Career Point Infosystems expects its topline to grow by 20-25 percent this year on increased student enrolments, Pramod Maheshwari, CMD & CEO, Career Point Infosystems told CNBC-TV18.
The company’s focus is on student and education loan and is looking to partner with central government in National Skill Development Corporation, Maheshwari said.
“Once we get the approval we will become eligible to partner with all the state governments for skill development programs.”, he said.
Below is the edited transcript of Pramod Maheshwari’s interview with Nigel D’Souza on CNBC-TV18.Q: It appears that in fact it is a pretty strong quarter. The revenues as well are looking quite good. Could you run us through your numbers?A: If you look at our quarter numbers and annual numbers, this year we have performed much better than our last year. If you look at our annual revenue it is stood on standalone basis at Rs 62.8 crore against Rs 54.1 crore of last year which is almost 16 percent jump with an EBITDA of Rs 11 crore on annual basis against Rs 1.8 crore. This is almost 500 percent growth in EBITDA margin.Our EPS, is at Rs 5.35 against Rs 2.32 last year. So, this year the financial results are pretty positive and promising to the company also.Q: In terms of the topline, it has jumped up by close to around 50 percent, what kind of run rate can we see going ahead? A: Our business was slightly under pressure for last two years. A lot of things are based on the number of enrollments which happens in next one quarter. Currently as on day, enrollments are taking place and there is a positive indicator on the ground. We are observing growth in enrollment numbers and we expect that we will continue to grow almost by 20-25 percent in topline for the next year as well.Q: What is happening on the taxation front? There is some tax write-back in this quarter and if I look at it for the year itself there is no tax outgo? A: Due to the MAT credit available to the company, last two years has been slightly (less) challenging for the company. So, there was a MAT credit available which we have claimed this year. Q: You had guided for the topline to be at around Rs 70 crore for this year. You have gone ahead, you have beat it by close to around 10 percent, it has come in at around Rs 77 crore. Even on the EBITDA front you were guiding for around Rs 10 crore, I think you have come in at around Rs 12 crore. Give us some guidance for FY16 and is there a possibility that this time as well you could get a bit of a beat? A: We are expecting positive time ahead. Enrollments are taking place and we are observing approximately 30 percent growth in enrollment on year-on-year (YoY) basis at this moment of time. We expect that same momentum will continue for next two months as well and we are expecting that around 20-25 percent topline growth and slightly more improvement in EBITDA we can see for the next financial year.
Q: We had touched base with you sometime ago and in fact that was after you had signed an MoU with the Rajasthan government. You said that you were in initial talks with other state governments as well, any progress on that front? Could we see something coming through, is there something in the pipeline for this year or for the next couple of years either with the state or with the central government? A: With central government we have applied for becoming their skilled partner with National Skill Development Corporation. Our project has been submitted and is in advanced stages. It depends upon the government’s approval, we are expecting that in next one to two months we will get the approval from the government from National Skill Development Corporation. Once we get the approval we will become eligible to partner with all the state governments for skill development programs. Work on ground is already on ground. Q: You had earlier told us that one of your arms that got the Reserve Bank of India (RBI) nod to carry out NBFC business, any progress with that front? I believe that in fact your loan portfolio for the coming year would be at around Rs 25 crore, any tweaking of that guidance, anything on that front?A: Not exactly. We are still maintaining the same guidance. We are working on that, our focus is more on student and education loan. So we are building the product and pursuing the same kind of numbers which I shared with you.
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