Educomp Solutions has posted excellent YoY results for the first quarter ended 30th June 2008 but QoQ, the performance has been disastrous.
QoQ, net sales slipped 41% at Rs.69.41 crore while YoY, it was up by a whopping 152%. EBITDA was down QoQ by 28% at Rs.40.56 crore while YoY was up 135%. The QoQ PBT was down 42% at Rs.25.68 crore, And PAT on QoQ was down sharply by 47% at Rs.16.77 crore which YoY was up by a phenomenal 181%.
The stock price has been knocked down sharply after this fall in the performance. It is currently quoted at Rs.3540, which is still much better than the price of Rs.2738 it touched after the Q1 performance. And one FII in the company has been using this fall in the share price to shore up their holding. Merrill Lynch has been a buyer and has constantly shored up its holding which now stands at 5.70%. On the other hand, CLSA Mauritius sold 16,591 shares of the company at Rs.2933 per share and after this sale, its stake stands reduced by 0.10% at 3.24%.
The company has acquired a strategic stake in A-Plus Education Solutions Pvt Ltd. operating under the brand name of "Purple Leap". Educomp plans to invest Rs.10.75 crore over the next two years to acquire a 76% stake in the company.
The company has made a name for itself in the field of providing online lessons and also provides the hardware to run the programs to schools. The total number of schools in the Educomp portfolio has gone up to 7289. It has also won lucrative contracts from eight state governments for various computer-related activities in schools. It recently won a contract from School Education Department, Government of Andhra Pradesh for implementation of Computer Aided Learning in 890 High Schools in Andhra Pradesh under BOOT model. With this, Educomp now works with 12 states in India.
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