 "Tree House Education hits 19-month low")
Tree House Education & Accessories has dropped 6% at Rs 220, extending its previous day’s 3% decline on the NSE, in an otherwise firm market. The stock hit an intra-day low of Rs 219, its lowest level since April 2014.
The company had reported a marginal 1.2% year-on-year growth in net profit at Rs 12.74 crore for the quarter ended September 30, 2015 (Q2). Earnings before interest, tax, depreciation and amortization (EBITDA) margins declined 700 basis points to 52.7% from 59.7% in year ago quarter.
Margins were impacted due to opening of 73 new centres in Q2, the highest in the history of the company in a single quarter.
Tree House Education & Accessories said that it is experiencing a consumer whose spending is cautious due to the overall environment.
To enable volume expansion and keep margins intact we have given favorable payment terms, since we engage with thousands of families and their children, it added.
The company said it is committed towards monetizing its investments in physical assets of K-12 schools and moving towards an asset-light operating structure.
Meanwhile, the promoters held 29.97% stake in the company, of which nearly half or 43.23% stake are pledge with the lenders.
Thus far in 2015, the stock has fallen 51% from Rs 445 at the beginning of the year, as compared to 5% fall in the Nifty 50.
The company had reported a marginal 1.2% year-on-year growth in net profit at Rs 12.74 crore for the quarter ended September 30, 2015 (Q2). Earnings before interest, tax, depreciation and amortization (EBITDA) margins declined 700 basis points to 52.7% from 59.7% in year ago quarter.
Margins were impacted due to opening of 73 new centres in Q2, the highest in the history of the company in a single quarter.
Tree House Education & Accessories said that it is experiencing a consumer whose spending is cautious due to the overall environment.
To enable volume expansion and keep margins intact we have given favorable payment terms, since we engage with thousands of families and their children, it added.
The company said it is committed towards monetizing its investments in physical assets of K-12 schools and moving towards an asset-light operating structure.
Meanwhile, the promoters held 29.97% stake in the company, of which nearly half or 43.23% stake are pledge with the lenders.
Thus far in 2015, the stock has fallen 51% from Rs 445 at the beginning of the year, as compared to 5% fall in the Nifty 50.
