New Delhi: While edtech major Byju’s has recently made headlines for all the wrong reasons, the company-owned Aakash Educational Services has saw its profit increase by 82 per cent to Rs 79.5 crore in FY22.
It is a significant improvement for the company as it saw a profit of Rs 43.6 crore in FY21, reports Entrackr.
According to its financial statements filed with the Registrar of Companies (RoC), Aakash’s revenue from operations increased 44.56 per cent to Rs 1,421 crore in FY22 from Rs 983 crore in FY21.
The institute reported operating revenue of Rs 1,214 crore in FY20, which fell to Rs 983 crore in FY21.
Fees earned from students for coaching services accounted for 87.8 per cent of the firm’s total revenue, which climbed by 48.4 per cent to Rs 1,282 crore in FY 22.
The franchisee model accounted for the remaining income, which increased by 16.8 per cent to Rs 139 crore in FY22, the report noted.
Employee benefits, including staff and faculty costs, represented 54 per cent of total expenditure for the year. This cost increased to Rs 723 crore in FY22 from Rs 534 crore in FY21, reflecting a 35.4 per cent increase. Overall expenditure increased by 34.5 per cent to Rs 1332 crore in FY22 from Rs 990 crore in FY21 due to advertising, promotional materials, legal professional fees, information technology, franchise fees, and other overheads, according to the report.
In June last year, the edtech major said that Aakash would go public in the next 12 months or in June 2024.
Meanwhile, US-based investment firm BlackRock has once again cut the value of its holding in Byju’s, reducing the edtech major’s valuation to a mere $1 billion from $22 billion in early 2022. BlackRock, which owns less than 1 per cent of Byju’s, has valued its shares at about $209.6 apiece, down from the peak of $4,660 in 2022, reports TechCrunch.
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