Aakash Institute, owned by Byju’s, has announced an 82% increase in profit for the fiscal year 2022, reaching Rs 79.5 crore.

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In its inaugural full year under the ownership of Byju’s, Aakash Institute, a test-prep business, has disclosed a notable 82% surge in its total profit, reaching Rs 79.5 crore for the fiscal year concluding in March 2022. The financial figures were outlined in the company’s filings with the Ministry of Corporate Affairs, accessible through Tofler, as of Saturday. Although the fiscal year 2023 data has not been filed yet, the information available indicates a robust performance in FY22.

Aakash Institute demonstrated substantial growth in its operating revenue, which increased by 45% to Rs 1,421 crore during this period. The majority of the revenue, approximately 88%, was attributed to student coaching fees, amounting to Rs 1,282.3 crore, while the franchise segment contributed around Rs 139 crore to the operating revenue.

Byju, a prominent tech player, acquired Aakash Institute for a noteworthy $950 million in 2021, marking one of the most significant acquisitions in its aggressive mergers and acquisitions strategy. Aakash Institute is renowned for coaching classes and study materials for competitive exams such as NEET and IIT-JEE, along with Olympiad, NTSE, and fundamental classroom curriculum for school students.

Employee-related expenses, the most significant cost head for Aakash Institute, increased by 35% to Rs 722.8 crore, constituting approximately 54% of the overall costs, which rose by 34% to Rs 1,331.8 crore.

Byju announced plans for an initial public offering (IPO) to list Aakash Institute in mid-2024, emphasizing its unique position to capitalize on growth with a comprehensive range of offerings combining traditional classroom learning with cutting-edge digital products tailored for engineering and medical entrance exams.

The founder of Byju’s, Byju Raveendran, has been facing challenges in securing new financing for the group, encountering issues such as lawsuits, legal notices, valuation concerns, and delayed financial reporting. Aakash Chaudhry, the promoter of Aakash Institute, returned as CEO amidst a shareholder struggle. In October, there were reports that Ranjan Pai, Chairman of Manipal Education and Medical Group, may invest $250-300 million in Aakash Institute.

Notably, BlackRock recently reduced Byju’s implied valuation to around $1 billion, a significant decline from $22 billion during its last fundraising round in October 2022. The valuation adjustment adds to the complexities faced by Byju in the evolving landscape of the tech sector. For more information, keep an eye on the IncBasil Website.

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