Jetking Infotrain

Jetking Infotrain operates in the IT education industry, providing training solutions for hardware and network professionals.

The company has over 100 centres throughout the country and has partnerships with IBM for training material, WIPRO for recruitment and various colleges for training students.  It aims to adjust its curriculum according to demand and hence, focuses on recruiter requirements when drafting its courses.

The company has reported declining revenues and operating profits over the last five years – reporting about 10cr of operating profits on revenues of about 40cr in the last financial year.  It employed no net debt in its operations and had liquid assets amounting to about 18cr as at 31^st March, 2011.

The business is subject to the risks of rapidly changing technologies such as cloud computing, which question the need for extensive hardware/network systems.  Therefore, the company has to always be on the watch to update its curriculum, which increases the risk that it may not adapt effectively or maintain its competitive edge.  

As part of this, management is now focusing on moving from hardware training to managing converged networks or infrastructure management services – this highlights the difficulty in maintaining a core competence in this industry, which undoubtedly adds to the operational risk profile.

Moreover, the business is subject to heavy price competition from other education providers, which has had a severe impact on recent reported revenues.

Minority shareholders may need to take a call whether the company has the brand and management has the ability to even maintain its competitive edge in this rapidly evolving field – the odds appear to be stacked against them.