S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2022-23 Earnings Presentation
25 slides from S Chand And's earnings presentation, Aug 9, 2022
Slide 1: Stock exchange filing cover letter
�T -!- S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND P:+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandqroup.com I www.schandgroup.com ---• GROUP Date: August 09, 2022 To To Listing Department Lir.ting D
Slide 2: Q1 – FY2022-23 Investor Update
S. Chand and Company Limited Q1 – FY2022-23 Investor Update 9th August 2022
Slide 3: Summary
SUMMARY 1. Resurgence… 2. Consolidated Financial Performance 3. Digital Business & Investments 2
Slide 4: Resurgence...
— —— S.CHAND GROUP le) ie Resurgence... a2d www.schandgroup.com
Slide 5: Highest level of Q1 revenues & profitability
HIGHEST LEVEL OF Q1 REVENUES & PROFITABILITY Revenues from Operations (Rs M) 1,073 • Highest ever: • Q1 Sales • Q1 EBITDA • First ever PAT profitable 358 Quarter 1 Q1FY22 Q1FY23 Revenues (Rs m) EBITDA (Rs M) PAT (Rs M) 262 First ever PAT Structural revival profit in Q1 62 in EBITDA Q1FY23 -169 -314
Slide 6: Solid improvement in working capital metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Inventory days are Down 93 days on a YoY basis in spite of highest ever Q1 Sales in company’s history. • To understand the magnitude of this improvement, do keep in mind that receivables are down Rs812m over March, 22 in spite of Rs1,073m sales clocked
Slide 7: Sustainable reduction in debt & inventory levels
SUSTAINABLE REDUCTION IN DEBT & INVENTORY LEVELS We are firmly on our way to achieve our target of We are moving to a structurally lower inventory becoming net debt zero by Q4FY23. Net debt levels in the company. Current inventory has reduced by 78% over last year. Rs301m raw material paper inventor
Slide 8: Solid improvement in working capital metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs2,109m during Q1FY23 vs. Rs2,485m during Q1FY22. This is a Rs376m decrease in receivables YoY in spite of achieving incremental sales of Rs715m over in Q1 last year. • In terms of receivable days,
Slide 9: Resurgent cash flow performance
RESURGENT CASH FLOW PERFORMANCE • Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs633m in Q1FY23 (vs. Rs99m in Q1FY22 and Rs177m in Q1FY21 and Rs129m in Q1FY20). • This is the strongest CFO during quarter 1 in the recent past. Over 6x Incre
Slide 10: Our minority investments – update and philosophy
OUR MINORITY INVESTMENTS – UPDATE AND PHILOSOPHY • We made our 1st profitable exit from one of our minority investments in July, 22 by selling our stake in TestBook for a consideration of approx. Rs180m. This translates into a 7.8x return over our initial investment made in 2015. • From an investmen
Slide 11: Looking ahead
LOOKING AHEAD Gross margins can Focus on cost control, be impacted by 100- working capital 200bps on back of metrics and cash input cost pressures flows to continue. Higher revenues to Implement a 15%+ price drive profitability on hike across portfolio to back of operating counter increased raw leve
Slide 12: New Education Policy – big positive going ahead
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD IN SHORT TO MEDIUM TERM • Announcement of Draft New Education May, 2019 Policy (NEP) • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Adoption of the New Education Policy • Expect release of the New Nationa
Slide 13: Consolidated Financial Performance
Consolidated Financial 2. Performance 12
Slide 14: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 1QFY23 Highlights Highest ever Q1 Revenues Highest ever Q1 EBITDA First ever PAT profit during Q1 in the company’s history Note - Publication expenses are now included in Other expenses. Historical numbers have been updated to maintain consistency 13
Slide 15: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 14
Slide 16: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE Over 6x Increase in Cash generated from operating activities in Q1FY23 over last year 15
Slide 17: Shareholding structure
SHAREHOLDING STRUCTURE As of 8th August, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2022 of June 2022 than 1% - As of June 2022 Market Capitalization (Rs Mn) 5,000 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 143 Tru
Slide 18: Conference call details
CONFERENCE CALL DETAI ry S.CHAND P Prabhudas' A GROUP Lilladher $.CHAND POWERING YOUR FINANCIAL GROWTH empunorire minds We cordially invite you to the Earnings Call with S Chand and Company Ltd. Bloomberg Code: SCHAND IN | Reuters Code: SCHA.BO to discuss the Q1FY23 Results Represented by: Mr. Himan
Slide 19: Digital Business & Investments
3. Digital Business & Investments 18
Slide 20: Investee companies – hidden value in our balance sheet
INVESTEE COMPANIES – HIDDEN VALUE IN OUR BALANCE SHEET • Smartivity was founded in 2015 with focus on S.T.E.M. Learning and DIY Kits. • We have Angel funded approx. Rs20m in the company across various funding rounds. • Their latest round of funding was done in June 2021 at a valuation of approx. Rs1
Slide 21: S Chand Academy growing by leaps and bounds
S CHAND ACADEMY GROWING BY LEAPS AND BOUNDS • Launched S Chand Academy channel on Youtube during FY22. S Chand Academy • The channel houses modules comprising of over 550 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. The channel has showed strong gro
Slide 22: TestCoach
TESTCOACH • Have launched a revised and updated TestCoach app. The app has been downloaded over 170K times. • The mock tests provided by the app covers over 100+ national and state level exams in English and Hindi. • Given the uptick in the number of test prep exams and government job openings, we e
Slide 23: Learnflix & Mylestone
LEARNFLIX & MYLESTONE • Learnflix App is targeted to the Next Half Billion (NHB) • Mylestone: Digitally enabled School Curriculum Solution for the K-8 audience. The current product covers Maths, Science & SST for segment. classes 6th to 10th. • Future Outlook: • Learnflix Bangla launched in December
Slide 24: Educate360 product testimonials
EDUCATE 360 • Madhubun Educate360 is our K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. This product is NEP 2020 compliant supporting the recommended pedagogies. • The solution is currently being implemented by over 55 paying s
Slide 25: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by S. Chand & Company Limited (“S. Chand” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, fin
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