Career Point set to launch 2 universities in FY13; stock up

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Career Point set to launch 2 universities in FY13; stock up

CNBC-TV18 caught up with Pramod Maheshwari, CMD and CEO of Career Point Infosystems to get a low-down on developments with his company.

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Career Point Infosystems rallied today on news of more visibility on two universities to be set up in Himachal Pradesh and Rajasthan in FY13. CNBC-TV18 caught up with Pramod Maheshwari, CMD and CEO of the education sector player to get a low-down on developments with his company.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Give us a sense of where the developments with regards to the universities in Himachal Pradesh and Rajasthan are?

A: Both the universities which we are setting up in Rajasthan and HP are in advance stage of approval from the respected state governments and we are expecting that in a month's time or so. We are hoping to start academic session by June 2012. So they are in advance stages and there are lot of positive developments which have taken place in respect of these two universities.

Q: In each of these universities what is the kind of demand enrolment and how much can you charge and second what is the cost for setting up these two universities for you all?

A; With respect to enrolment at the university which we are setting up in Rajasthan, we are planning to come up with two faculties in first year - one is faculty of Science and Technology and second is faculty of Business Studies.

In Science and Technology, we are targeting close to 2000 enrolments with average fee approximately Rs 60,000 per annum.

The same two faculties we are setting up in Himachal Pradesh also and there we are targeting close to 1000 enrolment.

With respect to investment for both the university projects, the total capex would be close to Rs 120 crore each. That should be incurred over a period of four years. So far in Rajasthan, we have incurred close to Rs 40 crore, and HP, we have incurred close to Rs 25 crore.

Q: Just wanted to touch upon this Rs 90 crore of cash the company currently has, tell us how you are planning to utilise it?

A: The Rs 90 crore which is lying with the company will be utilised one for residential campus which is coming up in Kota. Part of it will also be utilised for capex which we envisage for these two universities and two technical campuses, one in Udaipur and second in Mohali. We believe we have sufficient cash to meet requirement for next one and half year or so.

Q: With these two universities starting operation in June 2012, what could be the revenue picture for next fiscal year?

A: We are targeting cumulatively 3000 enrolment with average fee of Rs 60,000 per student, which translates to about Rs 18-20 crore in calendar year 2012 and FY13.