CL Educate rounds off a good FY22

FY22 saw CL Educate once again moving ahead purposefully. Several positives emerged: Reported EBITDA had a healthy look, growth returned, surplus real estate was partly disposed, debt reduced and net cash increased, merger of subsidiaries got consummated.

The management is now firmly focused on pursuing growth objectives in both EdTech and MarTech.

Key Points:

  • Several positives emerged in FY22. Reported EBITDA had a healthy look, growth returned, surplus real estate was partly disposed of, debt reduced and net cash increased and merger of subsidiaries got consummated.
  • The two businesses of CL Educate – EdTech and MarTech – are both focused on improving growth momentum.
  • CUET has emerged as a big opportunity for EdTech business and will give a further fillip to the franchisee expansion plan. Expect continued strong growth and margin expansion going forward.
  • MarTech is set to return to growth in FY 23 after a COVID-hit year. Kestone’s digital platform and international business did well in FY22, despite COVID.
  • Net cash improved to Rs 47 crore as on 31 Mar’22. This should improve further in FY23. The sale of Noida campus in Apr ’22 at a gross value of Rs 48 crore will add to the net cash kitty;  besides organic cash flows from operations.

We believe the company is set to continue to create further value for shareholders. Buyback announced at Rs 170 is a further positive.

Wisdom IR’s detailed Q4 report is posted here

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