals who are currently working in the department or who want to make a career change to
HR responsibilities. This is a one-of-a-kind programme, with a structured academic curriculum offered by an
experienced IIM faculty. SHRM will cooperate with Veranda to create Masterclasses for CHROs and Senior HR
Practitioners based on SHRM's Global Competency Framework. Furthermore, this course will provide personalised
career counselling and mentorship, as well as assistance with job transitions, to ensure successful outcomes.
Acquisition of JK Shah Classes:
Pursuant to Share purchase agreement dated October 31, 2022, Veranda XL Learning Solutions Private Limited, a
wholly owned Subsidiary of the company has acquired 20,57,011 shares constituting 63.14% of total equity shares
from existing shareholders of J.K Shah Education Private Limited (‘JKSEPL’) for a total consideration of Rs. 2,664.25
million. This acquisition is an important breakthrough for Veranda Learning Solutions into the high-demand courses
such as Chartered Accountancy (CA), as well as a bouquet of financial and commerce courses.
Business Transfer Agreement with Chennai Race:
Pursuant to Business Transfer Agreement (“BTA”), Veranda Race Learning Solutions Private Limited (wholly owned
Subsidiary of the company) has acquired the business of Chennai Race Coaching Institute Private Limited on 31 January
2023, as a going concern for a consideration of Rs. 117.5 million. This helps Veranda Race to expand its present
business operations by increasing its student base and market reach.
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.
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 | February 2023
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
Q3 & 9M FY23 Performance
Key Financial & Business Highlights
Revenue from Operations
Q3FY23
Gross Profit
Q3FY23
Key Business Highlights
Consolidated
YoY Growth %
Consolidated
YoY Growth %
₹479 Mn
57%
₹229 Mn
10%
9MFY23
9MFY23
Consolidated
YoY Growth %
Consolidated
YoY Growth %
₹1,130 Mn
146%
₹498 Mn
82%
Partnered with IIM Raipur & Society for Human Resource Management To Launch Execute PGP in HR (Online MBA)
Collaborated with Purdue University to provide Online PGP Certifications
Expanding Presence - Signed 42 New Edureka Learning Centres 05 New B2B customers 02 New RACE Centres 75 JK Shah Centers
In Q3FY23
5
From the Chairman’s Desk
Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions, said
“I am pleased to report that Veranda maintained its growth trajectory during the current fiscal year's first nine months.
During the nine months ended, the company's revenue exceeded that of the previous fiscal year by more than fifty
percent, on the back of our strong in-house brands and recent acquisitions.
At Veranda, we are keeping a close watch on the dynamics of the market. With the observed shift in market
preference for a hybrid and offline model, we have now more than 200 physical centres in addition to a strong online
platform. We have had the privilege of partnering with several distinguished institutions to successfully launch higher
education programmes.
We are confident that new initiatives like Edureka Learning Centres, successful partnerships with renowned universities,
along with important acquisitions like JK Shah Classes, will help the company achieve its objective of turning into a one-
stop solution for offering quality education to aspirants in India”
6
Consolidated P&L Highlights
Particulars (Rs. Mn)
Q3FY23 Q3FY22
Y-o-Y
Q2FY23
Revenue from Operations
478.78
304.84
57.06%
368.85
Q-o-Q
29.80%
9MFY23
1,129.51
381.70*
358.41*
0.68
18.85
837.19
228.74
305.52
174.02%
387.70
115.94%
1,511.20
207.32
10.33%
150.64
51.85%
47.78%
68.01%
40.84%
115.46
55.42
96.28
46.52
19.92%
106.89
19.13%
53.57
8.02%
3.45%
498.36
44.12%
307.04
158.29
Other Income
Total Revenue Gross Profit#
Gross Profit Margin (%)
Operating Expenses
Advt & Business Promotion
Corporate Costs
Non-Operating Expenses
ESOPs/RSU
Growth Investment
One Time Transaction Costs
EBITDA
Finance Cost
Depreciation
Tax Expenses
PAT
-
-
(94.82)
15.7
98.11
175.01
-
146.29
(112.38)
20.49
151.82
35.62
59.19
(32.62)
(14.37)
6.59
(192.82)
33.6
49.9
-
(40.45)
96.61%
161.77
(147.65)
-
(134.75)
(262.91)
13.11
64.71
(14.22)
(211.26)
51.46
277.89
(58.75)
(405.35)
49.29
79.77
(16.45)
(375.52)
9MFY22
459.46
2.66
462.13
273.79
59.59%
159.05
115.03
46.80
-
Y-o-Y
FY22
145.83%
750.48
5.52
227.01%
756.00
82.02%
293.03
39.05%
93.05%
37.61%
222.48
177.04
-
-
71.2
-
(390.52)
83.32
138.25
(27.13)
(584.95)
*Includes a one-time income of 321.27 million on account of the cancellation and forfeiture of debentures
#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)
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
Acquisition of Chennai RACE
Key Acquisitions
• July’21: Launched CA course offered
by Veranda CA
• Aug’21: Launched UPSC course
offered by Veranda IAS
• Dec’20: Acquired Content, brand,
• Sep’21: Acquired Edureka, enabling
education materials through Veranda
Race; commenced operations
Veranda to establish global footprints
• Dec’20: Launched own mobile app
2021
comprising all integrated courses
Incorporation
Nov-2018
2020
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
Business Transfer Agreement with Chennai Race
• Jan’23: Purchased centers of Race Coaching
Chennai Institute Private Limited
2022
2023
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
200+ Centre s (across all courses) Wide Presence Strong Hold Across India
Diversified Footprint across India
Building presence across India
Established strong offline presence in Southern and Western India
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
Sivakumar Ganesan VP, Sales & Field Force Marketing
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
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
16
Veranda Learning – Key Team Members (2/2)
Bharat Seeman Business Head Veranda IAS ,
Venkatesh K Chief Instruction Delivery
Santhoshkumar P Head of Operations
10+ years of experience in business leadership
25+ years of experience in Strategy and execution
7+
years
of management at Veranda RACE
experience
in
operations
Master’s degree in Technology from Anna University
Previously worked with SSI, e4e, TCS, Primex and
Wellcorp at senior management roles
Executive MBA from IIM-B and is a Certified
Corporate Director from IOD
MBA from Illinois Tech Stuart School of Business and Master’s degree from Great Lakes Institute of Management 17
J K Shah Executive Chairman
Pooja Shah Joint COO
Vishal Shah Joint COO
Founder, pioneer and a seasoned educationist
38+ years of proven industry experience in leading and managing CA coaching classes
Education enthusiast educational spaces
focused on disrupting hybrid
Before JK Shah, began her journey as an Articled
Assistant at Arvind H Shah & Co
B.Com in Accounting & Finance from University of
17
Mumbai and member of the ICAI
7+ years of experience in managing business development & operations and lead generation functions
Heads the online coaching vertical at JK Shah Classes
17
B.Com from NMIMS and member of the ICAI
17
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
19
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
Acquired Majority Stake in J. K. Shah
50.5%
47.5%
63.14% as on 31st Dec
20
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
Veranda has acquired 63.14% stake as on 31st Dec 2022.
Deal Status
Revenue Trend (Rs. Cr)
89.7
94
Marquee Alumni
80.3
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
21
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
$53.52 BN
13.34%
Source: Arizton Advisory & Intelligence Report
23
Indian Ed-tech Sector – Market Size
Growth Rate
19.17% CAGR
(2021-2027)
90
80
70
60
50
40
30
20
10
0
Edtech Market in India 2021–2027 ($ 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
24
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%
25
Financial Performance
Consolidated P&L Highlights
Particulars (Rs. Mn)
Revenue from Operations
Other Income
Total Revenue
Gross Profit#
Gross Profit Margin (%)
Operating Expenses
Advt & Business Promotion
Corporate Costs
Non-Operating Expenses
ESOPs/RSU
Growth Investment
EBITDA
Finance Cost
Depreciation
Tax Expenses
PAT
H1FY22
154.63
1.98
156.60
66.48
42.99%
62.78
68.51
31.10
-
9MFY22
459.46
2.66
462.13
273.79
59.59%
159.05
115.03
46.80
-
FY22
750.48
5.52
756.02
293.03
39.05%
222.48
177.04
71.2
H1FY23
650.73
23.29
674.01
269.62
41.43%
191.59
102.87
54.37
63.66
9MFY23
1,129.51
381.70*
1,511.20
498.36
44.12%
307.04
158.29
(40.45)
161.77
(150.53)
(262.91)
(390.52)
(281.05)
(134.75)
13.67
20.58
(2.08)
49.29
79.77
-16.45
83.32
138.25
(27.13)
30.96
126.07
(26.13)
51.46
277.89
(58.75)
(182.71)
(375.53)
(584.95)
(411.94)
(405.35)
*Includes a one-time income of 321.27 million on account of the cancellation and forfeiture of debentures
#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)
27
Financial Highlights
Total Revenue
EBITDA
Revenue Break-up (9MFY23)
1,511.20
756.02
FY21
-76.25
FY22
9MFY23
-134.75
25.44
FY21
FY22
9MFY23
-390.52
31%
69%
Online %
Offline %
Enrolments
ARPU
58,682
62,617
42,000
Brain4ce (Edureka)
Veranda Race
26,056
27,593
12,847
12,229
FY21
FY22
9MFY23
9MFY22
9MFY23
9MFY22
9MFY23
28
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