Company Overview

Everonn Education Limited is engaged in education and training, and is a fully integrated knowledge management company.

It operates in two divisions:

  • Instructional and Communication Technology (ICT)
  • Virtual and Technology Enabled Learning Solutions (Vitels)

The ICT division provides turnkey solutions to government schools by setting up computer labs to impart information technology (IT) education, computer aided learning, Computer Literacy, and Teachers Training Projects on Private-Public Partnership Mode.

Vitels provides Education and Training solutions through satellite based Very Small Aperture Terminal (VSAT) technology.

Key Financial Numbers

The Story

The company is a blend of two booming sectors; education and technology.

Education in India is largely an under-penetrated market which is expected to experience rapid and swift growth over the next decade. Rising per capita incomes of lower class and lower-middle class families is expected to fuel a surge in the overall demand of the education in the country. Today, a son of a carpenter does not want to be one; a daughter of a house-maid goes to a government school and understands algebra better than the work her mom does for a living. Literacy rates in India are definitely heading north.

The use and need of technology for very renowned reasons is also high and will play a large part in the lives of more and more people with time.

Both industries have become a basic need for new-age India, and there is a sizeable demand supply gap which promises great commercial and financial rewards.

JV with NSDC

The National Skill Development Corporation (NSDC) was set up as part of a national skill development mission to fulfill the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. The NSDC is a public-private partnership, wherein 49.0% is owned by the finance ministry and the remaining 51.0% held by various industry bodies like the CII, NASSCOM, FICCI, etc.

Everonn Education has entered into a JV with the NSDC to impart vocational training across the country over a period of 12 years.

Everonn and NSDC jointly launched the ‘International Skills School’ to impart vocational training with respect to various technical courses. The venture is expected to train c. 15 million people (c. 10.0% of NSDC’s overall target of 150 million) by 2022. NSDC will invest 27.0% as equity in the wholly owned Skill development subsidiary Everonn Skill development Limited (ESDL).

The courses offered will be for nine different industries like Textile and apparel, Retail, Hospitality, Automobile, Healthcare, Construction, IT and ITeS (IT-enabled Services), Basic engineering, and Multimedia.

  • Duration differs from course to course and ranges between 3 weeks to 6 months.
  • Average fees work out to be INR 9000.0 (A range between INR 24,000.0 to INR 3,000.0 for       different courses).
  • Expected number of students is 15 million.

This JV alone is expected to generate INR 135.0 – 145.0 billion in revenues over next 12 years for Everonn. The EBITDA margins of the JV are lower than the blended margins of the group (34.4%) due to the social factor and are likely to remain in the range of 23.0 – 25.0% initially. Going forward, the management expects the same to improve.


  1. Vocational training, unlike other educational segments, does not face regulatory hurdles and remains an attractive bet. There will be no government intervention in the business. Two board members on the Board of Everonn Skill will be represented by NSDC.
  2. Government’s partnership
  3. Lack of skilled manpower


  1. Student acquisition
  2. Execution and scalability of the venture
  3. Affordability of students
  4. Industry and market acceptance of courses offered

Capex and Funding

Everonn is looking to set up 271 centers across India. Currently there are 9 operational centers and company is planning to roll out 70 more such centers in next three months.

Capex requirement will be c. INR 3.00 billion in next 3 years. Of this, NSDC will provide INR 142.0 million as equity for a 27.0% stake and INR 1.01 billion in the form of debt at a subsidized interest of 6.0%. The remaining INR 1.85 billion will be funded by Everonn through internal accruals and external debt funding.


The company was expected to record EBITDA and EPS CAGR of 40.0% plus over three years according to Credit Suisse. This estimate did not factor in the JV. In this context, the stock is cheap at 3.6x EV/EBITDA and 8.0x P/E (FY 2012). The earnings estimates does not factor in the JV performance.

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