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1 5    J U L ’ 1 2         –    2 9     J U L ’ 1 2                                            EduTrackResearch4India     ...
EduTrackInvestment Activity                  PE Deals in 2012                                                             ...
EduTrack News and Policy UpdateIIT Bombay      accepts    common      entrance        Pearson and Government of Assam laun...
EduTrackeducation to distance learning, arguing this will      decision in consultation with the ministry on allcompromise...
EduTrackannounce first-ever project to expand itspresence in the GCC’s Dh238 billion ($65billion) education sector. The di...
EduTrack   Stock Market Update   Share Price Performance                                        Market Cap                ...
EduTrackFour-S Services Pvt Ltd Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and ob...
EduTrackDisclaimerThe information contained herein has been obtained from sources believed to be reliable but is not neces...
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Four s fortnightly education track 15th july - 29th july 2012


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Four s fortnightly education track 15th july - 29th july 2012

  1. 1. 1 5 J U L ’ 1 2 – 2 9 J U L ’ 1 2 EduTrackResearch4India Fortnightly update on Education Industry In The Spotlight ContentsIIT classroom content to be available onYoutube Education hub News of the fortnight 1A large spread of the classroom content of the IndianInstitutes of Technology (IITs) will now be available Investment Activity 2over the Youtube. National Programme on TechnologyEnhanced Learning (NPTEL), an initiative by IITs andministry of human resource development is readying News and Policy Update 3an offering of 1,200 courses by December.NPTEL currently offers ~450 courses across various Corporate Update 4disciplines of which 250 are through free videolectures. NPTEL has 9,600 videos of about an hours Stock Market Update 5duration each for these 250 courses. The subjectsrange from electronics, mechanical, aerospace to civilengineering. The content is delivered by ~1,400 Peer Benchmarking 6faculty members from across seven IITs and IISc.Though NPTEL offers its courses free of cost, its About Four-S Services 7faculty members get an honorarium of up to `0.25mn for each course which typically consists of 40video lectures of an hours durationNPTEL was launched in 2003 as IITs tried to addressthe huge demand-supply gap of PhDs and scarcity of About Research4Indiaquality teachers in the country. The HRD ministrycame forward with an initial funding of ` 150mn in Research4India is the research2003, another ` 50mn in 2007 and an additional ` services arm of Four-S Services Pvt960mn in 2009. It started with pre-recorded lectures Ltd. Here we provide regular researchon their website, followed by educational channel reports on key sectors of the IndianEklavya, besides offering online content on their economy, and large unlistedwebsite and DVDs. companies in these sectors. These reports will be available on our upcoming site, as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc. Research4India is the research services arm of Four-S Services Pvt Ltd, a leading provider of high-end research, financial consulting and Investment banking services. For subscription / custom queries, please contact Seema Shukla at
  2. 2. EduTrackInvestment Activity PE Deals in 2012 Stake AmountDate Investor(s) Target Business Stage (%) ($Mn) Your Kids R Our Pre-Schools/K-15-Jun-12 Kaizen NA 3.6 Growth Kids 12 Schools IFC, Proparco and20-Jun-12 Educomp NA 50.0 Diversified Late Mount Kellet Edubridge Learning Vocational/Skills26-Jul-12 Acumen Fund NA 0.3 Early Private Limited Development Mergers & Acquisitions in 2012 Stake AmountDate Acquirer Target Targets Business (%) ($Mn) The Indian Public South Hills Pre-Schools/K-125-Jul-12 100% 10.0 School Academy Schools Ma Foi Strategic Vocational/Skills26-Jul-12 Axis-V 51.0% NA Consultants Development26-Jul-12 HCL Infosystems Edurix 100% NA Content development M&A Deals PE Investments Total Transaction Value (in $m n) Investm ent Am ount (in $m n) No. of Deals No. of Deals 60 10 180.0 20 9 18 9 160.0 18 50 16 8 140.0 7 13 14 7 120.0 40 In $ mn 12 6In $m n 100.0 79.5 10 30 5 80.0 55.6 8 4 60.0 20 3 6 40.0 4 2 164.9 10 20.0 2 1 10.0 0.0 0 0 0 2011 2012 2011 2012 Research4India 2
  3. 3. EduTrack News and Policy UpdateIIT Bombay accepts common entrance Pearson and Government of Assam launchformat Vocational skills training in SchoolIIT Bombay gave its nod to the common Government of Assam (GoA) and Pearson todayentrance for admission to the undergraduate announced a joint initiative to provideprogramme from 2013 under a format which vocational skills training for young people inwill admit students having top 20 percentile of schools in Assam. This public-privatetheir respective boards. The senate approved partnership (PPP) will serve as a platform forthe IIT councils resolution regarding admission the introduction of the National Vocationalto the IITs based only on rank achieved in Education Qualification Framework (NVEQF), aadvance test subject to condition that selected more ambitious national program to integratecandidates are in the top 20 percentile of skills, training and qualifications in schools. Thesuccessful list of their boards. However, he said GoA-Pearson undertaking is first-of-its kind inthat instead of allowing 150,000 candidates to India.sit in the advance test, they have sought to 89% MBA seats vacant in UP B-schoolsrestrict the figure to about 50,000 students.The resolution is to be vetted by other IITs too In yet another indication of the deterioratingbefore the Joint Admission Board gives its final standards of education in the the country,seal of approval to the format nearly 89% of the total MBA seats in the UP have found no takers. Out of 28,000 seatsCentral Board of Secondary Education offered by 421 colleges, around 3,300 haveplans flexible assessment been filled. And as far as state capital, LucknowThe Central Board of Secondary Education is concerned, the figures are shocking - the city(CBSE) that used to issue blue prints, sample has nearly 55 management colleges, 29 failedquestion papers and marking schemes in all to get a single admission from SEE counselling,major subjects for classes IX and X to provide a single admission has taken place in another 13model template to serve as a guide for entailing colleges while in two colleges, two studentsuniformity in assessment, proper coverage of each have taken admission. Last year, onlythe curricula and validity (and therefore 4,373 students were enrolled in MBA as againstreliability) of assessment has decided to put an 32,228 seats in the state. In the past fiveend to this practice. years, the management colleges have increasedThe board decided to discontinue with this by more than four times. Seeing the drop inprocess after noticing that a large section of number of students in B-schools across thestudents and examiners punctiliously follow country, the All India Council of Technicalthese documents, which results in precluding Education (AICTE) has now imposed a blanketopen-ended approach and diversity in ban on opening of new management colleges.expression, style and content. The blue print Panel suggests imparting Technicalfurther micro-categorises items into difficult, courses through distance learning modelaverage and easy with specific allotment of A government committee tasked to suggestmarks to each category, which again limits the measures to regulate the standards of distanceframing of a particular type of question from a education has recommended that technical andparticular topic/chapter. Moreover, the release professional courses, like engineering, beof blue prints and the sample question papers offered through distance learning mode. The Allindirectly promotes teaching to the test. India Council for Technical Education (AICTE) has been resisting opening up technical Research4India 3
  4. 4. EduTrackeducation to distance learning, arguing this will decision in consultation with the ministry on allcompromise the quality of education in absence important issuesof standards. The panel has suggested puttingin place an effective regulatory before openingup technical education to distance learning. The Corporate UpdateHRD Ministry has accepted the HCL Infosystems acquires educationalrecommendations and asked the AICTE to set content provider Edurixup a committee to formulate such standards. IT firm HCL Infosystems has acquiredEngineering colleges in Gujarat surrender educational content provider Edurix, a move25 per cent management quota that will help strengthen its education andThe 40 self finance engineering colleges in learning business. Edurix is a part of AttanoGujarat have decided to surrender their 25 per Media and Education and designs content forcent management quota. The decision to the K-12 education segment. The businesssurrender the quota was taken as the colleges transfer has been completed and includeswere finding it difficult to enroll students transfer of all fixed assets, intellectual propertyagainst the quota. Officials in the education rights (IPR) and human resources of Edurix.department said that one seat of management The acquisition will help HCL expand the in-quota would be fetching ` 0.2-0.5mn. But this house content capability for HCL Learning andyear since no students were available the supplement its current offerings across variousmanagement has decided to surrender their segments like K-12, higher education andquota and have requested the Joint Admission career development centre. This also brings inCommittee for Professional Courses to admit the capacity to develop and customise contentstudents even on the 25 per cent quota. for tablets, dongles and online platforms. EdurixOfficials said that after the first mock round of has about 160 employees in its two offices inadmission, the college management and JACPC Mumbai and Chennai.officials found that about 12,000 seats were Sesame Street steps into Indian educationfallen vacant as there less students against the businessseats available. There are about 50,000 seats Renowned for teaching kids the basics ofavailable in the state. reading and counting on TV, Sesame Street isCBSE Bill likely to be tabled in upcoming moving to create actual schools in India. TheParliament session company is currently present in Indian marketA bill seeking to make CBSE a statutory body is through its "Galli Galli Sim Sim" show aired onexpected to be tabled in Monsoon Session of kids channels. The company is now venturingParliament even as HRD Minister Kapil Sibal has into the franchising business for pre-schoolsstarted meeting Opposition leaders over other and after-school clubs. Sesame Street schoolspending legislations related to reforms in higher are now being rolled out in Rajasthan andeducation. The passage of the Central Board of western Uttar Pradesh, following its firstSecondary Education (CBSE) Bill will give the preschool in Jaipur. Sesame Workshop aims toBoard more administrative and financial have 20 schools up and running by March 2013,autonomy and widen its functioning. The with plans for 382 within the first five yearsstatutory status will enable CBSE to take its Core Education eyes GCCown decisions through its board of governors.Besides, its orders will have stringent Core Education & Technologies plans to set upimplications after it becomes a statutory body. quality institutions in the GCC as it sees hugeAt present, CBSE is a registered as a society, potential for business growth in the region. The Atlanta-based company, which has alreadyconducting board exams in its affiliated schools. It established its subsidiary in the UAE — Corefunctions directly under the HRD Ministry and takes Education & Consulting Solutions — would soonResearch4India 4
  5. 5. EduTrackannounce first-ever project to expand itspresence in the GCC’s Dh238 billion ($65billion) education sector. The diversifiedbusiness group plans to invest heavily in thetransformation of the region’s educationsegment.Pearson eyes a stake in ManipalUK publishing and media giant Pearson and afew private equity firms have approachedIndias leading education services companyManipal Global for a stake buy. Manipal isseeking to raise debt and equity to buybackexisting financial investors IDFC and CapitalInternational at a valuation in excess of $850million. Manipal Global, in which technologybillionaires Azim Premji and N R NarayanaMurthy too are investors, would need about$150 million after it shelved its initial publicoffering (IPO) plans due to lack of regulatoryclarity and bad market conditions. IDFC andCapital International hold more than 12% stakein Manipal Global. Premji Invest, a proprietaryinvestment fund of Wipro Chairman AzimPremji, may also look at a possible exit. Premji,who invested ` 2bn, hasnt converted it intoequity shares for an under 5% stake. Thecompanys revenue in the ongoing fiscal isestimated at around ` 12bn with an EBITDA ofabout ` 3.5bn The company had earlierexplored listing the company on stockexchanges after investment banks pitched inwith valuations closer to $1.5 billion.Research4India 5
  6. 6. EduTrack Stock Market Update Share Price Performance Market Cap Price Percentage Price Change (`mn) (In `) 1 Week 1M 3M 6M 12M Core Education 32,680 289 0.1% -2.8% 3.0% 12.7% -2.0% Educomp 22,151 154 5.7% 35.3% 18.8% 6.4% -33.2% Navneet 13,340 56 -2.6% -1.3% 1.4% 1.4% -16.5% Tree House 7,380 219 0.9% -1.2% 1.9% 3.0% - Zee Learn 6,831 26 -3.3% 2.6% 27.1% 79.3% 21.5% NIIT Ltd 6,232 38 -9.8% -9.7% -14.2% -10.2% -31.7% MT Educare 3,401 86 -4.0% -3.4% -22.5% - - Aptech 3,298 68 -11.9% -10.0% -9.2% -23.7% -51.2% Everonn 3,018 138 -25.8% -35.0% -39.7% -50.7% -71.5% Career Point 2,566 142 -7.1% -13.0% -24.5% -47.1% -55.7% Compucom 878 11 -5.9% 2.8% -5.5% -30.5% - Edserv 467 18 -12.1% -18.9% -16.4% -57.0% -77.0% Jetking 274 47 1.3% 2.1% -10.5% -21.1% - Financial Benchmarking Quarterly Results – Q4 FY ’12, ending 31st March, 2012 Revenues EBITDA PATFigures in Rs mn Year Ending Fiscal year Quarter Current Last Year % growth Current Last Year % growth Current Last Year % growthEducomp March 2011-12 Q4 5,136 4,887 5% 1,381 2,052 -33% 615 1,457 -58%NIIT Ltd March 2012-13 Q1 1,999 3,148 -36% 114 307 -63% 115 131 -12%Core Education March 2011-12 Q4 4,819 2,977 62% 1,678 1,200 40% 792 703 13%Navneet March 2011-12 Q4 1,181 951 24% 145 145 0% 38 79 -53%Everonn March 2011-12 Q4 898 1,339 -33% -415 518 NA -630 262 NAAptech March 2012-13 Q1 386 464 -17% 28 46 -39% 38 537 -93%Edserv March 2011-12 Q4 77 422 -82% -274 176 NA -154 115 NACareer Point March 2011-12 Q4 216 197 10% 93 64 45% 89 76 16%Compucom March 2011-12 Q4 176 180 -2% 88 104 -15% 16 30 -49%Zee Learn March 2011-12 Q4 203 142 43% -53 1 NA -77 0 NATree House March 2011-12 Q4 221 - 109 - 51 -Jetking March 2011-12 Q4 72 79 -8% 5 13 -58% 1 6 -90% Figures in Rs.`mn Trailing Twelve Months (TTM) Revenues EBITDA PAT % EBITDA % PAT Figures in Rs mn TTM Quarter TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth margin margin Educomp Q4 FY12 14,913 13,509 10% 4,132 5,443 -24% 1,371 3,405 -60% 28% 9% NIIT Ltd Q1 FY13 12,883 12,743 1% 1,282 1,613 -21% 1,086 923 18% 10% 8% Core Education Q4 FY12 16,379 10,912 50% 6,284 3,936 60% 3,231 2,250 44% 38% 20% Navneet Q4 FY12 6,086 5,485 11% 1,403 1,263 11% 804 776 4% 23% 13% Everonn Q4 FY12 3,596 4,247 -15% 351 1,555 -77% -676 676 NA 10% -19% Aptech Q1 FY13 1,666 1,920 -13% 223 204 9% 259 938 -72% 13% 16% Edserv Q4 FY12 857 1,218 -30% -85 563 NA -58 412 NA -10% -7% Career Point Q4 FY12 796 786 1% 284 297 -4% 298 232 28% 36% 37% Compucom Q4 FY12 716 726 -1% 400 398 1% 112 120 -7% 56% 16% Zee Learn Q4 FY12 610 427 43% -245 25 NA -276 19 NA -40% -45% Tree House Q4 FY11 772 392 97% 420 169 148% 217 92 136% 54% 28% Jetking Q4 FY12 333 389 -14% 45 98 -54% 22 67 -68% 14% 7% MT Educare Q4 FY12 1,272 1,051 21% 231 187 24% 128 80 61% 18% 10% Figures in Rs.`mn Research4India 6
  7. 7. EduTrackFour-S Services Pvt Ltd Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and objective advice to top Indian & global companies & PE Firms. Four-S has already proven success in corporate finance, strategy consulting, fund-raising, investment banking and investor relations mandates with 100+ corporates and large PE funds. Four-S, trusted advisor to top Indian & Global Cos Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds Research4India 7
  8. 8. EduTrackDisclaimerThe information contained herein has been obtained from sources believed to be reliable but is not necessarily completeand its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, ismade as to the fairness, accuracy or completeness of any information, projections or opinions contained in this documentor upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liabilitywhatsoever, with respect to the use of this document or its contents. This document has been distributed for informationpurposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities.This document shall not form the basis of and should not be relied upon in connection with any contract or commitmentwhatsoever. This document is not to be reported or copied or made available to others.The company may from time to time solicit from, or perform consulting or other services for, any company mentioned inthis document.For further details/clarifications please contact:Seema Shukla Ajay Ajay.jindal@four-s.comGurgaon Office: Mumbai Office:214, Udyog Vihar, Phase I, 101,Nirman Kendra, Opposite Star TV,Gurgaon – 122016 Off Dr E Moses Road, Mahalaxmi,Tel: +91-124-4251442 Mumbai – 400001 Tel: +91-22-42153659Research4India 8