Mt Educare Ltd · NSE:MTEDUCARE
Mt Educare — Investor Presentation (May 2014)
37 slides from Mt Educare's investor presentation, May 2014
Slide 1: Investor Presentation May 2014
May 2014 Investor Presentation
Slide 2: 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 2
Slide 3: Executive Summary
Executive Summary
Slide 4: Executive Summary
Executive Summary Mahesh Tutorials – 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 from
Slide 5: Company Milestones
Company Milestones
Slide 6: 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 7: Industry in a growth phase
Industry in a growth phase
Slide 8: 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 9: Capturing the Entire Value Chain
Capturing the Entire Value Chain
Slide 10: 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 11: 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 12: MT Educare — a Pan India Player
MT Educare — a Pan India Player
Slide 13: Geographical Presence
Geographical Presence No. of Locations over the years 3 v FY No. of Locations 1 FY 14 136 FY 13 122 4 FY 12 114 FY 11 103 16 97 13 2 13
Slide 14: Key Differentiators
Key Differentiators
Slide 15: 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 2,055 scored ≥ 90% 97 locations in 1,000+ faculty Increased visibi
Slide 16: Teaching Methodology
…Teaching Methodology Value Added Services Personalized attention by way of regular parent teacher meetings, day-to-day assistance, doubt solving during exam time Career Counselling: Teaching with the help of digital content developed in-house by expert faculties Through seminars and after exte
Slide 17: Growth Strategy
Growth Strategy
Slide 18: 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 19: 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 ~7,500+ as of date Focus on developing the CBSE & ICSE business verticals as a pillar of strength to enable rapid scalability of operations in the school segment acr
Slide 20: Growth Strategy – Science Division
Growth Strategy – Science Division Road to IIT: Coaching for JEE Advanced (IIT Entrance Exam) in • Under the erstwhile system, there was a single Mumbai under the brand ‘Lakshya’ launched in FY IIT entrance exam for admission into the IITs 13-14; now expanding to Pune, Kolhapur and • Under the new
Slide 21: 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 22: Growth Strategy – Commerce
Growth Strategy – Commerce Focus on expanding MT Educare’s reach in the CA coaching market throughout India Chennai developed as a “Centre of Excellence” for CA with an eye on the South India market. Students serviced grew from 3,150 in FY 11 to 8,538 in FY 14 Separate batches for CA oriented
Slide 23: Experienced Management Team
Experienced Management Team
Slide 24: Board of Directors
Board of Directors Mahesh Shetty Has over 29 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 25: Our Top Management
Our Top Management Chandresh Fooria Holds a bachelor’s degree in engineering (instrumentation) from the Swami Vivekananda College of (Business Head- Engineering, Mumbai. Science Section ) Has over 19 years of experience in the field of teaching and administration. Anish Thakkar A member of the
Slide 26: Our Top Management
Our Top Management Holds a bachelor’s degree in science and education and a post graduate degree in science (electronics) from Mahtab Khan the University of Mumbai. (Head- CSR ) Has been associated with the company since incorporation Parag Chitale Holds a master’s in business administration (
Slide 27: Financial Overview
Financial Overview
Slide 28: Key Financials
Key Financials Revenue (INR Mn) EBITDA (INR Mn) 600 30% 2,500 2,018 21% 18% 18% 19% 2,000 15% 1,573 400 20% 1,306 425 1,500 1,055 832 200 293 10% 1,000 190 231 125 500 0 0% 0 FY 10 FY 11 FY 12 FY 13 FY 14 FY 10 FY 11 FY 12 FY 13 FY 14 EBITDA EBITDA Margins FY 10-14: 25% CAGR FY10-14: 36% CAGR PAT (I
Slide 29: Quarterly and Half Yearly Financials – Consolidated
QUARTERLY AND HALF YEARLY FINANCIALS – CONSOLIDATED INR in Lakhs Lakshya Forum for Competitions Pvt. Ltd. (Lakshya) has been consolidated w.e.f. April 1, 2013. Previous quarter/year figures do not include Lakshya 29
Slide 30: Division Wise Revenue - Consolidated
Division Wise Revenue - Consolidated (Revenue - INR in lakhs) FY 13-14 FY 12-13 FY 13-14 FY 12-13 Commerce School Revenue 8,801 7,044 Revenue 3,718 3,264 No. of Students 34,841 33,224 No. of Students 25,178 22,088 Serviced* Serviced* FY 13-14 FY 12-13 FY 13-14 FY 12-13 Science Revenue 5,028 4,010 Re
Slide 31: Key Balance Sheet Trends
Key Balance Sheet Trends Operating at negative working capital - FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 (1,000) Utilization of IPO Proceeds: Out of INR 3,500 lakhs raised via the Initial Public Offer (IPO), as of (2,000) March 31, 2014 INR 3,293.15 lakhs have been utilized towards the INR in L
Slide 32: Historical Financials
Historical Financials INR Mn FY10 FY11 FY12 FY 13 FY 14 Total Operating Income 832 1055 1306 1573 2018 Total Income 858 1076 1346 1619 2042 EBITDA 125 190 231 293 423 EBITDA Margins 15% 18% 18% 19% 21% Profit Before Tax 70 128 192 254 320 PBT Margin 8% 12% 15% 16% 16% PAT 52 83 132 180 210 PAT Margi
Slide 33: Shareholding Pattern
Shareholding Pattern
Slide 34: Shareholding Pattern as of March 31, 2014
Shareholding Pattern as of March 31, 2014 Category % Share-holding 11% Promoter & Promoter Group 45.3 22% Directors/Top Management 11.1 Mutual Funds / FI /FII / Banks 21.4 45% 4% Bodies Corporate 3.8 18% Promoter & Promoter Group Companies Large / Small Individual Investors 18.4 Directors/KMP Total
Slide 35: Thank You
Thank You
Slide 36: Appendix
Appendix
Slide 37: Our Brands
Our Brands M@HESH TUTORIALS . ; ScHoot secrioN Anytime, Anywhere, e-Learning THE ACADEMIC PARENTS OF YOUR CHILD! MGHESH TUTORIALS kshya Don’t just learn... UNDERSTAND! (G © M@HESH TUTORIALS Eco) SIT TAT Nelo Wet