Tree House Education and Accessories Limited (‘Tree House”), one of the leading providers of educational services in India and operating the largest number of self-operated pre-schools in the country (CRISIL Research Industry Report”), has come up with a stellar performance by posting a 54 percent growth in its net profit for the first quarter ended June 30, 2012 amounting to Rs. 8.02 crore.
The total income rose by 69% to Rs. 284mn during the first quarter ended June 30, 2012. The EBITDA for the first quarter of the current fiscal rose 67% to Rs. 16.7 crore.
The Company had a net addition of 2 pre-schools in Q1 FY 2013 and the total number of centres as of June 30, 2012, was 304 across 37 cities. Out of this, the number of self-operated centres was 241 with the ratio of self-operated to total pre-schools standing at 79%. It provides school management services to 21 K-12 schools in 3 states. The total staff strength as of Q1 FY 2013 was 1,320. The total teacher strength was 1,246, representing a net addition of 229 teachers in the first quarter. The year-on-year Q1 FY 2013 vs Q1 FY2012 revenue growth in same self-operated pre-school centres has been 34%. The traction in pre-schools operating for more than 12 months continues to be strong.
Commenting on the Q1 FY13 performance, Rajesh Bhatia, Promoter and Managing Director, Tree House Education and Accessories Limited, said “TreeHouse’s first quarter performance is a direct result of the excellent work the team has done in the past few quarters. The student intake in all our centres has seen significant growth compared to the last year. Our innovative teaching methods continue to be appreciated by parents across the country, which is reflected in our student enrollment. This quarter saw the start of the first academic year in Guwahati, Ranchi and Patna. The initial response from these markets is encouraging. We hope to build these markets over the next 12 months. And we expect positive outcomes over the years to come. Our PAT and EBITDA margins have bounced back in this quarter over the previous quarter due to better capacity utilization as was indicated in our previous announcements.”
The Company signed a Non-Binding Memorandum of Understanding with MT Educare Limited for the transfer of MT Educare Limited’s ‘pre-school division’ comprising six self-operated centres located at Mumbai and Pune. The transaction will be closed subject to the usual due diligence. The Company consolidated the backend logistics by starting dispatches from the Central Dispatch Facility (CDF) in Mumbai.