Tree House Education Q1 net profit up 31%

Tree House Education and Accessories Limited (‘Tree House”), India's largest self-operated pre-school chain, has come up with a stellar performance by posting 46.09%  rise in operational EBITDA which stood at Rs 33.28 crore in Q1FY2015 compared to Rs 22.78 crore posted in the 1st quarter of FY2014. The total income rose by 31.09% to Rs 53.91 crore during the first quarter ended June 30, 2014 compared to Rs 40.87 crore posted in the same period of the last financial year.

The company has reported 30.56% percent growth in its net profit for the first quarter ended June 30, 2014 amounting to Rs 16.06 crore. compared to Rs 12.30 crore posted in the same period of the last financial year. EBITDA margin for Q1 FY2015 is 61.73% and Net profit margin for Q1 FY2015 is 29.79%.
 
The Company had a net addition of 15 pre-schools in Q1 FY 2015 and the total number of centres as of June 30, 2014, was 505 across 67 cities. Out of this, the number of self-operated centres was 403 with the ratio of self-operated to total pre-schools standing at 79.80%.
 
It provides school management services to 21 K-18 schools in 3 states in India. The company changed the terms of service agreement for 6 K-12 schools in Sikar from exclusive to non-exclusive need based services.
 
The total staff strength as of March 31, 2014 is 1897 and total teacher strength as on March 31, 2014 is 1812.
 
 
Non-financial highlights
 
Mr. Deepak Parekh, Chairman HDFC, inaugurated our biggest Global Champs center inside Dharavi, Mumbai, Asia’s biggest slum.

Number of centers crossed 500 in this quarter
 
Rajesh Bhatia, Promoter and Managing Director, Treehouse said, “ I am extremely pleased to announce our financial results for Q1FY2015. This quarter saw us cross Rs 50crore quarterly revenue for the first time. We also crossed the 500 center mark this quarter and are poised for exponential growth in centers in the coming quarters also.
 
With the opening of every new center and city, we sow the seed of future profitability and growth. With 500+ centers spread across the country, we are ideally positioned to benefit from increased expenditure by the Indian middle class. The education sector will be the first and primary beneficiary of increased consumer spending. Treehouse with its brand name, network, and self-operated structure is ideally positioned to benefit from any rise in demand.
 
My team and I stand committed to create one of India’s leading retail consumer services brand which will deliver long term benefits for all its stakeholders, the community and the nation as a whole.” Mr Bhatia said.