Dear Shareholders,
Since Career Point's inception in year 1993, we bet on high quality
education while making our presence across the value chain. Of late, the pace of change in
education delivery has been accelerated. Nevertheless, Career Point has always been ahead
of the advancements. Whether its business expansion or geographical diversification,
reaching to students through hybrid modes or to investors through capital markets; being
ahead is always core to our philosophy.
Most of our industry peers are now starting their focus on
profitability. I humbly claim this has been our habit. I feel privileged in stating the
fact that Career Point has never reported business loss in the last 30 years of its
existence. This is despite various ups and downs or extraordinary expenses incurred in
some of the years. This is the reason, when survival Is the current motto for many of our
industry peers; growth Is the center of Career Point's business operations at present.
With due respect to all industry peers, I personally sense one
important advantage with Career Point. Most of our fellow players are learning to live:
whilst we already crossed that phase and transitioned at living to learn. When the fellow
Industry players get along with the new industry dynamics or functionality, Career Point
is accustomed to the new culture of the businesses we operate. We are also lifelong
learners, though a bit-ahead of the curve.
Less than a year ago, Career Point embarked on an ambitious plan to
shift our test-prep service delivery model lo a product company, focusing on the
development of innovative and dynamic educational products. This new business model offers
the company numerous short-term and long-term benefits, such as faster expansion of its
product lines, easier scalability, and better quality offerings. For successful
transformation, a detailed process flow was designed with steps including development,
distribution and execution, it involved significant groundwork, including team
realignment, ERP support, and the redesign of pricing models to revamp future strategies.
The objective was to adapt to the changing industry dynamics while providing long-term
value to all stakeholders.
With due credit to Career Point's three decades of strong brand equity
and expertise of the team; the new business model performed an exponential growth in very
short span of time. This growth has been witnessed across the business operations. The
course titles doubled due to flexibility. Numbers of centers increased multifold. And, the
education division's revenue and operating profits increased exponentially In the
financial year 2022-23.With this transformation, Career Point onceagain demonstrated its
leadership in rapidly evolving and growing education market.
Let me add a personal opinion on the aspect of technology in our new
business model. I believe, the technology can never replace the Importance of a teacher In
the education system. Teaching being my first profession, I know that the empathy that a
faculty provides to the learners can never be replicated by machines. However, a proper
coordination between technology and human, especially the teachers, can certainly foster
meaningful learning experience for the students and create a far-reaching impact in the
overarching knowledge industry.
Hence, Career Point's Investment in technology Is expected to grow
based on the value creation of the solution. Nonetheless, our tech teams prefer
open-source solutions, wherever feasible, due to their cost effectiveness. Small
innovative tools such as automated task-sheet, help-slip, check-list have improved the
productivity significantly across Career Point institutions. The Flow Management System (f
MS) identifies the bottlenecks and the real-time resolutions are used to enhance the
effectiveness and efficiency of our overall teaching system.
The advanced technology tools are helping us in all key academic areas
including content creation, personalized learning, adaptive assessments, doubt-solving,
and counseling. In addition to empowering teaching practices, we are increasing the use of
emerging tech tools in streamlining administrative tasks, in sales and marketing to
improve user engagement, and most Importantly for providing a delightful experience to
Career Point customers.
Commenting on the financials for year 2072-23, the revenue from
operations at standalone level was reported rupees 51.9 crores with a remarkable
year-on-year growth of +77%. At consolidate level, Career Point clocked total revenue of
rupees 85.4 crores with significant y-o-y growth of 54% The company witnessed E8ITDA of
rupees 33.6 crores at standalone level with healthy EBITDA margin 60.3%. Consolidated net
profit excluding one-off provision cameat rupees 41.57 crores with earning of rupees 22.85
per share against rupees 12.62 per share for previous fiscal 2021-22.
As on 31 March 2023, net worth of our company reached at rupees 480
crores that translalesthe book value of rupees 264per share. Overall excellent set of
numbers and strong positive future outlook gave a confidence to the board for announcing
the dividend distribution twice in a year.
Many of you might also remember a hint in my previous letter about a
business structuring plan and I promised to update you in due course. You will be glad to
know that the board of directors of the company in their meeting held on
14 February 2023 approved thecomposite scheme of arrangement.
The scheme, which will ensure a simplified and streamlined group
structure along with improvement in overall operational efficiency and effectiveness of
respective businesses including education and non education ventures, is approved by the
stock exchanges. RBI has already given us no objection letter dated 14 Sep 2022 for merger
of NBFC subsidiary in to Career Point Limited. I shall keep you posted for next steps
including filing to honorable NCLT.
Career Point's strategic outlook focuses on providing value- based
courses that cater to the evolving needs of the education industry. With a people-centric
and ethical approach, the company aims to foster a culture of innovation and continued
profitability. Additionally, Career Point prioritizes partner delight by establishing
long-term partnerships and providing them with excellent support. Majority of short to
medium term growth initiatives are organic by nature i.e. center expansion, course
additions and operating leverage.
With these updates and the outlook, let me conclude with mentioning
that our success has been fueled by our unwavering commitment to deliver personalized,
high- quality education at every vertical from pre schools to university education,
test-prep to school education, digital learning to skill development. Thus, I would like
to take a moment to express my gratitude to everyone who has contributed to our vision of
reimaglning how people learn and in helping us in new mission of productizing education.
I, on behalf of whole Career Point team, express our heartfelt
gratitude to our shareholders for their continued trust, students for their efforts In
fueling our brand equity, business partners for building win-win propositions, and the
board of directors who have stood by us through thick and thin. It is through your
unwavering support that we have achieved the remarkable progress outlined in this annual
report. We look forward to an even brighter future, filled with boundless possibilities,
as we continue to lead the way in shaping the education landscape.
Wishing you all a very blissful and prosperous learning.
Best Regards,
Pramod Maheshwari