Career Point Ltd Management Discussions.

Global economy acceleration that started in 2016 gathered further momentum in 2017 and being continued in 2018. The world economy grew at 3.7% in calendar year 2017 supported by trade recovery in both advanced economies and developing countries. Indias growth projections are continued to above 7% in coming years which is one of the highest in large economies of the world.

With more than 250 million students and approximately 1.3 million schools, Indian School Education System is the largest in world. Higher Education of the country consists of additional 200 million students in close to 700 universities and 35,000 colleges. India also has one of the largest number, 10 million plus, of people entering the workforce in the world.

There are 3 key factors which are driving the growth of Indian education sector - a) Favorable demographics which includes increasing young population and improved disposable income; b) Growing ancillary services which includes e-Learning, test-prep, preschool and vocational education; c) Affordable as the quality education at premier institution is relatively very reasonably priced than all the developed nations.

Indian education sector also face some challenges especially with respect to poor quality of education delivery due to lesser experimental learning in schooling, poor industry linkages in higher education, unavailability of quality teachers etc. The reservation system, not-for-profit structure, regulatory hurdles are other road blocks to the growth of entire sector. However, the latest trends including shift from academic focus to thinking development, knowledge model to application model, learning theory to innovation and problem solving approach are helping the sector to overcome the challenges.

Career Point Limited (NSE: CAREERP, BSE: 533260) is an established and leading player in the Indian education sector with strong brand equity of providing quality education since 1993. The company has diversified products and integrated services in both regulated and non-regulated education segments:

1. Test Prep for Pre-Engineering, Pre-Medical, Olympiads etc:

Career Point has established a strong niche for test preparation of various engineering & medical entrance examinations and other competitive exams:

• JEE (Main & Advanced) - Joint Entrance Examination

• NEET- National Eligibility cum Entrance Test

• AIIMS: All India Institutes of Medical Sciences

• NTSE - National Talent Search Examination

• Olympiad - IMO, IPhO, IChO, iOS etc

While transforming lives through the power of education, Career Points Test-Prep division has become a benchmark in education space due to scientific & result oriented teaching methodology and individual focus with ultimate personal care. The test-prep (tutorial) services are offered to students through the following modes:

• Company operated branches;

• Frenchisee centers;

• School integrated programs;

• Distance learning solutions.

2. Schools and Universities:

The Company has a strong presence in K-12 Schools, Colleges and Universities in multiple geographies. While laying a very strong foundation for future at early age, Career Point empowers students on both professional development and degree-awarding courses in various streams including Engineering & Technology, Management & Commerce Studies, Computer Applications, Law, Pharmacy, Applied Sciences etc. Career Points existing institutions, both residential as well as dayboarding, in formal education space include:

• Career Point University, Kota (Rajasthan)

• Career Point University, Hamirpur (Himachal Pradesh)

• Career Point Gurukul, Kota - Residential school

• Career Point Gurukul, Mohali (Punjab) - Residential school

• Career Point Gurukul, Rajsamand (Rajasthan) - Residential school

• Career Point World School, Jodhpur (Rajasthan) - Day School

• Career Point World School, Bilaspur (Chattisgarh) - Both, Day School and Hostel

• Global Public School, Kota (Rajasthan) - Day School

• Result Orientation • Visionary leadership
• Driving execution • Entrepreneurship
• Inspiring excellence • Decision making
• Financial Acumen • Coaching & Mentoring

3. Skill Development - Career Point Skill Division:

Career Point Institute of Skill Development (CPISD) has been setup to fulfill the growing need in India for skilled manpower across sectors and narrow the existing gap between demand and supply of employment oriented education and training.

CPISD is approved training partner of National Skill Development Corporation (NSDC), Rajasthan Skill & Livelihood Development Corporation (RSLDC) and affiliated to various sector skill councils. CPISD has setup learning centers in rural and urban locations to provide employability skills aligned to industry needs which enhance youth employability and proves business productivity.

4. Early Childhood Education - Global Kids

With a mission to help each child to realize the breath of her talent; the unlimited power of mind & imagination and strength of spirit to ensure all-round development and enabling each child to cope with ever-growing challenges of life, Career Point provides early childhood education through chain of Play-schools under brand Global Kids.

With child-centered approach, Global Kids focuses not only on developing academic skills, but also intellectual, emotional, linguistic, physical, social and moral skills that will ensure life-long success for the new generation.

5. e-Learning

Career Point has initiated innovative products to drive the next generation of education delivering process. With a goal to provide individual flexible personalized learning solutions which help them to learn efficiently and provide them extra edge in highly competitive scenario, Career Point is delivering quality education to students at affordable cost through followingtechnology platforms:

• Online Assessments ( 24*7 access to online test series based on latest examination pattern with detailed solution of the test and section wise analysis. It also offers all India ranking, comparison with toppers and time management report etc.

• Video-on-Demand ( Video lectures on USB drives, Memory Cards and Online with Class wise, Subject wise & Unit wise facility to students for anytime, anyplace learning on multiple devices i.e. Laptop, Desktop, Tablet, Mobile

• Social Learning Platform ( Social learning and Online tutoring marketplace with Question & Answer services on Mobile app, Audio-Video Conferencing, Interactive Whiteboard, Group Chat & Live Sessions


In financial year 2017-18, the subsidiaries businesses have increased their contributions significantly. The subsidiaries contribution in Operating EBITDA and Profit After Tax was 29% and 12% respectively during FY2016-17. In FY2017-18; the contribution by subsidiaries was increased to 48% at operating and 42% at net profit level. Hence, the consolidate numbers represent a right picture of business operations in the company.

The company reported an income from operation of 71.1 crores in year with a decline of 2% over previous year, at standalone level. A prudence accounting policy of booking B2B revenue only on receipt basis is further explained a decline in revenue. That revenue is booked on payment receipts. There has also been a business movement from parent to subsidiaries as these businesses were ancillary to main business.

Enrollments FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Total 29,398 24,120 27,366 30,857 29,086 29,509
Tutorial Division 27,257 20,655 22,412 23,010 21,057 18,235
Formal Education 2,141 3,465 4,954 7,847 8,029 11,274
Tutorial Enrollments Split
Branches-LT CR 17,262 11,122 12,946 13,688 10,689 5,836
Branches-ST CR 2,978 1,169 1,333 1,011 625 516
Franchisees-LT CR 1,754 1,764 1,576 1,395 1,605 2,049
Franchisees-ST CR 381 23 87 52 - 138
School Associations 458 1,801 3,726
Distance Learning 4,882 6,577 6,470 6,406 6,337 5,970
Formal Break-up
Higher Education 741 1,642 2,327 3,455 3,738 4,822
School Education 1,400 1,823 2,627 3,372 3,451 4,142
Vocational Education 1,020 840 2,310

LTCR - Long Term Classroom, STCR - Short Term Classroom

At console level the revenue from operations was stood at 89.6 crores for the year with a year-on-year growth of 8%. The total income which is including the other income has Human Resources Career Point has demonstrated its excellence to thousands of satisfied students and their parents. All this would not be possible without the committed and passionate people of Career Point-both academic and non-academic staff, who strive to build this a great organization each and every day. They remain committed to companys ideals of building on a strong foundation, creating a bright future and delivering great value. The company continues to strengthen the management team and add additional talent and expertise. By 31 March 2018, the Company had total number of employees of 663.

Corporate Social Responsibility

The company realizes the need to create an act for posterity, a plan that delivers. To help people discover the joy and meaning of learning in an empowered, dignified world driven by competence, knowledge and wisdom. Institutions of Career Point nurture potential entrepreneurs, technocrats and managers for new level of leadership in their career. Career Point also understands the importance of giving back.

• Giving back to deserving underserved candidates through financial support programs

• Giving back to environment by several green initiatives

• Giving back to communities through a series of projects in the area of healthcare, employment and of course, education.

Risks and Concerns

With having the business operations in different industry segments, Career Point is exposed to variety of external and internal risks. Though the company has a robust mechanism for risk management in place, however, complete risk avoidance on all the financial, operational and strategic objectives cannot be promised. Boards of directors and management of the company regularly review and aim to mitigate various risks related to regulatory, competition, geography, human resource, technology, legal, political etc. The company recognizes following key risks to its business operations which may adversely affect the financial performance of the Company:

Regulatory Risk: Any changes in regulatory norms on the Formal as well as Informal Education front may significantly impact the investment made in education by the Company. The Company is continuously making an effort to upgrade its services, diversify delivery channels, leveraging technological advancements, expanding the product portfolio to minimize the regulatory risk, if any.

Decrease in Student Enrolment: With the increased competition, decentralization of the tutorial students or any other reasons; the Company might face a risk of decline in student enrolments. However, the Companys focused academic pedagogy and marketing strategy (which includes direct and indirect marketing) continues to attract students across its courses.

Pressure on Margins: There could be a margin pressure due to staff costs, cost of study material, high advertising and business promotions, etc, going forward. We believe the Company has sufficient tools to counter these factors, if the same arises.

Attrition: Attrition in the senior management/faculty team may impact the business. The Companys strategy for retaining talent involves offering competitive compensation packages, faculty training system in place for new entrants and existing faculty, along with a healthy working environment.

Geographical Concentration: The Company derives the larger share of its revenue from Kota in Rajasthan and Northern part of India. Hence, any disruption in operations, or competition at these locations could impact overall operations significantly. The Company is making a concerted effort to expand its operations pan-India and overseas through franchisees, business associations etc and is also boosting its Technology Offerings, Distance Learning segment etc.

Internal Controls & Systems

The Company has proper and adequate internal control systems, which ensure that all assets are safeguarded against loss from unauthorized use and all transactions are authorized, recorded and reported correctly. The Management continuously reviews the internal control systems and procedures to ensure orderly and efficient conduct of business. Internal audits are regularly conducted, using external and internal resources to monitor the effectiveness of internal controls. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of financial statements and Management reports; ensures regulatory and statutory compliance; and safeguards investors interests by ensuring the highest level of governance and periodical communication with investors.

M/s. Sanjay Khandelwal & Co., Chartered Accountants, Kota, is the internal auditor of the Company, who conducts audit and submit quarterly reports to the Audit Committee. The Internal Audit process is designed to review the adequacy of internal control checks in the system and covers all significant areas of the Companys operations. The Audit Committee reviews the effectiveness of the Companys internal control system. The CEO and CFO certification provided in the CEO and CFO Certification section of the annual report further discusses the adequacy of our internal control systems and procedures.


During the year 2017-18, our endeavors to diversify business divisions and service delivery channels have been perfectly in-line with our strategic plan to transform company to a complete educational service provider. Larger growth in formal education and the coaching services delivery through school association network ascertained sustainability to the businesses and offers large opportunities to tap enormous potential.

Overall the business including different divisions and their sub-verticals are performing well in-line with companys growth strategy. The companys well positioned development matrix hold up managements bullish views on overall business prospects going forward.

Cautionary Statement

This report contains forward-looking statements, which may be identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results, are forwardlooking statements.

Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.