Veranda Learning Solutions Ltd. · NSE:VERANDA
Veranda Learning Solutions — Q4 FY23 Earnings Presentation
37 slides from Veranda Learning Solutions's earnings presentation, May 30, 2023
Slide 1: Cover letter to BSE and NSE on financial results
Veranda Learning Solutions Limited (formerly Veranda Learning Solutions Private Limited) (formerly Andromeda Edutech Private Limited) 29th May, 2023 BSE Limited National Stock Exchange of India Dept of Corporate Limited Services, Phiroze The Listing Jeejeebhoy Towers, Department, Dalal Street, Fort,
Slide 2: Veranda Learning Solutions announces Q4FY23 & FY23 Financial Results
Press Release Veranda Learning Solutions announces Q4FY23 & FY23 Financial Results Reports a Strong Revenue Growth in FY23 of 115% YoY and Projects EBITDA of INR100 Cr in FY24 Chennai, May 29th, 2023: Veranda Learning Solutions Limited (“Veranda” BSE: 543514, NSE: VERANDA), a publicly listed company
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights: Particulars (Rs. Million) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 484.06 291.20 66.23% 478.78 1.10% 1,613.57 750.49 115.00% Other Income 3.94 2.92 358.41 385.64 5.53 Total Revenue 488.00 294.12 65.92% 837.19 (41.71)% 1,999.21 756.02
Slide 4: Partnering with Logic School of Management
Partnering with Logic School of Management: JK Shah Classes, has collaborated with Logic School of Management to support students in achieving their academic goals. Logic School of Management has a strong presence in Kerala and train students in courses such as ACCA (Chartered Certified Accountants)
Slide 5: Company Contact and Disclaimer
Company Contact: Investor Relations: Mr. Abhishek Bhatt Ms. Saradha Govindarajan, CFO Ms. Mahalakshmi Venkatachalam Veranda Learning Solutions Limited Ernst & Young LLP Abhishek.bhatt3@in.ey.com saradha.g@verandalearning.com Mahalakshmi.venkatachalam@in.ey.com Visit us at www.verandalearning.com | C
Slide 6: Veranda Learning Solutions
Veranda Learning Solutions Affordability | High-quality Content | Outcome-oriented Approach Investor Presentation as part of Q4 Financial Results | May 2023
Slide 7: Safe Harbor
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
Slide 8: Agenda
Agenda 01 Result Highlights 02 Company Overview 03 Growth Strategy 04 Industry Overview 05 Financials
Slide 9: Q4 & FY23 Performance
Q4 & FY23 Performance
Slide 10: Key Financial & Business Highlights
Key Financial & Business Highlights Revenue from Operations Gross Profit Key Business Highlights Q4FY23 Q4FY23 Proposed Acquisitions: Educare Infrastructure, Six Phrase, Smart Bridge, Neyyar Academy, Neyyar Education , Phire Learning, and Bassure Consolidated YoY Growth % Consolidated YoY Growth % ₹
Slide 11: From the Chairman's Desk
From the Chairman’s Desk Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions, said “FY23 was a foundational and formative year that has set a strong base for our next phase of growth. Our Company’s revenue from operations grew by 115.03% ye
Slide 12: Consolidated P&L Highlights
Consolidated P&L Highlights Particulars (Rs. Mn) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 484.06 291.20 66.23% 478.78 1.10% 1,613.57 750.49 115.00% Other Income 3.94 2.92 358.41* 385.64 5.53 Total Revenue 488.00 294.12 65.92% 837.19 (41.71)% 1,999.21 756.02 164.44% Gr
Slide 13: Veranda Company Overview
Veranda Company Overview
Slide 14: Veranda Learning – A Quick Glance
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 Promoters have a collect
Slide 15: Our Journey so far
Our Journey so far J. K. SHAH CLASSES INCORPRATION LAUNCHES & ACQUISITIONS AND LAUNCH OF ELCs • July’21: Launched CA course offered by • May’22: Launched Edureka Learning Centre Incorporated in November 2018 Veranda CA (ELCs) • Aug’21: Launched UPSC course offered by Veranda IAS • Oct’22: Acquired J
Slide 16: Strong presence in test preparations & professional skilling segments
Strong presence in test preparations & professional skilling segments Career-defining competitive exams Hybrid • TNPSC Group 2 • SSC Courses • Railways • TNPSC Group 4 • TN TET • Kerala PSC • Banking • CA Foundation Professional courses TNPSC Exam Coaching: CA Exam Coaching: • Group 2 & 2A • CA Foun
Slide 17: Edureka – A leading player in emerging technology training
Edureka – A leading player in emerging technology training • A comprehensive learning platform aimed to bridge the workplace-ready IT skills gap Pioneering Instructor Led Live Edureka Learning Centres Online training • Veranda acquired Edureka to build a full-stack Education business virtually • Lau
Slide 18: Established a result oriented unique 360 Approach
Established a result oriented unique 360o Approach Weekly lectures by Textbooks for all courses subject matter experts for in-depth structural & with Q&A methodical learning Mentors assigned to Chapter and paper level every student to track mock tests for practice and ensure progress Right blend of
Slide 19: Veranda Learning – Coaching centres across India
Veranda Learning – Coaching centres across India 250+ Diversified Footprint across India Centres (across all courses) Wide Building presence across India Presence Strong Hold Established strong offline presence in Across India Southern and Western India 14
Slide 20: Proficient Team to drive the business
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 s
Slide 21: Veranda Learning – Key Team Members (1/2)
Veranda Learning – Key Team Members (1/2) Praveen Kumar Saradha Govindarajan Pravin Menon President, Corporate Strategy Chief Financial Officer Chief Marketing Officer ▪ 25+ years of experience in cross border ▪ 11+ years of experience in the areas of acquisitions & pre-acquisition process in M&A ▪
Slide 22: Veranda Learning – Key Team Members (2/2)
Veranda Learning – Key Team Members (2/2) Santhoshkumar P Bharat Seeman Lovleen Bhatia CEO, Veranda Race CEO, Veranda IAS Co-Founder, Edureka Ex-founder, Veranda Race ▪ 7+ years of experience in operations ▪ 10+ years of experience in business leadership ▪ 18 years+ of technical leadership and R&D m
Slide 23: Veranda Growth Strategy
Veranda Growth Strategy
Slide 24: Veranda Learning – Growth Strategy
Veranda Learning – Growth Strategy ✓ Evaluate targets for acquisitions and seek opportunities to acquire IN-ORGANIC STRATEGIES brands and businesses which complement its service offerings, Strategic strengthen or establish its presence in the targeted domestic and Acquisitions international market ✓
Slide 25: Strategic Acquisitions & New Launches to Scale business Operations
Strategic Acquisitions & New Launches to Scale business Operations Veranda RACE Acquired Chennai RACE in December 2020 Edureka Acquired Brain4ce Education Solutions (“Eduerka”) in September 2021 Edureka Learning Centres Launched Edureka Learning Centres in May 2022 J.K Shah Classes Acquired in Octob
Slide 26: Association with seven companies under VALS (1/2)
Association with seven companies under VALS (1/2) Acquiring and Investing across seven businesses through its Wholly Owned Subsidiary Veranda Administrative Learning Solutions Private Limited (VALS) Total valuation of acquisitions is over Rs. 400 crore 1 Educare Infrastructure About: Educare offers
Slide 27: Association with seven companies under VALS (2/2)
Association with seven companies under VALS (2/2) 5 Phire About: Phire is a placement-oriented training company that provides expert training for recruitment in Private Banking and BFSI sector Rationale: Acquisition of Phire is a strategic move that allows Veranda Race to vertically integrate in ban
Slide 28: Collaboration with J. K. Shah – India's leading institute for CA test prep
Collaboration with J. K. Shah – India’s leading institute for CA test prep Veranda acquired J. K. Shah Classes (JKSC) 39 years of legacy Forayed into an imperative segment of high-demand financial courses such as Chartered Accountancy through acquisition of India’s premier CA test-preparation instit
Slide 29: Industry Growth Drivers
Industry I Growth Drivers
Slide 30: Geographical Segmentation - Global
Geographical Segmentation - Global Market Size Market Size Growth Rate Region (2021) (2027) 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 $72.95 BN 16.17% Middle East & Afr
Slide 31: Indian Ed-tech Sector – Market Size
Indian Ed-tech Sector – Market Size 90 Edtech Market in India 2021–2027 ($ billion) 30.00% 80 25.00% 70 60 20.00% Growth Rate 50 15.00% 19.17% 40 CAGR 30 10.00% (2021-2027) 20 5.00% 10 0 0.00% 2021 2022 2023 2024 2025 2026 2027 Revenue 27.41 30.48 35.23 41.98 51.25 63.25 78.5 Growth Rate 11.20% 15.5
Slide 32: Indian Sector – Boom for Upskilling & Reskilling Courses
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 yea
Slide 33: Financial Performance
Financial Performance
Slide 34: Consolidated P&L Highlights
Consolidated P&L Highlights Particulars (Rs. Mn) FY22 FY23 Revenue from Operations 750.49 1,613.57 Other Income 5.53 385.64 * Total Revenue 756.02 1,999.21 Gross Profit# 293.03 498.36 Gross Profit Margin (%) 39.05% 30.89% Operating Expenses Advt & Business Promotion 222.48 422.42 Corporate Costs 177
Slide 35: Consolidated Balance sheet
Consolidated Balance sheet Particulars (INR mn) Mar’23 Mar’22 Particulars (INR mn) Mar’23 Mar’22 1. ASSETS 1. EQUITY Non-current assets Equity share capital 615.72 411.77 Property, plant and equipment 140.84 14.76 Other Equity 2,443.69 358.03 Capital Work in Progress 0.76 - Right of use Assets 718.8
Slide 36: Financial Highlights
Financial Highlights Total Revenue EBITDA Revenue Break-up (FY23) 1,999.21 34% FY21 FY22 FY23 -76.25 66% 756.02 25.44 -336.72 Online % Offline % -390.52 FY21 FY22 FY23 Enrolments ARPU Brain4ce (Edureka) Veranda Race 91,667 31,323 12,609 12,699 56,819 19,404 42,000 FY22 FY23 FY22 FY23 FY21 FY22 FY23
Slide 37: Let's Connect
Veranda Learning Solutions Let’s Connect Ernst & Young, LLP Mr. Abhishek Bhatt Ms. Saradha Govindarajan, CFO abhishek.bhatt3@in.ey.com saradha.g@verandalearning.com Ms. Mahalakshmi Venkatachalam mahalakshmi.venkatachalam@in.ey.com Veranda Learning Solutions Ltd, 34, Thirumalai Pillai road, T. Nagar,
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