Byju’s to Release Long-Awaited FY22 Financial Results Amid Cash Crunch
After a prolonged delay, Byju’s is set to report its financial results for the fiscal year ending in March 2022. This news comes as a relief to shareholders who have been eagerly awaiting this announcement. While most other firms disclosed their FY23 results in April, Byju’s unusual slowness in finalizing its accounts has tested the patience of its stakeholders.
In addition to the delay, Byju’s has faced a severe cash crunch and recently missed a payment on a $1.2 billion term loan. This financial strain has put pressure on the company, which was once considered one of the most valuable ed-tech firms.
The company’s CFO, Ajay Goel, had previously committed to providing audited figures for the year prior by the end of September. The delay in announcing financial results has led to regulatory scrutiny and the resignation of Deloitte Haskins & Sells as the company’s auditor earlier this year.
Byju’s is expected to incorporate the audited financials into its consolidated results this week, following a long-awaited audit of all group units. However, there is no set date for announcing the financial results for the year ending in March 2023.
The financial issues have also sparked a conflict between Byju’s and its creditors over a missed interest payment on a term loan, which the company had taken to support a global acquisition spree during the pandemic.
Despite the challenges, Byju’s has set a target to achieve profitability by March 2024. This goal is based on the consolidation and restructuring of the organization and resolving the $1.2 billion loan. As part of cost-cutting measures, Byju’s is in the process of reducing its workforce by approximately 3,000 to 3,500 employees this month by eliminating role duplications across the organization.
