Saket Education Society

Instrument

Amount

Rating Action

Rs. Crore

March 2016

Term Loans

41.83

[ICRA]A- (stable); rating assigned

Fund based Limits

4.00

[ICRA]A- (stable); rating assigned

ICRA has assigned [ICRA]A- (pronounced ICRA A minus)

rating to the Rs 45.83 crore long term fund based

limits of Saket Education Society (SES). The rating carries a stable outlook.

The assigned rating factors in the strong promoters with SES being part of Pacific group (flagship entity Pacific

Development Corporation Limited rated [ICRA]A-(stable)/[ICRA]A2), its long track record in the field of

education, established reputation of its flagship school DPS Indirapuram in Ghaziabad (Uttar Pradesh) region

and association with Delhi Public School Society, a renowned brand in education sector. The rating also draws

comfort from SES’s strong operating performance with healthy profitability and consistent growth in revenues

over the years supported by increasing enrollments as well as fee. The same provides a source of stable fee

based income and lends revenue visibility. The rating favorably factors in the strong school management and

widely experienced faculty which have allowed the school to establish itself as one of the top schools in the

region. ICRA notes that while DPS Indirapuram has been operating at full capacity in recent years, the

occupancy remain very low at its second school, DPS Raj Nagar Extension (Uttar Pradesh), which has started

operations from AY2015-16 only. The increase in enrollments and improvement in operating performance of

DPS Raj Nagar Extension going forward will remain critical for the maintenance of the credit risk profile of the

society.

The rating strengths are partially offset by highly regulated nature of the education industry and high

dependence of SES on a single school for a large part of its revenues. Further the satisfactory performance of

newly established school and subsequent improvement in occupancy is yet to be demonstrated which will be

important given the high fixed costs. ICRA notes that the heightened competition in the education sector,

retention and development of talent will continue to remain a major challenge for SES. ICRA also notes that

while the fund generation has been healthy in recent years, the support provided to other group societies in the

form of donation has impacted the accretion to corpus fund. Going forward the quantum of such donations

would remain critical for overall improvement in SES’s financial profile. This apart, the ability of the society to

establish new school successfully, post improvement in its occupancy levels while maintaining society’s

profitability and capital structure will remain amongst the key rating sensitivity factors.

Society Profile

Saket Education Society (SES) was formed in 2001, under the leadership of Mr Sudershan Kumar Bansal. SES

is associated with Pacific group which is an established real estate developer and has developed multiple

commercial, retail, hospitality and residential projects in North India. The society operates two schools in Uttar

Pradesh; DPS Indirapuram (operational AY 2003-04 onwards) and DPS Raj Nagar Extension (operational AY

2015-16 onwards). Both the schools are affiliated to CBSE (Central Borad of Secondary Education); while DPS

Indirapuram provides education from Nursery to XII standard, the recently operational DPS Raj Nagar

Extension provides education from Nursery to VI standard. The society has a total student base of more than

6700 students with most of the students being part of established school, DPS Indirapuram which is likely to

increase as enrollments for DPS Raj Nagar Extension would increase once it expands its operations by adding

remaining classes.

Recent Results

SES reported revenue receipts of Rs. 63.46 crore and net surplus of Rs.16.6 crore in FY2015 against revenue

receipts of Rs. 55.68 crore and net surplus of Rs. 15.23 crore in FY2014.

March 2016

For complete rating scale and definitions, please refer to ICRA’s website www.icra.in or other ICRA Rating

Publications.

For further details please contact:

Analyst Contacts:

Mr. Rohit Inamdar (Tel. No. +91-124-4545847)

[email protected]

Relationship Contacts:

Mr. Jayanta Chatterjee (Tel. No. +91-80-43326401)

[email protected]

Contents may be used freely with due acknowledgement to ICRA

ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are

subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s

current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the

instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings

outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and

reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information

provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is

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contents.

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Corporate Office

Mr. Vivek Mathur

Mobile: 9871221122

Email: [email protected]om

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Ph: +91-124-4545310 (D), 4545300 / 4545800 (B) Fax; +91- 124-4050424

Mumbai

Mr. L. Shivakumar

Mobile: 9821086490

Email: [email protected]

3rd Floor, Electric Mansion

Appasaheb Marathe Marg, Prabhadevi

Mumbai—400025,

Board : +91-22-61796300; Fax: +91-22-24331390

Kolkata

Mr. Jayanta Roy

Mobile: +91 9903394664

Email: [email protected]

A-10 & 11, 3rd Floor, FMC Fortuna

234/3A, A.J.C. Bose Road

Kolkata—700020

Tel +91-33-22876617/8839 22800008/22831411,

Fax +91-33-22870728

Chennai

Mr. Jayanta Chatterjee

Mobile: 9845022459

Email: [email protected]

5th Floor, Karumuttu Centre

634 Anna Salai, Nandanam

Chennai—600035

Tel: +91-44-45964300; Fax: +91-44 24343663

Bangalore

Mr. Jayanta Chatterjee

Mobile: 9845022459

Email: [email protected]

'The Millenia'

Tower B, Unit No. 1004,10th Floor, Level 2 12-14, 1 & 2,

Murphy Road, Bangalore 560 008

Tel: +91-80-43326400; Fax: +91-80-43326409

Ahmedabad

Mr. L. Shivakumar

Mobile: 989986490

Email: [email protected]

907 & 908 Sakar -II, Ellisbridge,

Ahmedabad- 380006

Tel: +91-79-26585049, 26585494, 26584924; Fax:

+91-79-25569231

Pune

Mr. L. Shivakumar

Mobile: 989986490

Email: [email protected]

5A, 5th Floor, Symphony, S.No. 210, CTS 3202, Range

Hills Road, Shivajinagar,Pune-411 020

Tel: + 91-20-25561194-25560196; Fax: +91-20-

25561231

Hyderabad

Mr. Jayanta Chatterjee

Mobile: 9845022459

Email: [email protected]

4th Floor, Shobhan, 6-3-927/A&B. Somajiguda, Raj

Bhavan Road, Hyderabad—500083

Tel:- +91-40-40676500