Career Point signs pact with Birla Education Trust

Kota-based test preparing institute Career Point Infosystems has signed a deal with Birla Education Trust to provide in-class tutorial services to students of three schools managed by the trust.

This tie up will not only significantly contribute to revenues but will also help in reaching markets across India, Pramod Maheshwari, CMD and CEO, Career Point Infosystems told CNBC-TV18.
As per the agreement Career Point will provide tutorial services to students of Birla Public School, Birla Balika Vidyapeeth and Birla School Pilani in Class 11th and 12th for Pre-Engineering and Pre-Medical entrance test preparation courses. All these schools are situated in Pilani Rajasthan.
Maheshwari said the company is looking to sign more such agreements. The company is hopeful of achieving top-line of Rs 85 crore and bottom line of 35 crore in this financial year. Below is the verbatim transcript of the interview Q: Can you explain this tie-up with Birla Education Trust in terms of how much it adds to your financials?
A: As a program we do partnership with schools where we provide tutorial services to students who are studying in these schools. And residential schools always look for these kind of services and in that process we recently entered into an agreement with Birla Education Trust where we are providing tutorial services to the students of all their four schools situated in Pilani in evening hours.
We believe this kind of association is going to contribute significantly not only in terms of getting revenue but also in terms of reaching out to the market at various locations across India. Also read: Titagarh develops new products to ease rail biz slowdown Q: How much money will you make out of this deal and how much might it boost your revenues in FY14? Are you already in the process of tying up for more such deals?
A: For this particular agreement we just entered, we have given offer to students whether they take this tutorial program or not that depends. So it will be too early to say about how much revenue we will be able to make. But yes similar kind of programs we have already partnered with couple of other schools. For example we have done similar kind of agreement with Edustar International School in Kovilpatti, Tamil Nadu, with another school in Latur, etc. Similar associations we are looking for few more schools. Q: Your financials have clearly plateaued out both in terms of Q4 and full year, they were absolutely flat, full year revenues were flat, profit was flat. Going forward in FY14 what are the targets in terms of top-line and bottom-line?
A: Q4 we generally don't register any new enrollments so usually our revenue remain quite fetish. However for this particular academic session and financial year enrollments are powering in. And we have target to recovery whatever revenue we have lost last year plus little percentage growth over there, but it is too early to comment on this reason being admission process is on and students are taking admission in various branches. Q: So should we see Rs 85 crore top-line and Rs 35 crore bottom-line?
A: Yes we should be able to achieve that based on the current response from students for various programs.