Educomp third quarter net up 66 percent

By IANS,

New Delhi : Education solutions provider Educomp Solutions, which last week was the subject of media scrutiny for alleged fudging of accounts, Tuesday reported a 65.8 percent increase in its net profit for the quarter ending Dec 31.


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The company’s net profit increased to Rs.315.5 million (Rs.31.55 crore) in the third quarter, as compared to Rs.190.16 million (Rs.19.01 crore) in the corresponding period a year ago, a company statement said.

The total income too surged 93.9 percent to Rs.1.47 billion (Rs.147 crore) in the quarter under review from Rs.757.8 million (Rs.75.7 crore).

The company’s consolidated net profit increased 61.4 percent Rs.318.3 million (Rs.31.8 crore) for the third quarter as compared to Rs.1,97.2 million (Rs.19.72 crore), the statement added.

The total revenue increased 116 percent to Rs.1.91 billion (Rs.191 crore) from Rs.882.6 million (Rs.88.26 crore) for the corresponding period a year before.

Last week, a section of the media reported that Educomp’s accounts could have been fudged, resulting in a rapid growth in its turnover and hefty profits by the promoters in the company’s share trading.

Following this, Educomp said Jan 21 that it had filed a complaint with the Delhi Police against the “malicious rumours” being spread about the company.

“There seems to be an attempt to draw a parallel between the company and the recent developments at Satyam (Computer Services), which have bred suspicion about corporate accounting standards in general among the investor community,” Educomp chief executive Shantanu Prakash had said.

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