New Delhi, February 5, 2025 – CL Educate Limited (NSE: CLEDUCATE) has released its unaudited financial results for the quarter and nine months ended December 31, 2024. The company reported mixed performance across its EdTech and MarTech segments, highlighting growth in platform monetization and publishing while navigating short-term pressures in MarTech.
Key Financial Highlights
(All figures in ₹ crore unless stated otherwise)| Metric | Q3 FY2024 | Q3 FY2025 | YoY Growth |
|---|---|---|---|
| Total Revenue | 255 | 269 | +5.5% |
| Operating EBITDA | 20.3 | 18.1 | -10.8% |
| Gross Cash | 319 | 238 | -25.4% |
| Borrowings | 81 | 86 | +6.2% |
Segment Performance
- EdTech:
- Test Preparation revenue declined 9%.
- Platform Monetization saw a 20% growth.
- Publishing revenue increased 8%, with 16% more books sold (from 4.8 lakh to 18 lakh units).
- MarTech:
- Revenue grew 19% in India and 26% internationally.
- Short-term margin pressures due to environmental factors, but long-term outlook remains positive.
Business Highlights
EdTech Division
- Test Preparation: MBA enrollments up 14% YoY, growing preference for two-year programs among Law & CUET aspirants.
- Platform Monetization: Growth in application fee savings, new partnerships with engineering and medical colleges.
- Publishing: Strong demand for RRB, GATE, CAT, and CLAT books, while UPSC and IELTS sales underperformed.
MarTech Division
- VOSMOS Expansion: Growth in APAC markets with key clients like Salesforce.
- Meta-Commerce Initiatives: Positive pilots with Sterling, Taj, and Oberoi.
- Revenue Growth: Up 20% YoY, but EBITDA impacted by increasing competition.
Strategic Developments
Acquisitions & Market Expansion
- NSEIT-DEX Acquisition: Expected ₹200 crore in revenue addition with a 17% margin.
- Global Expansion Focus: Targeting SAARC, Middle East, and Africa for future growth.
- New Business Segments: Entry into vocational certifications, entrance exams, and recruitment services.
UTSAV Launch (January 12, 2025)
- Luxury Wedding & Events Planning: Leveraging Kestone’s 30+ years of experience in event execution.
- Ticket Size: Catering to ₹2 crore+ events.
- Founding Members: Includes celebrity chef Sanjeev Kapoor, hospitality expert Sameer Puri, and CL Educate Ltd. as key stakeholders.
Management Commentary
Arjun Wadhwa, Chief Financial Officer, CL Educate:"While short-term challenges persist in MarTech, our investments in EdTech platform monetization and publishing have yielded strong results. The NSEIT-DEX acquisition positions us for significant growth in assessment services, and our entry into the luxury wedding segment with UTSAV expands our revenue streams."
Outlook & Investor Takeaways
- EdTech growth continues, driven by test preparation, platform monetization, and publishing.
- MarTech is stabilizing, with investments in technology and market expansion.
- Acquisition of NSEIT-DEX strengthens the company’s foothold in digital assessments.
- Global expansion strategy targeting SAARC, Middle East, and Africa.
- UTSAV's luxury events business diversifies revenue while leveraging existing event expertise.