Slide 1: Investor Presentation
May 2013 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by MT Educare Limited (the “Company”) solely for use the purpose of Investor meetings. This presentation (including any information contained herein and any information, whether or not in writing, supplied in connection herewith) is strictly confidentia
Slide 3: Index
Index Executive Summary Key Company Milestones Industry in Growth Phase Capturing the Entire Value Chain Location Count Key Differentiators Growth Strategy Experienced Management Team Financial Overview and Operating Leverage Shareholding Pattern 3
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary Mahesh Tutorials – now a 25 year old brand; Coaching services being provided by Mr. Mahesh Shetty since 1988 under the brand name ‘MAHESH TUTORIALS’ Operates under three business verticals – School, Science and Commerce; Diversified product offerings catering to students right
Slide 6: Company Milestones
Company Milestones
Slide 7: Milestones
Milestones PE Investment of USD 8mn by Helix Investments Company for expansion in Listing in April 2012; Introduction of Mumbai Introduction of Acquisition of 51% stake Science Coaching Technology Aided in Lakshya Forum for for XI and XII Teaching (TAT) Competitions Pvt. Ltd. in Nov. 2012 1988 2001
Slide 8: Industry in a growth phase
Industry in a growth phase
Slide 9: Large Addressable Market
Large Addressable Market The Indian coaching industry is expected to grow from Rs. 40,187 crore INDIAN EDUCATION SYSTEM in 2010-11 to Rs. 75,629 crore in 2014-15. Market Size - Classroom based coaching industry 17% CAGR Formal Vocational Informal Rs. Cr Education Education Education 13% CAGR 75,629
Slide 10: Capturing the Entire Value Chain
Capturing the Entire Value Chain
Slide 11: Business Overview – Capturing the entire Value Chain
Business Overview – Capturing the entire Value Chain CA Final Basic Graduation (B.Com, BMS) & CA IPCC, MBA Entrance (CAT & CMAT) Entrance Exams – CA CPT, CS Foundation JEE Mains, JEE Advanced (IIT) and NEET Std. XI and XII (Science and Commerce) Std. V to VIII, IX & X (All Subjects – SSC, ICSE & CBS
Slide 12: Business Overview
Business Overview A coaching services provider for students… In the Secondary and Higher Secondary School Pursuing graduate degrees Preparing for various competitive examinations Undertaking CA examinations. School Section Science Section Commerce Section Others IXth and Xth standard XIt
Slide 13: MT Educare — a Pan India Player
MT Educare — a Pan India Player
Slide 14: Geographical Presence
Geographical Presence Growing No. of Locations v 3 126 1 31 1 2007 2013 Delhi 4 No. of Locations over the years 12 94 FY No. of Locations FY 13 126* FY 12 114 FY 11 103 8 * Includes 4 Lakshya locations added w.e.f. April 1, 2013. As of March 31, 2013 the location count is 122 3 14
Slide 15: Key Differentiators
Key Differentiators
Slide 16: Key Differentiators
Key Differentiators… Corporatized Well Recognized Large Pool of Structure and Result Oriented Organized and Brand & Quality Faculty Experienced Quality Methods Diversified Player Experience Members Management Team of Coaching 1,556 scored ≥ 90% 94 locations in 1,100+ faculty Increased visibi
Slide 17: Teaching Methodology
…Teaching Methodology Value Added Services Unique Study Material Career Counselling: Prepared by faculty heads from reference material Through seminars and exhibitions Theory and concept of various subjects are addressed in an efficient and simple manner Symphony: Close Monitoring and Intera
Slide 18: Growth Strategy
Growth Strategy
Slide 19: Three-pronged Growth Strategy
Three-pronged Growth Strategy Focus on National Level Exams Pan-India strategy with focus on nationwide common entrance and professional examinations such as CA, IIT JEE Advanced, JEE Mains, CAT, CMAT etc. Geographical & Vertical Risk Asset light college tie-ups Management Expansion outside Mumbai r
Slide 20: Growth Strategy – School Division
Growth Strategy – School Division Overall market trend moving towards IX-X Combo, IX-X Combo admissions up from ~2,000 in FY 09 to ~6,000 in FY 13 INK Model already launched for Std. V-VIII for Stateboard, ICSE and CBSE in 13-14; Expecting this market to grow rapidly About INK Model: • Two-way c
Slide 21: Growth Strategy – Science Division
Growth Strategy – Science Division Road to IIT: Launch of coaching for JEE Advanced (IIT Entrance • Under the erstwhile system, there was a single Exam) in Mumbai under the brand ‘Lakshya’ IIT entrance exam for admission into the IITs Acquired 51% stake in Lakshya Forum for • Under the new syste
Slide 22: Growth Strategy – Science Division (Karnataka)
Growth Strategy – Science Division (Karnataka) The Karnataka Pre-University (PU) College Tie-up Model is one of the most important growth areas under the Science vertical. Today, ‘Mahesh PU’ brand is a well recognised brand in the state of Karnataka. Revenue Streams Standard PU College Revenue Sha
Slide 23: Growth Strategy – Commerce
Growth Strategy – Commerce Focus on expanding MT Educare’s reach in Launch of University, Vocational and Affiliated the CA coaching market throughout India (UVA) programme with focus of creating employable graduates and bridging the gap Chennai developed as a “Centre of Excellence” between ski
Slide 24: Experienced Management Team
Experienced Management Team
Slide 25: Board of Directors
Board of Directors Mahesh Shetty Has over 27 years of experience and holds a bachelor’s degree in science and education from the Mumbai University. He was (Chairman and MD) awarded the ‘Pride of the Nation Award’ by the All India Achievers Association in the year 2008 A Non Independent, Non Exec
Slide 26: Key Management Personnel
Key Management Personnel Anish Thakkar A member of the Institute of Chartered Accountants of India. He joined MT Educare in 2003 (Business Head- Has over 16 years of experience. Commerce Section ) Chandresh Fooria Holds a bachelor’s degree in engineering (instrumentation) from the Swami Viveka
Slide 27: Key Management Personnel
Key Management Personnel Vipul Shah Holds a bachelor’s degree in computer engineering University of Mumbai and has completed masters in (Business Head- marketing management. Gujarat ) Also looks after marketing at MT Educare Ltd. Mahtab Khan Holds a bachelor’s degree in science and education a
Slide 28: Financial Overview
Financial Overview
Slide 29: Key Financials
Key Financials Revenue (INR Mn) EBITDA (INR Mn) 1,573 400 30% 1,800 1,600 1,306 300 18% 18% 19% 1,400 1,055 13% 15% 20% 1,200 832 293 1,000 732 200 800 231 190 10% 600 100 400 92 125 200 0 0% 0 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 EBITDA EBITDA Margins FY 09-13: 21% CAGR FY09-
Slide 30: Quarterly and Yearly Financials – Consolidated
QUARTERLY AND YEARLY FINANCIALS – CONSOLIDATED INR in Lakhs For the quarter For year ended For year ended Particulars ended 31st March 31st March 2013 31st March, 2012 2013 Fee Income 3,309.47 15,049.30 12,715.34 Other Operating Income 202.77 678.83 342.01 Total Revenue 3,512.64 15,728.14 13,057.35
Slide 31: Consolidated Balance Sheet (Abridged & Regrouped)
CONSOLIDATED BALANCE SHEET (ABRIDGED & REGROUPED) INR in Lakhs As at 31st March As at 31st March, Particulars 2013 2012 Equity Share Capital 3,954.79 3,517.29 Reserves & Surplus 6,159.60 2,194.55 A Total Shareholders’ Funds 10,114.39 5,711.84 B Minority Interest (16.31) 6.35 C Share Application Mone
Slide 32: Seasonality of Business
Seasonality of Business Strong seasonality in Revenues and Margins due to diverse product offerings across quarters Fees Key Contributors to Fee Income % 21%- IX, X (PY and CY batches), XII + Test Prep (PY Sci. and Q1 Apr - Jun 23% Comm. batches) 32%- IX, X (PY and CY batches), XI + Test Prep (CY Sc
Slide 33: Division Wise Revenue - Consolidated
Division Wise Revenue - Consolidated FY 12-13 FY 11-12 FY 12-13 FY 11-12 Commerce School Revenue (INR in lakhs) 7,044 6,004 Revenue (INR in lakhs) 3,264 2,639 No. of Students 33,224 31,774 No. of Students 22,088 20,236 Serviced* Serviced* FY 12-13 FY 11-12 FY 12-13 FY 11-12 Science Revenue (INR in l
Slide 34: Key Balance Sheet Trends
Key Balance Sheet Trends Operating at negative working capital - FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 (1,000) Utilization of IPO Proceeds: Out of INR 3,500 lakhs raised via the Initial Public Offer (IPO), as of (2,000) (1,683) March 31, 2013 INR 3,206.63 lakhs have been utilized towards the
Slide 35: Historical Financials
Historical Financials INR Mn FY09 FY10 FY11 FY12 FY 13 Total Operating 732 832 1055 1306 1573 Income Total Income 753 858 1076 1346 1619 EBITDA 92 125 190 231 293 EBITDA Margins 13% 15% 18% 18% 19% Profit Before Tax 37 70 128 192 254 PBT Margin 5% 8% 12% 15% 16% PAT 26 52 83 132 180 PAT Margins 4% 6
Slide 36: Shareholding Pattern
Shareholding Pattern
Slide 37: Shareholding Pattern as of March 31, 2013
Shareholding Pattern as of March 31, 2013 Category % Share-holding 11% Promoter & Promoter Group 42.9 15% Directors/KMP 10.8 7% Mutual Funds / FI /FII / Banks 14.7 43% Bodies Corporate 7.4 24% Promoter & Promoter Group Companies Large / Small Individual Investors 24.2 Directors/KMP Total 100.0 FII /
Slide 38: Thank You
Thank You
Slide 39: Appendix
Appendix
Slide 40: Our Brands
Our Brands MAHESH TUTORIALS M [SCHOOL SECTION Fg THE ACADEMIC PARENTS OF YOUR CHILD! Last ya Lhe M@HESH TUTORIALS MAHESH TUTORIALS Don’t just learn... UNDERSTAND! (OJ greet fT Fé) SIT Te eles Wer CPLC CAT / CMAT GRE ! GMAT