CP CAPITAL LIMITED — Management Reports 2021

Jun 29, 2021

Investor Update : FY2020-21

Agenda

About Company	Online Learning(New Initiative)	FY2020-21	Annex
Mission-Vision	Introduction	Key Business Updates	Company Structure
Our Businesses	Product Categories	Financial Updates	Leadership Team
Growth Strategies	Tutor Engagement Model	Management Outlook	Formal Education Model
	Journey So Far	Extraordinary Items	Shareholding Structure
	Differentiators	Income Statement	Disclaimer
	Scope of Offering	Balance Sheet
	In Media / Press

Our Vision & Mission

Our Businesses

Test-Prep division		School and University Education
Face to Face	Online Learning(New Initiative)	K-12	Post K-12
Study Centre(Own & Franchisee)	Live Online Classes	Play Schools	Universities
School Integrated	Recorded Classes	Day Schools	Skill Development
Distance Learning &Publication	Online Assessment	Residential Schools

Integrated Solution Provider across Education value chain throughout the Life Cycle of a Student.

Growth Strategies

Growth Strategies
Test-Prep Classrooms	•Expanding in new market through school associations & franchising•Expansion though Physical + Digital centers, offering more courses
eLearning Division** New Initiative	•Reaching to masses in remotest location though online digital learning•Expansion though more courses offering –state education boards, UG/PG Competitive exams,Government Job Exams preparation targeting large universe
University Education	•Adding new degree courses on regular and distance learning delivery mode•Starting Online Certificate & professional courses for continuing education
Test-Prep ClassroomsSchool Education	•Improving capacity utilization along with premium pricing through international accreditations•Adding more schools at strategic locations through leased asset-light mode and franchisee
Test-Prep ClassroomsVocational Education	•Expansion of skill development courses in association with Central & State governments•Capacity building through adding skills assessments and empanelment with more SSCs
Pre-Schools	•Adding new franchisees with incremental premium service offerings•Start education merchandise in Kids segment with brand "Global Kids"

Agenda

About Company	Online Learning(New Initiative)	FY2020-21	Annex
Mission-Vision	Introduction	Key Business Updates	Company Structure
Our Businesses	Product Categories	Financial Updates	Leadership Team
Growth Strategies	Tutor Engagement Model	Management Outlook	Formal Education Model
	Journey So Far	Extraordinary Items	Shareholding Structure
	Differentiators	Income Statement	Disclaimer
	Scope of Offering	Balance Sheet
	In Media / Press

Online Learning - Introduction

• eCareerPoint is an ed-tech initiative of the company with niche focus on online preparations for competitive exam & school curriculum. • The company has very simple and scalable business • eCareerPoint acts as a platform to connect tutors and
• from any part of the world.
• students with all necessary technology and content support required for efficient education delivery.
• expand in both ways horizontally (Other competitive exams, education boards) and vertically (PG and other classes). • Available both on mobile and web
• live Chat, Recorded Video Courses and Online Assessment System with feedback etc.

eCareer Point – Product Categories

Long term courses, Short term and Micro Courses offer choice to students as per their need and affordability.

eCareerPoint - Product Attributes

eCareerPoint - Tutor Engagement Model

Scalable Tutor Engagement Model

• The company follows a blended model of Onroll as well as Partnered faculties. This model offers required operational and financial efficiency to the business. • Technology enabled performance driven
• compensation system ensures retention of best faculties and quality in education
• quality & retain IP.
• category expansion in large spectrum of courses.

Online Learning - Journey so far

In very short span time, the User base of CP eLearning division has surpassed many other players in its domain. Most importantly, the growth has always been on up-trend only.

Online Learning -	Journey so far
Launched on YouTube	June 2019
Subscriber on YouTube	3.1 Lacs+
Examination Covered	NEET, JEE, Foundation &Govt. Jobs
App Launched	1 April 2020
App Downloads	120,000+
Paid Transaction in App	12,000+
Category Launched on App	NEET, JEE & NTSE
Subjects Covered on App	Physics, Chemistry, Maths,Biology, Mental Ability
Number of Studios	6

Sparkling Successes

• In NEET 2020; 2792 candidates were selected out of 3102 CP students; with four AIR ranks under top 50. • In JEE Main 2021 (Feb); 43 • Many more success stories from
  • students were above 99%tile.
  • Career Point's free YouTube channels.

eCareer Point Differentiators

Best pool of experts and faculty team team and subject matter experts.

Experienced Management Team Philosophy of Excellence

superior education delivery.

Scope of Offering

eCareerPoint in Media / Press

http://www.ptinews.com/news/11411274\_Career-Point-launches-new-learning-app--eCareerPoint-.html

Agenda

About Company	Online Learning(New Initiative)	FY2020-21	Annex
Mission-Vision	Introduction	Key Business Updates	Company Structure
Our Businesses	Product Categories	Financial Updates	Leadership Team
Growth Strategies	Tutor Engagement Model	Management Outlook	Formal Education Model
	Journey So Far	Extraordinary Items	Shareholding Structure
	Differentiators	Income Statement	Disclaimer
	Scope of Offering	Balance Sheet
	In Media / Press

Business Updates – FY2020-21

• Career Point's e-learning division eCareerPoint has gained significant popularity with more • In Career Point's e-Learning division; two very promising offerings – Vedam Learning (1-to-1
• than 1.2 Lacs App downloads and thousands of paid subscribers. • In addition to Engineering (JEE) and Medical (NEET) test-prep, eCareerPoint has also its offerings for Board preparation (school curricula) and Govt. Exams.
• Online Tutoring) and CP-Tab (Recorded Video Lectures) have also been added.
• Additionally, there are more than 300K subscribers on YouTube channels of Career Point's eLearning division having 5,000+ videos.
• The physical campuses are not yet operational for teaching. However, the students are being serviced through online mode of teaching.

Management Outlook

• The education sector has been dramatically transformed as a result of the Covid19. While it has caused significant disturbance in conventional business operation but at the same time the management is in opinion that the situation has opened the doors to take advantage of the multiple opportunities still untapped in the education sector. next growth trajectory fuelled by eCareerPoint – eLearning business initiative of the company. • In addition to high growth, more efficient and scalable eLearning services, acceptance of elearning in
• With Career Point's legacy of about 3 decades of educational expertise, Management is quite optimistic with
• company's annuity driven and sustainable formal education business (education services to schools and universities) will continue to contribute significantly at the profit level.
• As the outbreak has redefined the conventional education, the company management continually explores plans to strengthen existing capabilities while developing new offerings by various modes i.e. technology platforms, integrations, diversification, and inorganic growth.
• The company management is considering restructuring of the company businesses and financials. It is likely to align business as per changed market dynamics and improve efficiency in operations.

Financial Updates – FY2020-21

• Income from operations for the period (FY2020-21) is rupees 49.2 crores on consol basis and rupees 18.1 crores at standalone level.
• Total revenue, including other income, is reported of rupees 57.3 crores on consol basis and rupees 39.1 crores at standalone level.
• Reported EBITDA (including other income) of rupees 38.3 crores on consolidate numbers excluding Write-off and Provision amounts; and rupees 23.3 crores on standalone resulted EBITDA Margin of 66.9% and 59.8%, respectively.
• A remarkable improvement of 2250+ basis points was reported in adjusted EBITDA margin (excluding Write-off and Provisions) against previous year is primarily due to resilient operating performance backed by increased elearning income and reduced costs. • Net income was reported at rupees 12.58 crores and EPS (Earning per share) of rupees 6.92 on standalone basis. At consol level, the company reported net income of rupees 14.4 Lacs and EPS of rupees 0.08 impacted • As on 31 March 2021, Net worth of the company was reported of rupees 448 crores and Book value per share
• on the accounts of extraordinary write-off and provision.
• of rupees 246.

Extraordinary Items

• Covid-19 has impacted the education business significantly. On assessing the recoverability of certain assets in-line with changed economic indicators due to Covid-19 pandemic and a consideration to internal and external information; a write-off of amount Rs 18.8 Cr has been booked in accordance with prudence accounting in one of the subsidiary – Career Point Infrastructure Limited. This writtenoff amount has been calculated with consideration of recovery of dues from the assets of the party of default - an educational institution. Also as per the RBI prudential norms and applicability of IndAS in subsidiary, Srajan Capital Ltd, the provision amount Rs 4.5 Cr is booked against the dues of an education institution.
• Excluding the Write-off and Provision amounts; Career Point reported net profit of Rs 22.01 Cr and EPS of Rs

Income Statement: Standalone

Income Statement: Standalone
Income Statement		<----------------------------------		Standalone ---------------------------------->
Rs Lakhs	Q4FY20	Q3FY21	Q4FY21	FY2020	FY2021
Income	Ind AS	IndAS	Ind AS	Ind AS	Ind AS
Income from Operation	802.8	544.3	143.0	5,214.2	1,812.5
Other Income	578.0	692.6	551.8	2,063.9	2,093.1
Total Income	1,380.8	1,236.9	694.8	7,278.1	3,905.6
Expenditure
Cost of Study Material	35.2	39.6	54.2	172.9	131.3
Employees Cost	634.7	224.4	206.0	2,756.1	798.3
G&A and other expenses	338.1	173.3	277.3	1,302.9	641.7
Dep. & Amort.	97.1	96.0	90.1	398.9	375.7
Finance Charges	122.7	89.2	93.3	589.1	395.0
Total Expenditure	1,227.8	622.5	720.8	5,219.9	2,341.9
EBITDA	372.8	799.5	157.4	3,046.2	2,334.3
EBITDA Margin	27.0%	64.6%	22.7%	41.9%	59.8%
Operating EBITDA	(205.2)	106.9	(394.4)	982.3	241.2
Op. EBITDA margin	-25.6%	19.6%	-275.9%	18.8%	13.3%
Profit Before Tax	153.0	614.4	(26.0)	2,058.2	1,563.6
PBT Margin	11.1%	49.7%	-3.7%	28.3%	40.0%
Profit After Tax	180.0	520.5	(16.6)	1,642.9	1,258.4
PAT Margin	13.0%	42.1%	-2.4%	22.6%	32.2%
EPS (Rs)	0.99	2.87	(0.09)	9.03	6.92

Income Statement: Consolidated

Income Statement		<----------------------------------		Consolidated ---------------------------------->
Rs Lakhs	Q4FY20	Q3FY21	Q4FY21	FY2020	FY2021
Income	Ind AS	Ind AS	Ind AS	Ind AS	Ind AS
Income from Operation	1,635.8	1,602.6	429.6	10,461.3	4,919.6
Other Income	173.4	408.2	92.5	531.4	806.2
Total Income	1,809.3	2,010.8	522.1	10,992.7	5,725.8
Expenditure
Cost of Study Material	80.0	157.6	61.5	1,829.5	270.4
Employees Cost	654.3	238.9	222.3	2,842.1	853.7
G&A and other expenses	367.7	223.5	316.2	1,435.0	766.7
Dep. & Amort.	105.3	108.2	102.0	441.0	422.5
Finance Charges	145.7	108.3	130.5	664.7	499.7
Total Expenditure	1,353.1	836.6	832.5	7,212.3	2,813.1
Adj. EBITDA(excluding write-offand provisions)	707.2	1,390.8	(78.0)	4,886.1	3,835.0
EBITDA Margin	39.1%	69.2%	-14.9%	44.4%	67.0%
Adj. Operating EBITDA (excluding write-offand provisions)	533.8	982.6	(170.5)	4,354.7	3,028.8
Op. EBITDA margin	32.6%	61.3%	-39.7%	41.6%	61.6%
Write-off and Provision Amount			2,336.8		2,336.8
Profit Before Tax	456.2	1,174.2	(2,647.3)	3,780.4	575.9
PBT Margin	25.2%	58.4%	-507.1%	34.4%	10.1%
Profit After Tax	354.1	932.6	(2,467.1)	2,718.6	14.4
PAT Margin	19.6%	46.4%	-472.6%	24.7%	0.3%
EPS (Rs)	1.95	5.13	(13.56)	14.97	0.08

Balance Sheet: FY2020-21

		Balance Sheet: FY2020-21
Balance Sheet	<--------------	Standalone --------------->		<-------------	Consolidated -------------->
Rs Lakhs	31-Mar-2020Ind AS	31-Dec-2020Ind AS	31-Mar-2021Ind AS	31-Mar-2020Ind AS	31-Dec-2020Ind AS	31-Mar-2021Ind AS
Liabilities
Shareholders' fund	40,649	41,960	41,786	44,893	47,423	44,797
(a) Share Capital	1,816	1,819	1,819	1,816	1,819	1,819
(b) Reserve and Surplus	38,833	40,141	39,967	43,076	45,603	42,977
Non-current Liabilities	856	862	826	921	954	1,241
(a) Def. Tax Liabilities	792	787	789	801	814	699
(b) Provisions & Others	64	75	37	120	140	542
Current Liabilities	1,510	994	950	1,818	1,591	1,117
(a) Current Liabilities	1,502	987	947	1,764	1,408	1,009
(b) Provisions	7	7	3	54	183	109
Borrowings	5,663	4,909	5,678	6,720	6,102	7,178
Total Liabilities	48,678	48,725	49,240	54,352	56,069	54,333
Assets
Fixed Assets (inc. WIP)	13,646	13,199	13,191	19,446	19,094	19,111
Non-current Assets	18,325	18,714	18,002	9,833	10,323	9,915
(a) Loans and Advances	872	1,161	1,144	8,205	8,579	9,546
(b) Investments	17,453	17,553	16,858	1,628	1,744	369
(c) Other Assets	-	-	-	-	-	-
Current Assets	16,707	16,812	18,047	25,073	26,652	25,307
(a) Inventories	95	88	86	501	385	354
(b) Sundry Debtors	1,219	1,116	560	4,945	4,829	4,216
(c) Cash & Bank Balances	254	272	184	1,187	861	1,192
(d) Current Investments	1,385	1,082	2,519	1,405	1,102	2,519
(e) Loans and Advances	13,754	14,254	14,699	17,034	19,474	17,026
Total Assets	48,678	48,725	49,240	54,352	56,069	54,333

Agenda

About Company	Online Learning(New Initiative)	FY2020-21	Annex
Mission-Vision	Introduction	Key Business Updates	Company Structure
Our Businesses	Product Categories	Financial Updates	Leadership Team
Growth Strategies	Tutor Engagement Model	Management Outlook	Formal Education Model
	Journey So Far	Extraordinary Items	Shareholding Structure
	Differentiators	Income Statement	Disclaimer
	Scope of Offering	Balance Sheet
	In Media / Press

Company Structure

Leadership Team

Leadership Team
Name	Designation
Mr. PramodMaheshwari	CMD & CEO
Mr. Om Maheshwari	Executive Director
Mr. NawalMaheshwari	Executive Director
	Board of Directors
Name	Position
Mr.PawanLalpuria	IndependentDirector
Mr.VishalJain	IndependentDirector
Mr.RamswarupChaudhary	IndependentDirector
Mr. Mahesh Gupta	Independent Director
Mr. J.P Sharda	Independent Director
Ms. NeelimaMaheshwari	Non-Independent Director
Ms. DivyaSodani	Independent Director

Experienced Promoters			Professional Management Team
		Name	Position
		Dr.P.L.Gautam	Pro-C,CPUniversity,HP
		Mr.ShailendraMaheshwari	SeniorVP-Academics
		Mr.MaheshBhangriya	VP-CorporateStrategy
Board of Directors		Dr.GurudattKakkar	GM-Higher Education
	Position	Mr.TarunKumarJain	Company Secretary
	IndependentDirector
	IndependentDirector	Mr. AnkeshJain	GM -Marketing
	IndependentDirector	Mr. U.S. Kejriwal	General Manager-Infra
	Independent Director
	Independent Director	Mr. AshishJha	National Sales Head
	Non-Independent Director	Mr. Manish Sharma	AGM-Business Dev.

Formal Education Model

Career Point provides services to K-12 Schools and Higher Education Institutions under its Formal Education division. These services include Auxiliary Educational Services & other services related to management of the institutions.

Shareholding Structure

Shareholding Structure
Stockexchanges	Symbol	Databases	Code
National Stock Exchange	CAREERP	Reuters -RIC	CARP.BO
Bombay Stock Exchange	533260	Bloomberg –BB	CRPT:IN

		Key Non-Promoters Ownership
	Mr. Manish Jain		4.71%
	NavneetEducation Limited		1.86%
	Ms. GitaKirtiAmbaniKuntalHasmukhlalShahVibgyorInvestors		1.59%
			1.37%
			0.96%
	SajanVerghisMathew		0.87%
Promoters,63.5%	DhirajlalVarjivandas	Shah	0.68%
	SabjotSingh Sahni		0.65%
	Total		12.71%
	As on 31 Mar 2021

Disclaimer & Confidentiality

This Information Memorandum sets out the key highlights of the business, historic and current business updates and future financial projections of Edutiger Private Limited ("Company"). This Memorandum is being made available for exclusive use and for the sole purpose of assisting potential investor while updating about Company and its businesses.

Confidentiality

The information and opinions contained in this Memorandum are strictly confidential. It is meant for the use of only the persons to whom it is issued or addressed. On no account may this Memorandum (or any part of it) be copied, disclosed or distributed to any person other than the recipient .

Disclaimer

The Memorandum does not purport to be all-inclusive or necessarily to contain all the information that a prospective investor may desire in investigating the Company or its divisions, and may be subject to updating, revision or amendment. The company does not makes any representation or warranty, express or implied, as to the accuracy, reasonableness or completeness of the information contained in the Memorandum.

Thank You

Career Point Limited

Investor Contact Details

Thank You
	Career Point Limited
	Corporate & Reg. Office: CP Tower, Road No-1, IPIA, Kota (Rajasthan) India Ph: +91 744 3040000
	Investor Contact Details
Mr. PramodMaheshwariMr. Mahesh Bhangriya	Chairman & Managing Director pramod@cpil.in Vice President -Corporate Strategy mahesh@cpil.in
	Mr. Tarun Jain Company Secretary tarun.jain@cpil.in
Visit us at	YouTube links
www.cpil.in www.careerpoint.ac.in	Career Point:	bit.ly/CareerPoint
e-Learning Solutions	CP Gurukul:	bit.ly/CPGurukul
www.ecareerpoint.com www.cplive.in	GurukulKota:	bit.ly/CPGurukul_Kota
	Career Point University:	bit.ly/CPUKR
Higher and Vocational Education
www.cpur.in www.cph.in www.cpisd.in	Find us at
Preschool and K12	/cpkota	/cpkota