With a market of Rs. 453.02 Crore, CL Educate Limited is a small-cap company that comes into the Consumer Discretionary Goods and Services (CDGS) industry. During its existence of more than 25 years, CL Educate Limited has focused on several educational sectors. The organization has more than 200 exam preparation centers spread over 100 locations in India besides exam preparation facilities in UAE. Today, the firm announced its financial results and the Board of Directors declared bonus shares in the ratio of 1:1.
The company in a stock exchange filing said that “In continuation of our letter dated October 21, 2022, it is kindly informed that the meeting of the Board of Directors of the company held today i.e. November 02, 2022, inter alia: 1 ) approved increase in the authorized share capital of the company from Rs.27,28,00,000 consisting of 5,45,60,000 equity shares of Rs.5/- each to Rs.40,00,00,000 to Rs.8,00,00,000 consisting of equity shares. and recommended, ie 1 (one) equity share of Rs. 5/- (Rupees five only) will be issued for every 1 (one) existing equity share of Rs. 5/- (Rupees five only) of each company. with the shareholders, as of the record date, in compliance with applicable laws, subject to the approval of the shareholders.”
“The Board of Directors of the Company in its meeting held on 02nd November, 2022 has approved and recommended bonus issue of equity shares in the ratio of 1:1, i.e. (a) equity shares of Rs. 5/- (Rupees Five only) will be issued for every 1 (one) existing equity share of Rs. 5/- (Rupees five only) to the shareholders of each company, as on the record date, in compliance with applicable laws subject to the approval of the shareholders,” the company further added in the stock exchange filing.
According to CL Educate Ltd., its revenue grew 53% to Rs. 161.6 crore for the financial year ended September 30, 2022. 106.0 crore for the financial year ended September 30, 2021. Total comprehensive income (TCI) climbed 177% from Rs. 6.2 crore for the period ended 30 September 2021. 17.2 crores (including Rs 6.6 crores on account of one-time extraordinary profit) for the period ended 30 September 2022.
“The business is well on track to achieve the topline of pre-Covid levels. While the reopening of the centers has boosted the topline for the edtech segment, the return of physical events has improved the revenue of the martech segment. Management expects improvement in EBITDA margins over the next few quarters which is partially suppressed due to investments in people, product and technology,” the company said while announcing its results.
EBITDA for the firm grew 24% YoY to Rs. 18.6 crore with a margin of 11.5% as opposed to Rs 18.6 crore for the financial year ended September 30, 2022. 15.0 crore for the financial year ended September 30, 2021. The company recorded PAT (Total Comprehensive Income) of Rs. 17.2 crore for the quarter ended September 30, 2022, which included an exceptional proceeds from the sale of a property in Greater Noida, while Rs. 6.2 crore for the same period last year.
In the quarter ended September 30, 2022, revenue grew 28% QoQ to Rs. 90.8 crore from Rs. 70.8 crore in the quarter ended June 30, 2022. Rupee. After Q1FY23 EBITDA. 9.0 crore, the firm reported an EBITDA of Rs. 9.6 crore in Q2FY23. while the net profit was below 12.6 cr to 4.6 crore in Q1FY23.
Commenting on the results, Mr. Arjun Wadhwa, CFO, CL Educate said, “Our monthly run rates are back on track to return to pre-Covid levels in both EdTech and MarTech businesses. Additionally, we have recovered from the sale of unproductive land. Cash is issued. Assets that will be deployed to accelerate business growth. We continue our journey towards maximizing shareholder wealth through Bonus Issue which will enhance the liquidity of the stock and generate more retail investor participation “
CL Educate Ltd shares closed today: 157.90 each, up 5.34% from the previous close 149.90. In trading today the stock recorded a total volume of 197,338 shares compared to a 20-day average volume of 75,060 shares. On a YTD basis, the stock has gained 37.42 per cent so far in 2022.
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