Tree House Education Q3FY14 net rises 50.31% to INR 12.10 cr

Total Income up 36.67% to INR 39.73 cr

Ø New cities launched in the quarter are : Jodhpur and Udaipur

Ø Plans to open new preschools in 10 new cities

Ø  Preschool Education Advisory Board headed by Dr. Prerna Mohite constituted

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 50.31%  y-o-y growth in its net profit for the quarter ended December 31, 2013 (Q3 FY14) amounting to INR 12.10 crore. The total revenue grew by 36.67% to INR 39.73 crore during Q3 FY14.  The EBITDA for Q3 FY14 is INR 24.53 cr compared to INR 16.31 cr for the 3^rd quarter of FY2013, representing 50.39% y-o-y growth. The operational EBITDA margin for Q3 FY14 was 61.74% and the net profit margin was 30.44%.

Tree House had a net addition of 18 pre-schools in Q3 FY 2014 and the total number of centres as of December 31, 2013, was 444 across 57 cities. Out of this, the number of self-operated centres was 340 with the ratio of self-operated to total pre-schools standing at 76.57%. It provides school management services to 24 K-12 schools in 3 states. The total staff strength as of Q3 FY 2014 was 1841. The total teacher strength was 1758.

Mr. Rajesh Bhatia, Promoter and Managing Director, Tree House said, “In a challenging consumer environment, we have been able to grow on various parameters on a y-o-y basis. We focused on cost control and improved operational efficiency for sustainable growth.

We believe that the next big opportunity for growth within the preschool segment is in the Tier II and III towns across India. With growing awareness and increased per capita incomes we are seeing demand for quality preschool education in the non-metros.  Hence, we plan to open new preschools in 10 new cities in the immediate future. Our Jodhpur and Udaipur launches are a step in this direction. Our endeavor is to have 500 center milestones in the current financial year.

I thank all our stakeholders who continue to believe in the Treehouse growth theme. We shall continue our efforts to create one of India’s leading consumer services brand, which will create sustainable value for all its stakeholders for a long time to come.”

Tree House Education & Accessories Limited

Tree House Education and Accessories Limited (NSE code: TREEHOUSE; BSE code: 533540, MCX-SX : TREEHOUSE ) 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-focused personal care.

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