Veranda Learning Solutions Limited — Interim / Quarterly Report 2024

Nov 9, 2023

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Veranda Learning Solutions Limited

09[th] November 2023

BSE Limited Dept of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Scrip Code: 543514

National Stock Exchange of India Limited The Listing Department, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 051 Symbol: VERANDA

Sub: Press Release on Financial Results pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.

Sir/Madam,

Please find enclosed the press release titled ‘Veranda Learning Solutions announces Q2 FY 202324 Financial Results” pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.

This information will also be hosted on the Company’s website at www.verandalearning.com.

Kindly take the same on record and display the same on the website of your exchange.

Thanking you,

For Veranda Learning Solutions Limited

M Digitally signed by M ANANTHARAMAKRISHNAN ANANTHARAMAKRIS Date: 2023.11.09 16:57:33 HNAN +05'30' M Anantharamakrishnan Company Secretary & Compliance Officer M. No: ACS-7187

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contact@verandalearning.com www.verandalearning.com +91 44 4296 7777 34, Thirumalai Road, T. Nagar, Chennai, Tamil Nadu-600017 CIN: L74999TN2018PLC125880

PRESS RELEASE

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Veranda Learning Solutions Reports a Strong Performance in Q2 & H1 FY24

Q2FY24: Operating Income registers a robust growth of 167% YoY

Chennai, 09 November 2023: Veranda Learning Solutions Limited , a public listed Education company (BSE: 543514, NSE: VERANDA) and a pioneer in the industry offering end-to-end Education services solutions, announced its financial results for the second quarter and the half year ended September 30, 2023. The company has reported a robust Revenue of Rs. 100.27 crores for the quarter compared to Rs. 38.77 crores in the same period last year. Veranda continues to focus on delivering high-quality, result-oriented preparatory courses for aspirants in India.

The company announced an EBITDA of Rs. 22.39 crores for H1FY24 marking a substantial recovery from the operating loss of Rs. 28.41 crores in the corresponding period of the previous Financial year. This was possible on the back of a remarkable revenue surge, arising out of a year-on-year operating revenue growth of 157.06 %. Their total revenue for H1FY24 stood at Rs. 170.75 crores, a significant increase compared to the Rs. 67.40 crores recorded in H1FY23.

The total number of students trained by the Veranda Group for H1FY24 stood at 4,21,327 with 2,00,574 students trained this quarter.

Consolidated Financial Highlights:

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Particulars (Rs. Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y
Revenue from Operations 98.37 36.88 166.70% 68.90 42.77% 167.27 65.07 157.06%
Other Income 1.90 1.89 1.58 3.48 2.33
Total Revenue 100.27 38.77 158.63% 70.48 42.26% 170.75 67.40 153.34%
Gross Profit 60.18 15.06 299.53% 38.38 56.80% 98.57 26.96 265.57%
Gross Profit Margin (%) 61.18% 40.84% 55.71% 58.92% 41.43%
Operating Expenses
Advt & Business
14.46 10.69 35.31% 10.27 40.77% 24.74 19.16 29.11%
Promotion
Corporate Costs 4.53 5.36 -15.47% 5.58 -18.88% 10.11 10.29 -1.71%
Non-Operating Expenses - - - - -
ESOPs/RSU 1.10 3.36 -67.17% 1.53 -27.96% 2.64 5.44 -51.49%
Growth Investment - 4.99 - - 6.37
EBITDA 16.75 -15.00 5.64 196.99% 22.39 -28.41
Finance Cost 10.31 1.07 862.00% 8.45 22.03% 18.76 2.79 572.15%
Depreciation 6.17 6.47 -4.72% 18.96 -67.47% 25.12 12.61 99.27%
Tax Expenses 1.80 -1.42 -2.44 -0.63 -2.61
PAT -1.53 -21.13 -19.33 -20.86 -41.19
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Key Consolidated Financial Highlights:

• Total Operating Revenue stood at Rs. 98.37 crores in Q2FY24 compared to Rs. 36.88 crores in Q2FY23 a growth of 166.7% YoY; Total Operating Revenue for H1FY24 stood at Rs. 167.27 crores compared to Rs. 65.07 crores in H1FY23 witnessing a growth of 157.06% YoY.

• The Total Revenue stood at Rs. 100.27 crores in Q2FY24 compared to Rs. 38.77 crores in Q2FY23 a growth of 158.6% YoY; Total Revenue for H1FY24 stood at Rs. 170.75 crores compared to Rs. 67.40 crores in H1FY23 witnessing a growth of 153.34% YoY .

• The Gross Profit stood at Rs. 60.18 crores with a Gross Profit margin of 61.18% in Q2FY24 compared to Rs. 15.06 crores and Gross Profit margin of 40.84% in Q2FY23; In H1FY24 the Gross Profit stood at Rs. 98.57 crores with a Gross Profit margin of 58.92% in H1FY24 compared to Rs. 26.96 crores and Gross Profit margin of 41.43% in H1FY23.

• Advertising and business promotion expenses for Q2FY24 & H1FY24 stood at Rs. 14.46 crores and Rs. 24.74 crores respectively

• The Company reported an EBITDA of Rs. 16.75 crores in Q2FY24 compared to loss of Rs. 15.00 crores in Q2FY23. The EBITDA for H1FY24 stands at Rs. 22.39 crores as compared to a loss of Rs. 28.41 crores in H1FY23; The adjusted recurring EBITDA for the quarter Q2 FY24 stood at Rs 17.85 crores and Rs 25.02 crores for H1FY24.

Speaking on the strong financial performance, Mr. Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions said,

“I am thrilled to share with you the outstanding performance of our company during Q2FY24 and H1FY24. The numbers speak for themselves - our revenue has surged by an impressive 167% in Q2FY24. This is a clear testament to the hard work and dedication of our teams, as well as validation of our strategic decisions. The improvement in EBITDA margin shows the strength and resilience of our business operations and the acquisitions.

After a challenging period of assimilating assets in the education ecosystem over the past two years, we can proudly say that we are now reaping the rewards. We have successfully stitched a fabric through strategic acquisitions, further enhancing our competitive advantage in the market. We are close to achieving the dream of being present across the entire education value chain.

We are confident that this momentum will persist, as we continue to drive growth from both our existing and newly acquired businesses. The future looks promising, and we remain committed to delivering exceptional results and value for our stakeholders.”

Business Verticals Performance Update:

Veranda RACE

‑ Veranda RACE is a premier competitive exam test prep institute, preparing students and providing courses in the areas of Tamil Nadu Public Services Commission (TNPSC), Banking, and Kerala Public Service Commission (PSC), Railway Recruitment Board (RRB) and insurance examination for over 10 years. During Q2FY24 the Revenue for the vertical stood at Rs. 29.41 crores compared to Rs. 16.77 crores in Q2FY23 a strong growth of 75.29%. Reported an Adjusted EBITDA of Rs. 7.17 crores compared to Rs. 1.61 crores in Q2FY23. The enrolment during the quarter stood at 17,924 compared to 12,859 in Q2FY23 a growth of 39.39%

Edureka (Brain4ce)

Edureka is a platform for imparting the latest tech skills for technology professionals through curated courses to bridge the gap between industry demand and talent supply. During Q2FY24 the Revenue stood at Rs. 23.27 crores compared to Rs. 19.94 crores in Q2FY23 a robust growth of 16.76% YoY. The reported Adjusted EBITDA of Rs. 2.92 crores in Q2FY24 compared to loss of Rs. 3.41 crores in Q2FY23. The enrolments for Q2FY24 were at 8,032 vs 9,196 in Q2FY23.

JK Shah Classes

JK Shah Classes, a pioneer in coaching CA, CS, and CMA aspirants for the last 39 years collaborated with Veranda Learning Solutions Limited in October 2022. The unparalleled legacy and leadership position in the Chartered Accountancy Test prep course and other Commerce courses JK Shah classes has built a platform for sustained growth. The Revenue for Q2FY24 stood at Rs. 33.84 crores compared to Rs. 27.42 crore in Q1FY24 a growth of 23.4% QoQ. The Adjusted EBITDA was at Rs. 13.73 crore in Q2FY24 compared to Rs. 11.18 crore in Q1FY24 a growth of 22.82% QoQ. The enrolments for Q2FY24 were at 20,618 vs 16,153 in Q1FY24.

Veranda Higher Education Business

Veranda Higher Education offers long-term degrees and certification programs in collaboration with prestigious institutions such as IIM Raipur, IIM Shillong, XLRI, IIT – Guwahati, Goa Institute of Management and Sastra University, as well as tie-ups with international universities to offer long term degree and certification programs. The Revenue for Q2FY24 stood at Rs. 2.93 crores compared to Rs. 0.29 crore in Q1FY24. The enrolments for Q2FY24 were at 764 vs 480 in Q1FY24 and bookings grew to Rs 15.40 crores in Q2FY24 as against Rs 8.85 crores in Q1 FY24.

New Acquisitions Performance

This quarter we also consolidated results from the new acquisitions which was completed in Aug 23 in wholly owned subsidiary Veranda Administrative Learning Solutions Pvt Ltd (VALS) . These business which included Educare Infra , Six Phrase, Phire, Neyyar Academy , Neyyar Education and Bassure reported Revenue of Rs. 8.44 crores and Adjusted EBITDA of Rs. 3.37 crores. In addition, the Company announced investment in SmartBridge Educational Services Private Limited this quarter whose acquisition is expected to be completed by 31[st] Jan 2024. It also entered into a Business Transfer Arrangement with Sreedhar’s College of Competitive Exams (CCE), a prominent test-prep institute in Andhra Pradesh and Telangana during the quarter.

About Veranda Learning Solutions:

Founded in 2018, by the Kalpathi AGS Group - Veranda Learning Solutions is a public listed education technology company that offers a bouquet of training programs for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes. Veranda Learning Solutions’ platform combines technology, processes, and methodologies to provide high-quality, in-depth, personalised learning opportunities and content to learners across the country. Dedicated to creating an impact on students and delivering successful academic outcomes, Veranda adopts a multi-modal delivery system backed by a rigorous and disciplined learning framework. The company provides services through its subsidiaries: Veranda RACE, Veranda IAS, Edureka - the customer-facing brand of Brain4ce Education Solutions, Veranda HigherEd, and Edureka Learning Centre. Veranda Learning has forayed into high-demand financial courses such as Chartered Accountancy through its partnership with India’s premier CA test-preparation institute, J. K. Shah Classes.

Company Contact:	Investor Relations:
Ms. Saradha Govindarajan, CFO Veranda Learning Solutions Limited saradha.g@verandalearning.com	Mr. Abhishek Bhatt Ms. Mahalakshmi Venkatachalam Ernst & Young LLP Abhishek.bhatt3@in.ey.com Mahalakshmi.venkatachalam@in.ey.com

Visit us at www.verandalearning.com | CIN L74999TN2018PLC125880

DISCLAIMER:

Certain statements in this document that are not historical facts, are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political, or economic developments, industry risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Veranda Learning Solutions Limited will not be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances

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Veranda Learning Solutions

Affordability | High-quality Content | Outcome-oriented Approach

Investor Presentation | November 2023

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Safe Harbor

• This presentation and the following discussion may contain “forward looking statements” by Veranda Learning Solutions Limited (“Veranda Learning” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of Veranda Learning about the business, industry and markets in which Veranda Learning operates.

• These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond Veranda Learning’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements.

• Such statements are not, and should not be construed, as a representation as to future performance or achievements of Veranda Learning. In particular, such statements should not be regarded as a projection of future performance of Veranda Learning. It should be noted that the actual performance or achievements of Veranda Learning may vary significantly from such statements.

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Agenda

01 Result Highlights 02 Company Overview 03 Growth Strategy 04 Industry Overview 05 Financials

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Q2 & H1 FY24 Performance

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Key Financial & Business Highlights – Q2 & H1 FY24

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PAT
Revenue from OperationsRevenue from Operations EBITDAEBITDA
16.75
-1.53
98.37
36.88
Q2FY23 Q2FY24
Q2FY23 Q2FY24
-21.13
-15.00
Q2FY23 Q2FY24
Revenue from Operations EBITDAEBITDA PAT
Revenue from Operations
22.39
167.27
65.07
-20.86
-28.41
H1FY23 H1FY24 -41.19
H1FY23 H1FY24
H1FY23 H1FY24
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From the Chairman’s Desk

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Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda

Learning Solutions, said “I am thrilled to share with you the outstanding performance of our company during Q2FY24 and H1FY24. The numbers speak for themselves - our revenue has surged by an impressive 167% in Q2FY24. This is a clear testament to the hard work and dedication of our teams, as well as validation of our strategic decisions. The improvement in EBITDA margin shows the strength and resilience of our business operations and the acquisitions.

After a challenging period of assimilating assets in the education ecosystem over the past two years, we can proudly say that we are now reaping the rewards. We have successfully stitched a fabric through strategic acquisitions, further enhancing our competitive advantage in the market. We are close to achieving the dream of being present across the entire education value chain.

We are confident that this momentum will persist, as we continue to drive growth from both our existing and newly acquired businesses. The future looks promising, and we remain committed to delivering exceptional results and value for our stakeholders.”

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Consolidated P&L Highlights

	Particulars (Rs. Cr)	Q2FY24	Q2FY23	Y-o-Y	Q1FY24	Q-o-Q	H1FY24	H1FY23	Y-o-Y
	Revenue from Operations	98.37	36.88	166.70%	68.90	42.77%	167.27	65.07	157.06%
	Other Income	1.90	1.89		1.58		3.48	2.33
	Total Revenue	100.27	38.77	158.63%	70.48	42.26%	170.75	67.40	153.34%
	Gross Profit#	60.18	15.06	299.53%	38.38	56.80%	98.57	26.96	265.57%
	Gross Profit Margin (%)	61.18%	40.84%		55.71%		58.92%	41.43%
	Operating Expenses Advt & Business Promotion	14.46	10.69	35.31%	10.27	40.77%	24.74	19.16	29.11%
	Corporate Costs	4.53	5.36	(15.47)%	5.58	(18.88)%	10.11	10.29	(1.71)%
	Non-Operating Expenses	-	-		-		-	-
	ESOPs/RSU	1.10	3.36	(67.17)%	1.53	(27.96)%	2.64	5.44	(51.49)%
	Growth Investment	-	4.99		-		-	6.37
	EBITDA	16.75	(15.00)		5.64	196.99%	22.39	(28.41)
	EBITDA Margin (%)	16.70%	(38.70)%		8.00%	108.76%	13.11%	(42.15)%
	Finance Cost Depreciation Tax Expenses	10.31 6.17 1.80	1.07 6.47 (1.42)	862.00% (4.72)%	8.45 18.96 (2.44)	22.03% (67.47)%	18.76 25.12 (0.63)	2.79 12.61 (2.61)	572.15% 99.27%
	PAT	(1.53)	(21.13)		(19.33)		(20.86)	(41.19)

#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)

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Consolidated Balance sheet
Particulars (Rs. Cr) Sep’23 Mar’23 Particulars (INR Cr) Sep’23 Mar’23
1. ASSETS 1. EQUITY
Non-current assets Equity share capital 69.20 61.57
Property, plant and equipment 75.75 14.08 Other Equity 359.77 244.37
Right of use Assets 72.91 71.88 Total equity 428.96 305.94
Capital Work in Progress 0.36 0.08 2. LIABILITIES
Goodwill 668.54 437.44 Non-current liabilities
Other Intangible Assets 346.08 210.78 Provisions 2.74 2.07
Intangible Assets under development 10.81 2.67 Borrowings 316.04 221.24
Investments 12.59 0.01 Other Financial Liabilities 327.26 145.13
Other Financial Assets 8.60 6.74 Lease Liabilities 62.09 62.41
Deferred Tax assets (Net) 5.11 4.96 Deferred tax liabilities (Net) 51.75 50.38
Income Tax Assets 8.58 7.24 Total non-current liabilities 759.88 481.24
Other non-current Assets 0.00 0.20 Current liabilities
Total non-current assets 1209.33 756.08 Financial liabilities
Current assets Borrowings 60.61 9.57
Inventories 2.16 1.32 Trade payables 47.67 28.44
Financial assets Other financial liabilities – Lease Liabilities 15.60 12.93
Trade receivables 16.34 5.51 Other Financial Liabilities 13.95 4.76
Cash and cash equivalents 90.62 84.82 Provisions 0.86 0.72
Bank balances 10.04 2.12 Other current liabilities 79.46 48.09
Other financial assets 27.83 5.40 Current tax liabilities 1.15 0.00
Other current assets 51.82 36.44 Total current liabilities 219.29 104.51
Total Current Assets 198.80 135.61 Total liabilities 979.17 585.75
Total Assets 1408.13 891.69 Total Equity and Liabilities 1408.13 891.69
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Veranda Company Overview

Veranda Learning – A Quick Glance

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Veranda Learning Solutions 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 and corporate employees

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Promoters have a collective experience of over 40 years in the education sector
Strong Leadership:
and proven track record of entrepreneurial success
Provides a wide range of learning solutions through courses including UPSC,
Diversified Offerings: competitive exams courses, professional courses, short term upskilling and reskilling
courses to students and professionals
Courses offered through online, offline hybrid, offline blended, campus in
Presence across Platforms:
campus and online live instructor led learning models in various languages
Established a strong presence in competitive exam-oriented courses like Banking,
SPSC, Insurance, RRB & SSC and created niche online education platforms across all
Established Strong Brand:
segments. Edureka is a recognised online education platform for IT professionals that
offers upskilling & reskilling courses
KEY STRENGTHS
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15+ States

PRESENCE ACROSS INDIA

5 Mn+ MONTHLY WEBSITE TRAFFIC 4 Mn+ YOUTUBE SUBSCRIBERS 9+/10 AVERAGE USER RATING

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Our Journey so far

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INCORPRATION

LAUNCHES & ACQUISITIONS

J. K. SHAH CLASSES AND LAUNCH OF ELCs

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• July’21: Launched CA course offered by •
Incorporated in November 2018 May’22: Launched Edureka Learning Centre
Veranda CA
(ELCs)
• Aug’21: Launched UPSC course offered by
Veranda IAS • Oct’22: Acquired J. K. Shah Classes
• Sep’21: Acquired Edureka, enabling Veranda
to establish global footprints
2018 2020 2021 2022 2022 2023
• Dec’20: Acquired Content, brand, • Apr’22: Listing on BSE & NSE • Jan’23: Business Transfer Agreement with
education materials through Veranda Chennai Race
Race; commenced operations • May’23: Announces association with 7
companies under Veranda Administrative
• Dec’20: Launched own mobile app Learning Solutions
comprising all integrated courses • July’23: Veranda Race joining hands with
Sreedhar’s College of Competitive Exams
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KEY ACQUISITION

LISTING ON EXCHANGES

ACQUISITIONS IN VERANDA ADMINISTRATIVE SOLUTIONS

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Strong presence in test preparations & professional skilling segments

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Career-defining competitive exams Hybrid • TNPSC Group 2 • SSC
Courses • TNPSC Group 4 • Railways
• TN TET • Kerala PSC
• Banking • CA Foundation
Professional courses
TNPSC Exam Coaching: CA Exam Coaching:
• Group 2 & 2A • CA Foundation
• Group 4 • CA Intermediate
• CA Final
Exam-oriented courses Test Series: • CA Revision
Online • TNPSC
Courses • Banking Test Batch UPSC Exam
• CA -all levels • Integrated Learning
Programme
•
Banking & SSC Exams: Prelims Learning
• Tamil Programme
• English
Upskilling and Reskilling courses • Malayalam
• Telugu TNUSRB SI
• Kannada
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Kerala PSC Exam Coaching TNUSRB SI

Developed 340+ courses offered in Online, Offline Hybrid & Offline Blended

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Edureka – A leading player in emerging technology training

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• A comprehensive learning platform aimed to
bridge the workplace-ready IT skills gap
Pioneering Instructor Led Live Edureka Learning Centres
Online training
• Veranda acquired Edureka to build a full-stack
Education business virtually
• Launched Edureka learning with the first set of
Industry leader in online professional Delivery Centres across 105 locations
& higher education segment
Courses Offered
• Cloud Computing • Architecture & Design
Patterns
• DevOps
Upskilling & Reskilling courses Online Courses • BI Visualization • Artificial Intelligence
• Databases
• Data Science
Visit us Link • Programming & • Data Warehousing and ETL
Frameworks • Operating Systems
• Frontend Development • Digital Marketing
Global customer presence • Mobile Development • Robotic Process
majorly from US & UK • Software Testing Automation
• Blockchain
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• Data Warehousing and ETL

• Project Management & Methodologies

• Data Science

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Our Brand Portfolio

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Brands Under Our Portfolio - Diversified Offerings (1/3)

	Courses Offered	Courses Offered	Modes of Delivery	Average Duration	Languages
A premier competitive exam test- prep institute preparing students for Banking, Insurance, SSC, TNPSC and other PSC examinations for +10 years	• SSC • State PSC • Banking & Insurance • RRB		• Online: Recorded and Live • Offline-blended model • Offline hybrid model	3-12 months	Tamil, Kannada, Telugu, English, Malayalam, Hindi
A pioneer in instructor-led live online training in India under the supervision of professional instructors	• DevOps • AWS • Architect • Power BI • Cybersecurity	• PMP • Microsoft Azure • Selenium • Tableau • Data Science	Online, live instructor-led platform	24-150 hours	English
Imparts the latest tech skills through curated courses to bridge the gap between industry demand and talent supply	• Full Stack Web Development • Data science • Cloud and DevOps • Full Stack Web Development with Python	• Data Science with SQL • Cloud and DevOps • Python + SQL Primer • Java + SQL Primer and Foundation	• Offline (Self-paced + AF support) • Offline (Online instructor- led + AF support)	1 week to 4 months	English
Provides cutting-edge programme delivery in areas like technology, leadership, and marketing, in partnership with world-class institutions	• Online MBA • Online B.Com • B.Com and Online CA • Online MCA	• M.Tech GI • M.Tech CSE • M.Tech DS • PhD - working professionals	Online/Hybrid	12-36 months	English
A leading test-prep institute for professional commerce courses offered in India as well as globally	• CA, CS, CMA, CFA (US) • ACCA (UK) • CMA (US)	• EA (US) • Class 11 and 12 – CBSE, ISC and MH State Board	• Online: Recorded and live • Offline classroom model • Hybrid model	4-24 months	English, HIndi+English

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Brands Under Our Portfolio - Diversified Offerings (2/3)

	Courses Offered	Modes of Delivery	Average Duration	Languages
Committed to design a comprehensive learning experience to help aspirants meet the high standards expected by UPSC exams	Integrated learning programme (CSAT and optional subjects): Prelims, mains and personality tests	• Online • Offline blended • In-campus	12 months	English
Veranda Varsity offers integrated courses with top institutions at an affordable cost	Bachelor of Commerce + CA	Hybrid	36 months	English
Phire is a placement-oriented entity offering expert training for recruitment in private banking and BFSI sectors	Certification in Banking and Finance	Online	100 hours	English/Tamil
SmartBridge is a one-stop platform catering to skill and knowledge development of graduates turning professionals	• Android Application Development with Kotlin • Machine Learning with Python • Salesforce Administrator • Salesforce Developer • Cybersecurity with IBM Qradar • Data Analytics with IBM Cognos • Internet of Things (IoT) • Software Testing Automation	Virtual Instructor-led Training	4-100 hours	English
Six Phrase is a skill and career development company that has jumpstarted the careers of over 1,00,000 students	• Aptitude Training • Technical Training • English and Soft Skills Training • English Competency Development Programme	• Online • Offline hybrid	5-50 days; courses ranging from one to seven semesters	English

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Brands Under Our Portfolio - Diversified Offerings (3/3)

	Courses Offered	Modes of Delivery	Average Duration	Languages
The academy offers training for Kerala PSC competitive exams and the training experience has bee, translated into publications of repute	• Kerala PSC • SSC • UPSC • SBI/IBPS	• Online • Offline hybrid	6-12 months	English, Malayalam
Sreedhar’s CCE is a prominent institute for competitive and entrance exams in Andhra Pradesh and Telangana	• Banking • SSC • Railway	• Online • Offline	3.5-12 months	English, Telugu
Logic School of Management, established in 2005, offers foreign professional financial courses	• CA • CMA • CS • ACCA UK • CPA USA • CMA USA • EA • CIA	• Online • Offline hybrid	3.5 to 36 months	English, Malayalam

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Established a result oriented unique 360[o] Approach

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Weekly lectures by
subject matter experts
with Q&A
Mentors assigned to
every student to track
and ensure progress
Right blend of offline &
online materials to support
the learning outcomes
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Textbooks for all courses
for in-depth structural &
methodical learning
Chapter and paper level
mock tests for practice
Multi-level practice
programmes
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Veranda Learning – Coaching centres across India

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200+ Diversified Footprint across India Centres (across all courses) Wide Building presence across India Presence

Strong Hold Across India

Established strong offline presence in Southern and Western India

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Proficient Team to drive the business

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• More than a decade of experience in the Education industry

• Founded SSI in 1991, providing software education and IT training; key milestones include listing on NSE and BSE, formed a JV with NASDAQ, acquired Albion Orion Company LLC and acquired controlling stake in Aptech Limited

• Founded AGS Entertainment in 2003, a production house and later ventured into film exhibition via AGS Cinemas

• Founded Kalpathi Investments in 2007, a NBFC which invests in various ventures

• Awarded the ‘Outstanding Entrepreneur of the Year’ in 1999 by Ernst & Young, India

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Kalpathi S Suresh
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Chairman & Executive Director

• Bachelor’s degree of Technology in Electrical Engineering, Master’s Degree in Electrical Engineering

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Kalpathi S Aghoram
Non-Executive Director
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Kalpathi S Ganesh
Non-Executive Director
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Kalpathi Aghoram Archana
Non-Executive Director
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• 20

• Bachelor’s degree in Commerce

• Bachelor’s degree in Applied Sciences, Master ‘s degree in Software Systems

• Master’s degree in Computer Science

• A decade of experience in finance, education, IT, entertainment

  • Director of AGS Cinemas; Executive producer of AGS Entertainment

• A decade of experience in finance, education, IT, entertainment

• Previously associated with TNCA and BCCI

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Veranda Learning – Key Team Members (1/2)

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Praveen Kumar

Saradha Govindarajan Chief Financial Officer

President, Corporate Strategy

• 25+ years of experience in cross border acquisitions & pre-acquisition process in M&A

• 11+ years of experience in the areas of Finance, Strategy and Operations

• Previously worked with SSI and Deloitte Haskins and Sells

• Previously led Qube Cinemas and Dr. Agarwal’s Eye Hospital as CFO & SVP, Strategy & Operations

• Member of ICAI and ICWAI

• BE from College of Engineering, Guindy and MBA from XLRI, Jamshedpur

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Rajesh Pankaj Chief Program Officer

Venkatesh K Chief Instruction Delivery

• 30+ years of industry experience spanning technology, education & content development

• 25+ years of experience in Strategy and execution

• Previously worked with SSI, e4e, TCS, Primex and Wellcorp at senior management roles

• Previously worked with Pearson, MPS, HCL TalentCare, Everon Education and Hurix

• Executive MBA from IIM-B and is a Certified Corporate Director from IOD

• B.Sc in Chemistry from Mahatma Gandhi University and PG Diploma from NIIT

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Pravin Menon Chief Marketing Officer

• 26+ years of experience in marketing in EdTech, Media and Publishing businesses

• Previously worked with Worldwide Media, Vikatan, Bennet Coleman & Network Digitech

• Bachelor’s degree from University of Mumbai

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Sivakumar Ganesan

VP, Sales & Field Force Marketing

• 4+ decades of leadership and entrepreneurial experience across sales & marketing and education domains

• Previously worked with SSI, Aptech and Dunlop

• B.A. in Economics from University of Madras and PGDM in Marketing from AIMA

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Veranda Learning – Key Team Members (2/2)

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Bharat Seeman CEO, Veranda IAS Ex-founder, Veranda Race

Lovleen Bhatia Co-Founder, Edureka

• 10+ years of experience in business leadership

• 18 years+ of technical leadership and R&D experience

• Master’s degree in Technology from Anna University

• B.Tech from IIT BHU

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J K Shah

Pooja Shah Joint COO, JKSC

Executive Chairman, JKSC

• Founder, pioneer and a seasoned educationist

• Education enthusiast focused on disrupting hybrid educational spaces

• 38+ years of proven industry experience in leading and managing CA coaching classes

• Before JK Shah, began her journey as an Articled Assistant at Arvind H Shah & Co

• B.Com in Accounting & Finance from University 22 of Mumbai and member of the ICAI

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Santhoshkumar P

CEO, Veranda Race

• 7+ years of experience in operations management at Veranda RACE

• MBA from Illinois Tech Stuart School of Business and Master’s degree from Great Lakes Institute of Management

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Vishal Shah Joint COO, JKSC

• 7+ years of experience in managing business development & operations and lead generation functions

• Heads the online coaching vertical at JK Shah Classes

• B.Com from NMIMS and member of the ICAI

22

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Veranda Growth Strategy

Veranda Learning – Growth Strategy

• Attuned to the evolving demands of learners and job market, constantly

• New Courses diversify range of courses and Offering  Proactive approach to identify emerging disciplines and skills, and design courses to meet needs of learners for rewarding career opportunities

• Holistic approach by catering to both individual learners (B2C) and

• Strengthen Focus on B2C corporate clients (B2B) and B2B Spectrum  Provide tailored learning solutions to businesses to help them upskill their

• Provide tailored learning solutions to businesses to help them upskill their employees/students and enhance their workforce’s capabilities

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TRACK RECORD 15+

COURSES ADDED DURING FY23

91,550 INDIVIDUAL LEARNERS (B2C)

Content Expansion and Publishing

• Content expansion and publishing hold a pivotal role within strategic priorities, and invest in relevant initiatives that support this.

117

CORPORATE CLIENTS (B2B)

9

• Committed to identifying and seizing strategic acquisition opportunities

• Acquiring complementary educational platforms, content providers, and technology companies

Strategic Acquisitions

• Aims to enrich offerings and expand customer reach

 Aims to enrich offerings and expand customer reach ACQUISITIONS (FY23-FY24)  Recognises the importance of catering to regional preferences and diverse Geographic Expansion learning needs thus established Preferred Delivery Centres (PDCs) in strategic 200+ through Preferred Delivery locations Centres (PDCs)  These physical hubs facilitate the integration of localised content and PDCs ACROSS STATES teaching methodologies, ensuring

24

Strategic Acquisitions & New Launches to Scale business Operations

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Veranda RACE Acquired Chennai RACE in December 2020 Edureka Acquired Brain4ce Education Solutions (“Eduerka”) in September 2021 Edureka Learning Centres Launched Edureka Learning Centres in May 2022 J.K Shah Classes Acquired in October 2022 Veranda Acquisition/investment with Administrative 7 Companies in May 2023 Solutions Pvt Ltd Sreedhar’s College Veranda Race partnered of Competitive with Sreedhar’s College Exams in June 2023 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2021 2022 2023 Veranda RACE Edureka J. K. Shah Classes Edureka Learning Centres (ELC) Chennai RACE was engaged in Veranda expanded its offerings in Through J. K. Shah Classes Veranda The company intends to deliver running coaching institutes in Tamil academic learning, professional skilling collaborates with India’s leading brand quality, affordable, and Nadu, Kerala and Punjab. With this & corporate training services in to offer courses like CA, CS, CMA, CFA, instructor led courses across tier 2 acquisition, Veranda expanded offline trending courses related to ACCA, etc tier 3 towns. & Hybrid operations. technologies.

The company intends to deliver high quality, affordable, and experienced instructor led courses across tier 2 and tier 3 towns.

Revenue Contribution in FY23 50.5%

Revenue Contribution in FY23

47.5%

Acquired Majority Stake in J. K. Shah 76.0%

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– Collaboration with J. K. Shah India’s leading institute for CA test prep

Veranda acquired J. K. Shah Classes (JKSC)

Forayed into an imperative segment of high-demand financial courses such as Chartered Accountancy through acquisition of India’s premier CA test-preparation institute, J. K. Shah Classes.

Synergy of Veranda & J. K. Shah Classes

Veranda will provide its rich technological expertise meanwhile leveraging J. K. Shah’s strong brand recognition and legacy; additionally Veranda will aid JKSC to establish presence in the South, North, & East of India, along with strengthening its online and hybrid offerings.

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39 years of legacy

~75 Centres in India

Deal Status

Veranda has acquired 76% stake as on 31[st] Mar 2023.

1,870 CA Rankers Since 2001

Marquee Alumni

JKSC’s alumni includes marquee names like Mr. Kumar Mangalam Birla, India’s leading industrialist and Chairman of the Aditya Birla Group; Mr. Piyush Goyal, Hon’ble Minister of Commerce and a member of the Rajya Sabha; Mr. Nilesh Shah, MD of Kotak Mahindra AMC.

214 CS Rankers since 2016

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Industry Growth Drivers

Geographical Segmentation - Global

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Growth Rate CAGR (2021-27) Market Size (2027) Market Size (2021) Region
17.09% $277.39 BN $107.63 BN Asia Pacific Countries (APAC) 12.95% $109.27 BN $52.62 BN North America 15.13% $92.26 BN $39.62 BN Europe 16.17% $72.95 BN $29.68 BN Latin America 13.34% $53.52 BN $25.25 BN Middle East & Africa

Source: Arizton Advisory & Intelligence Report

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Indian Ed-tech Sector – Market Size

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90 30.00%
Edtech Market in India 2021–2027 ($ billion)
80
25.00%
70
60 20.00%
Growth Rate 50
15.00%
19.17% 40
CAGR 30 10.00%
(2021-2027) 20
5.00%
10
0 0.00%
2021 2022 2023 2024 2025 2026 2027
Revenue 27.41 30.48 35.23 41.98 51.25 63.25 78.5
Growth Rate 11.20% 15.56% 19.18% 22.07% 23.41% 24.12%
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90 30.00%
Edtech Market in India 2021–2027 ($ billion)
80
25.00%
70
60 20.00%
Growth Rate 50
15.00%
19.17% 40
CAGR 30 10.00%
(2021-2027) 20
5.00%
10
0 0.00%
2021 2022 2023 2024 2025 2026 2027
Revenue 27.41 30.48 35.23 41.98 51.25 63.25 78.5
Growth Rate 11.20% 15.56% 19.18% 22.07% 23.41% 24.12%
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25.00%
70
60 20.00%
Growth Rate 50
15.00%
19.17% 40
CAGR 30 10.00%
(2021-2027) 20
5.00%
10
0 0.00%
2021 2022 2023 2024 2025 2026 2027
Revenue 27.41 30.48 35.23 41.98 51.25 63.25 78.5
Growth Rate 11.20% 15.56% 19.18% 22.07% 23.41% 24.12%
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Source: Arizton Advisory & Intelligence Report

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Indian Sector – Boom for Upskilling & Reskilling Courses

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Upskilling and Reskilling – A budding requirement

A McKinsey global survey in February 2020 found that 9 in 10 executives and managers are either already facing skills gaps in their organizations or expect gaps to develop within the next 5 years

KEY SURVEY RESPONSES

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HR providing employees with Upskilling &
Reskilling Training
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Model of employees receiving Upskilling &
Reskilling Training
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Employees prefer to work with company
providing Upskilling & Reskilling Training
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20%
Upskilling 31%
Reskilling 2%
11%
Both 59%
69%
Never 8%
Online Offline Both
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26%
74%
Yes No
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Source: McKinsey global survey in February 2020

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Financial Performance

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Financial Highlights
Total Revenue (Rs. Cr) EBITDA (Rs. Cr) Revenue Break-up (H1FY24)
22.39
199.92 32%
170.75
68%
75.60
-33.67
-39.05
Online % Offline %
FY22 FY23 H1FY24 FY22 FY23 H1FY24
Enrolments ARPU
Brain4ce (Edureka) [#] Veranda Race
91,667 87,766 31,323 27,765 14,838
19,404
56,819
12,609 12,699
FY22 FY23 H1FY24 FY22 FY23 H1FY24 FY22 FY23 H1FY24
# 32
Brain4ce Edureka includes Veranda Higher Ed Business for FY23
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Let’s Connect Veranda Learning Solutions

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Ms. Saradha Govindarajan, CFO saradha.g@verandalearning.com

Ernst & Young, LLP Mr. Abhishek Bhatt abhishek.bhatt3@in.ey.com

Ms. Mahalakshmi Venkatachalam mahalakshmi.venkatachalam@in.ey.com

Veranda Learning Solutions Ltd, 34, Thirumalai Pillai road, T. Nagar, Chennai, Tamil Nadu – 600 017