EdServ Q3 Net Profit doubles, Revenues also up 100% at Rs.31.16cr
Education and Placement services Company EdServ has announced that its Net Profit for Q3 ended 31st December 2010 has doubled to Rs.11.54crore from Rs.5.64cr registered in Q3 ended 31st December 2009. EdServs revenues for Q3 ended 31st December 2010 also doubled to Rs.31.16cr from Rs.15.51cr in Q3 ended 31st December 2009.
- Signs 2 year deal with ASIANET to make their 1 lakh customers access lampsglow.com
- Records growth in TestPrep, Live Tuitions, Academics, and Placement Service segments
- Spreads Online offering Pan India through 1,000+ Dealer network across 15 States
- Plans to achieve larger market spread through DTH, 3G mobile, and Cable networks
Online Test Prep, Live tuition services, academics including school expansion, job placement services, and skills development services of EdServ have contributed to the overall business growth in Q3 with 30% of the business coming from each of Test Prep and Tuition services with Schools contributing to another 25%. EdServ currently has over 2lakh registered users on lampsglow.com and around 75 schools signed up.
By adopting this aggressive eLearning online supplementary education support model, the company believes it will continue to achieve 30-32% profit margins due to lower cost of execution and also be able to progressively reduce the debtor days in the future thanks to dealer network based sales.
Commenting on the growth drivers for the business, S. Giridharan, Chairman and CEO, EdServ said, Technology enabled education and placement services through Lampsglow.com has been a big driver for our growth during Q3. Our focus has always been on affordable offering anytime, anywhere online be it in retail off-campus or in-campus schools.
We are increasing our presence in TestPrep, Live Tuition markets apart from Academics which cover PlaySchool to Senior Secondary and Under-Graduation education support. Skill Development and Online Job Engagement Services continue to contribute to our revenue. We have spread our presence across the country through over 1,000 dealers during the 3rd quarter and have also signed overseas Dealers to reach out the students who are looking at tuitions online and IT / non-IT skill development.
With our 2 year partnership with Asianet Broadband Communications and the recent launch of our Online CA coaching services, we expect to grow significantly in TestPrep market ably assisted by IITJEE / AIEEE / CAT / Law / GRE / ToEFL online in the next 3-4 quarters."
Signs up 2 year deal with ASIANET Broadband
The company also announced that it has signed a two year deal with Asianet Satellite Communication Ltd., a leading broadband service provider with a wide network and market share in the telecom sector in the Kerala market.
As part of the deal, EdServ will offer eLearning services through broadband route. Asianet will facilitate registration of all its subscribers to avail the services of lampsglow.com, EdServs online education portal, through Asianets large broadband service subscriber base. Asianet will actively promote lampsglow across the Kerala market through their sales force.
Through this deal, EdServ will have over 1 lakh subscribers across Kerala and will thus expand its presence significantly in the Kerala market.
On the future plans, Giridharan said, The partnership with Asianet is the first step in our strategy to target the broadband users segment. Backed by our strong dealer and distributor network across the country, we plan to aggressively expand our market segment by taking our affordable eLearning offering through DTH, 3G enabled Smart Phones, and Cable Channels such that users need not look at Desktops / Laptops with Internet connection as a bottleneck to access our online services anymore.We believe we have achieved the first mover advantage in this space and are confident that we will be able to establish lampsglow.com as a leading national eLearning brand by replacing brick and mortar model with our click and enter model."