Career Point faces mixed Covid-19 impact; stock ends higher

The pandemic outbreak has benefitted the company’s ed-tech initiatives whilst the services at physical centres were impacted negatively.

Aug 13, 2020 04:08 IST India Infoline News Service

Career Point Limited informed the exchanges Thursday that the revenues and profitability of the company were adversely impacted during the lockdown period and partial unlock thereafter. The company has conserved resources to maintain liquidity. However, the company has to bear different fixed overheads affecting liquidity position.

The demand for some of the products i.e. test-prep courses at study centres has been declined due to Covid-19 and impacted adversely. However, the company has used this as an opportune time to launch its most ambitious elearning project — career point App - in the midst of the crisis.

The lockdown and restrictions imposed on various activities due to Covid-19 pandemic, while being a necessary measure to contain its spread have also posed different challenges to many of the business operations of the company and its subsidiaries have been no exception to this.

The physical campuses were non-operational during the lockdown period. However, the students were being serviced through online mode of teaching, the company said.

As the company has presence in different education verticals including test-prep, school education, higher education and eLearning. There has been a mixed impact on different divisions. The Covid-19 outbreak has benefitted company’s ed-tech initiatives
whilst the services at physical centres were impacted negatively.

The company offices have partially resumed the operations in all its locations whereas the classrooms in campuses are still closed down. At the same time, the facilities of Work From Home (WFH) and Online mode of service delivery have been providing much needed support in maintaining operations.

“The education sector has been dramatically transformed as a result of the Covid19. As the outbreak has redefined the conventional education, the company management continually explores plans to strengthen existing capabilities while developing new offerings by various modes i.e. technology platforms, integrations, diversification, and inorganic growth. Division-wise strategies to tap potential new opportunities are also chartered,” the company added.

Career Point ended at Rs137, up Rs1.45 or 1.07% from its previous closing of Rs135.55 on the BSE.

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