The end product of education should be a free creative man, who can battle against
historical circumstances and adversities of nature.
Dear Shareholders,
Education is a crucial prerequisite to instil curiosity, confidence and a free creative
spirit, undeterred by fear of circumstances. It is a powerful equaliser, which helps
create an enlightened society. At MT Educare, we align ourselves with India's focus on
building a knowledge-driven economy. We endeavour to create a 'Knowledgeable India' by
igniting the untapped potential in the education sector, 'nurturing the future' of young
minds and enriching learning.
Our financial and operational performance
The impact of coronavirus pandemic on India has been largely disruptive in terms of
economic activity as well as loss of human lives. We, at MT Educare, remained resilient
and progressed with focus and fortitude. The total consolidated revenue for the year FY22
stood at Rs.6,803 lakhs as against Rs.11,308 Lakhs in FY21. The decrease in revenue can be
attributed primarily to the sharp decline in enrolment in our coaching business.
During FY22, we achieved a total student count of 12,965, even in a COVID impacted
year. We went back to offline coaching after the adverse impact of the pandemic gradually
waned. We reopened 51 centres in Mumbai and 1 in Patiala. We launched 3 franchises in
partnership with EKAM in Ajmer, Jodhpur and Ranchi and tied up with 4 financing partners
to expedite our collections from students. Our focus on recovery enabled us to receive
Rs.863.7 Lakhs from Government projects during the reporting year.
During the year gone by, we initiated the business integration and transformation by
making Mr. Ashwini Kumar Nijhawan the business head to lead all our three verticals to
bring in synergies in operations across centres 55 thus optimising people cost and other
administrative expenses.
Sectoral optimism
The education market in India is expected to touch US$ 225 billion by FY25. India is
predominantly a young country with half of its population under the age of 25,
representing a huge potential market for the education sector.
Our country also has a huge and growing market for coaching classes or supplementary
education. The coaching classes market is primarily driven by an increase in the number of
students pursuing higher education and professional courses. Furthermore, rising
preferences for high-quality education among the parents has driven the demand for
coaching centres in the recent years. The reliance on coaching classes to educate students
is expected to rise in the coming years.
Impact of National Education Policy (NEP) on coaching industry
The new National Education Policy (NEP) has certain impacts on the coaching industry
but in a positive manner. The changes will help both the learners and educators to grow in
a more holistic way. As the NEP is more flexible in terms of the learning process, the
prep fraternity believes it will catapult the Indian education system to compete on an
international level. Most of the stakeholders have an opinion that NEP will help students
to get enrolled for higher education in esteemed global centres of learning and education.
To align our students with the NEP, institutes have to work on more rigorous processes
and developments in terms of educational technologies. More holistic teaching
infrastructure and facilities must be adopted to implement the policy. The coaching
industry also has to revamp its approach and must put due emphasis upon upskilling and
re-skilling of students, instead of typical classroom learning. Besides, teachers need to
instil in young minds the timeless values of discipline, responsibility and a continuous
quest for excellence in thought and action. These outcomes are not difficult to achieve,
provided we adopt the right approach to educate and ignite young minds.
Impact of COVID-19 on coaching industry
The school-segment coaching class admission for 2020-22 cycle was supposed to commence
from August 2019 up to April 2020. However, due to lockdown there was a significant
decline in admissions from March 2020 to August 2020. Moreover, admissions in schools for
2021-23 cycle started in November 2020 (as against normal beginning in August 2020), which
again badly impacted the admission count. Due to COVID-19, there were many cases of
cancellations of admissions of 201921,2020-22 batches. The reasons are:
• Students do not have facilities to study online (lack of laptops/ internet);
• Multiple cancellations of the admission as parents are not able to pay the fee;
• Parents do not want the child to study online;
• No clarity about the exams and opening of schools;
• Multiple cancellations /extensions of professional and competitive exams in both
science and commerce streams.
As the admission cycle is fixed in India, if the cycle completes and admissions are
lower it will definitely impact the revenue of industry players for the two-year cycle.
Our transformation strategy
During the year under review, we have formulated robust strategies to take MT Educare
back to the path of sustainable recovery. The key action points of the strategy comprise:
• We will focus on an asset-light model to save fixed costs and rationalise our
overall costs.
• The coaching business is largely driven by and dependent on experienced
faculties. Hence, the existing experienced faculties are being elevated so that smooth
transition.
• We are focusing on the recovery of the Government business by deputing a
dedicated team who will work upon recovery from Government projects.
• We are revamping our digital marketing efforts by strengthening this function to
ramp up the student count.
• We are dedicating a separate team for driving Robomate, where we are exploring
the possibility of maximum output.
I reaffirm our commitment to provide supplementary education to today's youth and
mentor them through qualified faculty and advanced teaching methodologies. As an
institution, we aim to go beyond education by enabling our students to compete and succeed
in the larger playground of life.
I take this opportunity to thank you all for your continued trust and support. On
behalf of the management of MT Educare, I would also like to thank all the employees,
faculty members and all other stakeholders for their deep commitments.
Parag Ola
Dr Sarvepalli Radhakrishnan,
Whole Time Director.