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Page 1: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Investor Presentation

February 2013

Page 2: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

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 Company’s 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.

Disclaimer

2

Page 3: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Index

3

Executive Summary

Key Company Milestones

Industry in Growth Phase

Capturing the Entire Value Chain

Center Count

Key Differentiators

Growth Strategy

Experienced Management Team

Financial Overview and Operating Leverage

Shareholding Pattern

Page 4: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 5: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Executive Summary

5

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 five states including Maharashtra, Karnataka, Tamil Nadu, Gujarat and Delhi Network consists of 207 coaching centres across 5 states of which 10 are franchisees and rest are company managed 68,017 students serviced* in FY12; Employee and faculty strength of 2,200+ with 1,128 faculty members, of which more than 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: ~54% held by Promoter/Directors/KMPs and ~15% held by DIIs/FIIs

Page 6: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 7: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Milestones

7

First Branch of Mahesh Tutorials

Setup

1988 2001

Introduction of Science Coaching

for XI and XII

Introduction of Commerce

Coaching for XI and XII

2003 2007

PE Investment of USD 8mn by Helix

Investments Company for expansion in

Mumbai

2008

Centres opened in Karnataka,

Gujarat and Tamil Nadu; Acquisition

of Scholars’ Learning Centres

2009

Introduction of Technology Aided

Teaching (TAT)

2011

Acquisition of 51% stake in Chitale’s

Personalised Learning Pvt. Ltd.

2012

Listing in April 2012; Acquisition of 51% stake

in Lakshya Forum for Competitions Pvt. Ltd. in

Nov. 2012

Page 8: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 9: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Large Addressable Market

9

24,418 40,187

75,629

2006-07E 2010-11P 2014-15P

Market Size - Classroom based coaching industry

Rs. Cr

13% CAGR

17% CAGR

Rising disposable income

Increasing household spend

on education

Infra bottlenecks for formal education

Increasing private sector participation

Growth in addressable market

INDIAN EDUCATION SYSTEM

Informal Education

Vocational Education

Formal Education

Open & distance learning

Multimedia in Pvt Schools

ICT in public schools

Play School

Higher Education K-12 Coaching

Classes

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

Strong structural factors aiding the growth of this sector A large market opportunity No. of Students appearing in various examinations

Source: Crisil Source: Crisil

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

1,325,936

1,061,566

769,929

1,065,100

468,240

282,096

135,617

574,259

120,195

100,151

80,077

0 400,000 800,000 1,200,000

MSB Higher Secondary

CBSE Xth

CBSE XIIth

AIEEE

IIT JEE 2011

Com Ent Exams, Mah.

All India Pre Med/Pre-Dental Test …

CA CPT

CA PCC

CA IPCC

CA Final

Page 10: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 11: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Business Overview – Capturing the entire Value Chain

11

CA Final,

Basic Graduation (B.Com, BMS) & CA IPCC, MBA Entrance

Entrance Exams – CA CPT, CS Foundation

JEE Mains, JEE Advanced (IIT) and NEET

Std. XI and XII (Science and Commerce)

Std. VIII, IX and X (All Subjects)

Page 12: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Business Overview

Science Section Commerce Section Others School Section

XIth and XIIthstandard

Test prep for the engineering and medical entrance examinations (JEE Mains and JEE Advanced, NEET)

XIth and XIIthstandard

CA-IPCC , CA Final, CA-CPT

CS-Entrance

Bachelor degree in Commerce (UVA)

IXth and Xth standard

Maharashtra, Gujarat, Karnataka State Board

CBSE

ICSE Board

INK

Coaching for CAT, CMAT

Coaching services in Dubai

Government Programmes

Sale of Content through various distribution channels

12

In the Secondary and Higher Secondary School Pursuing graduate degrees

Undertaking CA examinations.

A coaching services provider for students…

Preparing for various competitive examinations

Page 13: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 14: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Location of Centres

14

156 28

13

6

3

Total No. of Centres

Section 12-13 11-12 School 110 109

Science 49 43

Commerce* 48 40

Total 207 192 * Includes CPLC Centres

51

192

2007 2012

Growing No. of Centres

Division-wise Breakup of Centres

1 Delhi

4 centres of Lakshya in Punjab and Haryana will be added w.e.f. April 1, 2013

Page 15: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 16: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Organized and Diversified Player

Large Pool of Quality Faculty

Members

Result Oriented Quality Methods

of Coaching

Corporatized Structure and Experienced

Management Team

No one man show or ‘Star Teacher’ concept 16

Key Differentiators…

Well Recognized Brand &

Experience

7 of top 35 in CA Final

May 2012

20+ students > 90% in HSC + CET

Mar 2012

1,556 scored ≥ 90% in Xth Std. Exam

A.Y 2012

156 Centres at 98 locations in Mumbai

Dec. 31, 2012

Currently operates 51 centres at in Rest of Maharashtra, T.N., Gujarat, Karnataka and Delhi, of which 10 are franchisee centers

1,128 faculty members

300+ faculty Post Graduates (CA, MBA, B.Ed)

Multiple faculty teaching each subject

Continuous training

Increased visibility amongst governments and international educational institutions

Assisted in raising capital from private equity investors

Scientific coaching methods and system

Focus on conceptual knowledge and holistic development

Technology to supplement coaching

176 Assistant Teachers – first to introduce the concept

Dec. 31, 2012

Page 17: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

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.

Value Added Services

Prepared by faculty heads from reference material

Theory and concept of various subjects are addressed in an efficient and simple manner

Unique Study Material

Based on experimental learning

Audio Visual Technology, Animation & Graphics

Conducive environment

Leads to greater retention

Interactive Course Delivery

Close attention to individuals’ needs & helping them in their day-to-day academics

Close monitoring of the attendance

Regular parent-teacher meetings

Close Monitoring and Reviewing

Series of tests and examinations are conducted for each course

Printed model answer paper, along with the marking scheme

Mock board examinations for school section

Tests & Examination Series

COURSE DELIVERY PROCESS

17

…Teaching Methodology

Page 18: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 19: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Growth Strategy

19

Focus on National Level Exams

Entry and expansion into college tie-ups with test prep in college campuses Asset light with lower infrastructure spend than regular centres Helps attract large volumes

Asset light college tie-ups

Pan-India strategy with focus on nationwide common entrance and professional examinations such as CA, IIT JEE Advanced, JEE Mains, CAT, CMAT etc.

Expansion outside Mumbai reducing geographical concentration Future growth expected from Karnataka, Rest of Maharashtra and North India Science & Commerce to increasingly contribute to total revenues

Geographical & Vertical Risk Management

Page 20: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Growth Strategy – School Division

20

Overall market trend moving towards IX-X Combo, IX-X Combo admissions up from ~2,000 in FY 09 to ~6,000 in FY 13

Currently successfully catering to students of Std. VIII via the INK broadband internet model

Commercial launch for Std. V-VIII for Stateboard, ICSE and CBSE all slated for 13-14; Expecting this market to grow rapidly

Expansion in Maharashtra outside Mumbai with expanding in current cities like Pune and Kolhapur and setting up coaching locations in cities like Nashik and Aurangabad

Offering recorded revision lectures for students of Std. X on smartphones, tablets and using DVDs; sale of content expected to have a snowball effect on increasing footfalls at our centres

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

About INK Model: • Two-way communication using a web camera enabling face-to-face interaction with the faculty • Allows doubt solving and basic testing and evaluation over the internet • Limited classroom based coaching and counselling

Page 21: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Growth Strategy – Science Division

21

Launch of coaching for JEE Advanced (IIT Entrance Exam) in Mumbai under the brand ‘Lakshya’

Signed Share Purchase Agreement with Promoters of Lakshya Forum Competitions Pvt. Ltd. (Lakshya) agreeing to buy 51% stake in Lakshya with an option to acquire the balance stake in 2015-16

Plans to launch JEE Advanced coaching in Karnataka in the next two years

About Lakshya: • Lakshya provides coaching to students appearing for IIT and medical entrance examinations • Founded by four IITians, Lakshya started operations in 2006 in Patiala and currently operates from 4 centres in Punjab and Haryana • 2,200+ students serviced for FY 12-13 • Lakshya planning to expand in North Indian states of Punjab, Haryana, J&K, Himachal Pradesh and UP

Tremendous Scope for growth in the state of Karnataka under the Pre-University (PU) College Tie-up Model

PU College Model: • Coaching for engineering and medical test prep in college premises; every college student is a student enrolled with MT Educare for test prep

State of the art PU college at Mangalore with a capacity of 3,000 students ready, and a hostel facility with a capacity of 1,000 students, getting ready

Currently have 5 college tie-ups across Karnataka, including Mangalore, with plans for additional 5 in the next academic year

Proposing to tie-up with 30 colleges in the next 5 years

Page 22: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Growth Strategy – Commerce

22

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

Batches for CA already started at Delhi and Rajkot

Planning in Pune, Ahmedabad and cities in North India

Starting batches for CS-Executive examination from next academic year

Increasing the reach of Commerce offering for junior college students in Mumbai by rolling out batches at 20 new/existing centres in Mumbai

Launch of University, Vocational and Affiliated (UVA) programme with focus of creating employable graduates and bridging the gap between skills imparted by basic graduation and skills required by current professions

Currently have a tie-up with Bunts Sangha College, Mumbai to provide coaching to B. Com students along with UVA courses, CA-IPCC or MBA Test Prep; plans on expanding MT Educare’s footprint via college tie-up model

Coaching for CAT/CMAT under brand ‘CPLC’ to be taken outside Mumbai

Page 23: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 24: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Board of Directors

He has over 27 years of experience and holds a bachelor’s 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

Mahesh Shetty (Chairman and MD)

24

A Non Independent, Non Executive Director of our Company. He has been associated with our Company since its incorporation. He holds a bachelor’s degree in mechanical engineering from the University of Madras. He has 23 years of experience in the education sector.

Naarayanan Iyer (Non Executive Director)

She holds a bachelor’s degree in dental sciences, a bachelor’s degree in law and a post graduate degree in management education from IIM, Calcutta.

She 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

Chhaya Shastri (Non Executive Director)

He holds a bachelor's degree in engineering from the Indian Institute of Technology, Mumbai and a post graduate diploma in management from the Indian Institute of Management, Ahmedabad.

He has 12 years of experience in private equity investing. He is the founder of the health food service “Calorie Care”.

Cyrus Driver (Independent, Non Executive

Director)

She is a fellow chartered accountant of ICAI and holds a bachelor’s degree in commerce from Sydenham College of Commerce and Economics, Mumbai.

She 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.

Drushti Desai (Independent, Non Executive

Director)

He holds a bachelor’s degree in engineering from Veermata Jijabai Institute of Technology, Mumbai and a master’s degree in management studies from Jamnalal Bajaj Institute of Management Sciences, Mumbai.

He 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.

Yatin Samant, (Independent, Non Executive

Director)

He holds a master’s degree in marketing management from the University of Mumbai and a doctorate degree in physical chemistry from the Institute of Technology Mumbai.

He 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.

Uday Lajmi (Independent, Non Executive

Director)

Page 25: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Key Management Personnel

25

Anish Thakkar (Business Head-

Commerce Section )

Chandresh Fooria (Business Head- Science Section )

Sujeet Koyoot (Business Head-

Karnataka )

Murali Subramanian

(Business Head- Pune)

Shrenik Kotecha (Business Head-

UVA)

He is a member of the Institute of Chartered Accountants of India. He joined MT Educare in 2003 and has over 16 years of experience.

He holds a bachelor’s degree in engineering (instrumentation) from the Swami Vivekananda College of Engineering, Mumbai.

He has over 18 years of experience in the field of teaching and administration.

He holds a bachelor’s degree in science and education and a post graduate degree in science (electronics) from the University of Mumbai.

He has over 13 years of experience in the field of teaching and administration.

He holds a bachelor’s degree in engineering (electronics) from University of Mumbai. He has over 14 years of experience and has been associated with the company since its inception.

He holds a master’s 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. He has special expertise in mentoring students, business networking and new business development.

Page 26: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Key Management Personnel

26

Vipul Shah (Business Head-

Gujarat )

Mahtab Khan (Business Head-

CSR and INK )

Parag Chitale (Business Head -

MBA)

Yagnesh Sanghrajka

(CFO)

Ashwin Patel (Company Secretary

and Compliance Officer)

He holds a master’s in business administration (MBA) from Jamnalal Bajaj Institute of Management Studies (JBIMS)

He has over 18 years of experience especially in the services sector, in financial strategy planning, investor relations, management information reporting and corporate finance.

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

He is a member of the Institute of Company Secretaries in India and has a bachelor’s degree in law from Mumbai University and has over 20 years of experience

He holds a bachelor’s degree in computer engineering University of Mumbai and has completed masters in marketing management.

He also looks after marketing at MT Educare Ltd.

He holds a bachelor’s degree in science and education and a post graduate degree in science (electronics) from the University of Mumbai.

He has been associated with the company since incorporation

Page 27: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi
Page 28: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Key Financials

Revenue (INR Mn) EBITDA (INR Mn)

PAT (INR Mn) Networth (INR Mn)

45

732832

1,055

1,306

0200400600800

1,0001,2001,400

FY 08 FY 09 FY 10 FY 11 FY 12

-21

92 125

190 231

-36%

13% 15% 18% 18%

-40%

-20%

0%

20%

40%

-100

0

100

200

300

FY 08 FY 09 FY 10 FY 11 FY 12

EBITDA EBITDA Margins

-2926 52 81

132

-64%

4% 6% 8% 10%

-100%

-50%

0%

50%

-50

0

50

100

150

FY 08 FY 09 FY 10 FY 11 FY 12PAT PAT Margins

28

315 358 411 476 571

-9%

7%13%

17%23%

-10%

0%

10%

20%

30%

0

200

400

600

FY 08 FY 09 FY 10 FY 11 FY 12

Networth RoE

Note: The financial statements of Financial year 2008-09 are not comparable with Financial year 2007-08 due to amalgamation of the Company, Mahesh Tutorials Private Limited (MTPL), Mahesh Tutorials Commerce Private Limited (MTCPL) and Mahesh Tutorials Science Private Limited (MTSPL). All the assets and liabilities of erstwhile MTPL, MTCPL, MTSPL stand transferred to and vested with the Company effective from April 1, 2008.

FY 09-12: 21% CAGR

FY09-12: 71% CAGR Net worth as of Dec. 31, 2012: INR 1040 Mn

Page 29: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

QUARTERLY AND 9M FINANCIALS – CONSOLIDATED

29

Particulars For the quarter

ended 31st December 2012

For 9 months ended 31st

December 2012

For year ended 31st March, 2012

Fee Income 3,696.08 11,739.83 12,715.34

Other Operating Income 234.99 476.06 342.01

Total Revenue 3,931.07 12,215.89 13,057.35

Direct Costs 1,967.61 6,195.66 6,977.15

Personnel Costs 570.47 1,694.64 1,798.68

SD&A Costs 593.40 1,801.58 1,971.13

EBIDTA 799.59 2,524.02 2,310.39

Finance Costs - - 4.79

Depreciation 221.75 613.81 781.63

Other Income 116.99 384.36 396.75

PBT 694.83 2,294.57 1920.72

Income Tax 223.99 672.04 636.73

PAT (Before Minority Int.) 470.84 1,622.53 1,284.00

Minority Interest (15.14) (14.58) (39.19)

PAT 485.98 1,637.11 1,323.19

INR in Lakhs

Lakshya Forum for Competitions Pvt. Ltd. (Lakshya) will be consolidated w.e.f. April 1, 2013

Page 30: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

Seasonality of Business

30

Strong seasonality in Revenues and Margins due to diverse product offerings across quarters

Q1

Q2

Q3

Q4

Apr - Jun

Jul - Sep

Oct - Dec

Jan - Mar

21%-23%

20%-22%

24%-26%

32%-34%

Fees % Key Contributors to Fee Income

IX, X (PY and CY batches), XII + Test Prep (PY Sci. and Comm. batches)

IX, X (PY and CY batches), XI + Test Prep (CY Sci. and Comm. batches), XII + Test Prep (PY Sci. and Comm. batches)

IX, XI + Test Prep (CY Sci. and Comm. batches), XII + Test Prep (CY Sci. and Comm. batches)

X (CY batches), XII + Test Prep (CY Sci. and Comm. batches), Higher CA

Expenses being more or less fixed in nature are spread evenly across quarters

Accordingly, margins in Q2 and Q3 are significantly higher than Q1 and Q4

* PY Batches represents batches commenced in previous fiscal and completed in current fiscal. CY batches represents batches commenced in current fiscal and completed either in current fiscal or subsequent Fiscal/Fiscals. Large majority of CY batches begin start from Q2 onwards.

Page 31: Investor Presentation - MT Educaressc.maheshtutorials.com/images/investor/q3.pdfGeographical presence in five states including Maharashtra , Karnataka, Tamil Nadu, Gujarat and Delhi

31

Division Wise Revenue - Consolidated

9m FY 12-13 FY 11-12

Revenue (INR in lakhs) 3,201 3,263

No. of Students Serviced*

12,933 14,524

Centres at period end 45 38

Scie

nce

9m FY 12-13 FY 11-12

Revenue (INR in lakhs) 2,352 2,639

No. of Students Serviced*

19,830 20,236

Centres at period end 41 37

Com

mer

ce

9m FY 12-13 FY 11-12

Revenue (INR in lakhs) 5,604 6,004

No. of Students Serviced*

32,880 31,774

Centres at period end 104 97

Scho

ol

*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.

9m FY 12-13 FY 11-12

Revenue (INR in lakhs) 213 252

No. of Students Serviced*

1,819 1,483

Centres at period end 7 3

CPLC

Others consists of income from management fees, Dubai, Govt. Projects, Global Champs & Franchisee Income.

9m FY 12-13 FY 11-12

Revenue (INR in lakhs) 846 900 Oth

ers 9m FY 12-13 FY 11-12

Total Students Serviced 67,462 68,017

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32

Key Balance Sheet Trends

(1,683)

(2,778) (2,994)

(2,623)

(3,038) (3,263)

(3,807) (3,870)

(4,899) (4,921)

(6,000)

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

- FY 08-09 FY 09-10 FY 10-11 FY 11-12 Q2 FY12-13

INR

in L

akhs

Net Current Assets (Excluding Cash & Cash Equivalents & Investments in Mutual Funds)

Advance Fees

Operating at negative working capital

Utilization of IPO Proceeds: Out of INR 3,500 lakhs raised via the Initial Public Offer (IPO), as of December 31, 2012 INR 2,878.59 lakhs have been utilized towards the objects of the issue.

Cash and Bank Balances: Cash and bank balances including fixed deposits and liquid / debt mutual funds –INR 4,774 lakhs, which is sufficient for fuelling future growth / expansion plans.

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INR Mn FY09 FY10 FY11 FY12 Total Operating Income 732 832 1055 1306

Total Income 753 858 1076 1346

EBITDA 92 125 190 231

EBITDA Margins 13% 15% 18% 18%

Profit Before Tax 37 70 128 192

PBT Margin 5% 8% 12% 15%

PAT 26 52 83 132

PAT Margins 4% 6% 8% 10%

Networth 363 411 476 571

Growth Rate* 14% 13% 16% 20%

Capital Employed 413 411 521 571

RoE * 6% 13% 16% 23%

Historical Financials

33

Note: The financial statements of Financial year 2008-09 are not comparable with Financial year 2007-08 due to amalgamation of the Company, Mahesh Tutorials Private Limited (MTPL), Mahesh Tutorials Commerce Private Limited (MTCPL) and Mahesh Tutorials Science Private Limited (MTSPL). All the assets and liabilities of erstwhile MTPL, MTCPL, MTSPL stand transferred to and vested with the Company effective from April 1, 2008.

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Shareholding Pattern as of December 31, 2012

35

Category % Share-holding

Promoter & Promoter Group 42.9

Directors/KMP 10.8

Mutual Funds / FI /FII / Banks 14.8

Bodies Corporate 7.0

Large / Small Individual Investors 24.5

Total 100.0

43%

11% 15%

7%

24%

Promoter & Promoter Group Companies

Directors/KMP

FII / FFI / FIs / Banks / MF

Bodies Corporate

Individuals

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Thank You

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38

Our Brands

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Management Organisation Chart

39

MD

Business Head (Science)

Business Head (Commerce)

Business Head (PU College)

Business Head (New Ventures) CFO

Steering Committee (Science)

Steering Committee (Commerce)

Steering Committee (School)

Zonal / Regional Head

Centre Head

Centre Co-ordinator

Centre Administrator

Counselor

Sub-staff

Dubai Internet Based

Coaching

UVA, etc.