New Delhi, Dec 7 (IANS): Allen Career Institute has registered more than 44 per cent decline in profit at 135.9 crore in the last financial year (FY24), compared to Rs 243.7 crore in FY23.

The steep profit loss occurred due to higher spending and rising expenses. The offline professional education provider’s total expenses surged 63 per cent to Rs 3,252 crore in FY24, against Rs 1,993 crore in FY23, as per its latest financials reported by Entrackr.

Employee benefit costs rose 68 per cent to Rs 1,958 crore in FY24.

Among other expenses, the cost of materials increased by 74.2 per cent to Rs 123.5 crore and marketing expenses went up to Rs 117.9 crore.

Meanwhile, the operational revenue increased over 42 per cent to Rs 3,244.7 crore last fiscal, compared to Rs 2,280.8 crore in FY23. Service income (Rs 3,215 crore) accounted for 99 per cent of the revenue.

Allen Career Institute’s ROCE declined to 9.26 per cent from 14.7 per cent in FY23

Its total assets went up 10.8 per cent to Rs 5,759 crore and cash and bank balances improved by 19.8 per cent to Rs 1,958 crore, as per its financials.

Reports surfaced this week that Allen Career Institute is in advanced talks to acquire edtech major Unacademy for about $800 million. The proposed acquisition comes amid Unacademy’s struggles to maintain its earlier valuation of $3.4 billion from 2021.

Allen or Unacademy did not immediately comment on reports.

For the financial year ended March 31, 2024, Unacademy clocked a loss of Rs 631 crore on revenue of Rs 988.4 crore.

Established in 1988, the Bodhi Tree-funded offline test preparation provider is currently providing education through study centres in 68 cities in the country, along with seven countries. There are more than 200 classroom campuses in these 68 cities and test centres in more than 350 cities.

Since its inception, more than 30 lakh students have received guidance from Allen for the preparation of various professional courses.