Edtech stock jumps 3% after signing MoU with UK based institute

During Friday’s trading session, the shares of a publicly listed Education company and a pioneer in the industry offering end-to-end Education services and solutions surged by nearly 3.3 percent to Rs. 244 on BSE, after entering into MoU with a UK-based institute to launch a program for commerce students. 

With a market cap of Rs. 1,672.8 crores, the shares of Veranda Learning Solutions Limited opened in the green at Rs. 244, compared to its previous closing price of Rs. 236.3. 

What’s the news: 

Veranda Learning Solutions signed a Memorandum of Understanding (MoU) with the National Skill Development Corporation (NSDC) and the UK-based Institute of Accountants and Bookkeepers (IAB) to launch the Certified International Accounting Professional (CIAP) program in India. 

According to the recent regulatory filings with the stock exchanges, the CIAP program is expected to redefine career prospects for commerce students in the coming decade, much like how IT transformed career pathways in the early 2000s. 

This six-month program aims to equip students with globally recognised accounting and bookkeeping skills, serving the growing demand in the Outsourced Accounting Services (OAS) sector. 

Veranda highlighted that, with the Finance and Accounting Business Process Outsourcing (F&A BPO) market projected to reach $134.65 billion by 2032, the CIAP program offers a gateway to lucrative, future-ready career opportunities. 

About National Skill Development Corporation (NSDC): 

NSDC is the principal architect of the skill ecosystem in the country. It is a unique Public Private Partnership (PPP) enterprise working under the Ministry of Skill Development & Entrepreneurship (MSDE), Government of India. 

NSDC provides support to enterprises, start-ups, companies, and organizations that are creating an impact by offering a world of opportunities in futuristic skills to the potential workforce. 

Financials:

Veranda Learning Solutions reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 41 percent, rising from Rs. 98.4 crores in Q2 FY24 to Rs. 138.6 crores in Q2 FY25. 

In contrast, during the same period, the company’s net loss widened from Rs. 1.5 crores to Rs. 30.4 crores, representing a decline of around 1927 percent YoY. 

Further, EBITDA for Q2 FY25 increased by 81.5 percent YoY to Rs. 30.4 crores, up from Rs. 16.8 crores in Q2 FY24. 

Veranda Learning Solutions was listed on the BSE and NSE in April 2022 at an initial price of Rs. 137. 

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Recent Developments & Future Outlook: 

Veranda Learning has expanded into the Middle East with its popular brand, J.K. Shah Classes, by partnering with Jumeira University Connect to offer a Chartered Accountancy (CA) preparation course in the UAE. 

This new course aligns with the high standards of Dubai’s Knowledge and Human Development Authority (KHDA), ensuring that it meets local educational needs while incorporating global best practices. 

In the second half of FY25, Veranda Learning is focused on optimizing operational efficiencies and expanding its educational portfolio to address evolving market demands. 

The company is on track to surpass its projected full-year EBITDA target of Rs. 120 crores and remains committed to its long-term vision of becoming India’s leading educational brand. 

Stock Performance: 

The stock has delivered negative returns of nearly 14 percent in one year, while around 43 percent of positive returns in the last six months. So far in 2024, the shares of Veranda Learning Solutions have given negative returns of about 17.7 percent. 

About the company: 

Founded in 2018, Veranda Learning Solutions Limited offers a wide range of learning programs for learners preparing for competitive and professional exams with highly curated learning contents, books & Q&A in their repository – Tamil Nadu Public Service Commission (TNPSC), SSC, RRB and Banking exams, Chartered Accountancy and IAS courses.

The company is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates professionals & corporate employees. 

Written by Shivani Singh 

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