S Chand And Company Limited · NSE:SCHAND
S Chand And — Q4 FY2019-20 Earnings Presentation
21 slides from S Chand And's earnings presentation, Jun 30, 2020
Slide 1: Cover letter to stock exchanges on investor presentation
Date: June 30, 2020 To To Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Mumbai, Maharashtra 400001 Complex, Bandra (E), Mumbai, Maharashtra 400051 Dear Sir, Re: Investors
Slide 2: Q4 – FY2019-20 Investor Update
S. Chand and Company Limited Q4 – FY2019-20 Investor Update 30th June, 2020
Slide 3: Summary
SUMMARY • COVID 19 IMPACT & BUSINES RESPONSE • OUR DIGITAL ROADMAP FOR THE FUTURE • DEVELOPMENT OF A NEW ONLINE LEARNING PLATFORM – PRODUCT FOR THE FUTURE • UPDATE ON DIGITAL BUSINESS – SILVER LINING IN THE PANDEMIC CLOUD • OUR BUSINESS IS HIGHLY SEASONAL IN NATURE • COST SAVING MEASURES DURING FY20
Slide 4: COVID 19 Impact & Business Response
COVID 19 IMPACT & BUSINES RESPONSE • Q4 accounts for ~80% of annual revenues. • S Chand 3.0 initiatives led to operating • March accounts for 30%-40% of costs being lower by 24% in percentage annual revenues. terms during FY20 over FY19. • Slowdown in school orders (Schools • Due to the seasonal nat
Slide 5: Our Digital Roadmap for the Future
OUR DIGITAL ROADMAP FOR THE FUTURE 08 AI and ML Recommendations,Personalizatio n, Knowledge graphs, Learning Store and Commerce 07 path, Insights Digital book store, Commerce, Products and variants, Up-sell 06 Gamification and Cross-sell We see digital Badges, Rapido, Contests Data and Analytics 05
Slide 6: Development of a New Online Learning Platform – Product for the Future
DEVELOPMENT OF A NEW ONLINE LEARNING PLATFORM – PRODUCT FOR THE FUTURE Digital Content • Textbooks Analytics and • Multimedia (Video, Audio, HTML etc) We have a new • Practice Tests Insights online learning • Student 01 • Teacher 05 platform under • School development to • Parent Live Classes delive
Slide 7: Update on Digital Business – Silver Lining in the Pandemic Cloud
UPDATE ON DIGITAL BUSINESS – SILVER LINING IN THE PANDEMIC CLOUD • India’s most affordable learning platform, Learnflix (Android & Apple iStore), was launched during January, 2020. • Learnflix saw very strong response in the past months and has already been downloaded over 70K times with over 15K pa
Slide 8: Update on Digital Business – Major Investee Companies Raised Capital
UPDATE ON DIGITAL BUSINESS – SILVER LINING IN THE PANDEMIC CLOUD Our major investee companies raised capital during these times as well • Testbook was founded in 2014 with focus on online test preparation for government competitive exams like Civil services, Banks, Govt departments like railways, de
Slide 9: Our Business Is Highly Seasonal in Nature
OUR BUSINESS IS HIGHLY SEASONAL IN NATURE • The business of S Chand is seasonal in nature where Q4 accounts for 75%- 80% of annual revenues and the month of March itself accounts for 30%-40% of the annual revenues. • On back of the Covid-19 pandemic, we saw schools and education institutions taking
Slide 10: Cost Saving Measures During FY20 Cushion COVID Impact
COST SAVING MEASURES DURING FY20 CUSHION COVID IMPACT • The COVID 19 pandemic hit us untimely during March, 2020 which is peak sales season for us impacting the FY20 financials adversely. We estimate lower sales in the range of Rs1,600m-Rs1,800 m on back of slower sales and government lockdown durin
Slide 11: Incremental Cost Saving Initiatives for FY21
INCREMENTAL COST SAVING INITIATIVES FOR FY21 • Incremental cost savings expected in FY21. We are looking at the following measures in FY21 to lead to reduced costs during the year-: • Lower paper prices for FY21: We expect paper prices to be lower by 5%-10% vs. last year and this should help our gro
Slide 12: Working Capital – 9MFY20 Improvement Impacted by COVID 19
WORKING CAPITAL – 9MFY20 IMPROVEMENT IMPACTED BY COVID 19 • We delivered strong improvement in our working capital metrics till 9MFY20 across receivable days and Net working capital on back of our focus on improving our collection efficiency and effective working capital management. These metrics ha
Slide 13: Engagement with Stakeholders During COVID
ENGAGEMENT WITH STAKEHOLDERS DURING COVID 19 Working with eco- Turning point for system stakeholders Provide solutions to Digital Solutions in during these deepen connect Education space challenging times Turning point for digital learning. Focus on working with stakeholders. We are Providing custom
Slide 14: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE (₹ in millions) Q4FY20 Q4FY19 YoY (%) FY20 FY19 YoY (%) Revenue from contract with customers 3,318 4,491 -26% 4,294 5,220 -18% Other income 54 42 29% 94 116 -19% Total income 3,373 4,534 -26% 4,388 5,336 -18% Cost of published goods/materials consumed 749 921 -19%
Slide 15: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE March 31, March 31, March 31, March 31, (₹ in millions) 2020 2019 (₹ in millions) 2020 2019 Audited Audited Audited Audited Equity and liabilities Assets Equity Non-current assets Equity share capital 175 175 Property, plant and equipment 959 1,152 Other equity Int
Slide 16: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Year ended Year ended (₹ in millions) March 31, 2020 March 31, 2019 Audited Audited Year ended Year ended A. Cash flow from operating activities March 31, 2020 March 31, 2019 (Loss) before tax -987 -953 (₹ in millions) Adjustment to reconcile profit before tax to n
Slide 17: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Receivable days lowest in 2 years by 26 days despite lower collections and revenues in Q4FY20; • We would have seen much improved NWC level on back of lower closing inventory levels if sales would have not been disrupted by lockdown and covid-19 pandemic. 16
Slide 18: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Working Capital Metrics. • Inventory: Rs2,014m (vs. FY19: Rs2,048m). This includes raw material paper inventory of approx. Rs300m. • Receivables: Rs3,349m (vs. FY19: Rs4,446m) • Receivable days: 285 days (vs. FY19: 311 days). This is the lowest receivable days in
Slide 19: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 30th June, 2020 Key Institutional Investors - As of March 2020 % Holding Market Capitalization (Rs Mn) 1,520 Price (Rs) 43 Everstone Capital Partners II LLC 9.5% No. of shares outstanding (Mn) 34.95 International Finance Corporation 8.0% Face Value (Rs.) 5.0
Slide 20: Looking Ahead
LOOKING AHEAD • FY21 • Given the uncertainty around Covid 19 crisis, it would not be possible to give a revenue growth guidance. However, we would be able to share more details with investors as and when the situation become more clearer in the coming months. • Some of the cost factors which we are
Slide 21: 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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