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While Byju's face huge losses, its subsidiary Aaksh reports 82% rise in profit Rs 80 crore in FY22

ISN Team
New Update
aakash profit

Troubled edtech giant Byju's -owned Aakash Educational Services (AESL) has reported a significant 82% increase in profit, reaching Rs 79.5 crore in FY22. 

This is a notable rise from the Rs 43.6 crore profit in FY21. In contrast, BYJU’S, which is yet to release its FY22 financial report, is grappling with various challenges, including substantial losses.

Revenue growth and operational expansion

Aakash's revenue saw a 45% increase, reaching Rs 1,421.2 crore in FY22, up from Rs 982.7 crore in FY21. This growth is attributed to the rise in enrollments at coaching centres post-Covid-19 lockdowns. The institute, with over 4 lakh students across 320 centres, primarily earns from student enrollments and franchise partners.


Expenditure and investment in branding

In FY22, Aakash's expenditure rose to Rs 1,331.7 crore, a 37% increase from the previous fiscal year. A significant portion of this, about 54%, was allocated to employee benefits, with over 5,500 teachers on its payroll.

Additionally, the company invested Rs 134 crore in advertising, a 31% increase from FY21.

BYJU’S ownership and Aakash's IPO plans

BYJU’S acquired Aakash in April 2021 for around $1 billion, marking a significant event in the edtech space. Currently, Think & Learn, BYJU’S parent firm, holds a 40% stake in Aakash. Amidst BYJU’S financial woes, Aakash has been a consistent performer, with plans for an IPO by mid-2024.

The Contrast between Aakash's success and BYJU’S challenges

While Aakash thrives, BYJU’S faces numerous hurdles, including board member exits, layoffs, and scrutiny from the Enforcement Directorate for alleged FEMA violations.

The company is also reportedly considering selling some of its subsidiaries to manage its financial obligations. Despite these challenges, Aakash's success provides a glimmer of hope for BYJU’S.

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