A. Industry structure, Development and Outlook
Indias edtech market is poised to grow to 29 billion dollars by 2030.
The 5 year Compound Annual Growth Rate ("CAGR") from 2025 to 2030 is tuned to
grow at 24%. This growth is further fueled by the penetration of the internet in India
which stands at 61% and more than 600 million smartphone users out of which almost 373
million users are from rural India. These statistics are creating the ultimate
opportunities for growth in edtech & skill tech.
India has been poised to become one of the fastest growing economies in
the world. While there is turbulence globally with conflict like Russia & Ukraine,
energy crisis in Europe & political instability in the USA. India has been moving
ahead towards a stable, mature and middle class growing economy.
Today as a hub of IT offshoring, IT development & IT services,
there are huge opportunities that will be created in India for employment. The education
and training industry has seen a massive shift from offline learning to online learning
and now to online to offline learning. While we have tested this model post the pandemic,
to scale this model is a journey we have undertaken.
Upscaling vocational training is the most sought after sector due to
high employability challenges in India unlike edtech & skill tech, will see huge
opportunities due to high job opportunities across different industries. Only online
education has encountered unique challenges like poor course completion rate, lack of
practical learning. Over burden of content and no touch and no physical touch points.These
challenges can only be overcome through online and offline learning methods.
Company Overview:
1. Customer
Our core target audience is 10 + 2 students predominantly non technical
who are looking to finish their degrees and parallelly have a employability and employment
based diploma or certification. Today with the penetration of the internet, more than 800
million Indians have the world on their smartphone. This makes it an ongoing challenge to
gain share of mind as you are not only competing with captive competition but also global
competition. In order to target this hyper connected genZ it is crucial we create a good
word of mouth by delivering quality services and high salary jobs.
2. Recruiters
As the needs of customers evolve, expectations of recruiters evolve as
well. Today recruiters expect an all rounder candidate who can solve not only specialized
challenges but also solve generic day to day problems that may help the organization run
seamlessly. There is high demand in newer areas of technology like blockchain, AI and
Machine learning. Your Company is gearing towards integrating these new technologies in
its course portfolio.
3. Courses
Your Company today has created a deep offering of courses in computer
networking, cloud computing and cyber security. While this forms the backbone of the
course portfolio, we are going deeper in blockchain & metaverse. Over the next 3 to 5
years we anticipate a very similar demand in these courses during which we will have the
depth of knowledge to offer to our customers.
B. Product wise Performance Operation Overview:
Product: Your company offers courses aligned to the IT industry and
digital services. These courses predominately have a job outcome. While the flagship
programs JK DCC and JK MCC have seen a steady growth, we have launched courses in
Blockchain, Metaverse and Web 3. These courses while in its nascent stage will see an
uptick in the coming years. The delivery of these courses happens in online and hybrid
format. Jetking Diploma in Cloud Computing and Masters in Cloud Computing contributes to
78.6% of the total enrolments. New courses, contributed 8% of the total enrolments. There
is a thrust to expand new courses in such a way that overtime they contribute to at least
50% of the enrolments.
Channel: As part of our internal strategy, Mission Foundation, we
are creating a base of company own centers. In the last year we launched 2 centers in
Mumbai. Additionally, there will an addition of 12 more centers in a FOCO model or COCO
depending on the geography. These centers are in the process of being re-imagined. These
centers will be with best in class infrastructure and a seamless practical first user
experience.
C. Opportunities, Threats & Risks / Concerns Opportunities
1. Scale physical model from metro to mini metros to tier 2 cities
2. Offer a life long learning model with subscriptions to students
3. Tap into emerging technologies with wider range of Job openings
Threats and Risks
1. Overall education technology market is seeing a negative word of
mouth
2. Global players entering the Indian market thereby acquiring market
share
3. Free access to content on the internet by influencers
D. Internal control systems and their adequacy
Section of Internal control systems which is a part of Boards Report
discusses the adequacy of internal control systems.
E. Financial performance with respect to operational performance
During the Financial Year under review, the Company earned the Total
Income of Rs 1,996.84 Lakhs as against Rs. 1,580.67 lakhs in the previous
year and the Net Profit/(Loss) after Tax of Rs. (11.49) Lakhs as against Rs.
189.24 Lakhs in the previous year. The Operational Performance of the company is
reflected in the Product Wise Performance covered above.
F. Financial condition Total Income:
Revenue of Jetking aggregated to Rs. 1,996.84 Lakhs in 2022-23
as compared to Rs. 1,580.67 Lakhs in 2021-22.
Earnings before interest, tax, depreciation, and Amortization (EDITDA)
The EBITDA aggregated to Rs. 197.63 Lakhs in 2022-23 against Rs. 381.30
Lakhs in 2021-22.
Profit/(Loss) before Tax (PBT)
The PBT aggregated to Rs. (11.49) Lakhs in 2022-23 against Rs. 165.90
Lakhs in 2021-22.
Profit/(Loss) after Tax (PAT)
The PAT aggregated to Rs. (11.49) Lakhs in 2022-23 against Rs. 189.24
Lakhs in 2021-22.
Earnings per Share (EPS)
EPS in 2022-23 was Rs (0.19) per share compared to Rs 3.20 in 2021-22.
G. Material developments in Human Resources / Industrial Relations
front, including number of people employed:
Your Company received the prestigious Great Place to Work Award in
the year 2019 & 2020. We are delighted to share that your Company has achieved this
award once again in the financial 2023-2024. Great Place to Work Certification is the most
powerful way to attract, retain and engage the right people. This award is achieved after
deep research of Company practices, employee satisfaction scores and other HR initiatives
benchmarked in the industry.
Talent Hiring:
Your Company is built around a service business, people & talent of
that people become the core of the business. During the year the talent strength of your
Company was 216 employees, 60% of this is towards management of COCO centers and 40% form
part of the corporate team. Appraisals in your Company range between 15-20% in order to
remain competitive with the industry benchmarks.
Talent Training and Retention:
The attrition of your Company is between 4-8% which is lower than
industry benchmark. This is largely due to certain initiatives undertaken by your Company.
Those initiatives are:
Feedback Loop: After on-boarding every employee there is a feedback
loop created to understand role clarity, integration with teams & up-to-date with
orientation & training formalities of the Company.
Team Connect: Every month the HR department connects with different
teams through one to one engagement to understand any challenges, overcoming those
challenges and any other feedback to improve their performance. This feedback is shared
across the team members in order to align common goals. There are monthly townhalls
organized for cross information sharing across the country. These town halls create a
healthy communication channel as well as a constructive, competitive environment.
Additionally Jetking Jashn is an initiative to celebrate work anniversaries, birthdays
& any other big or small victories.
Daily Training Programme: Considering we are a training Company
high emphasis is placed on training internally. Your conducted over 100 Daily training
programmes on various topics like email etiquette, communication skills, upgradation of
current skills, personality development, using of tools such as canva, grammarly, etc.
New Initiatives: After the on slot of the pandemic everyone is
grappling with certain monetary challenges, in order to ease the monetary challenges we
enabled early loan against salary of employees through a third party vendor in the event
there are any financial emergencies, This initiative has allowed a flexible approach to
finances for a number of managers in your Company.
H. Key Financial Ratios:
In accordance with SEBI (Listing Obligations and Disclosures
Requirement) (Amendment) Regulations, 2018, the Company is required to give details of
significant changes (change of 25% or more as compared to the immediately previous
financial year) in key sector-specific financial ratios.
| Particulars (ratio) |
For the Year Ended March 31,2023 |
For the Year Ended March 31, 2022 |
Details of significant changes (i.e.,
change of 25% or more compared to previous year) and reason thereof |
| Debtors Turnover |
7.85 |
4.85 |
Decrease in accounts receivable and
increase in revenue from operations |
| Inventory Turnover |
NA |
NA |
NA |
| Interest Coverage |
2.09 |
4.67 |
Increase in Sundry balances write back.
Decrease in Bad Debts net off expected credit loss and profit after taxes |
| Current Ratio |
3.18 |
2.50 |
Increase in Cash, bank and outstanding of
working capital loan to subsidiary company. |
| Debt Equity Ratio |
NA |
NA |
NA |
| Operating Profit Margin |
0.12 |
0.36 |
Decrease in this ratio is due to
substantial increase in expenses during the year. |
| Net profit ratio |
(0.01) |
0.18 |
Loss in the current year as compared to
Profit in previous year. |
| Return on Net worth |
0.00 |
0.04 |
Decrease in tangible net worth and loss in
current year |
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