Allen Career Institute Experiences Over 44% Decline in Profits, Reporting ₹135.9 Crore in FY24
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New Delhi, Dec 7 (NationPress) Allen Career Institute has experienced a significant decline of over 44% in profits, reporting ₹135.9 crore for the last financial year (FY24), down from ₹243.7 crore in FY23.
This substantial profit drop is attributed to increased spending and rising costs. The offline professional education provider’s total expenses surged by 63% to ₹3,252 crore in FY24, compared to ₹1,993 crore in FY23, according to its latest financial report from Entrackr.
Employee benefit expenses saw a notable rise of 68%, reaching ₹1,958 crore in FY24.
Additionally, the cost of materials rose by 74.2% to ₹123.5 crore, while marketing expenditures increased to ₹117.9 crore.
Despite these challenges, operational revenue saw an increase of over 42%, totaling ₹3,244.7 crore last fiscal, compared to ₹2,280.8 crore in FY23. Service income, amounting to ₹3,215 crore, constituted 99% of the overall revenue.
Allen Career Institute’s Return on Capital Employed (ROCE) decreased to 9.26% from 14.7% in FY23.
The firm’s total assets rose by 10.8% to ₹5,759 crore, while cash and bank balances improved by 19.8% to ₹1,958 crore, as per its financial data.
Recent reports indicate that Allen Career Institute is in advanced discussions to acquire edtech giant Unacademy for approximately $800 million. This acquisition proposal arises amid Unacademy’s challenges in maintaining its previous valuation of $3.4 billion from 2021.
Neither Allen nor Unacademy provided immediate comments regarding these reports.
For the financial year ending March 31, 2024, Unacademy reported a loss of ₹631 crore against revenue of ₹988.4 crore.
Founded in 1988, the Bodhi Tree-funded offline test preparation provider currently operates educational centers in 68 cities across the country and seven countries, boasting over 200 classroom campuses within these cities and test centers in more than 350 cities.
Since its inception, Allen has guided over 30 lakh students in their preparations for various professional courses.
