Lord Buddha Educational Academy Generates Operating Income Of Rs. 1.52 Billion
August 1, 2023 | Investopaper
In the fiscal year 2022, Lord Buddha Educational Academy Limited achieved a steady operating income of Rs. 1,526 million, slightly higher than the Rs. 1,519 million recorded in FY21. Moreover, the company’s profitability saw a significant improvement, with the PBILDT margin rising to 10.45% in FY22 from 2.65% in FY21.
This increase in profitability was mainly due to a rationalization of operational costs, which accounted for 80% of the total operating income in FY22, compared to 89% in FY21. Additionally, the academy received a grant income of Rs. 46 million during FY22, contributing to its profitability. These positive developments led to LBEA reporting net profits in FY22, a notable rebound after experiencing net losses consecutively in FY19, FY20, and FY21.
Lord Buddha Educational Academy Limited , a private company founded in 1996 by a group of doctors in Chitwan District, operates Nepalgunj Medical College and Nepalgunj Nursing Campus, both affiliated with Kathmandu University and Council for Technical Education and Vocational Training (CTEVT). Additionally, the institute is enlisted in the prestigious “World Directory of Medical School” by WHO. The college initiated its MBBS program in 1997, followed by the Nursing program in 2000.
The academy also has two teaching hospitals situated in Kohalpur and Nepalgunj, Banke district, Nepal. These teaching hospitals have a combined capacity of 700 operational beds, with the Kohalpur hospital accommodating 750 beds and the Nepalgunj hospital hosting 250 beds.
The company’s revenue generation primarily relies on its medical college, offering various courses. In FY22, the company earned approximately 54% of its total operating income from patient receipts and hospital operations, while around 23% came from the medical college. The remaining 23% was derived from hostel services, pharmacy operations, and other auxiliary services.
