Volrado Venture Partners-backed tutorial services company Career Point Infosystems saw its net profit shoot up 65 per cent for the quarter ended June 30 over the year-ago period, boosted by gains from investment income, even as core operations saw sluggish revenue and operating profit growth for the quarter.
The 10-year-old firm, which went public last year, provides tutorial services for engineering and medical entrance exams and has presence through 33 centres, half of which are operated by the company and the rest as franchisee centres.
Revenue for the quarter rose around 6 per cent to Rs 15.77 crore while operating profit before other income, interest and exceptional items barely inched up to Rs 2.71 crore.
Pramod Maheshwari, managing director & CEO of Career Point Infosystems Ltd, said that the company had gained from the interest and dividend earned from other investments, including government-linked long-term securities.
He said that the sluggish growth in topline and operational front was due to the delay in student enrolment in the last week of June. “The admissions got delayed by seven days and all those admissions happened in the first week of July. So, those enrolment numbers don’t reflect in the first quarter and as a result, there is a sluggish growth,” he said.
In the April-June (2011) period, the firm had an enrolment of 12,956 candidates, as compared to 13,509 (April-June, 2010) during the same period year-ago for the year-long courses. As on July 31, 2011, Career Point had 18,399 students enrolled.
Career Point had a blockbuster market debut last October, more than doubling within a day of listing. But the scrip has now shrunk below its issue price of Rs 310 a share.
The scrip dropped 3.38 per cent to close at Rs 292.7 a share, valuing the company at Rs 530 crore.
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