Education services company Educomp Solutions has posted a third quarter net loss of Rs 87.6 crore for the period ended December 31, 2013 compared to net profit of Rs 8.01 crore for the same period last year.
The company's net sales fell to Rs 155.33 crore for Q3 FY14, down by 37% compared to Rs 271.12 crore for three-months ended December 31, 2012. Sequentially too, there was a 3.7% drop in net sales for December quarter compared to the September quarter.
Shantanu Prakash, CMD, Educomp Solutions had earlier told Business Standard that they are hopeful that FY15 will ease a lot of the current pain in the system and with a new government in place in mid 2014, the economy as a whole and education sector in particular will get a fillip
Last month, Educomp Solutions had said that Educomp Infrastructure & School Management Ltd. (EISML)'s request for restructuring its debts of Rs 715.63 crores with CDR Lenders has been approved by CDR- Empowered Group.
The restructuring package agreed with CDR Lenders (led by Axis Bank) envisages extended repayment tenure of 153.5 months including moratorium period of 33.5 months from Cut off Date and funding of interest for a period of 2 years from Cut off Date. The package also provides for additional loans of Rs 73 crore to fund critical capital expenditure.
In 2013, Educomp made two exits in what it calls non-core segments. Earlier this year, the company sold its entire 50% stake in the vocational training firm IndiaCan, to its joint venture partner Pearson. In March last year, they completed the sale of 50% stake in Eurokids International Limited to a group of investors led by GPE India. The company had said it made a profit of Rs 70 crore on this investment, and that the proceeds would be used for its core businesses.