Education services company Everonn Education posted a net loss of Rs 21.6 crore for the quarter ended December 31, 2014 compared to Rs 129.27 crore in same period previous fiscal, on the back of lower expenses.
The company saw a decrease in total income from Rs 15.63 crore in third quarter FY13 to Rs 11.22 crore for the third quarter of FY14.
Everonn Education, a satellite-enabled education provider, on the other hand, has been facing problems ever since former chairman Kishore was arrested in an alleged bribery and tax evasion case in August 2011, and later released on bail. Hopes rose when Dubai-based Varkey Group acquired 12 per cent stake in Everonn for Rs 138.23 crore through a preferential allotment in December 2011. Post this transaction, Varkey Group was treated as a co-promoter of the company.
This was followed by several changes in the management. In March 2012, the company said Kishore and his family members had ceased to be the promoters of the company as they were no longer in control. Soon after, in April 2013, A Srinivasan was appointed managing director of the company after Rakesh Sharma resigned from the post.
Everonn has been quite candid about its business performance and the way forward. "We need to admit that the untoward incidents have reflected on our numbers for the year, which lead to a dip in the revenue and business operations," the company said in its annual report last year.
"Our revenues are difficult to predict and can vary significantly from period to period, which could cause our share price to decline. We may not be able to sustain our previous profit margins or levels of profitability," said Everonn in its recent 2012-13 annual report.
The company had submitted proposals for restructuring of its debt with banks and financial institutions. In its results note, Everonn Education said that the proposals and pending with the banks and financial institutions.
