The company held its conference call to discuss it quarter ended June 2017 result. Top management addressed the call.
Highlights of the call
The consolidated revenue up by 44% to Rs 66.9 crore. Revenue from education services was up by 23% to Rs 51.7 crore, from construction and leasing activities by 35% to Rs 6 crore and manpower recruiting and training activities stood at Rs 9.3 crore. The net profit increased by 91% to Rs 12.8 crore.
Breakup of revenue from education services: - K12 school is Rs 40 crore and Kidzee is Rs 10 crore
No adverse impact of GST on education sector.
Every year the company adds around 300 pre-schools to our network.
10% growth in enrolment level in preschool Q0Q. The mgmt expects to maintain this trend.
Preschool – the mgmt is looking at 2000 operational Kidzee centre in next 2 yrs.
K12 School takes a slightly longer time to get operationalised, so at this point of time, the mgmt expect the school network to double in around three years time while it continue its robust growth.
108 K12 schools are operational. 73 schools are in various stages to get operationalised in 3-4 years. In FY17, the company signed 22 news schools. Target for FY18 is to sign 24-25 new schools.
Construction and leasing activities business - Lease is from 5 assets. Revenue from lease business can triple when its at full capacity. 1000-2000 new students it adds every year this 5 schools. Breakeven at operational level these school within 2 years. It has 3 schools in Punjab and 1 each in Nagpur and Nashik.
Man power recruiting – high ROI business. This is very stable business.
Other income – it has one time income in it.
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