EdServ Q2 Net Profit up 130% at Rs.9.1cr, Revenues rise 145% at Rs.27.36cr
Signs up interests with over 60schools, Expands Pan India Presence
School Expansion, Vocational Training and Online Services- key growth drivers
Chennai based Education and Placement Company EdServ SoftSystems (EdServ) has reported a 130% growth in Net Profit for the 2nd Quarter ended 30th September 2010 at Rs.9.1crore as compared to Rs.3.96cr for the same period last year. The company has registered revenues of Rs.27.36cr for Q2FY11 as against Rs.11.17cr in Q2FY10, thus recording a revenue growth of 145%.
Commenting on the Q2 performance, S. Giridharan, Chairman and CEO, EdServ said, Lampsglow.com, our unique online web-mall for education services, has made significant inroads and the online student registrations have increased manifold. The bagging of the Gujarat Government order was an important milestone as this paves the way and opens the door for more such Government engagements.
EdServ has signed up interests with over 60 schools in Tamil Nadu and Andhra Pradesh for its Vidhyadhana Academy of Excellence. During the quarter, the company bagged a 5year deal from Gujarat Government for Skill development and also signed a Global e-Training Partnership with Corel Corp, Canada.
Another important development was the up-gradation of www.lampsglow.com to offer Online School services, Online MCA lateral entry to Manonmaniam Sundaranar University (MSU) and Online Pre-School product, thus becoming a full-fledged Cradle to Career portal.
In addition to strengthening its product offering, EdServ has also expanded its geographic presence outside South India. Over the last quarter, the company has signed up Distributors and Dealers, for its online offering, in Gujarat, Rajasthan, Delhi/NCR, Bihar and West Bengal.
On the outlook for the second half of FY11, Giridharan said, With the completion of the fund raising exercise for our Rs.130cr project expansion plan, we are set for a Pan India growth and will be looking to strengthen our distributor and dealer network further in the 2nd half. With a majority of our services now available online, we are well poised to garner a significant market share in the Indian education market offering Cradle to Career Solutions.
The second half of the year will see aggressive campaigns across the country targeted at growing all our three business streams including Vidhyadhana Academy. School Expansion, Vocational Training and Online Service offering through lampsglow.com will be key growth drivers for the 2nd half. Given the performance in the first half of the year, we are confident of achieving a top line of Rs.150cr and a net profit of over Rs.40cr for FY11.