Tree House revenue up 28%, to open 150 pre-schools this FY

TREE

Pre-school chain Tree House Education & Accessories Ltd reported a 28.05% jump in revenue for the first quarter to Rs 69.03 cr, while profit after tax rose 12.2% to Rs 18.02 cr.

“In Q1FY16, we opened 35 new centers and, as a result, we are today spread across 97 cities with our total pre-school count at 647. This has enabled to increase our top line by 28.05%,” said Rajesh Bhatia, Managing Director of Tree House.

“We have initiated the year on a positive note with Tree House reporting a solid financial and operating results for the first quarter.”

Operational EBITDA rose 33% to Rs 44.19 cr.

The number of self-operated pre schools is 540 as on June 30, 2015.

The new towns added during the quarter are Solapur, Sangli, Akola, Bareilly, Aurangabad, Satara, Amravati, Hoogly and New Delhi.

It also provides school management services to 24 K-12 schools in 3 states in India.

Total staff strength as on June 30, 2015 was 2271, including 2155 teachers.

The Company has expanded its daycare foot print, now in 190 centers due to encouraging response from the parents and the Company believes that this service will contribute meaningfully in the future.

The Company also entered into tie ups with large employers in the IT, ITES, banking and consulting space to provide daycare services for their employees.

“In addition to the ongoing growth of pre-schools, we are steadily enhancing the number of day care centers that operate from common premises post school hours. We believe that there is significant untapped demand for daycare services and are confident that our offerings in this space, set to a high standard, will once again create new and successful trends in this segment,” it said.

“For FY16, our priorities will be on leveraging our strong on-the-ground systems and processes to accelerate the expansion of our network. In FY16, we look forward to entering new markets like Delhi-NCR along with several other attractive markets across the country,” it added.

“We target 150 new pre-schools this fiscal year. With that, we are confident that our acknowledged position as a leading player in the pre-school education space will enable us to capitalize on the immense unlocked potential this sector presents.”