FIITJEE, a prominent offline IIT-JEE test preparation platform with a legacy of three decades, has navigated a path of consistent growth in the competitive education sector. However, the fiscal year ending March 2023 brought both growth and challenges for the Delhi-based institute. Despite experiencing a commendable 21% increase in scale, FIITJEE reported a significant loss of Rs 69 crore, a stark contrast to the Rs 37 lakh profit in FY22.

Revenue Surge

FIITJEE’s revenue from operations surged by 21% from Rs 448 crore in FY22 to Rs 542 crore in FY23, according to consolidated financial statements sourced from the Registrar of Companies. With a widespread presence, boasting over 100 study centers across India and collaborations with various schools, FIITJEE offers a range of programs for competitive exams, including classroom, non-classroom, and integrated school programs.

A substantial portion of FIITJEE’s operating revenue, approximately 45%, was attributed to tuition, examination, and infrastructure fees. This segment witnessed an 18.4% growth, reaching Rs 245 crore in FY23 from Rs 207 crore in FY22.

Expense Landscape

On the expenditure front, employee benefits constituted 55% of the total spending, totaling Rs 347 crore in FY23, reflecting a notable increase from Rs 253 crore in FY22. This encompassed salaries, including those of directors such as Dinesh Kumar Goel, Monila Goel, Partha Halder, and others, amounting to Rs 21.4 crore in FY23.

Advertising expenses witnessed a substantial spike, escalating by 45% to Rs 103 crore in FY23. The overall expenditure, inclusive of study materials procurement, rent, legal professional fees, safety costs, and other overheads, rose by 37.7% to Rs 631 crore in FY23 from Rs 458 crore in FY22.

Financial Strain and Profitability Metrics

The pronounced surge in advertising and employee benefit expenses took a toll on FIITJEE’s financial health, leading to a loss of Rs 69 crore in FY23, a sharp contrast to the profits of Rs 37 lakhs in FY22. The Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins showed signs of strain, standing at 70% and -6% respectively. On a unit level, FIITJEE spent Rs 1.16 to earn a rupee in FY23.

FIITJEE’s fiscal journey in FY23 showcases a blend of growth and financial challenges. While the institute witnessed a commendable surge in revenue, the substantial rise in expenses, particularly in advertising and employee benefits, resulted in a significant loss. As FIITJEE recalibrates its financial strategies, the competitive education sector continues to evolve, presenting both opportunities and hurdles for established players.

By Admin

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