The Board of Directors at its meeting held today has approved and taken on record the audited consolidated financial results of Zee Learn Limited (ZLL) and its subsidiaries for the quarter ended June 30, 2020.

Commenting on the business performance, Mr. Vikash Kumar Kar, Whole Time Executive Director and CEO, Zee Learn Limited said, “The financial year started amidst the pandemic of COVID-19 and the lockdowns announced by the various governmental entities severely impacted the formal education sector. As the formal classroom-based learning was stopped in the month of March’20, the Company had operating challenges in this quarter which also adversely affected the overall earnings and enrollment cycles. However, the company adapted quickly to the challenges and managed the learning needs of its students effectively through its wide-ranging digital assets through hybrid blended learning models. The company embarked on various concerted efforts of business continuity planning with key focus on safety / wellbeing, strengthening virtual / digital learning ecosystem, supporting our partners, connecting with our consumers and cost optimization.”

Commenting upon the financial performance, Mr. Rakesh Agarwal, CFO, Zee Learn Limited said “Despite of the closure of the educational institutes due to lock down imposed by the Government, we are happy that the company has posted profits due to cost reduction measures undertaken by the company for the Q1 FY21 and optimum utilization of resources.”

Financial Highlights: Zee Learn Limited Consolidated

	Rs in Cr
	Quarter ended
	30 June 2020	31 March 2020	30 June 2019
Particulars	Unaudited	Audited	Unaudited
Revenue from operations	82.67	105.63	154.76
Other Income	9.97	9.75	11.52
Total Revenue	92.64	115.38	166.28
COGS / Operational Cost	17.42	33.48	43.87
Employee benefits expense	30.45	35.15	38.43
Selling and marketing expenses	1.67	4.41	6.67
Other expenses	11.44	14.99	11.03
Total expenses	60.98	88.04	100.00
EBITDA	21.69	17.59	54.75
EBITDA %	26%	17%	35%
Finance Cost	12.42	12.99	14.80
Depreciation & amortization expenses	13.79	19.28	14.95
Profit before tax and exceptional items	5.44	(4.93)	36.54
Profit before tax and exceptional items %	7%	-5%	24%
Less : Exceptional items	-	31.15	-
Profit before tax	5.44	(36.08)	36.54
Profit before tax %	7%	-34%	24%
Tax	2.08	6.14	9.91
Profit after tax	3.36	(42.22)	26.62
Profit after tax %	4%	-40%	17%

Financial Highlights: Zee Learn Limited Standalone

	Rs in Cr
	Quarter ended
	30 June 2020	31 March 2020	30 June 2019
Particulars	Unaudited	Audited	Unaudited
Revenue from operations	35.24	51.51	60.80
Other Income	6.87	6.44	5.20
Total Revenue	42.11	57.95	66.00
COGS / Operational Cost	8.54	11.86	12.86
Employee benefits expense	6.69	7.68	7.96
Selling and marketing expenses	1.61	5.44	4.24
Other expenses	5.48	3.86	4.18
Total expenses	22.32	28.84	29.23
EBITDA	12.92	22.66	31.57
EBITDA %	37%	44%	52%
Finance Cost	6.02	6.03	5.92
Depreciation & amortization expense	2.23	2.31	2.20
Profit before tax	11.54	20.77	28.65
Profit before tax %	33%	40%	47%
Tax	2.89	4.38	8.41
Profit after tax	8.65	16.38	20.24
Profit after tax %	25%	32%	33%

Key Business Indicators

	June 20 end	June 19 end
Pre K Schools	1,942	1,999
K-12 Schools	139	129

Key Financial Indicators (Standalone)

	Q1 FY 21	Q1 FY 20
Free Cash Flow (Rs. In Cr) (Includes WC changes & Regroupings)	10.38	11.74
EPS (Rs.)	0.27	0.62
EBIDTA %	37%	52%

	Q1 FY 21 end	Q1 FY20 end
Net Bank Borrowings (Rs. In Cr)	103.68	156.68
Debt Equity Ratio	0.38	0.40

Key Financial Indicators (Consolidated)

	Q1 FY 21	Q1 FY 20
Free Cash Flow (Rs. In Cr) (Includes WC changes & Regroupings)	29.45	32.42
EPS (Rs.)	0.13	0.76
EBIDTA %	26%	35%

	Q1 FY 21 end	Q1 FY 20 end
Net Bank Borrowings (Rs. In Cr)	299.19	400.33
Debt Equity Ratio (excluding non-controlling interest)	0.80	0.91

Recent Recognitions for Zee Learn:

• Mount Litera Zee School awarded National K12 School Chain of the year at the Education Innovation Awards 2020
• Zee Learn awarded as the “Most Desired Brand in Education” under the Diversified category, Feb 2020
• Kidzee won the National Early Child playschool chain of the year award at the 10th Annual Indian Education Award 2020, Feb 2020
• Zee Learn wins the award for Dream Companies to work for in Education Sector 2020 by World HRD Congress
• Zee Learn certified Great Place to Work for the Financial Year Apr 2019 – Mar 2020
• ZIMA featured in the Academic Insight’s “Maharashtra’s top 20 Educational Institute” issue, 2019
• Mount Litera Zee School won the Franchisor of the Year 2019 award by Franchise India
• Zee Learn recognized as Premier Franchise to Watch for in 2019 by Insights Success magazine, Oct 2019
• Zee Learn recognized for its outstanding contribution to quality education in India by Business Vision Magazine, Nov 2019
• Kidzee wins the award for National Early Child Playschool Chain of the year 2019 by Franchise India
• MLZS wins the award for National K12 School Chain of the Year 2019 by Franchise India.