four-s weekly edutrack 16th may - 22nd may,2011

8/6/2019 Four-S Weekly Edutrack 16th May - 22nd May,2011

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Research Desk

ContentIn the Spotlight

In the Spotlight 1

Investment Activity 2

News & Policy Update 3

Corporate Developments 4

Stock Market Update 5

Peer Benchmarking 5

About Four-S Services 6

Vol. XXXIII, 16th May ’ 11 – 22nd May ’ 11

Four-S EDUTRACK

W W eeeek k l l y y U U p pd d aat t ee oonn I I nnd d i i aann E E d d uuc c aat t i i oonn SSeec c t t oor r

About Four-S Services

Four-S Services is India's leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and

Bangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of

decision making and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of

industries including Education, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etc

Our Services:

Strategy Consulting

Business Planning

Investment Banking

For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com

Research Support

Valuation Services

Investor Relations & IPO Consulting

Govt may allow education bodies to float bonds

The ministry of human resource development (MHRD) is considering

allowing educational institutions to float bond issues for fund

generation. The government is also contemplating National Education

Finance Corporation (NEFC), which can also tap such resources. A

comprehensive strategy for the scheme will be worked out for the 12th

Five Year plan.

However, to allow Indian universities to raise money via bonds, some

important changes will be required. Educational institutions in India

can be set up only by trusts, societies or companies. For a long time,

the Centre has been experimenting with ideas to plug the funding gap

in higher education. The move may require modifications in the

Companies Act, especially those relating to the formation of

companies under Section 25, as well as state laws relating to the way

charitable trusts are allowed to function.

Internationally, donation of land and shares are accepted by

universities to help create an endowment. Universities in the US and

the UK, including Harvard, Stanford, Cambridge and Princeton, meet

their financial needs and finance important projects cheaply via bond

issues. These universities need ratings from a credit agency while

going for the bond issue.

Getting a rating from credit rating companies will compel educational

institutions to be more careful about their investment plans, as well as

cash flows. The latter will require educational institutions to increase

their fees or trim their offerings as and when required, in order to

remain financially attractive and get a good rating.

A good rating, in turn, allows educational institutions to

avail of loans at a cheaper rate.

Rating agencies, including CRISIL and CARE, have already

begun rating B-schools in India. Going ahead, CARE may

also rate engineering colleges in the country. The move

may allow educational institutions to offer their assets,

including their corpus, as collateral for meeting important

investment outlays.

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Research Desk

Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for

prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE

Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com

FOUR-S EDUTRACK

Investment activity

Date Investor(s) Target Stake (%) Amount ($Mn) Business Stage

7-Apr-11 Matrix PartnersMaharana Infrastructure

& Professional ServicesNA 11.1 Education Services Growth

19-Apr-11Norwest Venture Partners,

IDG Ventures & Kaplan

iProf Learning Solutions

India Pvt. LtdNA 6.0 E-Learning Early

3-May-11ON Mauritius, Matrix Partners

India & Foundation Capital

Tree House Education and

Accessories Pvt. LtdNA 4.3

Pre-Schools/K-12

SchoolsGrowth

Date Acquirer Target Stake (%) Amount ($Mn) Target's Business20-Sep-10 Core Projects & Technologies Keenan & Keenan Group NA 10 Education Services

17-Jan-11 Pearson Tutorvista 59% 127 Tutoring/Test Prep

25-Feb-11 Educomp Solutions Gate Forum Educational Services NA NA Test Prep

136.354.5

9

7

0

1

2

3

4

5

6

78

9

10

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

YTD'10 YTD'11

I n $ m n

Year-to-date PE InvestmentsInvestment Amount (in $mn) No. of Deals

Four-S Indian Private Equity Report-2010

Year 2010 saw Private Equity (PE) investments in India turn the corner, recovering to reach $8.13bn across 328 disclosed transactions from the

low of $4.25 bn across 250 deals made in 2009 – a healthy rise of ~90%. In fact, the past five years have seen a wild roller coaster ride for PE

investments in India - with the good times being in 2007 when investments crossed a huge $19bn, only to see an equally sharp and heart-

wrenching fall in 2009. PE players in India spent 2010 doing what they were supposed to do – putting money to work and showing meaningful

returns to LPs before they could bargain for fresh funds. Four-S Annual Report provides a detailed analysis.

*Only last 3 PE deals and M&A deals have been highlighted above

Private Equity

Mergers & Acquisitions

10.3

160.3

6

3

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140160

180

YTD'10 YTD'11

I n $ m n

Year-to-date M&A Deals

Total Transaction Value (in $mn) No. of Deals



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Research Desk




FOUR-S EDUTRACK

News Update & Policy Developments

RBSE seeks funds to link schools with Eduset

Rajasthan Board of Secondary Education will see a complete

makeover in coming years. The board has sent a proposal to

the Centre seeking funds to link every government school

with Eduset. Eduset is also known as education satellite

exclusively for education. The cost of the project is estimated

to be around `5bn.

The Union and state government will together bear the cost

of this project. The board has decided to make one

conference hall for a cluster of 100 schools, where the

students can get access to quality education from the national

framework. In the first phase, one conference hall will be

made for a cluster of schools but gradually, the number of

such halls would be increased. These online conferences

would also be an answer to the faculty crunch, especially in

rural areas.

Grades to fix technical college fee

According to the new policy being proposed by the AP state

government, colleges with higher ‘grades’ will command a

higher fee and colleges with poor grades will have a low fee

structure. Maharashtra has a similar policy, where fee

structure differs from college to college based on the quality

of faculty, infrastructure and other facilities offered tostudents.

The state government has decided to grade the engineering

colleges as A, B, C and D from the top, based on the quality of

faculty, infrastructure and facilities they offer, and it plans to

link the fee structure with the grades. The state already has

the highest number of engineering colleges in the country

(707) and an intake of 2.85 lakh seats.

SC ruling on unrecognized medical courses

Medical students who do part of their study from anunrecognized Indian college cannot be denied recognition if

they have completed remaining part of their study in a foreign

country from a recognized institution, the Supreme Court has

ruled. A bench of justices R V Raveendran and A K Patnaik

dismissed the Medical Council of India's (MCI) contention that

allowing such students to practice would open the Pandora‘s

Box for unscrupulous medical colleges to operate in India

without recognition. The apex court said if a student has done

his entire course from an unrecognized medical college in

India, then he or she would not be entitled to practice.

AICTE to create database to facilitate student-industry interaction

The All India Council for Technical Education (AICTE) is in the

process of creating a database of final year students studyingacross various technical institutes in the country, which will be

linked to an industry database, to create jobs opportunities.

This will include students of management, engineering,

architecture, pharmacy, computer application and hotel

management among others.

There will be a standard format of curriculum vitae (CV) and

students’ details will be fed into the database, which will be

available on the AICTE website. For instance, as per their

qualification and area of interest, students will be able to

mark their resume to a particular industry. Simultaneously, a

company will be able to raise a query or post its requirement

and select students who fit the job. The AICTE is tying up with

the Confederation of Indian Industry (CII) for this initiative.

Currently, the Council has a database of 8,000 industries as

part of this project.

GU seeks to start India's first dual degree system

The Gujarat University has, in a proposal to the University

Grants Commission (UGC), demanded that it should be

allowed to confer two degrees simultaneously to its students.

Inspired by the tenth plan of UGC that propagates paralleleducation system, the Gujarat University (GU) vice-chancellor

(V-C) has sought permission to give dual degrees. At present

no university in the country as per the UGC norms can allow a

student to study for two degrees simultaneously, though the

existing rules permit students to take up a degree course and

a diploma course together.

HRD approves AKU statutes

Aryabhat Knowledge University (AKU), the newly set up

technical university in Bihar got its statutes approved by thestate government. Draft statutes governing its executive

business, duly approved by the university court were

submitted to the HRD department more than two months

back for its approval. The process of affiliation of existing

medical and engineering colleges in the state with this

university would start soon. All the technical institutions

would have to get themselves delinked from their parent

universities and affiliated to AKU.



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Research Desk




FOUR-S EDUTRACK

Corporate Development

Bosch announces €22.8mn euro higher education funding for India

Announcing a €22.8mn higher education funding for India,Bosch is setting up a "Robert Bosch Centre for Research in

Cyber Physical Systems", at the Indian Institute of Science

(IISc.) This would be a first-of-its-kind research centre and

would promote applied research in the chosen domains of

cyber physical systems, mobility solutions and renewable

energy, the company said in a statement. The centre would

create an ecosystem of research and working environment for

future engineers, and support the entire industry through

contract research projects. Internationally renowned

Fraunhofer-Gesellschaft would support the ten-year

development project.

Jadavpur University launches financial planning courses

The Centre for Rural & Cryogenic Technologies, Jadavpur

University, one of the most prestigious universities in India,

has announced its partnership with International College of

Financial Planning (ICoFP), one of India’s premier institutes for

careers in financial services. Through this partnership ICoFP

would impart job oriented education to prospective students

under the monitoring and guidance of Jadavpur University.

The Program selected for the same is Post Graduate Diplomain Financial Planning TM (PGDFP), which will be jointly

certified by the two affiliates. PGDFP is a one-year full time

program which will train young graduates for a financial

services career.

Navneet Publication eyes inorganic acquisition prospects

Navneet Publication, a market leader in the publishing and

stationary business is eyeing acquisitions in content-related

services and tutoring business.

Sharda University bags ‘Best Private University’ award

Sharda University was recognized and awarded as the ‘Best

Private University’ at the recently held Indian Education

Awards 2011. Sharda University, an institute of excellence,

inspiring value-based education, research and development,

was recognized and awarded as the ‘Best Private University’

at the recently held Indian Education Awards 2011. Indian

Education Awards 2011 were organized by Franchise India.

Tata McGraw-Hill launches CAT ONLINE

Tata McGraw-Hill Education, the market leading provider of educational materials in India since 1970, today announced a

path breaking innovation for all CAT aspirants across the

country. The company launched CAT ONLINE- a unique

augmented product that integrates the print, electronic,

online and mobile medium for preparation for CAT. Priced at

a reasonably affordable `1295/-, the educational aid is the

first of its kind in the country to integrate all conceivable

forms of training.

The product consists of a printed book, a CD, live classroom

training and mobile support for training for CAT. The printed

book is a comprehensive support system for the CAT

aspirants with coverage of all sections supported by plenty of

practice exercises. The CD has tips and techniques video by

Arun Sharma, recorded classes, mock tests and a

walkthrough on how to join the online classes. The online

resource at www.mindworkzz.in has 30 hours live classroom

sessions and access to further classes. mConnect is a mobile

support in a dynamic testing environment, easy to download

application, with features like time schedule, negative

marking among others

BSE Training Institute Ltd. inks MOU with Indian Institute of

Management Indore

BSE Training Institute Ltd. signed MOU with Indian Institute

of Management Indore (IIM Indore) on 18th April 2011 for

launching PG Certificate Program in Capital Markets and

other certificate programs in Mumbai. BTI backed by Bombay

Stock Exchange Ltd., Asia's oldest exchange, is the only

educational institute in the country offering this specialized

course specifically designed for the study of Financial

Markets for working professionals. The classes will be held at

BTI's premises in BSE and the program shall commence in

June 2011.



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Research Desk




FOUR-S EDUTRACK

Stock Market Performance

Peer Benchmarking

Market Cap Price

(` mn) (In ` ) 1 Week 1M 3M 6M 12M

Educomp 39,930 416 -5.7% -9.5% -14.5% -33.7% -13.4%

Everonn 10,799 567 1.5% -15.3% -5.2% -17.5% 99.9%

NIIT Ltd 9,246 56 2.6% -0.4% 8.5% -5.5% -9.8%

Aptech 4,630 95 -4.7% -14.8% -8.7% -34.4% -22.9%

Edserv 2,252 145 4.1% -3.4% -0.2% -28.6% -1.8%

Navneet 14,709 62 -4.0% -7.0% 15.5% -2.7% 27.8%

Core Projects 32,439 294 -0.7% -4.6% 3.9% 11.6% 49.0%

Career Point 5,910 326 -1.9% -4.3% -9.5% -20.5% -

Greycells 225 38 -6.7% -6.0% 10.5% -45.0% -30.5%

Compucom 1,650 21 -0.9% 12.0% 16.1% -12.6% 102.1%

Jetking 621 105 -1.4% -7.5% -12.2% -26.9% -23.3%Visu Intl. 111 3 -5.8% -19.9% -5.2% -37.4% -36.4%

Percentage Price Change

Q3 FY’10 Q3 FY’11 YoY Q3 FY’10 Q3 FY’11 YoY Q3 FY’10 Q3 FY’11 YoY EBITDA NPM

NIIT 2950.0 3237.0 10% 475.0 405.0 -15% 247.0 378.0 53% 13% 12%

Educomp 2601.0 3575.2 37% 1493.8 1650.1 10% 611.9 967.1 58% 46% 27%

Core Projects 2198.8 2942.7 34% 707.2 1052.1 49% 410.0 579.1 41% 36% 20%

Navneet 1006.1 950.7 -6% 162.9 167.9 3% 81.0 79.0 -2% 18% 8%

Everonn 799.2 1152.7 44% 280.1 439.2 57% 121.5 189.5 56% 38% 16%

Aptech 302.5 471.1 56% 51.1 61.3 20% 26.2 33.4 27% 13% 7%

Edserv 155.2 311.6 101% 76.8 147.2 92% 56.4 115.4 105% 47% 37%

Career Point 171.9 197.0 15% 81.6 108.4 33% 52.8 76.5 45% 55% 39%

Compucom 146.4 207.5 42% 75.0 116.9 56% 19.6 25.8 32% 56% 12%

Jetking 103.8 93.6 -10% 38.0 29.1 -23% 25.0 19.1 -24% 31% 20%

Visu 82.6 52.8 -36% 20.0 22.3 12% 4.9 2.1 -57% 42% 4%

Greycells 22.3 24.7 11% 4.1 4.8 15% 1.8 4.3 138% 19% 17%

Revenue EBITDA PAT Margins Q3 FY’11Companies

YTD FY'10 YTD FY’11 YoY YTD FY'10 YTD FY’11 YoY YTD FY'10 YTD FY’11 YoY EBITDA NPM

NIIT 11993.0 12483.0 4% 1569.0 1593.0 2% 702.0 922.0 31% 13% 7%Educomp 7074.5 8621.9 22% 3366.7 3495.9 4% 2109.4 1910.1 -9% 41% 22%

Core Projects 6079.0 7934.6 31% 2017.6 2865.9 42% 1183.6 1547.4 31% 36% 20%

Navneet 2607.6 2688.5 3% 412.1 477.0 16% 200.4 238.1 19% 18% 9%

Everonn 1889.6 2908.2 54% 694.4 1036.5 49% 289.7 414.3 43% 36% 14%

Aptech 989.2 1462.6 48% 224.1 227.5 2% -206.9 117.1 NA 16% 8%

Edserv 313.3 800.0 155% 167.7 368.1 119% 118.3 275.3 133% 46% 34%

Career Point 616.6 786.2 28% 300.7 404.7 35% 198.7 273.7 38% 51% 35%

Compucom 471.7 540.1 14% 251.4 302.6 20% 75.4 90.2 20% 56% 17%

Jetking 348.2 310.6 -11% 129.8 102.2 -21% 75.1 61.9 -18% 33% 20%

Visu 240.5 151.0 -37% 53.8 57.8 7% 16.4 5.0 -70% 38% 3%

Greycells 76.5 109.8 43% 5.9 -8.6 NA 0.0 -40.7 NA -8% -37%

Companies Revenue EBITDA PAT Margins YTD FY’11

Figures in ` millions, consolidated financials


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Research Desk

Four-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



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Research Desk




FOUR-S EDUTRACK

About Four-S Services

Four-S Services provides customized business and financial research to organizations across the globe. The

company also provides Investor Relations consulting to corporate based on in-depth sectoral and company

research. The company has an impressive client profile and a team of senior analysts covering key sectorsincluding Finance & Banking, IT & Telecom, Retail, Media & Entertainment, Pharmaceuticals, Infrastructure

and Manufacturing amongst others. For further information on the company please visit www.four-s.com

Disclaimer

The information contained herein has been obtained from sources believed to be reliable but is not

necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or

undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information,

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four-s weekly edutrack 16th may - 22nd may,2011

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