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“Mired by delayed enrolments” the Chennai-based education company, Veranda Learning Solutions Ltd, reported a net loss of ₹17 crore for the third quarter ended December 31, 2024 as against a net profit of ₹66 lakh for the same quarter last year. Revenue was up by 91 per cent to ₹92 crore (₹48 crore).
In the third quarter, employee benefit expenses more than tripled to ₹22 crore (₹7 crore) and there was a finance cost of ₹20 crore (₹2 crore).
The company is also looking at corporate restructuring initiatives to address non-cash expenditure items 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 become PAT positive for FY25, Suresh Kalpathi, Executive Director and Chairman of the company, said in a press release.
The finance cost for the quarter includes a non-recurring expense of ₹2.70 crores towards debt repaid. It also includes a non cash expense of ₹6 crores towards unwinding costs arising out of acquisition-related liabilities. The finance cost for the company is 12.12 per cent on the outstanding debt of ₹256 crore leading to an annual interest expense of ₹31 crore.
During the third quarter, there depreciation and amortisation expenses totalled to ₹18 crore as against ₹15 crore in the corresponding period last year. The depreciation cost for the quarter includes a non-cash expense of ₹10 crore arising out of amortisation of intangible assets for the acquisitions completed, says a company release.
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.
The release said that the delayed enrolments were due to the presence of multiple festivals and rescheduling of important exam dates.
Traditionally, Q4 is a strong quarter across all business verticals. He expects the company to close the year with revenues of ₹ 380-400 crore.
On Thursday, the company’s share price on the BSE closed at ₹247.85, down ₹20.20 (7.54 per cent) from previous close.
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