Byju's unveiled its "3.0” plan while revealing FY22 revenue below targets and soaring losses exceeding Rs 8,000 crore
At the AGM (Annual General Meeting) of Think and Learn, the parent company of Byju’s, all resolutions, including the approval of accounts for the financial year 2022, were successfully passed. The Byju’s AGM took place on Wednesday night and had an attendance of nearly 60 shareholders.
Investors in ed-tech giant Byju’s faced a three-hour rollercoaster ride at their December 20 AGM. The meeting, marked by interruptions and protests, saw shareholders grill management and auditor MSKA and Associates over the company’s audited FY22 financials.
Despite concerns regarding auditor issues, the financials were ultimately approved. However, shareholder scepticism soared when MSKA and Associates were initially absent from the meeting, adding fuel to the fire.
The company stated that, “All the resolutions were passed, including the accounts for the financial year 2022.”
The three-hour-long meeting faced its share of challenges and was not without disruptions. The resolutions discussed at the Byju’s AGM revolved around the company’s statutory auditor, MSKA and Associates, who were notably absent during the initial part of the meeting.
The Annual General Meeting (AGM) focused on two key agenda items: the review and approval of standalone and consolidated financials for the financial year 2022 and the endorsement of MSKA and Associates (BDO in India) as the appointed auditors. Byju’s revealed the re-appointment of BDO as the statutory auditors during the meeting.
In response to the absence of MSKA and Associates, shareholders expressed their dissatisfaction by protesting and refraining from approving the resolution. Byju Raveendran, the Founder and CEO of the company, offered reassurance, pledging to arrange another meeting specifically for a detailed discussion with the auditor.
Subsequently, a senior auditor from the firm eventually joined the meeting to address the financials for FY22. However, as shareholders continued to leave the online meeting and requested a reconvening of the AGM, concerns persisted.
FY22 Financials
The parent company, Think & Learn Pvt., disclosed a consolidated revenue from operations of Rs 5,015 crore for the fiscal year 2022, as per information provided to NDTV Profit by sources familiar with the matter. Although the revenue increased from Rs 2,280.2 crore in FY21, it fell short of the company’s own projection of Rs 10,000 crore.
The company’s losses widened from Rs 4,564 crore to Rs 8,245 crore. These figures indicate that the series of acquisitions made during FY21, a period marked by lockdowns and increased online learning, did not yield the expected results. This period also marked the beginning of challenges for the company, leading to conflicts with lenders and a delay in reporting earnings. The company has not officially commented on its consolidated numbers.
BYJU’s 3.0
Arjun Mohan, CEO of Byju’s, introduced the Byju’s 3.0 plan amidst investors and shareholders, which concentrated on the hybrid mode of learning to provide both online as well as offline educational services.
Mohan outlined the company’s strategy to boost productivity by integrating the latest technological advancements. The focus is on more effectively capitalizing on current assets and diversifying offerings across different price points and product ranges to cater to a broader range of potential Byju’s customers. Additionally, there is a significant emphasis on Byju’s Tuition Centres (BTCs) as a means to generate profitable cash flow and advance hybrid education initiatives.
Also read: Byju’s founder takes loan, keeping his house as collateral security to pay his 15000 employees
