Zee Learn Limited 9MFY20 - Consolidated EBITDA Zooms 43 Percent

Mumbai, Maharashtra, India: Business Wire India

Highlights of Consolidated 9MFY20 financial performance over 9MFY19:

• Total Revenue at Rs. 441 cr in 9MFY20 - up by 18% • EBITDA at Rs. 151 cr in 9MFY20 - up by 43%

• PBT at Rs. 92 cr in 9MFY20 - up by 26% • PAT at Rs. 67 cr in 9MFY20 - up by 29%

• EBITDA as a % of Operating Revenue increases from 30 % in 9MFY19 to 37 % in 9MFY20

Highlights of Standalone 9MFY20 financial performance over 9MFY19: • Total Revenue at Rs. 160 cr in 9MFY20 - up by 16%

• EBITDA at Rs. 78 cr in 9MFY20 - up by 40% • PBT at Rs. 70 cr in 9MFY20 - up by 35%

• PAT at Rs. 52 cr in 9MFY20 - up by 40% • EBITDA as a % of Operating Revenue increases from 44 % in 9MFY19 to 54 % in 9MFY20

The Board of Directors at its meeting held today has approved and taken on record the unaudited consolidated financial results of Zee Learn Limited (ZLL) and its subsidiaries for the quarter ended December 31, 2019. For Q3 FY20, ZLL, at a consolidated level, reported Total Revenue of Rs 126.32 cr, EBITDA of Rs. 44.23 cr, PBT of Rs 22.35 cr and PAT of Rs 16.32 cr. The ZLL standalone EBITDA as a % of Operating Revenue increased from 44 % in Q3 FY19 to 52% in Q3 FY20 in a superlative performance.

Commenting on the business performance, Mr. Ajey Kumar, MD said, “We are happy to announce another round of excellent results for Q3 & 9M FY20 despite the macroeconomic challenges. Our diverse portfolio of core and supplementary education catering to the full life cycle of learning needs provides vibrant synergies that lend us a unique source of competitive advantage. It is our aspiration to be a leader in every business segment that we operate in and be acknowledged as a trusted provider of best-in-class products and services. Towards this, our relentless focus on building competitiveness in each business will be supported by appropriate investments. As we build scale, we also remain deeply committed to go beyond market leadership alone to creating much larger societal value in an exemplary fashion.”

Commenting on the results, Mr. Debshankar Mukhopadhyay, CEO, said “Zee Learn has made good progress on its agenda and strategic priorities. The Company has further improved its operating margins and recorded strong growth. These results reflect our unrelenting commitment to all our stakeholders and our intense focus on disciplined execution within our core businesses.”

Financial Highlights: Zee Learn Limited Consolidated

Rs. in Cr

Quarter ended

Nine months ended

31-Dec-19

31-Dec-18

QOQ

Growth %

31-Dec-19

31-Dec-18

YOY

Growth %

Particulars

Unaudited

Unaudited

Q3

Unaudited

Unaudited

Nine Months

Revenue from operations

117.84

112.71

5%

409.20

351.90

16%

Other Income

8.48

8.42

1%

31.81

21.31

49%

Total Revenue

126.32

121.13

4%

441.01

373.21

18%

COGS / Operational Cost

24.99

32.25

-23%

104.05

98.71

5%

Employee benefits expense

34.71

36.01

-4%

106.67

100.34

6%

Selling and marketing expenses

2.50

5.28

-53%

14.70

19.52

-25%

Other expenses

11.40

9.19

24%

32.98

27.54

20%

Total expenses

73.61

82.74

-11%

258.40

246.11

5%

EBITDA

44.23

29.97

48%

150.80

105.79

43%

EBITDA %

38%

27%

37%

30%

Finance Cost

15.30

12.27

25%

46.06

33.86

36%

Depreciation and amortisation expenses

15.05

7.87

91%

44.83

20.43

119%

Profit before tax

22.35

18.25

22%

91.72

72.82

26%

Profit before tax %

18%

15%

21%

20%

Tax

6.03

4.32

40%

24.38

20.71

18%

Profit after tax

16.32

13.93

17%

67.34

52.10

29%

Profit after tax %

13%

11%

15%

14%

Financial Highlights: Zee Learn Limited Standalone Rs. in Cr

Quarter ended

Nine months ended

31-Dec-19

31-Dec-18

QOQ

Growth %

31-Dec-19

31-Dec-18

YOY

Growth %

Particulars

Unaudited

Unaudited

Q3

Unaudited

Unaudited

Nine Months

Revenue from operations

34.88

32.33

8%

142.87

125.75

14%

Other Income

6.63

3.68

80%

17.49

12.78

37%

Total Revenue

41.51

36.01

15%

160.36

138.53

16%

COGS / Operational Cost

3.58

4.62

-23%

21.78

24.73

-12%

Employee benefits expense

7.26

6.71

8%

22.91

20.01

15%

Selling and marketing expenses

1.37

2.99

-54%

7.17

11.31

-37%

Other expenses

4.42

3.66

21%

13.20

14.18

-7%

Total expenses

16.62

17.99

-8%

65.07

70.23

-7%

EBITDA

18.25

14.34

27%

77.80

55.52

40%

EBITDA %

52%

44%

54%

44%

Finance Cost

6.22

5.30

17%

18.49

13.78

34%

Depreciation and amortisation expenses

1.90

0.86

122%

6.41

2.30

179%

Profit before tax

16.76

11.87

41%

70.39

52.22

35%

Profit before tax %

40%

33%

44%

38%

Tax

4.09

2.86

43%

18.15

14.91

22%

Profit after tax

12.68

9.00

41%

52.24

37.31

40%

Profit after tax %

31%

25%

33%

27%

Key Business Indicators

December 2019 end

AY 2018-19 end

December 2018 end

AY 2017-18 end

Pre K Schools

1916

1939

1849

1831

K-12 Schools

139

130

128

124

Pre K Students/Day Care

1,37,981

1,37,863

1,37,863

1,27,922

K-12 Students

77,705

63,328

56,836

55,628

Key Financial Indicators (Standalone)

Q3 FY20

Q3 FY19

Free Cash Flow (Rs. In Cr) (Includes WC changes & Regroupings)

(22.35)

17.85

EBITDA %

52%

44%

9 months end FY20

9 months end FY19

Net Bank Borrowings (Rs. In Cr)

103.30

172.32

Debt Equity Ratio

0.39

0.48

Key Financial Indicators (Consolidated)

Q3 FY20

Q3 FY19

Free Cash Flow (Rs. In Cr) (Includes WC changes & Regroupings)

(1.54)

(60.90)

EPS (Rs.)

0.45

0.38

EBITDA %

38%

27%

9 months end FY20

9 months end FY19

Net Bank Borrowings (Rs. In Cr)

297.25

431.30

Debt Equity Ratio (excluding non-controlling interest)

0.76

1.10

Recent Recognitions for Zee Learn: • Zee Learn awarded Great Place to Work for the Financial Year Apr 2019 – Mar 2020

• ZIMA featured in the Academic Insight’s “Maharashtra’s top 20 Educational Institute” issue, 2019 • Mount Litera Zee School won Franchisor of the Year 2019 award by Franchise India

• Zee Learn recognised as Premier Franchise to Watch for in 2019 by Insights Success magazine, Oct 2019 • Zee Learn recognised for its Outstanding contribution to quality education in India by Business Vision Magazine, Nov 2019

• Kidzee wins the award for National Early Child Playschool Chain of the year 2019 by Franchise India • MLZS wins the award for National K12 School Chain of the Year 2019 by Franchise India.

• Zee Learn wins the award for Dream Companies to work for in Education Sector 2019 by World HRD Congress • Kidzee wins the award for Leading brand of the Year 2018 – Preschools by WCRC

• MLZS wins the award for Leading brand of the Year 2018 – Schools by WCRC • Zee Learn has been awarded Franchisor of the year 2018 by Franchise India

• MLSI Awarded Great Place to Study by Forbes Marquee Magazine, Oct 2018 • MLZS Awarded Great Place to Study by Forbes Marquee Magazine, Oct 2018

• Luminosity - Learning Management System Portal for MLZS wins award by IDC Insight Awards, 2018 • Kidzee wins awards for Most Admired Preschool Brand 2018 – by White Page International

About Zee Learn Limited

Zee Learn Limited is an Essel Group Company listed on National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and on Luxemburg Stock Exchange, and is India's leading company in education segment with the fastest growing chain of K-12 schools (Mount Litera Zee Schools) and Asia’s No 1 chain of pre-schools (Kidzee) in its portfolio. The Company through its brand ‘Zee Institute of Media Arts’ (ZIMA), a TV and Film training institute, offers Certificate courses in Direction, Acting, Sound, Editing, Production and Cinematography. Another offering from the company, ‘Zee Institute of Creative Art’ (ZICA) is the nation's first full-fledged Classical and Digital Animation Training Academy that trains youth in classical 2D and modern 3D animation. MT Educare Ltd is a subsidiary of Zee Learn Ltd and is a market leader in Test Prep, Tutorials and Digital education with leading brands like Lakshya, Chitale classes, Robomate, MT Commerce etc. Liberium Global Resources Pvt Ltd is another subsidiary of Zee Learn Ltd and is an emerging player in the Manpower & Training segment.

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