Tree House plans
to launch pre-schools under the ‘Global Champs’ brand
Mumbai,
February 14, 2013:
Tree House Education and Accessories Limited (‘Tree House”), which runs quality
pre-schools and also provides educational services to K-12 schools throughout
India, posted a 31.54% growth in its net profit for the quarter ended December
31, 2012 (Q3 FY13) amounting to Rs. 8.05 crore. The total revenue grew by
33.85% to Rs. 30.37 crore during Q3 FY13. The EBITDA for Q3 FY13 grew 42% to
Rs. 17.61 crore. The EBITDA margin for Q3 FY13 was 57.98% and the net profit
margin was 26.51%.
On
a YTD FY2013 basis, Tree House posted total revenue of Rs. 90.27 crore, up
y-o-y by 56.44% and a net profit of Rs. 26 crore, up y-o-y by 56.43%. The
EBITDA was Rs. 53.01 crore up y-o-y by 57.11%.
Tree
House had a net addition of 40 pre-schools in Q3 FY 2013 and the total number
of centres as of December 31, 2012, was 349 across 38 cities. Out of this, the
number of self-operated centres was 278 with the ratio of self-operated to
total pre-schools standing at 79.6%. It provides school management services to
23 K-12 schools in 3 states. The total staff strength as of Q3 FY 2013 was
1,529, showing a net addition of 79 in the quarter. The total teacher strength
was 1,453, representing a net addition of 74 teachers in the quarter. The
teaching staff increased by 5.3% in the quarter due to higher student intake
across centres.
The year-on-year
(Q3 FY 2013 vs Q3 FY2012) revenue growth in same self-operated pre-school
centres has been 31%. As announced in the previous quarters, preschools started
in the last 9 months are performing as per expectations. The Tree House brand
is now well accepted in the new geographies Tree House penetrated this calendar
year. Tree House will soon be a significant player in the preschool segment in
Ranchi, Patna, Nagpur and Guwahati. Admissions have started for the academic
year 2013-14 and good traction in enrollments witnessed in the previous quarter
continues to be seen in this quarter too.
Commenting
on the Q3 FY13 performance, Mr. Rajesh Bhatia, Promoter and Managing Director, Tree House Education and
Accessories Limited, said “Tree House has achieved 56.44% growth in net
profit for the nine months ended December 31, 2012. This is in line with our
guidance provided at the beginning of the year. With the general pickup in the
overall economy, we are seeing good uptick in admissions for the next academic
year 2013-14. The K-12 division is also performing in line with our internal
projections and all the schools managed by us have shown good traction in new
enrollments. The Tree House brand is getting more entrenched in the cities, we
operate in and as a result we are seeing parents securing admissions earlier
than before, which increases visibility in the business. We remain committed to
our mission to build a truly unique Company, which will create value for our
shareholders for years to come.”
MT
Educare Limited’s pre-school division “Global Champs” comprising six
self-operated centres located at Mumbai and Pune have been merged into Tree
House in a seamless manner at the operational level as well as cultural
integration, human resource engagement and academic excellence. All necessary
approvals have been received and the transaction stands completed.
Tree
House plans to launch pre-schools under the brand Global Champs. These pre-schools
would be available at very affordable fees and will cater specifically to
children of the urban lower income group, who aspire for quality pre-school
education in safe environment for their children. Tree House plans to start 6
such pre-schools by June 2013. Under the Global Champs brand umbrella, Tree
House will be launching teacher training courses specifically tailored towards
creating teachers for the Global Champs pre-schools. These courses would be
targeted specifically at the urban lower income group with focus on regional
language proficiency as core basis of evaluation to the said program.
Tree
House Foundation is part of the Company’s initiative as it looks to give a part
of the profits back to society.
Treehouse
Education & Accessories Limited (NSE code: TREEHOUSE; BSE code: 533540)
runs quality preschools and also provides educational services to K-12 schools
throughout the country. Treehouse has revolutionized the concept of pre-school
pedagogy in India through the use of innovative teaching methods and
child-focussed personal care.
For
day to day updates on what’s happening at our centers, follow us on Facebook at
www.facebook.com/treehouse.playgroup
For
more updates and information on the Company, please log on to www.treehouseplaygroup.net
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