Investor Relations

Investor FAQs

Business and Financials

Career Point Limited is an education company with integrated learning solution across the education value chain. Key offerings include:

  1. Pre-school: A pre-school chain with the brand name Global Kids
  2. School Education: Residential as well as day-boarding schools at multiple locations
  3. Test-Prep (Tutorial) services: Preparing students for various competitive examinations
  4. Higher Education: Auxiliary education services to universities at two locations
  5. Skill Development: Training on various vocational educational courses
  6. e-Learning: Multiple products through online as well as offline delivery modes

Pre-school

A: Global Kids – the Pre-School chain by Career Point was launched in year 2015-16, after a successful testimony of academic delivery and non-academic pedagogy at Career Point's existing schools. It has already expanded its network in multiple states. Further expansion will be done through adding new franchisees with incremental premium service offerings.


School Education

  1. Global Public School, Kota (Rajasthan)
  2. Career Point World School, Jodhpur (Rajasthan)
  3. Career Point World School, Bilaspur (Chattisgarh)
  4. Career Point World School, Aurangabad (Maharashtra)

A: CBSE (Central Board of Secondary Education)

A: We have both category of schools – Day-boarding schools as well as Schools with Hostel facility. In fact, we also have third category of schools - known as 'CP Gurukuls' which are premium residential schools with many other facilities.


CP Gurukul

A: CP Gurukuls are premium residential school offerings by Career Point integrated with tutorial facility. The campus infrastructures include school, hostels, coaching campus, food-court, staff residences, guest house, shopping complex and sports facilities i.e. swimming pool, squash-court, gymnasium, playgrounds for football, cricket, basket-ball etc.

A:    a) CP Gurukul, Kota: Operational since 2013-14
b) CP Gurukul, Mohali: Operational since 2016-17
c) CP Gurukul, Rajsamand: will be operational by 2017-18


Test-Prep

A: Tutorial service verticals include

  1. Engineering entrances: JEE Main, JEE Advance and other key exams
  2. Medical entrances: NEET, AIIMS and other key medical entrance exams
  3. Pre-foundation: NTSE, KVPY, Olympiads etc.  

A: Tutorial service verticals include

  1. Classroom operations: Through own branches and franchisee centers
  2. School Association: Integrated with school curriculum
  3. e-Learning: Online and Offline Video lectures and Assessments
  4. Distance learning: Postal delivery

University Education

A:   a) Career Point University, Kota at Rajasthan
b) Career Point University, Hamirpur at Himachal Pradesh

A: The under-grad, post-grad and PhD course programs in engineering, management, computer applications, law, science etc.

A: Both universities are established under section 2(f) of the UGC (University Grant Commission) Act and their acts are passed in the respective state assemblies.

  1. Career Point University, Kota Act 2012 (Act no 13 of 2012) assented by the Governor of Rajasthan on 30th April 2012
  2. Career Point University, Hamirpur Act 2012 (Act no 12 of 2012) assented by the Governor of Himachal Pradesh on 3rd May 2012

Skill Development

A: Career Point’s skill division offers employment oriented trainings across multiple sectors with course duration of approximately 2-3 months.

A: Yes, the company is NSDC (National Skill Development Corporation) partner which is Govt of India’s skill development agency. Career Point is also empanelled with Govt. of Rajasthan’s RSLDC (Rajasthan Skills & Livelihood Development Corporation).


e-Learning

A: There are 3 key products with online as well as offline delivery modes:

  1. Video On Demand: Class wise, Subject wise & Unit wise Video Lectures by star faculty members on USB drives and Memory Cards for any device i.e. Laptop, Desktop, Tablet, Mobile
  2. eCareerPoint.com: Online assessment platform and performance analysis solution with scientific and statistical techniques based personalized feedback to identify the learning gaps and suggest various corrective measures
  3. Studyboard.com: Social learning and Online tutoring marketplace with advanced technological features i.e. Audio-Video Conferencing, Interactive Whiteboard, Group Chat,  Live Sessions and Paid Question & Answer services on Mobile app.

Miscellaneous

A: These are loosely defined industry concepts. Essentially, Formal education is the core education which takes place in schools and universities whereas informal education is non-core or parallel education system, i.e. Test-Prep.

A: The Company, having its expertise in the education field, provides the services required by the institutions and charge a service fee.

A: The Company has given interest bearing loans and advances to the respective institution or entity directly engaged in to the formal education. Additionally, the company also has receivables in its balance sheet due from formal educational institution.

A: Career Point Limited has 6 subsidiaries and 1 JV (Joint Venture) entity

Wholly owned subsidiaries (100% ownership):

  1. Career Point Edutech Limited: For Educational technology businesses
  2. Srajan Capital Limited: For Non-Banking financial services
  3. Career Point Infra Limited: For Infrastructural activities
  4. Career Point Institute of Skill Development P. Ltd. : For Vocational Education services
  5. Gyan Eduventure P. Limited: For Publication and other tutorial related businesses

  6. Subsidiaries with 60% ownership of Career Point Ltd.:

  7. Career Point Accessories P. Limited: For educational accessories businesses

  8. Joint venture entity (50% ownership):

  9. Studyboard Education Pvt. Limited: For ed-tech platform  www.studyboard.com

A: Three key objectives

  1. Educational loans to students;
  2. Loans to educational institutions;
  3. Education being a ‘negative working capital’ business; having a wholly owned NBFC subsidiary helps in efficient treasury operations

Financials

In FY2017, the tutorial contribution at revenue level was close to 50% excluding Gurukul fees. Non-tutorial businesses contributed rest half in revenue with a gradual increase over previous years. However, the contribution in profits by non-tutorial business is larger as the tutorial division has not yet reached back to its optimum utilization of resources.

Yes, the current operating utilization in tutorial division is approximately 65% of the capacity. The under utilization was a result of the decline in enrollments during the change of pattern in engineering entrance examination.

As on 31st Mar 2017, the company had an investment of approximately Rs . 115 Crores in form of loans and receivables.

The gestation period varies for different institutions. For Career Point, some of the institutions were on operating break-even from the year 1 and have started giving 15% return on investments from their fourth year of operations. For some of the other institutions, the break-even occurred in year 3. The expected rate of return from these projects is generally is 30% from 6th year onwards.

Yes, the company balance sheet is net cash positive. The debt is against the investments and gives company a post-tax interest rate spread.

As on 31 March 2017, Srajan Capital Ltd (wholly owned subsidiary of Career Point Ltd.) recorded total loans and advances of Rs 61.48 Crores (Rs 37.86 Crores on 31st March 2016). The loans are given in the range of 12% to 18% rate of interest per annum.

These assets are essentially for investment objective and not being used in the company's business operations. As on 31st March 2017, these assets were valued at Rs 51 Cr in the company balance-sheet.

It's been a very good and fruitful experience with govt of India and various state govts. Career Point has worked with govt in skill development and test-prep as well. There could be some delay in payments to be received. However, if one complies all rules and guidelines, the payments are certainly received.

Public Share Issue

The shares of Career Point Limited (previously known as Career Point Infosystems Limited) are listed and traded on National Stock Exchange and Bombay Stock Exchange since October 6, 2010 (at face value of Rupees 10).

Career Point's fiscal year runs from 1st April to 31st March.

The Board of Directors recommend dividend for approval of the shareholders depending upon various financial and business related factors.

LINK INTIME INDIA PRIVATE LIMITED, C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai 400 078, India, Tel: +9122 2596 0320, Fax: +91 22 2596 0329 Website: www.linkintime.co.in