BYJU'S FY22 numbers: Why is the beleaguered edtech company not releasing the complete financials?

A year-long delay notwithstanding, Byju’s has finally closed its audited financial accounts for FY22, signifying a crucial step in its efforts to stem the tide of criticism that has come its way and script a comeback. The embattled edtech major reported a 2.3x growth in revenues for FY22 for its core business, encompassing K12 learning programmes. While revenues surged to Rs 3,569 crore in FY22 from Rs 1,552 crore in FY21, operating loss narrowed to Rs 2,253 crore in FY22, from Rs 2,406 crore in FY21. Incidentally, Byju’s has not yet released the numbers for its subsidiaries. With over 30 of them, it is expected to submit a consolidated report in the coming weeks.

The Byju Raveendran-led firm was under immense pressure from investors and regulators for the delay. Its audited numbers for FY21 were also filed after a year-long delay, in September 2022, while the FY23 results have already missed the regulatory deadline. “The delay in releasing FY22’s audited financials is concerning, and the outstanding financials for FY23 amplify this concern,” says Anirudh Damani, Managing Partner of Artha Venture Fund. Further, this comes at a time when its CFO Ajay Goel has departed within just six months, with the firm naming Nitin Golani, currently President of Finance, as his replacement.

But releasing its financials confirms that the company’s books are fraud-free, while the growth of its core business might help it secure much-needed funding, required to pay off the debt it took to acquire other businesses.

“Byju’s filing its financials... [addresses] the growing concerns of investors and stakeholders,” says Sonam Chandwani, Managing Partner of KS Legal & Associates. “Byju’s must now focus on ensuring robust and sustainable management practices.” While Byju’s financial health will only become clear once it files its complete numbers, a clean and unqualified audit report from statutory auditor BDO India is a significant win for the company as it strives for a turnaround under newly appointed India CEO Arjun Mohan.

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