Virtual Global Education Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Overview

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc., may constitute “forward looking statements” within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Our Company strives to implement programs with a clear mandate for helping our students and participants build direct and concrete value that will contribute in improving their personal, professional, social and financial status.

Indian Education and Outlook:-

Education Is Not Only The Foundation Upon Which Our Civilization Has Been Built, But It Is Also The Architect Of Humanitys Future.”

Education has always been a key priority for the government and with the vision to make India a global education hub, the Union Budget 2025-26 introduces innovative initiatives. Focused on expanding medical seats, enhancing skilling infrastructure and growing IITs, these measures aim to provide more opportunities and equip youth with essential skills for the future. The Indian edtech market size is expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021. According to KPMG, India has also become the second largest market for E-learning after the US. The online education market in India is expected to grow by US$ 2.28 billion during 2021-2025, growing at a CAGR of almost 20%.

India holds an important place in the global education industry. India has one of the largest networks of higher education institutions in the world. However, there is still a lot of potential for further development and improvement in the education system. Indias broad range of fiscal, monetary and health responses to the crisis supported its recovery and, along with economic reforms, are helping to mitigate a longer-lasting adverse impact of the crisis. The overall, sharp rebound and recovery of the economy is reflective of Indias strong resilience. Indias economic growth in the current year is estimated to be 7.2 per cent highest among all large economies.

• Bharatiya Bhasha Pustak Scheme: To provide digital-form Indian language books for school and higher education. This aims to help students understand their subjects better.

• National Centres of Excellence for Skilling: Building on the July 2024 Budget, five National Centres of Excellence for skilling will be established with global partnerships to equip youth with skills. These centres will focus on curriculum design, trainer training, skills certification, and regular reviews.

• Expansion of Capacity in IITs: Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT, Patna will also be expanded. Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakhs in the past 10 years.

• Centre of Excellence in AI for Education: A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of 500 crore.

Robust Demand

• India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector.

• India has over 250 million school going students, more than any other country.

• India K-12 segment growth was valued at US$ 48.9 billion in 2023. It is, currently, estimated to grow at a rate of 10.7%. Projected to reach an impressive US$ 125.8 billion by 2032.

Competitive Advantage

• In the QS World University Rankings: Asia 2025 India stands out with two universities in the top 50 and seven in the top 100, led by the Indian Institute of Technology Delhi (IITD) at 44th place.

• Nine Indian institutes - the Indian Institute of Science (IISc) in Bengaluru and eight Indian Institutes of Technology (IITs) - were among the top 500 universities in the QS World University Rankings 2023.

Increasing Investments

• The education market in India is expected to amount to US$ 225 billion by FY25.

• From April 2000-September 2024, Foreign Direct Investment (FDI) equity inflow in the education sector stood at Rs. 83,550 crore (US$ 9.62 billion).

• Indian edtech startups have received total investment of US$ 3.94 billion across 155 deals in FY22.

• The Union Budget 2025-26 allocates Rs. 500 crore (US$ 57.57 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education.

Global Education Market Size & Growth

The education market is projected to reach almost US$ 10 trillion by 2030, growing at a compound annual growth rate (CAGR) of 4.4%, driven by several key factors. In the ECE sector, governments are increasing spending through targeted policies and tax incentives. With rising awareness of the long-term benefits of early education and the growing demand for qualified educators, the sector is projected to expand at a CAGR of 7% by 2030. However, workforce shortages pose challenges to this growth. The K-12 education sector is expected to grow at 3.5% CAGR, supported by higher participation rates in emerging economies and significant investment in digital infrastructure. In developed regions, declining birth rates may limit growth potential in this sector.

PERFORMANCE

With a steady vision and focused growth strategy, Virtual Global Education Ltd (VGEL) is currently involved in the mission for enhancing the human capital of the country through skill development and employability training. VGEL have been working for years in this field and have trained and provided employment to a large number of youth in the country. VGEL is partnering with various government bodies in fulfilling the Skill India Initiative of Government of India by providing Skill training for more than 1 Million youth in India by 2023.

VGEL was formed with the mission of improving the quality of human capital in the country through skill and educational interventions. VGEL have moved from strength to strength in our path and look forward to continue on our mission. The focus of VGEL has been in delivering skill and educational interventions to the sections of societies and parts of the country where they are most needed and where the youth have limited exposure and lack access to opportunities to achieve their career or livelihood goals.

It has identified sectors linking with the industry to provide training so that they can get real time experience and practical exposure in industry. In choosing the trades and industries special focus has been kept on outcome management and impact mapping and ensuring that the training or skilling results in either wage based employment or higher earnings through self-employment or entrepreneurship. Trades are also chosen keeping in mind the scope of future career and financial growth prospects. Some of the trades catered to are:

• Telecom

• Retail

• Hospitality & tourism

• Healthcare

• Security

• Beauty & Wellness

• Solar Power

• Agriculture

• Electronics

• BFSI

• Entrepreneurship

VGEL has been working in several states on government projects like Andhra Pradesh KAPU welfare Development Corporation, Electronics System Design & Manufacturing under Ministry of Information Technology and Electronics System & Manufacturing under the Ministry of Information Technology and Electronics, National Backward Classes Finance & Development Corporation (NBCFDC) is a Govt of India undertaking under the aegis of Ministry of Social Justice and Empowerment, Chhattisgarh State. Skill Development Authority, Paschim Banga Society for skill Development, Govt of West Bengal, Rajasthan State Livelihood Development Corporation.

The Companys agenda focuses on providing vocational training and education in developing and rural areas of India, where there is a lack of skilled talent in areas like technology interventions and platforms. With increased competition for jobs and the trend now being on continuous learning, more and more people are enhancing their educational qualifications online. Currently, industries across verticals are adapting to e-learning in a big way and the market is expected to grow.

The Company is professionally managed with senior professionals from reputed industries with strong leadership experiences in managing large scale operations across the country with strong educational background.

The objective of VGEL is to enable social development through academic excellence, and the first of its kind in India. In higher education, there is a widening gap between the growing knowledge resources in the world and the conceptual universe of the students. The gap can be bridged by providing training to students.

Risks and Concerns & mitigations

Regulatory risk

The Companies performance largely depends upon governments policies on education and allocation of budgets towards education. Any adverse change in the government policies towards education and reduction in the allocation of government budget will materially affect the performance of the Company.

Competition risk

The Education sector in our country faces cut-throat competition from developed countries. Large players with richer domain experience and bigger brands are more attractive and appealing. The markets for technology-enabled education products, services and solutions are highly competitive. Therefore, these factors can be act as a hindrance to the growth for the Company.

Risk mitigation

The Company provides products and solutions aimed at management of education as well as delivery of education. It has developed its expertise organically as well as inorganically by forging partnerships with the best companies and institutes. The Companys ability to provide a wide range of products and solutions through various delivery models and in diverse geographies has enabled it to perform against competition.

Technology obsolescence risk

Digitalization is emerging as disruptive forces for customers, buyers and technology, technology coupled with changes in delivery models and consumer spending patterns could be threat on the growth in traditional IT spends and technology obsolescence.

Risk mitigation

VGEL continue to believe in keeping up to the change in terms of technology. The Company has a dedicated R&D unit that caters to the up gradation, implementation and incorporation of latest methodologies, techniques, systems and services to the Companys offerings. It is looking to enter in to Partnership with the best-in-class technology leaders to understand and offer the latest technology to its clients.

Internal Control System

The Company has adequate system which is commensurate with the nature of its business and the size and complexity of its operations. Management of the Company is having very cordial relations with their personnel and outsiders in respect of business of the Company. The Company is following relevant Accounting Standards for proper maintenance of the books of accounts of the Company and reported properly and applicable statutes, codes of conduct and corporate policies are duly complied with. The Audit committee keeps regular check on the internal control system of the Company and reviews the audit reports periodically.

Financial Performance

(Amt in Lakhs)

PARTICULARES	STANDALONE		CONSOLIDATED
	31.03.2025	31.03.2024	31.03.2025	31.03.2024
Total Revenue	105.66	67.06	105.66	67.06
Less: Total Expenditure	143.06	248.69	143.26	249.14
Net Profit/(Loss) before Tax (PBT)	(37.39)	(181.62)	(37.59)	(182.08)
Less: Provision for Income Tax- Current
Provision for Deferred Tax	0.93	0.94	0.93	0.93
Profit/(Loss) After Tax	(38.33)	(182.56)	(38.53)	(183.01)
Add: Share of profit / (loss) of Minority
Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates	(38.33)	(182.56)	(38.53)	(183.01)

Human Resource Development

Company always has an encouraging environment that leads to higher caliber and encouragement among employees. The Company contributes to the overall growth and performance of the personnel while adhering to the highest degree of quality and integrity. Company believes that even a single human asset matters irrespective of the place he holds in the contribution towards growth of the Company.

Cautionary Statement

Readers are cautioned that this discussion contains forward- looking statements that involve risk and uncertainties. When used in this discussion, the words anticipate, believe, estimate, expect and will and other similar expressions as they relate to the Company or its business are intended to identify such forwardlooking statements. The Company undertakes no obligation to publicly update or revise any forward- looking statements whether of because new information, future events or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forward looking statements.

		For and on behalf of Virtual Global Education Limited
	SD/-	SD/-
Date: 30.07 .2024	Shikha	Nirbhay Kumar Roy
Place: New Delhi	Managing Director	Director
	DIN:07013436	DIN:08022614