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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 confidential. The material that follows is a presentation of general background information about the Companys activities current at the date of the presentation. It is information given in summary form and does not purport to be complete, is subject to change without notice and its accuracy is not guaranteed. The information has not been independently verified by any third party. Accordingly, no representation or warranty, express or implied, is given by or on behalf of the Company and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents to the accuracy or completeness of the information or opinions expressed herein. To the maximum extent permitted by law, the Company and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents disclaim any liability for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as expects, plans, will, estimates, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation is for information purposes only. It is not intended to be relied upon as advice to potential investors, and shall not constitute an offer or invitation, or solicitation of an offer, to purchase any securities. The possession, circulation or distribution of this presentation may be restricted in your jurisdiction. You are required to inform yourself about and observe any restrictions relating to any such restrictions or an investment by you in the securities of the Company or its subsidiaries. This presentation may not be reproduced or redistributed to any other person and you agree to keep the contents herein confidential. MT Educare Limited came out with its Initial Public Offering (IPO) in March 2012 and was listed on the BSE and NSE on April 12, 2012. The Prospectus is available on the website of SEBI at www.sebi.gov.in. Investors should note that investment in equity shares involves a high degree of risk and for details in relation to risk factors, please see the section titled Risk Factors on page 11 of the Prospectus. Any decision to purchase any securities should be made solely on the basis of information contained in the Prospectus issued in respect of the Offering and registered with the RoC or the final offering memorandum relating to the securities after seeking appropriate professional advice, and no reliance should be placed on any information other than that contained in the Prospectus or the final offering memorandum.
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
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 from Std. VIII to students appearing for Engineering and Medical Entrance Exams (including IIT Entrance), exams for CA course and MBA aspirants Geographical presence in 7 states/union territories including Maharashtra, Karnataka, Tamil Nadu, Gujarat, Punjab, Haryana and Chandigarh Network consists of 138 coaching locations with 226 Centers (Points of Sale) 70,828 students serviced in FY13; Employee and faculty strength of 2,200+ with 1,100+ faculty members, of which 300+ are post graduates Focus on result oriented quality coaching with technology enabled classrooms and digitized content and Emphasis on teacher training through intensive workshops Experienced management team consisting of senior professionals having strong background in academics and rich experience Asset light business model; zero debt with negative working capital Shareholding pattern: ~56% held by Promoter/Directors/KMPs and ~21% held by DIIs/FIIs
Milestones
PE Investment of USD 8mn by Helix Investments Company for expansion in Mumbai
Listing in April 2012; Acquisition of 51% stake in Lakshya Forum for Competitions Pvt. Ltd. in Nov. 2012
1988
2001
2003
2007
2008
2009
2011
2012
2013
Centres opened in Karnataka, Gujarat and Tamil Nadu; Acquisition of Scholars Learning Centres
Inauguration of Mahesh PU College at Mangalore Acquisition of 51% stake in Chitales Personalised Learning Pvt. Ltd.
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The Indian coaching industry is expected to grow from Rs. 40,187 crore in 2010-11 to Rs. 75,629 crore in 2014-15.
Market Size - Classroom based coaching industry
Formal Education
Higher Education
Vocational Education
Play School
Informal Education
Multimedia in Pvt Schools Coaching Classes
17% CAGR
2006-07E
2010-11P
2014-15P
Source: Websites of JEE, IIT Delhi, AIEEE, MHRD, Annual report of ICAI, Maharashtra Directorate Of Medical Education and Research
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)
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Business Overview
School Section
IXth and Xth standard Maharashtra, Gujarat, Karnataka State Board CBSE ICSE INK (V to VIII)
Science Section
XIth and XIIthstandard Test prep for the engineering and medical entrance examinations (JEE Mains and JEE Advanced, NEET)
Commerce Section
XIth and XIIthstandard CA-IPCC , CA Final, CA-CPT CS-Entrance Bachelor degree in Commerce (UVA)
Others
Coaching for MBA Entrance i.e. CAT, CMAT Coaching services in Dubai Government Programmes Sale of Content under Robomate brand
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Geographical Presence
v 3 1
122 31 2007 2013
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98
13
FY 11
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Key Differentiators
Well Recognized Brand & Experience Organized and Diversified Player Large Pool of Quality Faculty Members Corporatized Structure and Experienced Management Team Result Oriented Quality Methods of Coaching
98 locations in Mumbai
Sept 30, 2013
1st All India Rank in CA Final, total 6 CA Final Rankers and 10 IPCC Rankers 32 students > 90% in Std. XII (Science)
Mar 2013
Currently operates 40 locations in Rest of Maharashtra, T.N., Gujarat, Karnataka , Punjab, Haryana and Chandigarh
Increased visibility 1,100+ faculty amongst members governments and 150+ Assistant international Teachers first to educational introduce the concept institutions Multiple faculty teaching each subject Assisted in raising Continuous training capital from private equity investors
Scientific coaching methods and system Focus on conceptual knowledge and holistic development Technology to supplement coaching
Teaching Methodology
Unique Study Material
Prepared by faculty heads from reference material Theory and concept of various subjects are addressed in an efficient and simple manner
Value Added Services Career Counselling: Through seminars and exhibitions Symphony: A mix of music, yoga and diet controlling techniques to reduce stress, enhance memory and improve communication skills. Hum Se Poocho: A 24 hour helpline during exam time. Counselling Sessions: To facilitate communication between the teachers, students and parents on the students requirements.
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Revenue Streams
Mangalore Test Prep Fee College Rent Hostel Rent College Management Fee Hostel Management Fee Services rendered in a standard PU College: Test prep coaching for engineering and medical entrance examinations in college premises after college hours; every college student is a student enrolled with MT Educare for test prep Management services provided viz. Content for Std. XI and Std. XII Sourcing of teachers and teacher training Time-table management Academic MIS Other PU Colleges Test Prep Fee College Management Fee
Standard PU College Revenue Sharing Model: In a standard PU College Model, MT Educare Ltd. operates on a revenue sharing basis with the respective college trust State of the art PU college at Mangalore with a capacity of 3,000 students ready. Hostel facility with a planned capacity of 1,000 students, Phase I operational from June 2013 with 300 students Mangalore PU College campus acts as a proof of concept and is instrumental in all future college tieups 9 operational college tie-ups across Karnataka, at Mangalore, Udipi, Tumkur, Hubli, Bengaluru, Davangere, Belgaum, Mysore and Gulbarga Proposing to tie-up with total 30 colleges by 201718
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Board of Directors
Mahesh Shetty (Chairman and MD)
Has over 27 years of experience and holds a bachelors degree in science and education from the Mumbai University. He was awarded the Pride of the Nation Award by the All India Achievers Association in the year 2008 A Non Independent, Non Executive Director of our Company. He has been associated with our Company since its incorporation. He holds a bachelors degree in mechanical engineering from the University of Madras. Has 23 years of experience in the education sector. Holds a bachelors degree in dental sciences, a bachelors degree in law and a post graduate degree in management education from IIM, Calcutta. Has over 15 years of experience in various sectors such as media, healthcare, constructions and manufacturing and has played a major role in establishing the corporate entity and expansion plans of the Company A fellow chartered accountant of ICAI and holds a bachelors degree in commerce from Sydenham College of Commerce and Economics, Mumbai. Has 14 years of experience in the field chartered accountancy and taxation. She is a partner of Bansi S. Mehta & Co., B. S. Mehta & Co., and BSM Associates, Chartered Accountants. Holds a bachelors degree in engineering from Veermata Jijabai Institute of Technology, Mumbai and a masters degree in management studies from Jamnalal Bajaj Institute of Management Sciences, Mumbai. Has over 26 years of varied experience in sales, marketing, business development and general management across industries. He presently, works as a business consultant and also conducts developmental workshops for working executives and teachers at various management institutes in Bangalore. Holds a masters degree in marketing management from the University of Mumbai and a doctorate degree in physical chemistry from the Institute of Technology Mumbai. Has over 20 years of experience in various capacities in industry and academics. He is presently, the dean - management education & assistant vice president (training & development) with Reliance Infrastructure Limited.
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Holds a bachelors degree in engineering (instrumentation) from the Swami Vivekananda College of Engineering, Mumbai. Has over 18 years of experience in the field of teaching and administration. Holds a bachelors degree in science and education and a post graduate degree in science (electronics) from the University of Mumbai. Has over 13 years of experience in the field of teaching and administration. Holds a bachelors degree in engineering (electronics) from University of Mumbai. Has over 14 years of experience and has been associated with the company since its inception.
Holds a masters degree in commerce from R.A. Podar College in Mumbai and has completed his MBA from D.Y.Patil College. Before joining the company, he was associated with Thakkers Eskays as a partner. Has special expertise in mentoring students, business networking and new business development.
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Key Financials
Revenue (INR Mn)
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,306 1,573
400 300 200 100 0 13% 15% 18% 190 FY 11
EBITDA
732
832
1,055
92 FY 09
125 FY 10
FY 09
FY 10
FY 11
FY 12
FY 13
FY 13
476 FY 11
Networth
571 FY 12
RoE
FY 12
FY 13
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Lakshya Forum for Competitions Pvt. Ltd. (Lakshya) has been consolidated w.e.f. April 1, 2013. Previous half year/year figures do not include Lakshya
H1 FY 13 2,267 10,241
H1 FY 14 207 1,900
H1 FY 13 172 1,621
Lakshya (North)
Others
H1 FY 13 -
FY 12-13 -
H1 FY 14 Revenue 547
H1 FY 13 524
FY 12-13 1,138
Others consists of income from management fees, Dubai, Govt. Projects & Franchisee Income.
H1 FY 13 48,791
FY 12-13 70,828
*No. of Students Serviced represents students coached for a course during the period under consideration. While a student is included in the no. of students serviced from the start of the course, the corresponding revenue for that student is accrued evenly over the course duration. Thus, the revenue recognized for the student builds up as the financial year progresses which is reflected by the annual average fee realization per student being higher than the average fee realization for the interim periods. The average fee realization per student serviced for the period under consideration is not comparable with the average fee realization for the full year.
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(2,778)
Out of INR 3,500 lakhs raised via the Initial Public Offer (IPO), as of June 30, 2013 INR 3,293.15 lakhs have been utilized towards the objects of the issue.
Cash Balances:
(4,899)
(4,961)
The cash and cash equivalents (including current investments) as on September 30, 2013 is INR 4,348.02 lakhs.
Net Current Assets (Excluding Cash & Cash Equivalents & Investments in Mutual Funds) Advance Fees
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Historical Financials
INR Mn
Total Operating Income Total Income EBITDA EBITDA Margins Profit Before Tax PBT Margin PAT PAT Margins Networth Growth Rate* Capital Employed RoE *
FY09
732 753 92 13% 37 5% 26 4% 363 14% 413 6%
FY10
832 858 125 15% 70 8% 52 6% 411 13% 411 13%
FY11
1055 1076 190 18% 128 12% 83 8% 476 16% 521 16%
FY12
1306 1346 231 18% 192 15% 132 10% 571 20% 571 23%
FY 13
1573 1619 293 19% 254 16% 180 11% 1011 77% 1011 18%
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19% Promoter & Promoter Group Companies Directors/KMP FII / FFI / FIs / Banks / MF Bodies Corporate Individuals
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