August 2015

Investor Presentation

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

Executive Summary
Mahesh Tutorials a 27 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
Network consists of 136 coaching locations in 7 states/union territories including Maharashtra,
Karnataka, Tamil Nadu, Gujarat, Punjab, Haryana and Chandigarh

53,383 students serviced in Q1 FY16; Total headcount strength of 2,500+ with 1,200+ faculty
members
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 administration
Asset light business model with negative working capital

Shareholding pattern (as on June 2015 ): ~52.4% held by Promoter/Directors/KMPs and ~32%
held by DIIs/FIIs/Bodies Corporate
4

Milestones

Introduction of
Science
Coaching for XI
and XII

1988

2001

PE Investment of USD
8mn by Helix
Investments Company
for expansion in
Mumbai

2003

First
Branch of
MT Setup

2007

Inauguration of Mahesh
PU College at
Mangalore

Acquisition of 51%
stake in Chitales
Personalised
Learning Pvt. Ltd.

2009

2011

2012

2013

Introduction of
Technology Aided
Teaching (TAT)

Introduction of
Commerce
Coaching for XI
and XII

Listing in April 2012;

Acquisition of 51%
stake in Lakshya Forum
for Competitions Pvt.
Ltd. in Nov. 2012

Learning
Management
System (LMS)
Launch

2014

2015

Tie-up with Sri

Gayatri Educational
Society in
Telangana and A.P.

Large Addressable Market

The Indian coaching industry is expected to grow from Rs. 40,187 crore
in 2010-11 to Rs. 75,629 crore in 2014-15.

INDIAN EDUCATION SYSTEM

Market Size - Classroom based coaching industry

Formal
Education

Vocational
Education

17% CAGR

Rs. Cr

Informal
Education

13% CAGR
75,629

K-12

Higher
Education

Play
School

Multimedia in
Pvt Schools

Coaching
Classes

40,187
24,418

ICT in public
schools

Open & distance

learning

Source: Crisil

2006-07E

2010-11P

2014-15P

Source: Crisil

A large market opportunity

No. of Students appearing in various examinations
CA Final

80,077

CA IPCC

100,151

CA PCC

120,195

CA CPT

Strong structural factors aiding the growth of this sector

574,259

All India Pre Med/Pre-Dental Test

Com Ent Exams, Mah.

135,617

Rising disposable
income

282,096

IIT JEE 2011

468,240

AIEEE

Increasing
household spend
on education

Infra bottlenecks
for formal
education

1,065,100

CBSE XIIth

769,929

CBSE Xth

1,061,566

MSB Higher Secondary

1,325,936
0

400,000

800,000 1,200,000

Source: Websites of JEE, IIT Delhi, AIEEE, MHRD, Annual report of ICAI, Maharashtra Directorate Of Medical Education and Research

Increasing private
sector participation

Growth in addressable
market
8

Key Differentiators
Well Recognized
Brand &
Experience

Organized and
Diversified Player

Large Pool of
Quality Faculty
Members

2,230 scored 90%

98 locations in
1,200+ faculty
in Xth Std. SSC Exam;
Mumbai
members
st
1 in Mumbai in SSC
Multiple faculty
June 30 , 2015
teaching each
7th AIR in IIT JEE
Currently operates
subject
Advanced ; 4th AIR in
38 locations in Rest
AIPMT
55 scored 90% in
HSC Exam in Science;
123 scored 90% in
HSC Exam in
Commerce

of Maharashtra,
T.N., Gujarat,
Karnataka , Punjab,
Haryana and
Chandigarh

300+ faculty Post

Graduates (CA,
MBA, B.Ed)
Continuous training

Corporatized
Structure and
Experienced
Management Team

Increased visibility
amongst
governments and
international
educational
institutions
Listed status makes
it easier for fund
raising

June 30, 2015

No one man show or Star Teacher concept

Result Oriented
Quality Methods
of Coaching

Scientific coaching
methods and
system
Focus on conceptual
knowledge and
holistic development
Technology to
supplement coaching
via LMS, TAT and
Robomate
10

Brilliant results this season

11

Business Overview Capturing the entire Value Chain

CA Final
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)

IX & X (All Subjects SSC, ICSE & CBSE)

13

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
IXth and Xth standard
Maharashtra, Gujarat,
Karnataka State Board
CBSE
ICSE

Science Section

Commerce + UVA Section

XIth and XIIthstandard

XIth and XIIthstandard

Test prep for the

engineering and medical
entrance examinations (JEE
Mains and JEE Advanced,
NEET)

CA-IPCC , CA Final, CA-CPT

Others
Sale of Digital Content
under Robomate brand

Skill Development
Coaching for MBA Entrance
i.e. CAT, CET

Government Programmes

14

Geographical Presence (as of June 30th , 2015)

Historical No. of Locations over the years

v
1

3
12
98

FY

No. of Locations

Q1 FY 16

136

FY 15

128

FY 14

136

FY 13

122

FY 12

114

FY 11

103

16

16

Teaching Methodology
Personalized attention by way of regular parent teacher meetings, day-to-day
assistance, doubt solving during exam time

Teaching with the help of digital content developed in-house by expert faculties
after extensive brain storming
Increasing focus on assessments, learning management systems
Exhaustive test series with mock board exams

Superior study material developed along with Chetana Publications for School
section (MKeys)
State of the art infrastructure facilities at the centers

Teacher teaches in the classroom

Discussion, Learning &Evaluation
happens in the classroom

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:

Implementing Flipped Classroom

Student studies at home & comes
with basic preparation

Value Added Services

Advantages
Active learning in classroom vs.
passive earlier
Increased ability of learners to
control pace due to self learning
Use of 21st century technology
through a state of the art Learning
Management System (LMS)
Increased focus on higher order
skills and critical thinking
Increased social interaction

A 24 hour helpline
during exam time
Counselling Sessions:
To facilitate
communication
between the teachers,
students and parents on
the students
requirements.

18

Four-pronged Growth Strategy

Focus on National Level Exams

Robomate

Focus on nationwide common

entrance
and
professional
examinations such as CA, IIT JEE
Advanced, JEE Mains, CAT, CMAT,
CBSE etc.

Technology driven growth through

sale of digital content for higher
scalability
Allows the company to tap newer
geographies across India

Geographical & Vertical

Diversification

Asset light college tie-ups

Concentration on future growth in

Rest of Maharashtra for School and
Science section
Expansion
in North
India,
Karnataka, Andhra Pradesh and
Telangana
for
Science
and
Commerce

Entry and expansion with

college tie-ups offering test prep in
college campuses
Asset
light
with
lower
infrastructure spend

20

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 states in India
Our unique product Robomate with entire content in digital form developed in-house by our faculties
from the school section already launched for this academic season and has received a good response from
our students. Flipped classroom teaching methodology with tablets to be implemented from the academic
year 2015-16
Expansion in Maharashtra outside Mumbai with expanding in current cities like Pune and Kolhapur
Tie up with local coaching classes in tier-III and tier-IV towns in Rest of Maharashtra and Gujarat for sale of
Robomate to their students and providing TAT and teacher training. 16 such tie ups concluded and revenue
started in FY 15-16.
21

Growth Strategy Science Division

With importance now being provided to Boards
and JEE Mains for admission into the IITs/other
engineering institutes and JEE Mains becoming a
common engineering entrance exam across states,
this new exam pattern plays to the advantage of
Mahesh Tutorials Science.

Coaching for JEE Advanced (IIT Entrance Exam) in

JEE Advanced coaching in North India carried out

through a wholly owned subsidiary, Lakshya Forum
for Competitions Pvt. Ltd.
Robomate for JEE Advanced completed
7th All India Rank in JEE Advanced and 4th All India
Rank in AIIMS (AIPMT) expected to generate
positive response in North India market

Mumbai under the brand Lakshya launched in FY

13-14

Lakshya now expanding to Pune, Kolhapur and

Nashik
Promising admissions growth from 330 initially in
2013 to 1,000+ in current year
Launch of Foundation courses (for Std. VIII-X) in
Mumbai to act as feeder for JEE Advanced batches

About Lakshya:
Lakshya provides coaching to students appearing
for IIT and medical entrance examinations
Lakshya started operations in 2006 in Patiala and
currently operates from 4 locations in Punjab and
Haryana

Plans to launch JEE Advanced coaching in Karnataka

in the next academic session
22

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
Mangalore

Other PU Colleges

Test Prep Fee

Test Prep Fee

College Rent

College Management Fee

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

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 900 students.
Mangalore PU College campus acts as a proof of
concept and is instrumental in all college tie-ups
14 operational college tie-ups across Karnataka, at
Mangalore, Udipi, Tumkur, Hubli, Bengaluru (3),
Kolar, Dharwad, Chitradurga, Davangere, Belgaum,
Mysore and Gulbarga
4 additional tie ups done for FY 15-16
Proposing to tie-up with total 30 colleges by 17-18

23

Growth Strategy Commerce

Focus on expanding MT Educares reach in the CA coaching market throughout India
Chennai developed as a Centre of Excellence for CA with being a nerve centre for strategizing growth in
South India market. Excellent quality teaching and technology enablement has resulted in growth in
students serviced to 7,060 in FY 15.
Specialized batches for CA oriented and other students with focussed attention for Std. XI-XII Combo are
gaining traction in Mumbai and Pune. Acts as a feeder for admissions in CPT / IPCC.
Expanding into South India through CA video classrooms via own centres and Franchisees.
Commerce Robomate Updates:
Robomate for CA Final - Recorded live lectures of expert faculties and doubt solving support launched
E Commerce portal offering sale of Robomate for CA-CPT and IPCC
Std. XI and XII Robomate ready for launch

24

Board of Directors
Mahesh Shetty
(Chairman and MD)

Has over 29 years of experience and holds a bachelors 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 the Education sector and a household name. He was awarded the Pride of the Nation Award by the All India Achievers
Association in the year 2008

Naarayanan Iyer
(Non Executive Director)

A Non Independent, Non Executive Director of our Company. He has been associated with our Company since its
incorporation. After completing his graduation in mechanical engineering, he has to his forte a rich 23 years of experience in
the education sector. He was instrumental in establishing a culture of training and development in MT Educare.

Chhaya Shastri
(Non Executive Director)

Has over 20 years of experience in various sectors such as education, media, healthcare, constructions and manufacturing
and has played a major role in corporatizing MT Educare , strategizing expansion plans of the Company and establishing it as a
leading education services provider
Holds a multidimensional education qualification in the fields of allied medical sciences, law and management being the
alumni of IIM Calcutta

Drushti Desai
(Independent, Non Executive
Director)

Yatin Samant,
(Independent, Non Executive
Director)

Uday Lajmi
(Independent, Non Executive
Director)

A fellow chartered accountant and holds a bachelors degree in commerce

Has 18 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. Her guidance and acumen on taxation matters has added
significant value to MT Educare.
Holds a bachelors degree in engineering from VJTI, Mumbai and a masters degree in management studies from Jamnalal
Bajaj Institute of Management Sciences, Mumbai.

Has over 27 years of varied experience in sales, marketing, business development and general management across industries.
He specializes in corporate training and consults corporates on growth strategies.
Holds a masters degree in marketing management 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, a Reliance ADAG
company. He has established education institutions that are names to reckon with today and contributes to MT Educare on
systems and processes.

26

Our Top Management

Has completed his graduation in engineering with over 20 years of experience in the field of teaching and
administration. He was instrumental in starting the Science wing for the company and has led this division to
greater heights and into a formidable position in the industry today.

A rankholder Chartered Accountant with over 18 years of experience. He was responsible for starting the
Commerce wing of the company and adding various offferings including the Higher CA Wing.

Sujeet Koyoot
(Business HeadKarnataka )

A post graduate in science with over 15 years of experience in the field of teaching and administration. He has
contributed significantly towards companys expansion in Karnataka and has established Companys brand in
Pre University college tie ups

Murali
Subramanian
(Business HeadSchool)

Holds a bachelors degree in engineering (electronics) and has over 15 years of experience across various
segments within MT Educare . He is responsible for steady growth in the School section in Mumbai and has
led its expansion into Rest of Maharashtra.

Shrenik Kotecha
(Business HeadUVA)

Holds MBA degree and masters degree in commerce . He is the co-founder of MT Commerce and the
youngest Business Head of the company. He is spearheading companys initiatives in the area of Skill
Development.

Vipul Shah
(Head Brand
Development and
Procurement)

Holds a bachelors degree in computer engineering and masters degree in marketing management. He heads
marketing and procurement for the company and is instrumental in introducing new systems and processes
across various verticals of the company.

Chandresh Fooria
(Business HeadScience Section )

Anish Thakkar
(Business HeadCommerce Section )

27

Our Top Management

Mahtab Khan
(Head- CSR )

Parag Chitale
(Business Head MBA)

Yagnesh Sanghrajka
(Chief Financial
Officer)

Ashwin Patel
(Company Secretary
and Compliance
Officer)

Holds a bachelors degree in science and education and a post graduate degree in science (electronics). Has
been associated with the company since incorporation and has spearheaded the CSR activities

Holds a masters in business administration (MBA) from Jamnalal Bajaj Institute of Management Studies
(JBIMS). A Founder Promoter of Chitales Personalised Learning Pvt. Ltd. (CPLPL), he is responsible for the
MBA piece of the business .

Has over 20 years of experience especially in the services sector, in financial strategy planning, investor
relations, management information reporting and corporate finance.

Before joining the Company, worked with large corporate houses (Hinduja Group) and a leading PE firm

Handles Finance & Accounts, Investor Relations and Acquisitions / Tie-ups

A member of the Institute of Company Secretaries in India and has a bachelors degree in law. He has over 20
years of rich experience in the corporate field . Handles Secretarial and Legal function for the company.

28

Key Financials
Revenue (INR Mn)
2,500
2,000
1,500
1,000
500
0

EBITDA (INR Mn)

2,270

2,018
832

1,055

1,306

1,573

600

15%

400
200

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

125

FY 10

18%

190

200
100
0

6%

52
FY 10

8%
81

10%
132

10%

258
11%

258
180

20%

FY 11

FY 12
PAT

FY 13

20%
10%

293

FY 12

FY 13

FY 14

EBITDA
EBITDA Margins
FY10-15: 30% CAGR

17%

10%

210

FY 14

PAT Margins

FY10-15: 38% CAGR

1,500
1,000

23%

13%

500

0%
FY 11

425

466

30%

FY 15

Networth (INR Mn)

300
11%

231

19%

21%

0%

FY 10-15: 22 % CAGR

PAT (INR Mn)

18%

21%

FY 15

411

476

18%

19%

1011

1120

21%

30%
20%

1257

10%

571

0%

FY 10

FY 11

FY 12
Networth

FY 13

FY 14

FY 15

RoE

30

FIRST QUARTER F.Y. 15-16 RESULTS CONSOLIDATED

INR in Lakhs

Particulars
Fee Income
Other Operating Income
Total Revenue
Cost of Goods Sold
Direct Costs
Personnel Costs
SD&A Costs
EBIDTA
Finance Costs
Depreciation & Amortization
Other Income
PBT
Income Tax
PAT (Before Minority Int.)
Minority Interest
Adjusted comparable PAT

For the quarter For the quarter

ended 30th June ended 30th June
2015
2014
6,403
5,221
1,081
208
7,484
5,429
36
4
4,111
2,856
851
648
1,466
1,116
1,019
805
33
83
354
346
216
125
847
502
243
164
605
338
2
(38)
603
376

For the year

ended 31st
March 2015
20,890
1,808
22,699
98
11,269
2,946
3,728
4,659
402
1,279
708
3,686
1,168
2,518
(67)
2,584
31

Division Wise Revenue - Consolidated

School

FY 16
Revenue

No. of Students
Serviced*

2,662

2,433

21,342

22,038

Science

FY 16
Revenue
No. of Students
Serviced*

FY 15

2,651

10,300

Commerce & UVA

( includes Skill
Development )

(Revenue - INR in lakhs)

FY 16
Revenue
No. of Students
Serviced*

FY 15

2,016

957

21,741

11,961

FY 15
Q1 FY 16

1,690
10,111

Includes revenue from Science (Mah), Karnataka,

Lakshya (Mumbai and North India)

Total Students
Serviced

53,383

Q1 FY 15
44,110

Robomate revenue & count are included in respective divisions.

*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.

32

Key Balance Sheet Trends

Advance Fees from Students
-

FY 10-11

FY 11-12

FY 12-13

FY 13-14

FY 14-15

(1,000)

INR in Lakhs

(2,000)
(3,000)
(3,403)
(4,000)
(5,000)

(6,000)

(3,870)
(4,899)

(3,607)

(4,961)
Advance Fees

33

Historical Financials
(INR in lakhs)

INR Mn

FY10

FY11

FY12

FY 13

FY 14

FY 15

Total Operating Income

8320

10550

13060

15728

20180

22700

EBITDA

1250

1900

2310

2930

4230

4660

EBITDA Margins

15%

18%

18%

19%

21%

21%

Profit Before Tax

700

1280

1920

2540

3200

4073

PBT Margin

8%

12%

15%

16%

16%

18%

PAT

520

830

1320

1800

2100

2583

PAT Margins

6%

8%

10%

11%

10%

11%

Networth

4110

4760

5710

10110

11200

12573

Growth Rate

13%

16%

20%

77%

11%

12%

Capital Employed

4110

5210

5710

10110

11200

12573

RoE

13%

16%

23%

18%

19%

21%

34

Shareholding Pattern as of June 30, 2015

Category

% Share-holding
% Share-holding

Promoter & Promoter Group

42.8
16%

Directors/Top Management
Mutual Funds / FI /FII / Banks
Bodies Corporate
Large / Small Individual Investors

9.6

43%

5%

26.1
5.5

26%

16.0

10%

Promoter & Promoter Group

Total

100.0

Directors/Top Management
Mutual Funds / FI /FII / Banks
Bodies Corporate
Large / Small Individual Investors
36

Thank You

Our Brands

39