A ray of hope has come from Aakash Educational Services Ltd. for edtech firm Byju’s, which is facing all kinds of challenges ranging from cut in valuation and huge debt. Byju’s-owned Aakash Education’s income has increased by 44%, while its profit has increased by 82%.
Aakash Education’s income from institutes has increased from Rs 982.7 crore in FY 2021 to Rs 1,421 crore in FY 2022. Whereas after tax cut, profit increased from Rs 43.6 crore in FY21 to Rs 79.5 crore in FY22.
Much stronger than Byju’s
Aakash Education’s financial position is quite strong compared to parent company Byju’s earnings for FY 2022. Parent company Think & Learn Pvt. had reported consolidated income from operations of Rs 5,015 crore in FY22. Income had increased compared to Rs 2,280.2 crore in 2021, but the figure was much lower than the company’s estimate of Rs 10,000 crore. The company’s loss also increased from Rs 4,564 crore to Rs 8,245 crore.
Board satisfied with future plan
Aakash Education said in a filing, ‘The board has reviewed the financial position for FY 2022 in detail. The board has expressed satisfaction with the company’s management plan to take the operations forward. The board is positive about the future plans of the company.
Byju had acquired Aakash Education in 2021 in a cash and stock deal worth about Rs 8,000 crore. About 70% of the deal was to be paid in cash to Aakash’s shareholders and Blackstone, while the remaining 30% was an equity-swap deal.
Preparation to bring IPO also
In June 2023, Byju’s board said that it has approved the plan to launch an IPO of Aakash Education Services. It will be launched by mid-2024. Furthermore, it was claimed that Byju’s is on track to reach Rs 4,000 crore with EBITDA of Rs 900 crore in FY 2024.
