1. 1 5 J U L ’ 1 2 – 2 9 J U L ’ 1 2
EduTrack
Research4India Fortnightly update on Education Industry
In The Spotlight Contents
IIT classroom content to be available on
Youtube Education hub
News of the fortnight 1
A large spread of the classroom content of the Indian
Institutes of Technology (IITs) will now be available
Investment Activity 2
over the Youtube. National Programme on Technology
Enhanced Learning (NPTEL), an initiative by IITs and
ministry of human resource development is readying News and Policy Update 3
an offering of 1,200 courses by December.
NPTEL currently offers ~450 courses across various Corporate Update 4
disciplines of which 250 are through free video
lectures. NPTEL has 9,600 videos of about an hour's
Stock Market Update 5
duration each for these 250 courses. The subjects
range from electronics, mechanical, aerospace to civil
engineering. The content is delivered by ~1,400 Peer Benchmarking 6
faculty members from across seven IITs and IISc.
Though NPTEL offers its courses free of cost, its
About Four-S Services 7
faculty members get an honorarium of up to `
0.25mn for each course which typically consists of 40
video lectures of an hour's duration
NPTEL was launched in 2003 as IITs tried to address
the huge demand-supply gap of PhDs and scarcity of About Research4India
quality teachers in the country. The HRD ministry
came forward with an initial funding of ` 150mn in Research4India is the research
2003, another ` 50mn in 2007 and an additional ` services arm of Four-S Services Pvt
960mn in 2009. It started with pre-recorded lectures Ltd. Here we provide regular research
on their website, followed by educational channel
reports on key sectors of the Indian
Eklavya, besides offering online content on their
economy, and large unlisted
website and DVDs.
companies in these sectors. These
reports will be available on our
upcoming site
www.research4india.com, 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 seema@four-s.com

2. EduTrack
Investment Activity
PE Deals in 2012
Stake Amount
Date Investor(s) Target Business Stage
(%) ($Mn)
Your Kids 'R' Our Pre-Schools/K-
15-Jun-12 Kaizen NA 3.6 Growth
Kids 12 Schools
IFC, Proparco and
20-Jun-12 Educomp NA 50.0 Diversified Late
Mount Kellet
Edubridge Learning Vocational/Skills
26-Jul-12 Acumen Fund NA 0.3 Early
Private Limited Development
Mergers & Acquisitions in 2012
Stake Amount
Date Acquirer Target Target's Business
(%) ($Mn)
The Indian Public South Hills Pre-Schools/K-12
5-Jul-12 100% 10.0
School Academy Schools
Ma Foi Strategic Vocational/Skills
26-Jul-12 Axis-V 51.0% NA
Consultants Development
26-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 6
In $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. EduTrack
News and Policy Update
IIT Bombay accepts common entrance Pearson and Government of Assam launch
format Vocational skills training in School
IIT Bombay gave its nod to the common Government of Assam (GoA) and Pearson today
entrance for admission to the undergraduate announced a joint initiative to provide
programme from 2013 under a format which vocational skills training for young people in
will admit students having top 20 percentile of schools in Assam. This public-private
their respective boards. The senate approved partnership (PPP) will serve as a platform for
the IIT council's resolution regarding admission the introduction of the National Vocational
to the IITs based only on rank achieved in Education Qualification Framework (NVEQF), a
advance test subject to condition that selected more ambitious national program to integrate
candidates are in the top 20 percentile of skills, training and qualifications in schools. The
successful list of their boards. However, he said GoA-Pearson undertaking is first-of-its kind in
that instead of allowing 150,000 candidates to India.
sit in the advance test, they have sought to
89% MBA seats vacant in UP B-schools
restrict the figure to about 50,000 students.
The resolution is to be vetted by other IITs too In yet another indication of the deteriorating
before 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 seats
Central Board of Secondary Education
offered by 421 colleges, around 3,300 have
plans flexible assessment
been filled. And as far as state capital, Lucknow
The 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 failed
question 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 13
model template to serve as a guide for entailing colleges while in two colleges, two students
uniformity in assessment, proper coverage of each have taken admission. Last year, only
the curricula and validity (and therefore 4,373 students were enrolled in MBA as against
reliability) of assessment has decided to put an 32,228 seats in the state. In the past five
end to this practice. years, the management colleges have increased
The board decided to discontinue with this by more than four times. Seeing the drop in
process after noticing that a large section of number of students in B-schools across the
students and examiners punctiliously follow country, the All India Council of Technical
these documents, which results in precluding Education (AICTE) has now imposed a blanket
open-ended approach and diversity in ban on opening of new management colleges.
expression, style and content. The blue print Panel suggests imparting Technical
further micro-categorises items into difficult, courses through distance learning model
average and easy with specific allotment of
A government committee tasked to suggest
marks to each category, which again limits the
measures to regulate the standards of distance
framing of a particular type of question from a
education has recommended that technical and
particular topic/chapter. Moreover, the release
professional courses, like engineering, be
of blue prints and the sample question papers
offered through distance learning mode. The All
indirectly promotes teaching to the test.
India Council for Technical Education (AICTE)
has been resisting opening up technical
Research4India 3

4. EduTrack
education to distance learning, arguing this will decision in consultation with the ministry on all
compromise the quality of education in absence important issues
of standards. The panel has suggested putting
in place an effective regulatory before opening
up technical education to distance learning. The Corporate Update
HRD Ministry has accepted the
HCL Infosystems acquires educational
recommendations and asked the AICTE to set
content provider Edurix
up a committee to formulate such standards.
IT firm HCL Infosystems has acquired
Engineering colleges in Gujarat surrender
educational content provider Edurix, a move
25 per cent management quota
that will help strengthen its education and
The 40 self finance engineering colleges in learning business. Edurix is a part of Attano
Gujarat have decided to surrender their 25 per Media and Education and designs content for
cent management quota. The decision to the K-12 education segment. The business
surrender the quota was taken as the colleges transfer has been completed and includes
were finding it difficult to enroll students transfer of all fixed assets, intellectual property
against 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 and
year since no students were available the supplement its current offerings across various
management has decided to surrender their segments like K-12, higher education and
quota and have requested the Joint Admission career development centre. This also brings in
Committee for Professional Courses to admit the capacity to develop and customise content
students even on the 25 per cent quota. for tablets, dongles and online platforms. Edurix
Officials said that after the first mock round of has about 160 employees in its two offices in
admission, the college management and JACPC Mumbai and Chennai.
officials found that about 12,000 seats were
Sesame Street steps into Indian education
fallen vacant as there less students against the
business
seats available. There are about 50,000 seats
Renowned for teaching kids the basics of
available in the state.
reading and counting on TV, Sesame Street is
CBSE Bill likely to be tabled in upcoming moving to create actual schools in India. The
Parliament session company is currently present in Indian market
A bill seeking to make CBSE a statutory body is through its "Galli Galli Sim Sim" show aired on
expected to be tabled in Monsoon Session of kids channels. The company is now venturing
Parliament even as HRD Minister Kapil Sibal has into the franchising business for pre-schools
started meeting Opposition leaders over other and after-school clubs. Sesame Street schools
pending legislations related to reforms in higher are now being rolled out in Rajasthan and
education. The passage of the Central Board of western Uttar Pradesh, following its first
Secondary Education (CBSE) Bill will give the preschool in Jaipur. Sesame Workshop aims to
Board 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 years
statutory status will enable CBSE to take its
Core Education eyes GCC
own decisions through its board of governors.
Besides, its orders will have stringent Core Education & Technologies plans to set up
implications after it becomes a statutory body. quality institutions in the GCC as it sees huge
At present, CBSE is a registered as a society, potential for business growth in the region. The
Atlanta-based company, which has already
conducting board exams in its affiliated schools. It
established its subsidiary in the UAE — Core
functions directly under the HRD Ministry and takes
Education & Consulting Solutions — would soon
Research4India 4

5. EduTrack
announce first-ever project to expand its
presence in the GCC’s Dh238 billion ($65
billion) education sector. The diversified
business group plans to invest heavily in the
transformation of the region’s education
segment.
Pearson eyes a stake in Manipal
UK publishing and media giant Pearson and a
few private equity firms have approached
India's leading education services company
Manipal Global for a stake buy. Manipal is
seeking to raise debt and equity to buyback
existing financial investors IDFC and Capital
International at a valuation in excess of $850
million. Manipal Global, in which technology
billionaires Azim Premji and N R Narayana
Murthy too are investors, would need about
$150 million after it shelved its initial public
offering (IPO) plans due to lack of regulatory
clarity and bad market conditions. IDFC and
Capital International hold more than 12% stake
in Manipal Global. Premji Invest, a proprietary
investment fund of Wipro Chairman Azim
Premji, may also look at a possible exit. Premji,
who invested ` 2bn, hasn't converted it into
equity shares for an under 5% stake. The
company's revenue in the ongoing fiscal is
estimated at around ` 12bn with an EBITDA of
about ` 3.5bn The company had earlier
explored listing the company on stock
exchanges after investment banks pitched in
with valuations closer to $1.5 billion.
Research4India 5

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 PAT
Figures in Rs mn Year Ending Fiscal year Quarter
Current Last Year % growth Current Last Year % growth Current Last Year % growth
Educomp 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 NA
Aptech 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 NA
Career 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 NA
Tree 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. EduTrack
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
Research4India 7

8. EduTrack
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, projections or opinions contained in this document
or upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability
whatsoever, with respect to the use of this document or its contents. This document has been distributed for information
purposes 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 commitment
whatsoever. 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 in
this document.
For further details/clarifications please contact:
Seema Shukla Ajay Jindal
Seema@four-s.com Ajay.jindal@four-s.com
Gurgaon 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: +91-22-42153659
Research4India 8