core sector communique

Financial Highlights of Usha Martin Education & Solutions

for the Third Quarter Ended 31^st December 2009:

 

Kolkata, January 18, 2010: Usha Martin Education & Solutions Limited, (NSE: UMESL; BSE: UMESL), today at its Board Meeting considered its Unaudited Financial Results for the quarter and nine months period ended 31^st December 2009.

 

UMESL is providing full time BBA, MBA, BCA, MCA and other courses in association with Punjab Technical University in three centers in Kolkata, Ranchi and Patna under its brand UMA (Usha Martin Academy).

 

The company has reported sharp improvements in revenue & profitability for the three months and nine months ended in Dec’09 as compared to corresponding period of last year.

 

The highlights are as follow :

• The company has reported revenue of Rs 109.05 Lakhs & Rs 445.16 lakhs for the three months and nine months ended in Dec,2009. This is as compared to Rs 28.21 lakhs and Rs 127.61 Lakhs in the corresponding periods of last financial year.

 

• The company has reported a net profit of Rs  12.97 Lakhs & Rs 46.31 lakhs for the three months and nine months ended in Dec,2009. This is as compared to a loss of Rs 3.20 lakhs and Rs 13.25 Lakhs in the corresponding periods of last financial year.

 

The current line of business of the Company is seasonal in nature and is synchronized to education admission cycles which are on a high during second and fourth quarter making first and thirds quarter low performance period. The revenue recognition policy adopted by the company is in line with admission cycles and hence the results cannot be annualized from the performance of any single quarter.

 

The experienced and highly qualified faculty team has made the difference and within a short span of time Usha Martin Academy (UMA) has attained a reputation for providing good quality education. This has helped UMA to register more students in its courses. The Company has plans to launch new centers of UMA in Eastern India. Underlining the need to cater to increase in demand, during the last quarter the Company shifted its Kolkata Learning Centre to new and modern infrastructure. Ranchi Learning Centre expansion project, with a capital outlay of Rs. 125 Lakhs is underway and should be operational in second half of this calendar year. The entire amount of capital expenditure will be funded from internal accruals.

 

The company continues to be debt-free.

 

As previously announced, the Company is launching end-to-end school management services in association with Pearson Education India.