Veranda Learning's FY24 revenue more than doubles to Rs 361 Cr, losses decline 3.9% YoY

Veranda Learning Solutions Limited, a test prep-focused edtech company, saw its FY24 revenue more than double to Rs 361.73 crore while losses for the year narrowed by 3.9%.

"This year, we have exceeded our ambitious targets, achieving a remarkable year-over-year revenue growth of over 100% while maintaining a solid EBITDA margin of 17%," Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said.

"As we set our sights on FY25, we anticipate maintaining this momentum to achieve revenues exceeding Rs. 550 crore with an ambitious EBITDA margin of 25%," Kalpathi added.

The company's operating revenue for the financial year ended March 31, 2024 was a 124.19% improvement from Rs 161.35 crore earned in FY23, as per consolidated financial statements filed with exchanges. For the last quarter of FY24, its revenue rose 112% year on year to Rs 102.61 crore from Rs 48.80 crore in the corresponding period in FY23.

Notably, other income declined 78.5% to Rs 8.28 crore in FY24 from Rs 38.56 crore in FY23.

Total expenses also increased by 31.7% to Rs 307.73 crore in FY24 from Rs 233.59 crore incurred in the previous fiscal year. Other expenses, which make up almost half of all expenses incurred in FY24, increased by 31.6% year-on-year (YoY) to Rs 170.34 crore.

In Q4, Veranda Learning's expenses totalled Rs 81.19 crore—a 17.6% YoY increase from the year-ago period.

Its employee benefit expenses rose by 39.7% to Rs 81.83 crore in FY24 from Rs 58.55 crore incurred in FY23.

The company reduced losses by 3.9% to Rs 76.11 crore in FY24 from Rs 79.21 crore incurred in FY23. Its quarterly losses remained flat year-on-year and stood at Rs 38.54 crore.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also turned positive in FY24. It reported an EBITDA of Rs 62.29 crore and an adjusted EBITDA of Rs 68.99 crore—a turnaround from the operating loss of Rs. 33.67 crore in the previous year.

"This remarkable shift was fueled by both organic expansion and strategic acquisitions," Veranda said in a statement.

Last month, the Chennai-based edtech firm had allocated 20 lakh equity shares to its promoters at Rs 307 per share, reflecting a 70% premium over the April 26 closing price of Rs 179.95 per share.

The shares were issued following the conversion of 20 lakh warrants, with a remaining amount of Rs 46.05 crore—75% of the warrant issue price—paid on April 26, 2024. The promoters had previously paid 25% of the issue price when the warrants were initially allotted on October 28, 2022.

Warrants are financial instruments allowing the holder to purchase company shares at a specific price within a set period, which in this instance, have now been converted to equity shares.

(The copy was updated with quotes.)