CIRA's net income rises 31% in FY2020-2021 amid enrollment boost
CIRA extends growth run in FY2020-2021: Cairo for Investment and Real Estate Development (CIRA) announced a 31% rise in its net income to EGP 350.8 mn in its 2020-2021 fiscal year, which ended on 31 August, according to the company’s earnings release (pdf). The private sector education outfit’s revenues were up 28% y-o-y to EGP 1.4 bn, building on a strong showing the year before, when revenues jumped 54% to cross the EGP 1 bn mark for the first time despite the pandemic.
Top-line growth was driven by increased enrollment after CIRA opened three new faculties at Badr University in Cairo, leading to a 52% y-o-y bump in revenues for the company’s higher-ed sector. Its K-12 segment saw a 5% increase in revenues, also on the back of increased enrollment, though school revenues were held back by a drop in bus fees and construction income amid a pandemic-induced dip. CIRA now caters to almost 45K students across its educational institutions, achieving its five-year enrollment target a year early, CEO Mohamed El Kalla said.
Looking ahead: CIRA will be launching its flagship Badr University in Assiut by February 2022, according to the release. The company is also aiming to launch two of its large-scale education investments by 2023: Egypt’s first private tech university, Cairo Saxony University, in partnership with Al Ahly Capital, and New Damietta University in partnership with Elsewedy.
On new ESG requirements: CIRA has tapped a new lead for ESG reporting, the statement reads. Starting next year, EGX-listed firms and NBFS companies will be required to file mandatory annual ESG reports under new regulations from the Financial Regulatory Authority. You can read more about the reporting requirements here, and what other EGX-listed companies are doing about it here.