In recent times, the spotlight on edtech giant Byju's has been less than favorable; however, its subsidiary, Aakash Educational Services, has experienced a noteworthy 82% surge in profits, reaching Rs 79.5 crore in FY22.
This positive momentum marks a substantial improvement for the company, which reported a profit of Rs 43.6 crore in the previous fiscal year, as per Entrackr's report.
Aakash's financial statements, filed with the Registrar of Companies (RoC), reveal a 44.56% rise in revenue from operations, climbing from Rs 983 crore in FY21 to Rs 1,421 crore in FY22.
Notably, the institute's operating revenue was Rs 1,214 crore in FY20 but dipped to Rs 983 crore in FY21.
A significant portion, 87.8% to be exact, of the firm's total revenue in FY22 came from coaching service fees paid by students, registering a robust 48.4% increase to Rs 1,282 crore.
The franchisee model contributed to the remaining income, witnessing a growth of 16.8% to reach Rs 139 crore in FY22, according to the report.
Employee benefits, covering staff and faculty costs, constituted 54% of the total expenditure for the year, escalating to Rs 723 crore in FY22 from Rs 534 crore in FY21—an increase of 35.4%. Overall expenditure saw a 34.5% rise to Rs 1332 crore in FY22 from Rs 990 crore in FY21. This increase was attributed to expenses related to advertising, promotional materials, legal professional fees, information technology, franchise fees, and other overheads, according to the report.
Last June, the edtech major announced its plans to take Aakash public within the next 12 months or by June 2024.
Meanwhile, BlackRock, the US-based investment firm, has once again devalued its stake in Byju's, slashing the edtech major's valuation from $22 billion in early 2022 to a mere $1 billion. BlackRock, owning less than 1% of Byju's, appraised its shares at around $209.6 each, down significantly from the peak of $4,660 in 2022, as reported by TechCrunch
(With Agency Inputs)
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