Tree House Education surges 10% post co clarification

NEW DELHI: Shares of Tree House Education finally broke out of its nine-day losing streak to surge 10 per cent after cracking 5 per cent to hit a new 52-week low in Tuesday's trade.

The company provided an update in its report for the quarter ending September 30. In a filing to the bourses, the company reiterated the health of its business and assured of the progression of pre-school expansion strategy as per schedule. Stockholders of the company had become anxious over the financial viability of its pre-school expansion plan after it opened a record number of branches in the second quarter of this financial year.

Reacting to the clarification, the scrip surged 10 per cent to hit a high of Rs 167.30 on the BSE.

It said, "We have successfully received all amounts related to pre-school and franchise operation that were outstanding as of September 30, 2015. The current outstanding amount stands at Rs 27 crore against Rs 63 crore on September 30, 2015."