New Delhi: Educational IT services provider Educomp Solutions Ltd said profit in October-December surged 56%, as its school learning solutions segment showed strong growth.
Reacting to the earnings, shares of the company, which the market values at about Rs3,950 crore, rose as much as 5.5% to Rs436.15. At 3:00 pm, the stock was up 4.82% at Rs433.
Educomp said its profit during the period was Rs100 crore, compared with a profit of Rs641 million in the year ago quarter. Revenue surged 38% to Rs358 crore.
On standalone basis, profit was Rs112 crore.
The company had sales of about Rs279 crore in school learning solutions, compared with Rs199 crore last year, as India’s increased focus on education aided the firm’s primary segment.
Blended growth rate in Indian education services firms is seen at 21% over the next 12 months, according to ThomsonReuters StarMine smart estimates, outstripping the 18% growth forecast in the information technology sector.
Educomp had said earlier this year that it plans to form a joint venture with US firm Zeebo Inc to launch a wireless educational platform for children in India. Zeebo is funded by Qualcomm Inc, Educomp and Lakshya Digital.
Educomp also has a 50% vocational training joint venture with Pearson, the British educational technology provider and owner of Penguin Books and the Financial Times daily.