Mt Educare Ltd · NSE:MTEDUCARE
Mt Educare — Q3 FY2017 Earnings Presentation
47 slides from Mt Educare's earnings presentation, February 2017
Slide 1: Investor Presentation February 2017
INVESTOR PRESENTATION FEBRUARY 2017 Transforming
Slide 2: Safe Harbor
2 SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by MT Educare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 3: Contents
CONTENTS 28 Years of next 25 years… MT Educare Serving Future Ready Millions For Billions Slides 03-14 Slides 15-36
Slide 4: 28 Years of Educating the Youth
… 28 YEARS OF EDUCATING THE YOUTH … 28 YEARS OF BUILDING THEIR FUTURE … 28 YEARS OF DEVELOPING THE TRUST … 28 YEARS OF BUILDING MT EDUCARE
Slide 5: Educating All the Way
EDUCATING ALL THE WAY… 1,53,646 1,300+ 45,000+ 40+ 1 mn+ Number of No. of Faculty Content Library IT Services/ Number of App Students - AV Lectures Product downloads on Serviced in Development & Google Play FY16 Support Team Store 13 178 293 12 States & 1 No. of Centers No. of Union Territory Locati
Slide 6: Transforming Strategically
TRANSFORMING STRATEGICALLY… 1988 – 2000 2001 – 2006 2007-2010 2011 - 2014 2015 onwards ➢ Mahesh Shetty, a ➢ Introduced ➢ 1st funding ➢ Acquired Chitale's ➢ Changing the young teacher, coaching for from PE-Helix Personalised landscape of started Mahesh Science & Investments Learning (MBA Education by
Slide 7: Evolving on Strengths
EVOLVING ON STRENGTHS… Organized and Diversified Player Well Recognized Brand & Experience Large Pool of Quality Faculty Members Digitized Learning (Robomate+) Unique Teaching Methodology through Flipped Classroom Corporatized Structure and Experienced Management Team
Slide 8: Building a Scalable and Sustainable Business Model
Building a Business Model that is SCALABLE and SUSTAINABLE Digital Division Classroom Division Scalable Sustainable Robomate+ Science School Extended Learning - Commerce Flipped Classroom Management Test Preparation
Slide 9: Changing the Way to Educate Anytime & Anywhere
Changing the way to Educate ANYTIME & ANYWHERE From SCHOOL to From From MUMBAI to PROFESSIONAL CLASSROOM to PAN INDIA Studies DIGITAL (24x7) From COACHING From SERVICE to to PRODUCT TECH BASED EDUCATION PROVIDER
Slide 10: Leveraging Our Brands & Tie-ups
LEVERAGING OUR BRANDS & TIE-UPS… Flagship brand ‘Mahesh Providing - IIT, Engineering India’s Leading tech based Tutorials’ Focuses on School, and Medical Entrance education platform Science and Commerce teaching institute MBA test preparatory Skill Development under CAT, CET, XAT, N-MAT, GRE Governm
Slide 11: Increasing Market Share
Enhancing Presence across Domains INCREASING MARKET SHARE School Jr College Professional IX & X XI & XII Entrance Exams MBA CA (Mumbai & North) All Subjects Science & Commerce o Franchisee tie-ups for o CA CPT Chitale’s Personalized video classroom in o State Board o MH-CET o State Board learning Pv
Slide 12: Sustaining the Growth Trajectory
SUSTAINING THE GROWTH TRAJECTORY Strong Brand Operational Established & Efficiency Market Position Quality Teaching 287 Revenue in Rs. Crs. 227 202 157 FY13 FY14 FY15 FY16 70k+ Students 80k+ Students 83k+ Students 153k+ Students ~1,100 Faculty ~1,100 Faculty ~1,200 Faculty ~1,300 Faculty 122 Locatio
Slide 13: Expanding Geographical Footprints
EXPANDING GEOGRAPHICAL FOOTPRINTS… Division States Centers Maharashtra, Gujarat and School 135 Karnataka Maharashtra, Karnataka, Science Chandigarh, Haryana, Punjab and 70 Gujarat Maharashtra, Tamil Nadu, Kerala, Assam, Karnataka, Commerce / UVA 88 Odisha, Uttar Pradesh, Andhra Pradesh and Telangana
Slide 14: This Is the MT Educare of Today
THIS IS THE MT EDUCARE OF TODAY.. We are in HIGHER END OF VALUE CHAIN in education space We are a HOUSEHOLD NAME, educating India for 3 decades We are pioneers in bringing INNOVATION in the field of education We are an EDUTECH and NOT A SOFTWARE company We have a Core IP in CONTENT AND LEARNING PLAT
Slide 15: Next 25 Years
We are now equipped for next 25 years… an exponential growth for the
Slide 16: Scalable Business Model
SCALABLE BUSINESS MODEL… Asset Light Model Classroom Robomate+ Partnerships Coaching o State Level Integrated o Across MT Classrooms o Leased Property Tie-ups o Institutions o Tech-enabled o Partnership with o Retail Sales classrooms Government- Skill o Franchisee Development
Slide 17: State Level Tie-ups: Pre-University Model
STATE LEVEL TIE-UPS… Pre-University Model
Slide 18: Pre-University Business Model
Access to over 45,000 students in newer geographies through PRE-UNIVERSITY BUSINESS MODEL Pre-University Tie-up for Entrance Test-Prep Sri Gayatri Presence Mahesh PU Educational Society 60 Colleges • Tie-up with Aryan Foundation • Presence in • Presence in Telangana & Karnataka through Andhra Prades
Slide 19: UVA Government Skill Development
UVA… Government Skill Development
Slide 20: Aligned with India's Future Growth
ALIGNED WITH INDIA'S FUTURE GROWTH… Our Strengths Sustainable Growth Engine Experienced management team having strong background in academics Business Expansion • Leveraging on MT’s and administration existing infrastructure providing high Technology aided margin classrooms • Leveraging our Exponent
Slide 21: Taking a Giant Leap for the Future
TAKING A GIANT LEAP FOR THE FUTURE… Transforming The Future of Education
Slide 22: Digital Learning Opportunity
Promoting the DIGITAL LEARNING OPPORTUNITY… Money Transactions Socializing - Mobiles - Mobiles o Finance (Paytm, Freecharge etc.) o Whatsapp o Travel (Uber, Ola o Facebook etc.) o Calling/Messaging o eCommerce (Flipkart, Amazon) Digital Education Business India market size Rs. Bn Entertainment -Mobi
Slide 23: Robomate+ Product Evolution
ROBOMATE+ PRODUCT EVOLUTION Accomplished Initiated in FY 16-17 Platform and Marketing & content Classroom testing Product launch Promotion Service Cost development The next leg of Total Investment of Rs. 100+Crs till date in Tablet Devices, Platform and growth Content Funded largely through Internal
Slide 24: Making Learning Simple
Making ‘LEARNING SIMPLE’ Available across price points Means of Reach Products Features Advantages o 45,000 Module o Complete equivalent to 4,500 o Increase curriculum of 8th hrs. AV Lectures efficiency in to 12th Teacher- o Online – App (State/CBSE/ICSE o E Book Student boards) interactions o Offli
Slide 25: Scaling Our Classroom Model
SCALING OUR CLASSROOM MODEL…
Slide 26: Providing a Holistic Approach
PROVIDING A HOLISTIC APPROACH… Support in Flipped Classrooms Teacher App Classroom Admissions getting driven by Robomate+© Experience of 28 years in the Industry to help in Content Creation Large Faculty base of 1,300+ faculty Student App Software Development Team of Over 40 Engineers/Managers Team
Slide 27: Integrating the Education Platform
INTEGRATING THE EDUCATION PLATFORM…
Slide 28: Developing a Competitive Edge
DEVELOPING A COMPETITIVE EDGE… 2 4 Reduced Teacher Spend Customized Solution 1 possible 3 5 Increased Efficiency thereby Micro level Reduced improving performance lecture Utilization tracking delivery time
Slide 29: Escalating Business Scalability
ESCALATING BUSINESS SCALABILITY… E-Store & Third party Schools / Educational e-Commerce portal Institutions Seminars / Fairs / Exhibitions Robomate+ In App Conversions Distributors / Content Partners Drive New Classroom Non MT, Product Strong Analytics to Gauge High Student Retention Admissions in t
Slide 30: Recent Campaign
RECENT CAMPAIGN Video- Click here
Slide 31: Delivering Excellence
DELIVERING EXCELLENCE… WE PROVIDE THE BEST OF EVERYTHING TO STUDENTS WHICH HELPS THEM EXCEL IN THEIR ACADEMICS.
Slide 32: Building a Long Term Brand Franchise
BUILDING A LONG TERM BRAND FRANCHISE… Sale of digital content for higher Robomate+ scalability - Expanding through tie-ups Asset Light Model - Digital Content Focus on National Nationwide common entrance Level Exams and professional examinations - Geographical – Expanding PAN India Diversification -
Slide 33: ...With Excellence in Education
…WITH EXCELLENCE IN EDUCATION ▪ Focus on developing the CBSE & ICSE business verticals School ▪ Increasing batch utilization by adding count in existing locations across Mumbai and Pune ▪ Focus on JEE Advanced (IIT Entrance Exam) in Mumbai & North under the brand ‘Lakshya’. ▪ 22 operational Pre Univ
Slide 34: Professional Team
…WITH EXCELLENCE IN EDUCATION Professional Team
Slide 35: The Experienced Minds Leading the Transformation
The Experienced Minds leading the TRANSFORMATION… Has over 29 years of experience and holds a bachelor’s degree in science and education. His foresight of delivering quality education consistently with unique innovation ahead of the market has resulted in MT Educare being the premier institution in
Slide 36: Taking the Business to the Next Level
…taking the business to the NEXT LEVEL Mr. Chandresh Fooria Mr. Yagnesh Sanghrajka Business Head- Science Section Business Head – Robomate + New Initiatives Mr. Anish Thakkar Mr. Sujeet Koyoot Business Head- Commerce Section Business Head- Karnataka Mr. Murali Subramanian Mr. Vipul Shah Business Hea
Slide 37: Awards & Recognitions
Awards & Recognitions
Slide 38: Building Credibility and Visibility
BUILDING CREDIBILITY AND VISIBILITY… MT Educare Received- Forbes Asia’s ‘Best Under a Billion’ Company award, in 2014 Edupreneurs-Excellence in Education, in 2014
Slide 39: Delivering Shareholder Value: Business Financials
DELIVERING SHAREHOLDER VALUE… WITH US STUDENTS TAKE A STEP FORWARD TOWARDS Business EXCELLENCEY. Financials
Slide 40: Normalised EBITDA – 9MFY17
Normalised EBITDA – 9MFY17 Particulars (Rs. In crs) 9M FY17 9M FY16 Revenue 234.97 228.42 Operating Expenses 117.30 113.52 Employee Expenses 32.87 27.19 Other Expenses 22.69 22.76 EBITDA before Advt. Expenses 62.11 64.94 Advertisement Expenses (Excluding Robomate+ promotion 11.34 16.44 campaign) Nor
Slide 41: Achieving Operating Leverage
ACHIEVING OPERATING LEVERAGE… 95 School 104 Science 88 80 82 82 79 66 64 65 FY14 FY15 FY16 9MFY16 9MFY17 FY14 FY15 FY16 9MFY16 9MFY17 34,841 34,431 36,544 32,860 26,909 18,595 22,461 24,436 20,030 26,480 Commerce & UVA Revenue Rs Crs No of Students Robomate+ 74 59 41 35 46 40 40 18 1 3 FY14 FY15 FY1
Slide 42: Financial Performance Q3FY17 & 9MFY17 (Consolidated)
FINANCIAL PERFORMANCE- Q3FY17 & 9MFY17 (CONSOLIDATED) Particulars (Rs. in Crs.) Q3FY17 Q3FY16 YoY % 9MFY17 9MFY16 YoY % FY16 Revenue 63.56 70.67 -10.1% 234.97 228.42 2.86% 287.08 Operating Expenses 31.66 34.33 117.30 113.52 143.88 Employee Expenses 11.42 9.56 32.87 27.19 37.17 Advertisement Expense
Slide 43: Historical Consolidated Financials
HISTORICAL CONSOLIDATED FINANCIALS Particulars (Rs. In crs) FY16 FY15 FY14 FY13 FY12 Total Operating Income 287.1 227.0 201.8 157.3 130.6 EBITDA 57.9 46.6 42.3 29.3 23.1 EBITDA Margins 20% 21% 21% 19% 18% Profit Before Tax 47.5 40.7 32.0 25.4 19.2 PBT Margin 17% 18% 16% 16% 15% PAT 32.4 25.8 21.0 18
Slide 44: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs. In crs) Sep-16 Mar-16 Particulars (Rs. In crs) Sep-16 Mar-16 Shareholders Fund 167.8 148.6 Total Non Current Assets 203.2 198.4 Share Capital 39.8 39.8 Fixed Assets 73.6 67.5 Reserves & Surplus 128.0 108.7 Goodwill 16.3 16.3 Minority Interest 0.0 0.0 Long
Slide 45: Dividend Pay-out
Dividend Pay-out 8.1 3.2 6.5 2.6 2.3 2.4 5.3 4.6 3.8 0.5 FY12 FY13 FY14 FY15* FY16 FY12 FY13 FY14 FY15 FY16 Earning Per Share Dividend Per Share (Including DDT) 51.0% 50.0% 49.0% 30.0% 14.0% FY12 FY13 FY14 FY15 FY16 Dividend Pay- out (Including DDT) * EPS adjusted for one time depreciation gain
Slide 46: Shareholding Pattern as on Dec'16
SHAREHOLDING PATTERN AS ON Dec’16 Category % Share Holding Promoter & Promoter Group 42.8 Director/Top Management 7.7 Mutual Funds/FI/FII/Banks 27.6 Bodies Corporate 5.2 Large/ Small Individuals 16.8 Total 100.0
Slide 47: For Further Information, Please Contact
For further information, please contact Company : Investor Relations Advisors : MT Educare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L80903MH2006PLC163888 CIN: U74140MH2010PTC204285 Mr. Sanjay Sethi Ms. Ruchi Rudra/ Ms. Hina Agarwal Email: sanjaysethi@mteducare.com ruchi.rudra@sgapl.net/ hina.ag