Mt Educare Ltd · NSE:MTEDUCARE
Mt Educare — Investor Presentation (November 2013)
38 slides from Mt Educare's investor presentation, November 2013
Slide 1: Investor Presentation
November 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 3 122 1 31 2007 2013 5 No. of Locations over the years 16 FY/Quarter No. of Locations 98 Sept 2013 138* FY 13 122 FY 12 114 13 FY 11 103 * Includes 4 Lakshya locations added w.e.f. April 1, 2013. 2 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 2,055 scored ≥ 90% 98 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 ~7,000+ 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 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 Half Yearly Financials – Consolidated
QUARTERLY AND HALF YEARLY FINANCIALS – CONSOLIDATED INR in Lakhs For the half year For the half year For the quarter For year ended Particulars ended 30th ended 30th ended 30th 31st March 2013 September 2013 September 2012 September 2013 Fee Income 10,617.72 8,043.75 6,030.19 15,049.30 Other Operati
Slide 31: Division Wise Revenue - Consolidated
Division Wise Revenue - Consolidated (Revenue - INR in lakhs) H1 FY 14 H1 FY 13 FY 12-13 H1 FY 14 H1 FY 13 FY 12-13 Commerce School Revenue 4,656 3,814 7,044 Revenue 1,953 1,507 3,264 No. of Students 23,287 22,101 33,224 No. of Students 16,480 14,828 22,088 Serviced* Serviced* H1 FY 14 H1 FY 13 FY 1
Slide 32: 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) June 30, 2013 INR 3,293.15 lakhs have been utilized towards the I
Slide 33: 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 34: Shareholding Pattern
Shareholding Pattern
Slide 35: Shareholding Pattern as of September 30, 2013
Shareholding Pattern as of September 30, 2013 Category % Share-holding 11% Promoter & Promoter Group 45.3 21% Directors/Top Management 10.8 Mutual Funds / FI /FII / Banks 20.6 45% 4% Bodies Corporate 4.0 19% Promoter & Promoter Group Companies Large / Small Individual Investors 19.3 Directors/KMP To
Slide 36: Thank You
Thank You
Slide 37: Appendix
Appendix
Slide 38: 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