QuScient Technologies Pvt. Ltd. – Company Profile by Netscribes, Inc.

QuScient Technologies Pvt. Ltd. February 2013

Contents

QuScient Technologies Pvt. Ltd.

Executive Summary Factsheet Products & Services Key People SWOT Analysis Financial Profile Industry Analysis Competitive Landscape Competitive Benchmarking Recent News Appendix

Executive Summary • QuScient Technologies Pvt. Ltd. is an Indian company providing outsourced services to the higher education industry in USA and UK

Company Description

• At present it serves half‐dozen clients in USA and a dozen clients in UK

Key Products and Services

• The company offers the following services : Service 1, Service 2, Service 3, Service 4, Service 5, Service 6, Service 7 • The company’s broad service portfolio is one of its major strengths; however, its reduced profitability is one of the key areas of concern

SWOT Analysis

• The company can reap significant benefits from increasing willingness to spend on education and the rise in the purchasing power amongst Indian populace • However, high dropout rates in primary education may have an adverse affect on the growth prospects of the organization

Financial Profile

Industry Analysis

• QuScient Technologies Pvt. Ltd. generated total revenues of INR x mn in the fiscal year FY 20‐‐ registering a y‐o‐y increase of y per cent. It earned a net profit of INR z mn in FY 20‐‐ as compared to a net profit of INR p mn in FY 20‐‐ • The financial profile of the company includes the balance sheet and profit and loss account for FY 20‐‐‐‐‐ and the key ratios depicting the key financial figures for FY 20‐‐‐‐‐, giving an insight into the company's financial performance • Higher Education market in India was estimated at INR x1 bn in 20‐‐ and is expected to grow at a CAGR of y1 per cent to reach INR x2 bn by 20‐‐ • Higher education market has a z2% share in the private education sector

Competitive Landscape

• Key competitors for the company can be enlisted as Player 1 and Player 2

Contents

QuScient Technologies Pvt. Ltd.

Factsheet Basic Information Industry

Corporate Address

Brief Description • QuScient Technologies Pvt. Ltd. is an Indian company providing outsourced services to the higher education industry in country 1 and country 2  It is headquartered in Arizona, USA and is currently looking to expand in the abc region  At present it serves half‐dozen clients in USA and a dozen clients in UK

Registered Office Tel No. Website Year of Incorporation Ownership Revenue Fiscal Year End

 Target clients for the company include higher education institutes which do not rank among the top 20

E L P M A S

• City 1 based aaa.com which is a student portal with an user base of over x mn is QuScient‘s sister concern • It is looking to set up an office in the country 1 in the current year • It provides a number of services to its clients such as  Service 1  Service 2  Service 3

Auditor

 Service 4  Service 5

Key Competitors

 Service 6  Service 7

Products & Services (1/7) QuScient Technologies Pvt. Ltd.

Service 1

Service 2

Service 5

Service 3

Service 6

Service 4

Service 7

E L P M A S 6

Key People (2/2) Director

Shareholder Details

Person 5 Director Age : xx

Person 1

Since: 20‐

Person 2

Person 3

Person 4

Name

Current Position:

• Director, QuScient Technologies Pvt. Ltd.

Work Experience

• Worked at xx

Associations

• Member of yy

No of Shares

Total

Ownership Structure Total Paid‐up Capital

E L P M A S

INR y

Number of Shareholders

Foreign holdings z2%

Other top fifty (50) shareholders

77%

z1%

Ratio Analysis Key Ratio Analysis

Key Ratios Particulars

y‐o‐y change (20‐‐ ‐‐‐)

20‐‐

Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

20‐‐

• Operating margin of the company decreased by a percentage points y‐o‐y reaching b per cent in FY 20‐‐; the decrease could be attributed to the management’s decreasing emphasis on improving profitability by not exercising inefficient cost management initiatives compared to that of the previous year • Return on equity decreased by c percentage points y‐o‐y reaching d per cent in FY 20‐‐ indicating the company’s inability to use the reinvested earnings to generate additional profits

E L P M A S

• Current ratio of the company increased by e per cent y‐o‐y reaching f in FY 20‐‐, indicating good cash flow management

Cost Ratios

• Its cash ratio increased by g per cent y‐o‐y to reach h in FY 20‐‐, indicating the company’s ability to pay‐off current obligations with its most liquid short term assets as compared to the previous fiscal year

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

• The company’s asset turnover ratio decreased by i per cent y‐o‐y to reach j in FY 20‐‐, indicating the company’s inability to generate sales revenue with its total assets as compared to the previous fiscal year

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

• The company’s working capital turnover ratio decreased by k per cent reaching l in FY 20‐‐ indicating that the company is not being able to finance its day‐to‐day operations efficiently

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved

Decline

Industry Analysis Indian Higher Education Market – Overview • Indian higher education sector has emerged as one of the largest in the world, with x mn students enrolled in over y institutions  Number of higher education institutions has grown at a CAGR of z%  Student enrollment in the higher education sector has grown at a CAGR of t%

E L P M A S

Higher Education Market Size & Growth INR bn 1,500

t1%

1,000

a5 a4

500

 Gross Enrollment Ratio (GER) currently stands at about p%

• Indian education sector has seen investment by both government and private investors • Government of India spent approximately q% of the GDP on education between 20‐‐‐‐‐

20‐‐

20‐‐e

20‐e

20‐‐e

Private Education Market Segmentation

 It has set itself a highly aggressive target of achieving r% GER by 20‐‐ which translates into an enrolment of s mn students in the higher education sector

• Higher education sectors suffers from imbalanced growth across the country

20‐‐

x2%

K‐12

x4% x3% x5%

Higher Education Coaching Institutions Pre Schools Vocational Training

 Rural areas have just f% of the total professional colleges x1%

 Similarly about d% of all Higher Education Institutions are located in the six states of south India

20‐‐ 9

Competitive Landscape (2/2) Competitive Scenario Company Name

QuScient

Player 1

Player 2

Financial Information (INR mn – FY 20‐‐) Total Revenue Net Profit/(loss)

Course Design and Development LMS Deployment & Support Student Enrollment Marketing Prospect Enquiries Student Enquiries Technical Enquiries

SAMPLE

H: High; L: Low; M: Medium

 Present  Not Present 10

Competitive Benchmarking Key Financial Ratios – FY 20‐‐ (1/2) %

Operating Margin

Net Margin

• QuScient recorded an operating margin of x1 per cent, higher than that of Player 1 which recorded operating margin of x3

• It recorded a net margin of x2 per cent, higher than that of Player 1 which recorded net margin of x4

QuScient %

Player 1

Return on Equity

ROCE

40 30

• The company recorded return on equity (ROE) of x5 per cent, lower than that of Player 1 which recorded ROE of x7 • It recorded return on capital employed (ROCE) of x6 per cent, lower than that of Player 1 which recorded ROCE of x8 per cent

10 0

QuScient Operating costs

% 100

Player 1

x10 • The company recorded operating costs (% of Sales) of x9 per cent, lower than that of Player 1which recorded operating costs of x10 per cent

50 0

QuScient

Player 1 11

Appendix Key Ratio Definitions Operating Margin

(Operating Income/Revenues)*100

Measures company’s pricing strategy and operating efficiency

Net Margin

(Net Profit / Revenues) *100

Indicates the proportion of total revenues the company keeps as earnings

Profit Before Tax Margin

(Income Before Tax / Revenues *100

Measures pre‐tax income over revenues

Return on Equity (ROE)

(Net Income / Shareholders Equity)*100

Assesses a company's ability to generate profits with the shareholders’ funds

Return on Capital (ROCE)

EBIT / (Total Assets – Current Liabilities)*100

Indicates efficiency and profitability of a company's capital investments

Return on Working Capital

(EBIT / Working Capital) *100

Measures company’s profitability over its working capital

Return on Assets

(EBIT / Total Assets)*100

Indicates the company’s profitability relative to its total assets

Return on Fixed Assets

(EBIT / Fixed Assets) *100

Measures management’s efficiency of using the company’s fixed assets to generate earnings

Operating Costs (% of Sales)

(Operating Expenses / Sales) *100

Measures proportion of operating costs incurred for generating revenues

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Measures proportion of administration costs incurred for generating revenues

Interest Costs (% of Sales)

(Interest Expenses / Sales) *100

Measures proportion of Interest costs incurred for generating revenues

Current Ratio

Current Assets / Current Liabilities

Current Ratio measures a company's ability to pay its short‐term obligations

Cash Ratio

{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Measures a company’s ability to pay off current obligations through most liquid short‐term assets

Debt to Equity

Total Liabilities / Shareholders Equity

Indicates the proportion of equity and debt the company uses to finance its assets

Debt to Capital Ratio

{Total Debt / (Shareholders Equity + Total Debt)}

Evaluates the proportion of debt and equity in a company’s capital structure

Interest Coverage Ratio

EBIT / Interest Expense

Determines the company's ability to pay interest on outstanding debt

Fixed Asset Turnover

Sales / Fixed Assets

Indicates how efficiently the company’s fixed assets are used to generate revenues

Asset Turnover

Sales / Total Assets

Indicates how efficiently total assets are used to generate revenues

Current Asset Turnover

Sales / Current Assets

Indicates how efficiently current assets are used to generate revenues

Working Capital Turnover

Sales / Working Capital

Indicates how efficiently working capital is used to generate revenues

Capital Employed Turnover

Sales / (Shareholders Equity + Total Debt)

Indicates how efficiently equity is used to generate revenues

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