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Tree House Education Q1FY14 net rises 53.36% to Rs. 12.30 crore

Total Income up 47.54% to Rs. 41.99 crore
·        EBITDA margin for Q1 FY2014 is 56.91%.
·        Net profit margin for Q1 FY2014 is 29.29%.

Mumbai, August 1, 2013: Tree House Education and Accessories Limited (‘Tree House”), India's largest self-operated pre-school chain, (CRISIL Research Industry Report”), has come up with a stellar performance by posting a 53.36 percent growth in its net profit for the first quarter ended June 30, 2013 amounting to Rs. 12.30 crore compared to Rs 8.02 crore posted in the same period of the last financial year. The total income rose by 47.54% to Rs. 41.99 crore during the first quarter ended June 30, 2013 compared to Rs 28.4 crore posted in the same period of the last financial year. The EBITDA for the first quarter of the current fiscal rose 42.97% to Rs. 23.90 crore compared to Rs 16.71 crore for the 1st quarter of FY2013. EBITDA margin for Q1 FY2014 is 56.91%. Net profit margin for Q1 FY2014 is 29.29%.

Commenting on the Q1 FY14 performance, Mr. Rajesh Bhatia, Promoter and Managing Director, Tree House Education and Accessories Limited, said “These results are another milestone in our journey. We believe that our offering in the pre-school space is three-fold and spans the entire sector. The Tree House brand focuses on company-operated pre-schools, the Brainworks brand will focus on franchising and the Global Champs brand will focus on a company-operated affordable model. This ensures a complete 360 degree product offering to the community at large. We have also begun roll out of ancillary services with the launch of birthday parties for kids and our tie up with Amar Chitra Katha”

“I thank my team, especially the teachers and center heads whose commitment and hard work has translated into this set of numbers. Despite operating in a tough business environment, we have been able to scale up admissions and revenues. This is also due to the fact that parents across India now increasingly appreciate our superior curriculum and overall preschool experience” said Mr Bhatia

“All of our product offerings are showing good growth across all key parameters, and we are confident of sustainable growth in our operations in the years to come. My team and I remain committed to creating India’s most respectable Education Company which will create value for all its stakeholders” Mr Bhatia added.

The Company has launched a unique initiative of opening Global Champs preschools aimed at providing pre-primary education at affordable price points. These preschools cater to parents who aspire for quality education for their children. This is the first academic year for these schools and has been well accepted in the target market.

The Company has successfully completed the acquisition of the Brainworks brand and its operations. By virtue of this addition, our self operated centers grew by 5 and franchise centers grew by 26. The Company has launched a unique initiative of opening Global Champs preschools aimed at providing pre-primary education at affordable price points. These preschools cater to parents who aspire for quality education for their children. This is the first academic year for these schools and has been well accepted in the target market.

The Company has successfully completed the acquisition of the Brainworks brand and its operations. By virtue of this addition, our self operated centers grew by 5 and franchise centers grew by 26. The Company will use this brand to aggressively expand its franchisee footprint.

 The Company had a net addition of 31 pre-schools in Q1 FY 2014 and the total number of centres as of June 30, 2013, was 410 across 50 cities. Out of this, the number of self-operated centres was 310 with the ratio of self-operated to total pre-schools standing at 75.60%.

The new geographies Tree House entered this quarter include Raipur, New Delhi, Varanasi, Udgir, Goa, Nandurbar and Ludhiana.

The Company provides school management services to 24 K-12 schools in 3 states. The total staff strength as of Q1 FY 2014 was 1,690, showing a net addition of 49 employees in the quarter. The total teacher strength was 1,603, represeitng a net addition of 41 teachers during this quarter. The year-on-year Q1 FY 2014 vs Q1 FY2013 revenue growth in same self-operated pre-school centres has been 30%.

About Tree House Education & Accessories Limited
Tree House Education & Accessories Limited (NSE code: TREE HOUSE; BSE code: 533540, MCX-SX; TREEHOUSE) runs quality preschools and also provides educational services to K-12 schools throughout the country.  Tree House has revolutionized the concept of pre-school pedagogy in India through the use of innovative teaching methods and child-focused personal care. 

For day to day updates on what’s happening at our centers, follow us on Facebook at www.facebook.com/Treehouse.playgroup  For more updates and information on the Company, please log on to

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