Aakash Educational Services Ltd (AESL) reported a substantial loss of Rs 2,443 crore in the fiscal year ending March 2024, primarily due to exceptional costs linked to its parent company, Think & Learn Private Limited (Byju’s). These costs encompassed high finance expenses and provisions associated with loan defaults, repayments, and write-offs involving the related party.
AESL’s revenue from operations held steady at Rs 2,438 crore in FY24, compared to Rs 2,399 crore in FY23. The company offers coaching services for NEET, IIT-JEE, Olympiads, and NTSE, catering to medical and engineering aspirants through classroom and distance learning programs. Student fees constituted 96% of total revenue, increasing by 2% to Rs 2,341 crore in FY24.
Additional revenue stemmed from the franchise model, declining by 8.5% to Rs 97 crore during the period. AESL also recorded Rs 433 crore in non-operating income, primarily from interest and manpower services, bringing its total income to Rs 2,471 crore in FY24.
Employee benefits, including staff and faculty expenses, represented the largest chunk of expenditure for AESL, accounting for 56% of the total. This cost escalated by 14% to Rs 1,411 crore in FY24. Moreover, depreciation and amortization expenses surged by 28% to Rs 259 crore in the same period.
Various expenses such as advertising, study materials, legal fees, and IT costs contributed to the total expenditure of AESL rising by 14% to Rs 2,532 crore in FY24. The company booked exceptional costs amounting to Rs 2,720 crore, predominantly tied to its parent company, Think & Learn Private Limited (Byju’s), resulting in a net loss of Rs 2,443 crore in FY24.
Excluding exceptional items and deferred tax impact, AESL reported a loss of Rs 61 crore in FY24, a significant shift from a profit of Rs 153 crore in FY23. Despite these challenges, AESL maintained a positive EBITDA of Rs 307 crore at the operational level, though its ROCE and EBITDA margin decreased to 6.76% and 12.57%, respectively, in FY24.
Source: Entrackr : Latest Posts