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Updated January 23rd, 2024 at 20:56 IST

BYJU’S operational loss widens to Rs 6,679 crore in FY22 driven by White Hat Jr and Osmo Losses

The company disclosed an operational loss of Rs 4,143 crore in the preceding fiscal year, FY 21, according to a regulatory filing.

Business Desk
BYJU'S FEMA violation
BYJU'S | Image:Byju Raveendran
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BYJU's operational loss widens: Leading edtech firm Think and Learn, operating under the brand BYJU’S, reported a significant widening of its operational loss to Rs 6,679 crore in the fiscal year 2022. This increase was primarily attributed to losses incurred by its subsidiaries, White Hat Jr and Osmo.

The company disclosed an operational loss (EBITDA) of Rs 4,143 crore in the preceding fiscal year, FY 2021, according to a regulatory filing. In contrast, its revenue witnessed remarkable growth, more than doubling to Rs 5,298.43 crore in FY22 from Rs 2,428.39 crore in FY21.

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BYJU’S highlighted that the underperforming assets, notably White Hat Jr (WHJ) and OSMO (Tangible Play), accounted for 45 per cent of the losses, approximately Rs 3,800 crore. Excluding these subsidiaries, BYJU’S recorded a three-fold growth year-on-year in its total income during FY22.

BYJU’S noted substantial growth in its subsidiaries Aakash and Great Learning post-acquisition, with Aakash's revenue increasing by 40 per cent to Rs 1,491 crore and Great Learning witnessing an 80 per cent rise to Rs 628 crore in FY22.

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Despite the remarkable revenue growth, the auditor raised concerns about the company's ability to continue as a going concern due to ongoing net losses, accumulated losses, and uncertainties related to litigation outcomes impacting the $1.2 billion Term Loan B facility (TLB Loan) availed by BYJU’S Alpha Inc.

In response, the management expressed confidence in the company's future viability, citing measures taken to improve its operating financial condition. These measures include securing necessary funding arrangements, exploring asset sales, and the unlikely requirement to repay the TLB loan in the foreseeable future, based on legal opinions.

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(With PTI inputs.)

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Published January 23rd, 2024 at 20:56 IST

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