BYJU’S reports much-delayed FY22 numbers; core biz total income rises 2.3x YoY

In a much-awaited disclosure, edtech firm BYJU'S on Saturday reported that its core business, excluding all acquisitions, witnessed 2.3x year-on-year growth in total income, as part of its audited financial results for the fiscal year 2021-22 (FY22).

The Bengaluru-based company’s total income from its core business reached Rs 3,569 crore in FY22 from Rs 1,552 crore recorded in the preceding fiscal year. Moreover, the EBITDA loss for the core business decreased to Rs 2,253 crore in FY22, down 6% from Rs 2,406 crore in the previous financial year, as per a company statement.

The edtech firm’s EBITDA margin improved to -63% in FY22 compared to -155% in FY21. EBITDA (earnings before interest, taxes, depreciation and amortisation) is a measure of core operational efficiency. The company did not divulge the net loss from its core business.

“I am also humbled by the lessons learnt in the post-pandemic world of readjustments. BYJU’S will continue on the path of sustainable and profitable growth in the coming years,” Byju Raveendran, Founder and Group CEO of BYJU’S, said in a statement.

The edtech firm did not disclose its consolidated revenue and profit/loss numbers for FY22—a period in which it made nine acquisitions.

Last November, Raveendran had shared that the edtech firm expects a 3X revenue growth and a 50% reduction in losses for FY22. A few months before this statement, BYJU’S had claimed a gross revenue of Rs 10,000 crore in FY22.

BYJU’S, which rapidly grew through strategic acquisitions, has encountered significant challenges post the pandemic-led edtech boom. These challenges include conflicts with lenders over a $1.2-billion term loan B and developments concerning its test prep unit, Aakash, along with other ongoing issues. It is considering the sale of two of its assets, Epic and Great Learning, to generate a minimum of $800 million to repay the TLB debt.

In June, auditing firm Deloitte Haskins & Sells stepped down as BYJU’S and Aakash’s statutory auditor, attributing the resignation to the delay in the company filing its FY22 financial statements. Subsequently, BYJU’S appointed BDO (MSKA & Associates) as its statutory auditor for the next five years, starting from FY22.

The edtech firm’s FY22 financial numbers come at a time when its new CEO, Arjun Mohan, is in the final stages of a business restructuring exercise aimed at simplifying operating structures, reducing overall costs, and enhancing cash flow management.

In FY21, BYJU’S saw a 3% YoY drop in consolidated revenue to Rs 2,428 crore from Rs 2,511 crore, and recorded a substantial loss of Rs 4,589 crore, almost 20 times higher than the Rs 231.69 crore loss in FY20.

Last week, Ajay Goel, who assumed the role of chief financial officer at BYJU’S in April, resigned from the company following a brief tenure with the edtech firm. BYJU’S has since appointed Nitin Golani, previously the president of the company's financial operations and chief strategy officer at AESL, as its new India CFO.

Over the past few months, several high-ranking executives have exited the company. Furthermore, BYJU’S has been downsizing its workforce, both globally and domestically, as part of its efforts to steer towards profitability. In the past year, it has executed multiple rounds of layoffs as part of its cost-cutting initiatives.

(The copy was updated to add more information.)