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Exclusive: Aakash CEO Deepak Mehrotra gets Rs 5 Cr in annual salary

EntrackrEntrackr ยท 11m ago
Exclusive: Aakash CEO Deepak Mehrotra gets Rs 5 Cr in annual salary
Medial

Deepak Mehrotra, who was appointed as the managing director and chief executive officer of Byjuโ€™s-owned Aakash Educational Services Limited (AESL) in April, will receive Rs 5 crore in annual salary starting from the current fiscal year (FY25). As per documents accessed by Entrackr, Mehrotra will get Rs 41.66 lakh as monthly salary which includes HRA, special allowance and provident fund effective from April this year. The filings further added that he will get a maximum of 20% bonus on the annual salary which is subject to achievement of goals or key performance indicators. The board at Aakash has also allotted employee stock ownership plan (ESOPs) worth Rs 25 crore to Mehrorta which can be vested in four years equally every year starting from April 2025. Prior to joining AESL, Mehrotra was the Managing Director at Ashirvad Pipes and has more than 35 years of experience in executive roles in FMCG, telecom, and education sectors. At the time of the appointment, Byjuโ€™s said that Mehrotra will be a part of AESLโ€™s strategic vision to improve its offerings, expand its reach, and create a positive impact on the education landscape. In November 2023, Aakash also raised $168 million from Manipal Education and Medical Group chairman Ranjan Pai to clear the debt raised from Davidson Kempner in May last year. Byjuโ€™s had acquired Aakash for $940 million in April 2021. However, Chaudhry family, the founder of AESL, refused to swap their remaining stake citing governance issues. Three years later, both firms withdrew the merger petition and they are running independently as separate entities under the Think and Learn brand. Aakash is likely to cross Rs 2,300 crore in operating revenue in FY23 according to its valuation report but itโ€™s yet to file audited financials for the past two fiscal years (FY23 and FY24). It competes with FIITJEE and Kota-based Allen Career Institute. While FIITJEE slipped into losses with Rs 542 crore revenue in FY23, Allen registered Rs 429 crore profit with Rs 2,277 crore revenue in the said financial year. Both are yet to file their FY24 numbers.

Mylabโ€™s op revenue nosedives to under Rs 100 Cr in FY23, slips into losses

EntrackrEntrackr ยท 1y ago
Mylabโ€™s op revenue nosedives to under Rs 100 Cr in FY23, slips into losses
Medial

Adar Poonawalla-backed Mylab thrived during the pandemic (FY21 and FY22) when the demand for covid related testing and other services skyrocketed. In the subsequent fiscal year ending March 2023, however, MyLabโ€™s scale nosedived around 64% as the world returned to normalcy. Furthermore, a steep fall in demand also led the Pune-based firm to book sizable losses in FY23 against profits in FY21 and FY22. While the company achieved a 100X growth to Rs 825 crore in FY21, its scale dwindled to Rs 95 crore in FY23, Mylabโ€™s consolidated financial statements filed earlier this week with the Registrar of Companies show. Mylab Even as the company remained profitable in FY22, Mylabโ€™s scale has been on a downward trajectory since then. In FY22, the operating revenue was already down 68.4% to Rs 260.71 crore. Founded in 2016, Mylab develops and sells diagnostic kits for clinical diagnostics. Similar to FY21 and FY22, the sale of such kits continued to be the sole source of operating revenue for Mylab in FY23 The company also added Rs 29 crore from interest and miscellaneous sources tallying the total income to Rs 124 crore in FY23. On the cost side, the manufacturing of kits formed 27% of the total expenditure. In the line of decreasing scale, this cost was reduced by 60% to Rs 50 crore in FY23. The firmโ€™s burn on employee benefits, legal fees, advertising, royalty, conveyance, and other overheads took its total expenditure to Rs 185 crore in FY23 from Rs 250 crore in FY22. See TheKredible for the detailed expense breakup. The decline in scale and fixed overheads led Mylab into losses for the first time in the last three reported fiscals. The company recorded a loss of Rs 47 crore in FY23, compared to a Rs 16 crore profit in FY22. Its ROCE and EBITDA margin worsened to -18% and -24.19%, respectively. On a unit level, it spent Rs 1.95 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 14.81% -24.19% Expense/โ‚น of Op Revenue โ‚น0.96 โ‚น1.95 ROCE 11.42% -18.01% Much like online edtechs, online healthcare also seems to have vastly underestimated the fight in offline firms that missed out during the pandemic. Be it schools and other institutions in the case of edtech, in healthcare too we have seen offline diagnostic labs and institutions fight hard to claw back share and revenues from the diagnostics market that online firms had grabbed during the pandemic. Itโ€™s a battle they understand well with first access to patients in many cases, and we are already hearing of cases where many clinics and hospitals insist on their test lab result. Doubts have also been raised on the credibility of test lab results that are picked up at home and analysed subsequently. Mylabs test kits and ancillary services model has faced these problems, and come up severely short, going by the look of things. The firm needs a better diagnosis for its own survival, and growth plans.

Lendingkart posts Rs 1,090 Cr revenue in FY24, profit slips

EntrackrEntrackr ยท 7m ago
Lendingkart posts Rs 1,090 Cr revenue in FY24, profit slips
Medial

Temasekโ€™s Fullerton recently acquired the troubled fintech firm Lendingkart in a distress sale. The companyโ€™s valuation plummeted to around $100 million in the deal, down from its peak of $690 million. While the reasons behind this downfall may become clearer when the firm discloses its FY25 numbers, the companyโ€™s profit after tax (PAT) slipped 6% during the fiscal year ending March 2024. We will analyze the companyโ€™s expenses in detail in the second half of the story. For now, letโ€™s focus on its revenue streams and their growth. Lendingkartโ€™s revenue from operations increased by 36% to Rs 1,090 crore in FY24 from Rs 798 crore in FY23, its consolidated financial statement sourced from the Registrar of Companies (RoC) shows. Lendingkart is a non-banking finance company (NBFC) that provides working capital and business loans to SMEs across India. It offers loans with an average ticket size of Rs 5 lakh to Rs 6 lakh to MSMEs and has disbursed over Rs 18,700 crore to more than 300,000 businesses. Revenue from co-lending was the primary contributor, accounting for 54% of the operating revenue, which surged by 88% to Rs 591 crore in FY24. Revenue from interest on term loans shrank by 2.86% to Rs 407.81 crore FY24, while commission income spiked 34X to Rs 22.58 crore in FY24. It also made Rs 69.15 crore from other operating activities. The company generated another Rs 127 crore in FY24 from non operating activities which took its total revenue to Rs 1,217 crore in FY24. On the expense side, finance cost was the major factor, which increased by 16.82% to Rs 293.53 crore in FY24. Employee benefit expenses grew by 75.70% to Rs 199 crore while legal charges increased 58.25% to Rs 125.62 crore FY24. Overall, the firmโ€™s total expenses spiked 49.4% to Rs 1,022.7 crore in FY24 from Rs 684.4 crore in FY23. Note: The company recorded Rs 171.67 crore in FY24 and Rs 67.12 crore in FY23 under impairment losses, these amounts have been excluded from the expense or profit calculations. The rising expenses on employee benefits took a toll on Lendingkart's profit which slipped by 6% to Rs 174.92 crore in FY24 from Rs 185.93 crore in FY23. Its ROCE and EBITDA margin stood at 23.33% and 44.39%, respectively. On a unit basis, the company spent Re 0.94 to earn a rupee in FY24. The Ahmedabad-based company reported Rs 768.5 crore in cash and bank balances and had a current asset of Rs 2,110 crore as of FY24. According to TheKredible, Lendingkart has raised a total of Rs 3,217 crore (approximately $452 million) in funding to date. Its leading investors include Temasek, Bertelsmann, Mayfield, and Saama Capital.

Extramarks losses drop by 85% to Rs 48 Cr in FY24, revenue slips 37%

EntrackrEntrackr ยท 5m ago
Extramarks losses drop by 85% to Rs 48 Cr in FY24, revenue slips 37%
Medial

Edtech platform Extramarks has made a significant turnaround in its bottom line, reducing losses by over 85%โ€”from Rs 330 crore in FY23 to Rs 48 crore in FY24. The firm's scale shrank by 37% during the fiscal year ending March 2024. Extramarksโ€™ revenue from operations declined by 36.86% to Rs 233 crore in FY24 from Rs 369 crore in FY23, according to its consolidated financial statements sourced from the Registrar of Companies (RoC). Founded by Atul Kulshrestha, Extramarks provides learning solutions for schools, students, and teachers. It offers Smart Class Plus, a tool designed to modernize traditional teaching methods in schools. The company earns revenue from subscription-based services like live classes, test series, school partnerships, and corporate training, which grew 18.54% to Rs 179 crore in FY24. However, its one-time product sales, including learning tablets, test preparation kits, and study materials, declined 75.23% to Rs 54 crore. The largest cost component, employee benefit expenses, declined 39.75% to Rs 144 crore in FY24. This sharp reduction was driven by a downsized workforce, as the company laid off over 500 employees and reportedly shut down its consumer-facing vertical in September 2023. The cost of materials saw an even sharper decline of 78.57%, settling at Rs 34.5 crore. However, finance costs rose 71.43% to Rs 36 crore. Overall, total expenses decreased 46.4%, falling to Rs 372 crore in the last fiscal year from Rs 694 crore in FY23. Effective expense management helped Extramarks significantly cut its losses, with a net loss of Rs 48 crore in FY24, an 85.45% reduction from Rs 330 crore in FY23. The company also improved its ROCE to -24.19% and EBITDA margin to -11.63% in the last fiscal year. On a unit basis, Extramarks spent Rs 1.60 to earn a rupee of revenue in FY24. The Noida-based company reported current assets worth Rs 190 crore in FY24 including Rs 49 crore of cash and bank balance. According to startup data intelligence platform TheKredible, Extramarks has raised a total of $44 million in funding from Reliance Industriesโ€™ Infotel Group. While Infotelโ€™s current stake in the firm could not be ascertained, it reportedly acquired a 38.5% stake in Extramarks in 2023.

Allen nears Rs 3,500 Cr revenue in FY24, profit shrinks 44%

EntrackrEntrackr ยท 7m ago
Allen nears Rs 3,500 Cr revenue in FY24, profit shrinks 44%
Medial

Offline coaching institutes have been finding it tough to scale their profits, and Allen Career Institute is no exception. The Bodhi Tree-funded firm reported a 44% year-on-year decline in profit for the fiscal year ending March 2024. In the second half of this story, weโ€™ll delve into the expense patterns that led to this decline. For now, letโ€™s focus on its revenue and sources. Allenโ€™s revenue from operations increased 42% to Rs 3,244.7 crore in FY24, as compared to Rs 2280.8 crore in the previous fiscal year, its financial statement filed with the Registrar of Companies shows. This growth was driven by a 42.2% increase in service income, reaching Rs 3,215 crore, which accounted for 99% of the revenue, and a 51% rise in product sales to Rs 8 crore. Income from product sales vertical grew by 51.4% year-on-year in the last fiscal year. With a 98.9% increase in interest income, the companyโ€™s total revenue reached Rs 3,473.2 crore in the last fiscal year. Employee benefit costs were the largest expense for the company, rising 68% to Rs 1958 crore in FY24. The cost of materials increased by 74.2% to Rs 123.5 crore. However, its marketing expenses spiked by 2.3X to Rs 117.9 crore. Overall, the companyโ€™s total expense surged 63% to Rs 3252 crore in FY24 from Rs 1993 crore in FY23. Due to higher spending and relatively lower revenue growth, the companyโ€™s profit declined by 44%, falling to Rs 135.9 crore in FY24 from Rs 243.7 crore in FY23. While its EBITDA remained stable at Rs 629.8 crore, margins declined to 18.13% in the last fiscal year. Further, the firmโ€™s ROCE declined to 9.26% from 14.7% in FY23. On a unit basis, Allen spent Re 1 to earn a rupee of operating revenue in the fiscal year ending March 2024. Allen's financial position remained stable, with total assets rising by 10.8% to Rs 5,759 crore and cash and bank balances improving by 19.8% to Rs 1,958 crore. Current assets also grew by 8.2% to Rs 2,795 crore, while capital employed expanded by 15.9% to Rs 3,630 crore. While Allen maintained revenue growth and a stable financial position, the significant rise in costs and a drop in margins underline the challenges of scaling in the offline coaching industry. The decline in profitability signals a need for further optimization as the company navigates an evolving education sector landscape. Allen Career Institute is reportedly in early discussions to acquire Unacademy amid a 31% year-on-year decline in admissions to Kota-based institutes in 2024. The waning popularity of the city-based coaching culture is set to impact the top and bottom lines of Allen, and FIITJEE(FY25). However, they remain better positioned compared to their online counterparts, Byju's and Unacademy. FIITJEE, Allen's closest competitor, operates at approximately one-fourth of Allen's scale. While FIITJEE has yet to disclose its FY24 financials, it reported a 21% year-on-year revenue growth to Rs 542 crore in FY23. In the same fiscal year, Allen's income stood at Rs 2,277 crore. Another competitor, Aakash, which was acquired by BYJU'S, anticipated crossing the Rs 3,000 crore revenue mark in FY23. However, its audited financials for FY23 and FY24 are yet to be released. Allenโ€™s PE deal in some ways marked the peak of the edtech boom, as the last of the large firms that had held out until then before taking the plunge. It is showing signs of the same, with pressure to spend their way to some sort of leadership, even at the cost of margins that the firm always had before the funding. The Unacademy deal, if it works out, will be yet another investor-backed deal no doubt, to beef up the balance sheet size. Will that really be the solution the firm is looking for to combat future risks? One has to wonder, considering just how fast the market is evolving, and the challenges of integrating such a firm within the Allen culture.

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