Edtech company Byju’s has finally released its audited financial statements for FY22 and its revenue from operations spiked 2.2X during the period. However, its losses widened to Rs 8,245 crore in FY22.
While we will come at the expense and loss components of the company in the second half of the story, for now, let’s focus on Byju’s earnings.
Byju’s revenue from operations spiked to Rs 5,015 crore in FY22 from Rs 2,280 in FY21, according to its consolidated financial statements accessed by Entrackr. Note: the firm is yet to report its FY23 results with the RoC.
The consolidated financial statement is a mix of its 12 main subsidiary companies including Aakash Institute and other entities such as WhiteHat Jr, Byju’s K3, Toppr, Epic, Great Learning, and others.
Coming to its revenue part, the sale of education products which include video lectures recorded in SD cards and tablets formed 57% of the total revenue which increased by 56.8% to Rs 2,901 crore in FY22.
The rest of the income came from the course fees collected from the students, streaming, and educational content services. The company also has other income (non-operating) of Rs 283 crore largely from interest and gain on the sale of current investments which tallied its total income to Rs 5,298 crore in FY22.
See TheKredible for the complete revenue breakup.
Moving over to the expense side, production costs formed 30% of the total burn. While the company did not disclose the bifurcation of this particular expenditure, it might include the cost of recording lectures, streaming, advertising cum marketing, and other related costs. This expenditure grew 84.1% to Rs 4,143 crore in FY22.
Its procurement of study material and employee benefits saw a surge of 54.3% and 82.8% respectively during FY22. Byju’s teacher, commissions, travel, legal, IT, and other overheads took the total burn up by 94.51% to Rs 13,668 crore in FY22 from Rs 7027 crore in FY21.
Expenses Breakdown
https://thekredible.com/company/byju-s/financials
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https://thekredible.com/company/byju-s/financials
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- Purchase of study material and course wear
- Employee benefit
- Legal professional
- Travelling conveyance
- Teacher's fees
- IT expenses
- Commission
- Production cost
- Finance cost
- Depreciation
- Others
Head to TheKredible for a detailed expense breakup.
The twofold jump in the total cost resulted in an 80.65% increase in its losses to Rs 8245 crore in FY22 as compared to Rs 4564 crore in FY21. The firm’s ROCE and EBITDA margin stood at 23.7% and -126.1% respectively. On a unit level, Byju’s spent Rs 2.73 to earn a rupee in FY22.
FY21-FY22
| FY21 | FY22 |
| EBITDA Margin | -171% | -126.1% |
| Expense/₹ of Op Revenue | ₹3.08 | ₹2.73 |
| ROCE | -56% | -23.7% |
Byju’s had total current assets of Rs 13,780 crore which includes cash and bank balances of Rs 5,067 crore until March 2022.
“While we are happy that our total income has grown 2.2X, we are also aware of our underperforming businesses like Whitehat Jr and OSMO which contribute to 45% of the losses,” Nitin Golani, CFO, Byju’s, said in a statement.
Importantly, with respect to its continuing losses over the years and the $1.2 billion term loan facility, the auditor of the company indicated material uncertainty which may cast significant doubt on the group’s ability to continue as a going concern.
Recently, Byju’s faced a major haircut of 95% in its valuation to $1 billion by its early backer Blackrock. As per media reports, the Byju Raveendran-led company is looking to raise $100-$200 million at a valuation of less than $2 billion. If it goes through, it will become the rarest company to face such a valuation drop from its peak $22 billion.
