Analyst Meet / AGM - Analyst Meet

07-Dec-2015, 12:48
Capital Market had management meet with Mr. Yagnesh Sanghrajka - CFO of MT Educare, related to future outlook of the company. The management meet was organized by Systematix Shares & Stock under theme of Emerging Idea Conference - 2015

Highlights of the meet:

• The company had serviced 94128 students in H1 FY16.

• The company is present in 149 locations as of September 30^th, 2015.

• The company has developed 4 pronged growth strategy -1) Focus on national level exams; 2) geographical & vertical expansion - expanding in North India, Karnataka, Andhra Pradesh and Telangana for science and commerce; 3) Asset light college tie-up; and 4) Robomate - technology driven growth through sale of digital content.

• The mgmt is more focus on business of Robomate than the class room driven business. Going forward, the company will open less class room instead try to expand the present class room.

• Robomate has highest margin of 32-35%.

• The company sale content to school as well as students also. For school the company takes 50% money upfront while rest 50% comes after 6 months.

• The mgmt said that its EBIDTA margin to go upto 25-26% in next 4-5 years with pick up in content business.

• The company's revenue from content business in H1 FY16 was Rs 18 crore. Its growing at CAGR of 40-50% on lower base.

• In 2014, the company has entered into a long term partnership arrangement with Sri Gayatri Educational Society. The mgmt said that its strategy for entering in Andhra Pradesh and Telenga state. The company has invested Rs 43 crore in Gayatri, which has a student around 35000 and had top-line of Rs 150 crore.

• The company saw rise in trade receivables due to receivables from content sold to school and receivables from Government.

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