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Aug 06, 2010 Press Release on EdServ?s Q1 Results
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EdServ Q1 Net Profit up 210% at Rs.6.89cr, Revenues up 364% at Rs.21.48crore Online education Services and School services Contribute to revenues |
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Chennai based Education Services Company EdServ has announced that its Net Profit has risen 210% to Rs.6.89cr for the first quarter ended 30th June 2010 as compared to Rs.2.22cr registered in Q1 last year. Revenues for Q1 ended 30th June 2010 went up 364% to Rs.21.48cr as compared to Rs.4.63cr registered in Q1 last year. |
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Year on Year Comparision |
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Q1 FY11 |
Q1FY10 |
Increase |
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April-June 2010
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April-June 2009
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| Revenues |
Rs.21.48cr |
Rs.4.63cr |
363.93% |
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| Net Profit |
Rs.6.89Cr |
Rs.2.22cr |
210.36% |
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Sequential Quarters Comparision |
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Q1 FY11 |
Q4FY10 |
Increase |
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April-June 2010
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Jan-March 2010
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| Revenues |
Rs.21.48cr |
Rs.20.79crores |
3.31% |
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| Net Profit |
Rs.6.89Cr |
Rs.6.19crores |
11.30% |
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Q1 Highlights |
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- Online education and placement service offering gains acceptance among students leading to Pan India presence; Dealers / Distributors reach 200+ in number
- School education support business expands to 150 schools along with School ERP
- Signs up new franchisee partners in several states for Vocational Skills training
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Commenting on the Q1 performance, S. Giridharan, Chairman and CEO, EdServ said, We have been growing aggressively since our IPO last year. While we have registered a 364% rise in revenue growth in Q1 on a year on year comparison, we believe that the sequential quarter on quarter growth will stabilize so as to reach our targeted growth of 200% compared to last financial year. |
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EdServs unique www.lampsglow.com, the online education and placement model that provides education services from pre-school to careers starting at just Rs.199/- has seen significant new student registrations during the quarter. EdServ also launched online tutoring and a new SMART mobile application that students can download on to their mobile whereby they can clarify any doubts they may have in their homework and assignment / project related work from expert tutors. This too has brought in a big number of student registrations.
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EdServ?s partner driven business model witnessed strong growth during the quarter with expansion into Gujarat, Bihar, Himachal Pradesh, West Bengal, Haryana and Punjab, apart from the Southern States which drives EdServ?s online service business and the vocational training business. EdServ will continue to strengthen its franchisee network across the country over the next 12 months. |
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QIP |
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The QIP (Qualified Institutional Placement) that was opened last month at a floor price of Rs.205 per share is expected to close soon. The proceeds of the QIP issue will be utilised to fund the company?s plans in the Schools segment where it is investing in several schools this year to upgrade the Learning Management Systems, its LAMPSGLOW online web super store education business model, Infrastructure Expansion and towards expanding its presence Pan India in the Higher Education and Career Placement segments. |
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Business Growth Drivers and Outlook |
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On the growth drivers for the business, S. Giridharan said, ?Vocational Training (MODES), School Education business (VIDHYADHANA) and Online Education Services (lampsglow.com) will be the growth drivers for the business in the coming quarters. In quarter Q1 we have seen Vocational Training contributing a significant part of the revenues at 55% and the School education support business has started clocking sizeable business with the contribution going up to 25%. We are in line with the full year revenue guidance of 200% growth.? |
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