EdServ registers five fold jump in net profit

Chennai based education and placement company EdServ, has registered a five fold increase in Q4 net profit at Rs 6.19 crore, from Rs 1.61 crore in the fourth quarter last year. Its revenues too jumped six fold to Rs 20.79 crore from Rs 2.75 crore last year.

In the light of these positive earnings, the board has recommended a dividend of 30 per cent, which acounts to Rs 3 per share. "We have ended the year with an impressive run rate of 30,000 students per month across the country, who have registered to learning and placement business streams," said S Giridharan, Chairman and CEO, EdServ.

The company also said that it is bullish on the outlook for the next 12 months. The company hopes to achieve annual  revenue of Rs 150 crore by the end of financial year 2010-11. The company's annual revenues at the end of March 2010, is at Rs 52.12 crore.

EdServ plans to roll out their school initiative and is planning to invest in 200 Vidyadhana schools. The company hopes that government training and online retail business, coupled with schools expansion, will be the key growth drivers in the current financial year.

The company also looking to has fund raising this year. "We expect our Rs 130 crore fund raising plan through the QIP route to be completed this quarter. With this second round of funding after the IPO last year, we will be able to achieve the planned scalability and further improvements in our performance, going forward," said Giridharan.