Tree House Revenue rise 20.52% in Q2 F.Y. 2015

                                                   Financial Highlights for H1 F.Y. 2015

• Revenue from Operations at INR 103.67 cr, up y-o-y by 26.18%
• Operational EBITDA at INR 62.96 cr, up y-o-y by 37.77%
• Profit after tax at INR 28.63 cr, up y-o-y by 20.46%

Financial Highlights for the Q2 F.Y. 2015

• Revenue from Operations at INR 49.76 cr, up y-o-y by 20.52%
• Operational EBITDA at INR 29.69 cr, up y-o-y by 29.48%
• Profit after tax at INR 12.59 cr, up y-o-y by 9.76%
• EBITDA Margin at 59.66% and PAT Margin at 25.14%

Non Financial Highlights for the Q2 F.Y. 2015

• Opened 33 preschool centers in the quarter, taking total to 538 in 75 Cities
• 8 New cities launched in the quarter are Dewas, Bhillai, Ujjain, Allahabad, Gwalior, Hazaribagh, Kota and Beawar
• Awarded MOST TRUSTED PRESCHOOL BRAND across India by TRA Research Private Limited.
• Signed MOU for sale of 1 school land and building at Atladara, Baroda                                                                                

Mumbai Nov 17: Tree House Education and Accessories Limited (‘Tree House”), India's largest self-operated pre-school chain, has posted 37.77% rise in operational EBITDA which stood at Rs 62.96 crore in 1^st Half of F.Y. 2015. Revenue from operations rose 26.18% to Rs 103.67 cr in 1^st Half of F.Y. 2015 while net profit rose by 20.46% to Rs 28.63 crore. The total income for the second quarter ended September 30, 2014 rose by 20.52% to Rs 49.76 crore compared to Rs 41.29 crore posted in the same period of the last financial year. The company has reported 9.76% percent growth in its net profit for the first quarter ended September 30, 2014 amounting to Rs 12.59 crore compared to Rs 11.47crore posted in the same period of the last financial year. EBITDA margin for Q2 FY2015 is 59.66% and Net profit margin for Q2 FY2015 is 25.14%.

The Company had a net addition of 33 pre-schools in Q2 FY 2015 and the total number of centres as of September 30, 2014, was 538 across 75 cities. Out of this, the number of self-operated centres was 435 with the ratio of self-operated to total pre-schools standing at 80.85%.

The Company is providing school management services to 24 K-12 schools in 3 states in India. Total staff strength as on September 30, 2014 is 2100 and total teacher strength as on September 30, 2014 is 2009.

Mr. Rajesh Bhatia, Promoter and Managing Director, Treehouse said, “I am pleased to report another quarter of steady growth in Q2 F.Y. 15. Our pre-school network saw a healthy growth trajectory as we added 33 centers in new and existing geographies. This quarter, we entered 8 new cities and are now present in 75 cities across India with a network of 538 pre-schools.

As announced earlier, we have successfully launched daycare services across the country. We aim to leverage our daycare centers on our extensive network of preschool centers. We believe that this will be a significant contributor to our revenue in the future.  Our belief is based on the goodwill of the Treehouse brand, the size of the opportunity and the response to our product offering from individual as well as corporate customers.

During this quarter, we began our journey to our stated objective of creating an asset-light company by signing an MOU for the sale of our school land and building located at Vadodara, Gujarat. This is the first monetization of our K-12 assets. Over time we expect to unlock all such physical asset investments while continuing to provide school management services to these institutions.

Passionately pursuing the substantial opportunities that lie before us, our team has delivered steady growth in weak economic conditions of the last few years. We remained committed to invest in the preschool business, generate value and above all stay true to our efforts to provide high quality education.

As the economy improves, we are poised to further accelerate our momentum of expansion. We aim to be one of the top 3 preschool and daycare brands in the world. As we complete this journey, we are creating an ecosystem which will deliver superior returns to all its stakeholders for years 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 daycare, 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.

For more updates and information on the Company, please log on to www.treehouseplaygroup.net