Zee Learn succeeds in its Q1FY17 results

The earnings season has kicked off with the smallcaps posting their Q1 performances. Zee Learn, a smallcap education company posted its Q1FY17 results at an all-time high. The stock surged almost 20 per cent at Rs 35.70 during the pre-market session.

Company’s year-on-year standalone revenues increased by 17.5 per cent at Rs 42.06 crores as against Rs 35.79 crores. However, company witnessed a drop in the quarter on quarter revenues where March 2016 revenues were Rs 50.23 crores. Company’s EBITDA stands at Rs 12.96 crores with an increase from its yoy and qoq EBITDA at Rs 8.19 crores and Rs 11.41 crores respectively. Higher EBITDA as compared to the previous quarter was driven by lower direct costs that stand at Rs 30.82 crores as against Rs 40.17 crores.

Net profits of the company broke record highs at Rs 8.02 crores as against Rs 7.76 crores in the previous quarter with an increase of 3.4 per cent. The yoy increase in profits is 102.5 per cent. The company posted high net profits despite of payment of taxes for the first time at Rs 1.11 crores.

Zee Learn operates chain of K-12 schools and pre-schools where it consults entrepreneurs willing to set up schools under the brand Mount Litera Zee School. Moreover, it also operates Zee Institute of Media Arts (ZIMA), a film and television school and Zee Institute of Creative Art (ZICA), an animation academy.

The stock of Zee Learn traded up by 10.57 per cent at Rs 32.95 at 9.23 hours. The stock is currently trading above its 100 and 200 EMA support levels.