Active Stocks
Thu Apr 18 2024 15:59:07
  1. Tata Steel share price
  2. 160.00 -0.03%
  1. Power Grid Corporation Of India share price
  2. 280.20 2.13%
  1. NTPC share price
  2. 351.40 -2.19%
  1. Infosys share price
  2. 1,420.55 0.41%
  1. Wipro share price
  2. 444.30 -0.96%
Business News/ Education / News/  India Ratings downgrades Educomp
BackBack

India Ratings downgrades Educomp

The company has been downgraded from ‘A’ to ‘BBB’ on account of the declining revenue and profit

Educomp is likely to report “significantly lower revenue in FY14 (2013-14) on account of both relatively lesser new business” and a new accounting treatment, India Ratings said. (Educomp is likely to report “significantly lower revenue in FY14 (2013-14) on account of both relatively lesser new business” and a new accounting treatment, India Ratings said.)Premium
Educomp is likely to report “significantly lower revenue in FY14 (2013-14) on account of both relatively lesser new business” and a new accounting treatment, India Ratings said.
(Educomp is likely to report “significantly lower revenue in FY14 (2013-14) on account of both relatively lesser new business” and a new accounting treatment, India Ratings said.)

New Delhi: India Ratings and Research Pvt. Ltd, an arm of Fitch Ratings, on Thursday said it has downgraded Educomp Solutions Ltd from ‘A’ to ‘BBB’ on account of the education company’s declining revenue and profit, and indicated a further downgrade was likely.

“Educomp has reduced the pace of its growth in the hitherto upfront capital intensive smart-class business (multimedia education to private schools) as reflected in lower additions in classrooms," India Ratings said in a note, adding that its outlook for the company is negative.

Educomp is likely to report “significantly lower revenue in FY14 (2013-14) on account of both relatively lesser new business" and a new accounting treatment, India Ratings said. “However, this will improve transparency in financial reporting and be more aligned with its actual cash flows," it said.

Educomp’s consolidated revenue declined 10.6% year-on-year to 874.5 crore in the first nine months of 2012-13, it said.

Educomp gained 4.3% to end Thursday at 66.95 while the Sensex rose 1.19% to 19,735.77 points.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Education News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 02 May 2013, 07:27 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App