Zee Learn Ltd's Q3FY25 Quarterly Results

Result Summary

• Zee Learn Ltd reported a 26.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 29.2%.
• Its expenses for the quarter were up by 23.9% QoQ and 34.8% YoY.
• The net profit decreased 6.7% QoQ and increased 93.8% YoY.
• The earnings per share (EPS) of Zee Learn Ltd declined at 0.1 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Zee Learn Ltd is a prominent player in the education sector, primarily focusing on educational services. The company is known for its diverse range of offerings, including preschool and K-12 education, which it provides through its chain of schools and learning centers. Zee Learn operates under well-recognized brands such as Kidzee, which is one of Asia's largest preschool networks, and Mount Litera Zee Schools, which caters to primary and secondary education. These brands emphasize a comprehensive approach to education, integrating traditional teaching methods with modern technology-enhanced learning practices. The company aims to deliver high-quality educational content and environments to foster holistic development in students. While specific recent developments are not detailed in the provided data, Zee Learn has historically been involved in expanding its educational footprint and enhancing its service delivery through various strategic initiatives.

Revenue

The financial data for Zee Learn Ltd for Q3FY25 indicates a total income of ₹81.65 crores, demonstrating a significant growth from both the previous quarter (Q2FY25) and the same quarter in the prior year (Q3FY24). The total income in Q2FY25 was ₹64.53 crores, representing a quarter-over-quarter (QoQ) increase of 26.5%. Compared to Q3FY24, when the total income was ₹63.22 crores, there is a year-over-year (YoY) increase of 29.2%. This upward trend in revenue suggests a strong improvement in the company's ability to generate income compared to the previous periods. The substantial growth in revenue could be attributed to various factors such as increased enrollment, expansion of educational services, or enhancement in the pricing strategies, although specific reasons are not detailed in the data provided.

Profitability

In terms of profitability, Zee Learn Ltd recorded a profit before tax of ₹-3.10 crores in Q3FY25. This represents an improvement compared to the previous quarter's (Q2FY25) profit before tax of ₹-3.89 crores, marking a QoQ change of -20.3%. However, when compared to Q3FY24, where the company had a profit before tax of ₹0.33 crores, there is a notable decline, as evidenced by the YoY change of -1039.4%. The profit after tax for Q3FY25 is ₹-3.76 crores, which is slightly better than Q2FY25's ₹-4.03 crores, showing a QoQ change of -6.7%. Compared to Q3FY24, where the profit after tax was ₹-1.94 crores, the figures denote a YoY increase of 93.8%. The earnings per share remained constant at ₹-0.10 from Q2FY25 to Q3FY25, with no YoY comparison available due to the absence of a recorded value for Q3FY24. These figures reflect the company's ongoing challenges in achieving profitability despite the increase in revenue.

Operating Metrics

The operating metrics for Zee Learn Ltd highlight its cost structure and tax implications. The total expenses for Q3FY25 are reported at ₹84.75 crores, which is significantly higher than the previous quarter's (Q2FY25) expenses of ₹68.41 crores, resulting in a QoQ increase of 23.9%. When compared to the same quarter last year (Q3FY24), where expenses were ₹62.89 crores, there is a YoY increase of 34.8%. The tax expense for Q3FY25 is ₹0.66 crores, which is notably higher than Q2FY25's ₹0.15 crores, indicating a 340.0% QoQ increase. Compared to Q3FY24's tax of ₹2.27 crores, the tax figure for Q3FY25 reflects a YoY decrease of 70.9%. These data points suggest a considerable rise in operational costs over the periods analyzed, which may have impacted the company's profitability. The substantial QoQ increase in tax expense further affects the net profit figures, despite the lower YoY tax expense.