The stock of Everonn Education has taken a beating over the past one year and especially over the past 6-7 months.

The education service provider suffered fall in revenues and profits this fiscal, after a rather robust FY11.

For the nine months of this fiscal, revenues fell 7.1 per cent over the same period in FY11 to Rs 270.3 crore. From Rs 41.4 crore profits in the same period last fiscal, the company slipped into losses of Rs 4.6 crore in FY12.

Everonn had a strong June quarter this year, but things changed from August 2011.

The company's key (erstwhile) promoter, Mr Kishore, was arrested by the CBI for allegedly trying to bribe an income tax official. He was subsequently granted bail. Then he resigned from the company.

But ever since this event happened, the company, in the subsequent two quarters witnessed double digit fall in revenues over the previous year and steep decline in profits as well.

Last week, Everonn announced that Mr Kishore and other family members are no longer promoters of the company, as they are no longer in control of it.

The company is a key player in the K-12 segment. It also has a significant presence in the ICT segment, where it equips Government schools with computers and basic systems.

As a company that rode well on the education opportunity till recently, it remains to be seen whether it will bounce back to grab a larger share of the pie.

Related Topics