Byju’s, one of the leading players in the edtech industry, is finally gearing up to release its financial results for the fiscal year ending March 2022, a deadline that has been significantly delayed. While most companies announced their FY23 results earlier this year, Byju’s has been notably slow in finalizing its accounts, much to the impatience of shareholders. This delay comes in the midst of financial difficulties and a mounting debt burden for the edtech giant.
The Chief Financial Officer (CFO) of Byju’s, Ajay Goel, had previously committed to providing the audited financial figures for the fiscal year through March 2022 by the end of September. However, the company missed this commitment, leading to growing concerns among investors and regulators.
One key issue that has contributed to the delay in the financial results is a long-awaited audit of all group units. It is now expected that the parent company, Think & Learn Pvt Ltd., will incorporate the audited financials into its consolidated results this week, according to a statement by Byju’s.
The prolonged delay in announcing financial results has not only frustrated stakeholders but also attracted scrutiny from regulators. It even led to the resignation of Deloitte Haskins & Sells as Byju’s auditor earlier this year. Moreover, the company has not yet announced a date for releasing the financial results for the fiscal year ending March 2023.
Additionally, Byju’s has been entangled in a conflict with its creditors over a missed interest payment on a term loan that the company had secured. This loan was intended to support Byju’s global acquisition efforts during the pandemic, contributing to its current debt burden.
Despite these financial challenges, Byju’s has set a target to become profitable by March 2024. This ambitious goal is based on the consolidation and restructuring of the organization, as well as resolving the $1.2 billion loan issue. Part of the cost-cutting strategy involves reducing the workforce by approximately 3,000 to 3,500 employees this month, eliminating role duplications across the organization.
As part of its restructuring efforts, Think and Learn Private Ltd (TLPL), the parent company of Byju’s, is streamlining its current operations into four core areas: K-12, test prep, online, and hybrid. The objective of this business restructuring is to align resources with cash flows, ultimately achieving a break-even point by the fourth quarter of the current fiscal year.
Byju’s has faced financial challenges, reporting a loss of ₹4,588 crore for the fiscal year ending March 31, 2021, a significant increase compared to the previous fiscal year.
