Expect subsidiaries to be in black in FY12: Everonn

Chennai-based learning solutions provider Everonn Education reported a  consolidated net profit of Rs 68 crore in FY11 recording a year on year (YoY) growth of 49%. Its consolidated revenue stood at Rs 425 crore for FY11 as against Rs 294 crore for FY10, rise of 45% (YoY).

In an interview with CNBC-TV18, P Kishore, MD, Everonn Education spoke about the company's yearly numbers and the road ahead. The company lost about Rs 8 crore in its subsidiaries but, expects to see all of them back in the black in FY12. "Our focus is on the existing ViTELS business, where we deliver content to colleges and schools in India. This year we have closed at Rs 216 crore on the topline, we should be able to build that vertical effectively, he added. Below is the verbatim transcript of his interview with Mitali Mukherjee and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video. Q: You have finished with Rs 400 crore plus for the full year, what do you think Everonn can deliver in FY12 terms of revenue first? A: We have delivered Rs 425 crore with a growth of 45%, we should be able to keep the same pace going forward. Q: What will that translate into in terms of a bottomline performance for Everonn then? A: The consolidated bottomline of Everonn was at Rs 68 crore with an EPS of Rs 41.44. But interestingly, our standalone PAT has grown by 70%. We think this is the way ahead for us. We have lost about Rs 8 crore in our subsidiaries but, going forward we should see all of them back in the black. Also Read: NSDC JV will lead to order of nearly Rs 14,400cr: Everonn Q: On this base of Rs 425 crore in terms of revenue and the growth that you outlined for FY12, what percentage of it if at all will come in that Joint Venture agreement with the National Skill Development Corporation (NSDC) that you spoke to us about, any kind of growth you are expecting in the next fiscal? A; Yes, there will be substantial improvement in that partnership. Last year we did only Rs 7 crore. We should clearly look at growing at about Rs 100-150% definitely. But overall Everonn should see a growth of 50% is our take. Q: What would your operating profit margins look like in FY12? What percentage of individually do you expect to see from this particular JV? A: Our focus is definitely on our existing business which is ViTELS where we deliver content into colleges and schools of India. This year we have closed at Rs 216 crore on the topline, we should be able to build that vertical effectively. Currently our margins on a consolidated basis we are at about 42-43%.