Veranda Solutions' Q2 net up on one-time gains

CHENNAI: Veranda Learning Solutions ’ revenue grew 20% in the second quarter of the current fiscal to Rs 126 crore from Rs 106 crore in the same period last year, driven by new programs and B2B business. The company’s net profit stood at Rs 23 crore, up 185% year-on-year, boosted by a one-time gain of Rs 133 crore from the spin-off of its vocational education business .

EBITDA increased 63% to Rs 48 crore. Veranda’s commerce segment operating revenue rose 68% to Rs 86 crore, while revenue from the government test preparation segment grew 1% and that from the academic test preparation segment declined 8% year-on-year. The company also witnessed a 26% rise in collections from new course launches and high-ticket programs.

Veranda divested its vocational arm — comprising Edureka, Veranda HigherEd, and Six Phrase Edutech — to form a joint venture with SNVA Edutech through a share-swap transaction valued at Rs 390.11 crore. SNVA Edutech issued equity shares to Veranda Learning and its subsidiary, resulting in a 50% collective equity stake in SNVA Edutech.

Combined with its ongoing focus on an asset-light model and balance sheet deleveraging, these measures contributed to a strong PAT for the quarter, the company said in a release. Suresh S Kalpathi, chairman of Veranda Learning, said there is strong momentum with growth in student enrolments, expansion of course offerings, and the launch of new programs.