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| Everonn to double points of presence |
| Ravi Menon / Chennai/ Bangalore Nov 10, 2009, 00:08 IST |
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Everonn Education Ltd (formerly Everonn Systems) plans to invest Rs 100-130 crore in 2009-10 to expand its points of presence in the country and grow its virtual classroom vertical, ViTELS (Virtual Technology-Enabled Learning Solutions).
“We will be doubling our points of presence in the country by March next year,” P Kishore, founder and managing director of the company, told Business Standard. For the quarter ended September 30 this year, Everonn had 7,651 points of presence across 26 states against 6,037 in the previous quarter.
“We will be considerably raising our ICT and ViTELS profile in schools and colleges in the country this fiscal. We will have points of presence in 6,500 government schools alone by March next year. Currently, we have a presence in 3,400 government schools,” Kishore said. “The funding for this expansion plan will come from our internal accruals.”
Everonn signed up 339 new schools and colleges under its ViTELS program during the quarter ended September 30, 2009. As of September, Everonn had 734 schools and 1,165 colleges across India enrolled in ViTELS. Overall, the company has so far implemented ICT projects in 5,708 schools in India, which contribute 33 per cent to its revenues.
The ViTELS business is expected to grow at a CAGR of 57 per cent over the next two years. Addition of new schools is expected to grow at a CAGR of 30 per cent and revenues at 33 per cent by the end of fiscal 2011.
The Chennai-based company has been developing ViTELS as a future growth and value driver, and is keen to grow this revenue stream. The ViTELS initiative has made it possible for Everonn to deliver quality education at affordable prices on a pan-India basis. Everonn has focussed on using technologies like a VSAT delivery platform for live interactive sessions, and pushing server-based educational content via mobile phones across a range of markets like schools, colleges and retail.
The company recently forayed into the business education sector with plans to open around 25 business schools in the next few years on an investment of around Rs 250 crore. “We expect to have up to five new business schools, including one in Dehradun, operational in the next 18 months at a cost of Rs 7 crore - Rs 9 crore per school,” Kishore said.
Everonn Education Ltd posted 81 per cent increase in net profit after tax at Rs 11.78 crore for the second quarter ended September 30. This was from Rs 6.51 crore in the corresponding quarter last year. Total revenues increased 70 per cent to Rs 73 crore from Rs 43 crore earlier.
The ViTELS business registered 66.7 per cent year-on-year growth in revenues to Rs 34.8 crore.
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