Mt Educare Ltd · NSE:MTEDUCARE
Mt Educare — Q2 FY2015 Earnings Presentation
40 slides from Mt Educare's earnings presentation, November 2014
Slide 1: Investor Presentation
November 2014 Investor Presentation
Slide 2: Index
Index Executive Summary Key Company Milestones Industry in Growth Phase Key Differentiators Capturing the Entire Value Chain Location Count Teaching Methodology 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 26 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 Inauguration of Mahesh Introduction of Mumbai Acquisition of 51% PU College at Science Coaching stake in Chitale’s Mangalore for XI and XII Personalised Learning Pvt. Ltd. 1988 2001 2003 2007 2009 2011 2012 2013 2014 F
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: Key Differentiators
Key Differentiators
Slide 10: 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% 93 locations in 1,100+ faculty Increased visibi
Slide 11: Brilliant results this season…
Brilliant results this season… 11
Slide 12: Capturing the Entire Value Chain
Capturing the Entire Value Chain
Slide 13: 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 14: 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 15: MT Educare — a Pan India Player
MT Educare — a Pan India Player
Slide 16: Geographical Presence (as of September 30, 2014)
Geographical Presence (as of September 30, 2014) Historical No. of Locations over the years 5 v FY No. of Locations 1 FY 14 136 FY 13 122 2 FY 12 114 FY 11 103 15 93 16 2 16
Slide 17: Teaching Methodology
Teaching Methodology
Slide 18: 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 19: Growth Strategy
Growth Strategy
Slide 20: Four-pronged Growth Strategy
Four-pronged Growth Strategy Focus on National Level Exams Robomate Focus on nationwide common Technology driven growth through entrance and professional sale of digital content for higher examinations such as CA, IIT JEE scalability Advanced, JEE Mains, CAT, CMAT, Allows the company to tap ne
Slide 21: 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+ Focus on developing the CBSE & ICSE business verticals as a pillar of strength to enable rapid scalability of operations in the school segment across all sta
Slide 22: Growth Strategy – Science Division
Growth Strategy – Science Division With importance now being provided to Boards Acquired 51% stake in Lakshya Forum for and JEE Mains for admission into the IITs/other Competitions Pvt. Ltd. with an option to acquire the engineering institutes and JEE Mains becoming a balance stake up to June 20
Slide 23: 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 24: Growth Strategy – Science Division (A.P. & Telangana)
Growth Strategy – Science Division (A.P. & Telangana) About Sri Gayatri Educational Society: Established in 2010, Sri Gayatri Educational Society is one of the leading educational institutions for the Intermediate section in the states of Telangana and Andhra Pradesh. Sri Gayatri is founded by M
Slide 25: 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 26: Experienced Management Team
Experienced Management Team
Slide 27: 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 28: 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 29: 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 30: Financial Overview
Financial Overview
Slide 31: Key Financials
Key Financials Revenue (INR Mn) EBITDA (INR Mn) 600 30% 2,500 2,018 21% 18% 18% 19% 2,000 400 15% 20% 1,573 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 32: Quarterly and Half Yearly Financials – Consolidated
QUARTERLY AND HALF YEARLY FINANCIALS – CONSOLIDATED INR in Lakhs 24.7% Consolidated PAT for the half year ended September 30, 2014 includes one time gain of change in depreciation policy and useful life of depreciable fixed assets of Rs. 389.55 lakhs on net of tax basis 32
Slide 33: Division Wise Revenue - Consolidated
Division Wise Revenue - Consolidated (Revenue - INR in lakhs) H1 FY 15 H1 FY 14 FY 14 H1 FY 15 H1 FY 14 FY 14 Commerce School Revenue 5,192 4,656 8,801 Revenue 2,002 1,953 3,718 No. of Students 23,445 23,287 34,841 No. of Students 15,722 16,480 25,178 Serviced* Serviced* H1 FY 15 H1 FY 14 FY 14 H1 F
Slide 34: Key Balance Sheet Trends
Key Balance Sheet Trends Operating at negative working capital - FY 10-11 FY 11-12 FY 12-13 FY 13-14 H1 FY 14-15 (1,000) (2,000) Cash Balances: INR in Lakhs (2,306) (2,623) (2,403) The cash and cash equivalents (3,000) (including current investments) as (2,994) on September 30, 2014 is INR (3,403) (
Slide 35: 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 36: Shareholding Pattern
Shareholding Pattern
Slide 37: Shareholding Pattern as of September 30, 2014
Shareholding Pattern as of September 30, 2014 11% Category % Share-holding 25% Promoter & Promoter Group 42.8 Directors/Top Management/ASOP Trust 11.5 43% Mutual Funds / FI /FII / Banks 24.8 6% Bodies Corporate 6.4 15% Large / Small Individual Investors 15.5 Promoter & Promoter Group Companies Total
Slide 38: Thank You
Thank You
Slide 39: Appendix
Appendix
Slide 40: Our Brands
Our Brands MAHESH TUTORIALS [ScHOOL SECTION 9 THE ACADEMIC PARENTS OF YOUR CHILD! M@HESH TUTORIALS Don’t just learn... UNDERSTAND! PROFESSION@LS M@HESH TUTORIALS Fenere resre P ATA Tera Teter Wet Anytime, Anywhere, e-Learning laksh ya C COMMERCE & MANAGEMENT SRIGAYATRI © CAT / CMAT GRE / GMAT