Vol.

45, 8th Jan12 5th Feb12

Four-S EDUTRACK
Monthly Update on Indian Education Sector

In the Spotlight
Indias First Cloud-based Tablet for Students
After partnering with Datawind to launch the worlds cheapest Tablet Aakash, the government has gone ahead and unveiled Indias first Cloud-based Tablet called the e-tutor Tablet. Like Aakash, this Tablet is also for students albeit this time it is for school students from class 1st to 12th. The Tablet has been developed in a joint venture (JV) by two Kerala based IT firms. The JV is between e-tutor and Oztern Technology. The learning content has been developed by e-tutor while the technology has been provided by Oztern Technology. The Tablets will be sourced by the companies and they are still in the process of finalizing vendors for the same. The Tablet will be priced at Rs 7,500 (inclusive of content) and it will be made available in the Indian market from April. The included content will be of only one standard and additional content will have to be bought for other standards.

Content
In the Spotlight Investment Activity News and Policy Development Corporate Developments Stock Market Performance Peer Benchmarking About Four-S Services 1 2 3 4 5 6 8

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 Research Desk Banking Research Support Valuation Services Investor Relations & IPO Consulting

For further information, please contact Seema Shukla at seema@four-s.comPage | 1 us as http://www.four-s.com or reach

FOUR-S EDUTRACK
Investment activity Private Equity
Date 18-Nov-11 23-Nov-11 20-Dec-12 17-Jan-12 31-Jan-12 Investor(s) Ashmore Alchemy Omnia VC Omidyar Network New Silk Route Mumbai Angels Target SEED Infotech Ltd. Sunstone Business School Teach for India Varsity Education eDreams Software Innovation Stake (%) Amount ($Mn) Business NA NA NA NA NA 6.3 NA 2.5 NA 1.0 Vocational Training Higher Education K-12 Education Education Services Education Software Products Stage Growth Early Early Growth Early

Mergers & Acquisitions

Date 30-Sep-11 10-Nov-11 9-Nov-11 14-Dec-11 1-Feb-12 Acquirer Edserve Softsystems TIME Reliance Industries Career Launcher Comp U Learn Tech India Target Prosel Ventures Veta Extramarks Education Ltd GK Publications Divya Knowledge Process Management Stake (%) Amount ($Mn) NA 8.0 51% 12.1 39% NA NA NA 100% NA Target's Business Education Supplemental Education Supplemental Education Publications Education Services
*Only last few deals listed above

PE Investments
Investment Amount (in $mn) No. of Deals

M&A Deals
26
Total Transaction Value (in $mn) No. of Deals

200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

25
24

300 250

13

In $mn

21

22

In $ mn

200

150 100
50

135.1 185.2
20

12
82.9

258.0

18

13.2 13 12.8 12.6 12.4 12.2 12 11.8 11.6 11.4

2010

2011

2010

2011

Four-S Indian PE Directory 2011 A Guide to choosing private equity partners

Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years. A first-of-its-kind, the directory offers Deal History in India for individual investor. Management, investment profile and Contact details. User-friendly Spreadsheet Format. It comes from Four-S Services, the most trusted deal information bank in India.

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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 2

FOUR-S EDUTRACK
News and Policy Development
Ombudsman in higher education institutions Finding its Unfair Practices Bill stuck in Rajya Sabha for almost a year, the HRD has found a way-out to deal with educational malpractices in majority of higher education institutes. The ministry on Monday decided that every educational institution affiliated to a Central University and under control of a Central regulator such as University Grants Commission (UGC) and All India Council for Technical Education (AICTE) to have an ombudsman to deal with grievances. The new system would be in place before the next academic year. The new direction would cover over all educational institutions, except state universities and colleges affiliated to these universities. Educational institutions to publish balance sheets All educational institutes under the central government and those that get grants or approvals from central education regulators will be directed by the government to publish a balance sheet every year, starting 2013, to bring in more transparency to the sector. The educational institutes will follow a uniform accounting norm and disclose income and expenditure in a standard format similar to that of companies. All Union government institutes, including central universities, IITs, IIMs, NITs will have to adhere to the accounting standards. Besides, all universities and colleges under the UGC, the AICTE and the National Council of Teachers Education will have to follow the norms. Even schools affiliated to the Union government-controlled CBSE will have to incorporate the accounting norms. Only ~70,000 sign up for CMAT Merely 70,000 aspirants across the country have registered for the first edition of the national level Common Management Admission Test (CMAT). The entrance test, for admission to 3,500-odd MBA colleges in the country, will be conducted online by the All India Council of Technical Education (AICTE) over a period of eight days starting February 20. The idea of a common admission test for admissions to B-schools, barring Indian Institutes of Management, was mooted last year. The announcement was made in December. The idea is to have fewer entrance tests for students to reduce stress. All AICTE-approved institutions will have to accept CMAT scores. MHRD to discuss merging of IITJEE and AIEEE The Union MHRD will soon call a meeting of Indian Institutes of Technology (IIT) Council to stamp a decision to merge the IIT-Joint Entrance Exam (JEE) and All India Engineering Entrance Exam (AIEEE) conducted by the CBSE. After much resistance, the IITs have agreed to join the ministrys bid to have a common entrance examination for all engineering colleges in the country. This only happened after there was an agreement that several elements of IIT-JEE will be part of the new national common examination. On features of the new entrance examination aimed to evaluate skills of a student objectively - A students Class 12 marks and entrance exam score will have equal weightage. Weightage would be given to the marks obtained in class XII boards after the results are equalized for which Indian Statistical Institute will put in place a mathematical formula for equalization. Meta-university may start from next academic session HRD minister Kapil Sibal announced that a network of universities, forming a meta-university, will allow students to pick courses from across disciplines from different institutions from the coming academic session (2012-13). He explained that this would reinterpret the concept of a university as not just a traditional, physical space of learning, but as a repository of knowledge and information that can be delivered in multiple ways and can be accessed from anywhere and anytime. New accreditation system will ensure quality education Engineering colleges and technical institutions in the country would be forced to maintain quality with the National Board of Accreditation (NBA) spearheading a new accreditation system. Various crucial aspects of technical education would be scrutinized and colleges that fulfill the set criteria would get accreditation. NBA is a provisional Member of Washington Accord, an international agreement aimed at bringing about global quality standards in technical education among member countries.

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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 3

FOUR-S EDUTRACK
Corporate Development
Core Leads Talks to Buy Jhunjhunwala's Stake In Aptech Core Education & Technologies, Indias largest educational services firm by market cap, has emerged as the front-runner to acquire billionaire investor Rakesh Jhunjhunwala's stake in Aptech. Jhunjhunwala is seeking a valuation of about `7bn for his stake Jhunjhunwala purchased 36% stake in the company rd six years ago at 1/3 the current price. Dewan Housing Finance Eyes Education Loan Business Dewan Housing Finance Corporation Ltd, a private sector housing finance player backed by Caledonia Investment and Sequoia Capital India, is expanding beyond real estate financing and making foray into education lending business. Dewan Housing Finance is looking to buy equity stake of an unlisted non-banking financial company (NBFC) registered with the Reserve Bank of India. The company proposes to foray into the education sector in order to provide a portfolio of education loan and allied services. Interestingly, Housing Development Finance Corporation Ltd (HDFC) also entered this segment by acquiring Credila Financial Services from DSP Merrill Lynch Capital Ltd. US hotel chain to enter education US-based Best Western International, one of the largest hotel chains in the world, is set to foray into the education sector in India. The companys India arm has identified four locations to set up hospitality management schools in the country. The first one will come up in Bangalore in the next six months. Best Western, which runs hotels worldwide under the franchisee model, will start educational institutions in the same model, tying up with local players. The hotel chain has an e-learning platform as well. The Bangalore training centre will host short-term courses for at least 200 students. The company is planning to open the other three centres in Noida, Dehradun and Bhubaneswar. Datawind to push for 'Made in India' Aakash tablet in next tender Datawind, the maker of the lowest priced tablet 'Aakash', today will request the Human Resource Development Ministry to include 'Made in India' clause in the proposed tender for the low-priced device. Datawind successfully made the $49.48 tablet Aakash in India despite various pressures. The government plans to procure large number of low-cost computing device to leverage benefit of broadband connectivity in universities and colleges in a phased manner. The ministry, in the first phase, had issued tender to procure 1 lakh devices Comp-U-Learn acquires Divya Knowledge Process Mgt Ltd Comp U Learn Tech India has acquired Divya Knowledge Process Management Ltd, an educational services company having tie-up with Bharathidasan University, Tiruchirapalli, Tamil Nadu, for approved IT & BPO courses. Founded in 1997, Comp-U-Learn provides internet based solutions, education & training, e-commerce solutions, Software Design and Development, end to end IT and business solutions. This is Comp-U-Learn's fifth acquisition in last 3 years IIM-Indore seeks external help for job placements IIM-Indore plans to partner with some placement firms to make sure that all 450 students in the current batch receive offers. The institute is in talks with around five agencies. IIMIndore had not used external agencies in 2009, the toughest year in recent memory as it followed the financial crisis of 2008. The batch size that year was 180 and the institute was able to place all. This year the external agencies will carry on a parallel placement process, once the institute receives a definite number of offers by itself.

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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 4

FOUR-S EDUTRACK
Stock Market Performance
Market Cap (` mn) 28,977 23,364 13,519 7,279 6,975 6,371 4,726 4,436 3,988 1,156 1,016 385 Price (In ` ) 258 243 57 216 42 292 261 91 15 44 13 65 Percentage Price Change 1M 3M 6M -0.7% -7.0% -12.9% 21.3% -9.8% -29.6% 6.9% -15.0% -15.6% 23.1% 5.6% 10.2% -13.0% -23.5% -12.6% -22.9% -40.0% 23.1% -8.3% -18.2% 30.3% -24.2% -34.6% 20.5% -19.5% -28.9% 9.0% -54.8% -42.9% 0.3% -19.5% -21.0% 30.7% 8.3% -21.3%

Core Education Educomp Navneet Tree House NIIT Ltd Everonn Career Point Aptech Zee Learn Edserv Compucom Jetking

1 Week 0.1% 12.4% 3.1% 2.1% 0.4% 3.8% -3.5% 1.9% 2.6% 6.7% 2.5% 9.8%

12M -1.3% -46.3% -1.8% -17.0% -42.1% -22.2% -16.6% 48.7% -43.6% -25.1% -43.9%

Peer Benchmarking
Interim Results
Figures in Rs mn Educomp NIIT Ltd Core Education Navneet Everonn Aptech Edserv Career Point Compucom Zee Learn Tree House Jetking Year Ending March March March March March March March March March March March March Fiscal year 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 2011-12 Quarter Q2 Q3 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Current 3,275 2,501 3,532 1,112 796 474 362 208 176 125 175 101 Revenues Last Year 2,873 3,007 2,791 992 1,081 540 274 256 201 % growth 14% -17% 27% 12% -26% -12% 32% -19% -13% -15% Current 686 251 1,394 187 241 71 45 74 110 -56 107 14 EBITDA Last Year 1,038 370 996 169 380 87 108 142 98 % growth -34% -32% 40% 11% -37% -19% -58% -48% 12% -56% Current 128 407 750 115 -38 66 12 60 30 -64 53 6 PAT Last Year 578 129 535 98 156 55 91 112 33 % growth -78% 216% 40% 18% -124% 21% -87% -46% -9% -76%

118

33

24

Annual Results
Figures in Rs mn Educomp NIIT Ltd Core Education Navneet Everonn Aptech Edserv Career Point Compucom Zee Learn Tree House Jetking TTM Quarter Q2 FY12 Q3 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q2 FY12 Q4 FY11 Q2 FY12 TTM Y0 14,584 14,359 12,708 5,836 4,269 1,855 1,362 748 741 519 392 354 Revenues TTM Y-1 10,968 11,882 9,582 5,471 3,600 1,574 852 705 612 214 416 % growth 33% 21% 33% 7% 19% 18% 60% 6% 21% 84% -15% TTM Y0 5,423 1,522 4,885 1,392 1,565 186 485 228 441 -55 176 73 EBITDA TTM Y-1 4,618 1,664 3,387 1,246 1,196 158 382 283 319 69 122 % growth 17% -9% 44% 12% 31% 17% 27% -20% 38% 153% -40% TTM Y0 2,989 765 2,693 867 511 949 316 238 130 -70 92 40 PAT TTM Y-1 2,232 468 1,926 764 511 66 278 235 101 26 91 % growth 34% 63% 40% 13% 0% 1332% 13% 1% 29% 254% -56% % EBITDA margin 37% 11% 38% 24% 37% 10% 36% 30% 60% -11% 45% 21% % PAT margin 20% 5% 21% 15% 12% 51% 23% 32% 18% -13% 23% 11%

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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 5

FOUR-S EDUTRACK

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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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 6

FOUR-S EDUTRACK
About Four-S Services
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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 Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com Page | 7