S Chand And Company Limited · NSE:SCHAND
S Chand And — Q4 FY2022-23 Earnings Presentation
27 slides from S Chand And's earnings presentation, May 30, 2023
Slide 1: Cover letter to stock exchanges
-!- � T S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Indust rial Estate, New Delhi - 110044, India. I F:+91 11 4973 1801 I E: info@schandgroup.com I www.schand<Jroup.com -- - S.CHAND P:+91 11 4973 1800 GROUP Date: May 30, 2023 To To Listing Department Listing De
Slide 2: S. Chand and Company Limited – A New Leap Forward
S. Chand and Company Limited – A New Leap Forward Q4 – FY2022-23 Investor Update 30th May 2023
Slide 3: Summary
SUMMARY 1. A New Leap Forward - Poised for growth 2. Consolidated Financial Performance 3. Digital Business & Investments 2
Slide 4: A New Leap Forward - Poised for growth
A New Leap Forward - 1. Poised for growth 3
Slide 5: Best performance in 5 years – poised for growth on back of NCF
BEST PERFORMANCE IN 5 YEARS – POISED FOR GROWTH ON BACK OF NCF Becomes Net Rs6,103m Rs963m Rs576m Debt Free Highest operating Highest EBITDA in 5 Highest PAT in 5 S Chand becomes net revenues in 5 years, years, Up 57% YoY years, Up 616% debt free in April, Up 27% YoY YoY 2023 Lowest Q4 Receivables a
Slide 6: Best year performance – poised for growth on back of NCF
BEST 5 YEAR PERFORMANCE – POISED FOR GROWTH ON BACK OF NCF Revenues from Operations (Rs M) • Strong performance in FY23 on all 6,103 parameters returning to sustainable profitability. 5,220 • Margins could have been higher 4,809 4,294 but for the unprecedented raw 4,252 material price hike of 35%- 4
Slide 7: Best 4Q working capital metrics in the company's history
BEST 4Q WORKING CAPITAL METRICS IN THE COMPANY’S HISTORY 49% reduction • Lowest Year end in Receivable Days since • Better Working capital Receivable days in the FY19 efficiency has translated company’s history. into higher cash flows leading to lower debt • Lowest Year end Net levels. Working Capit
Slide 8: Company becomes net debt free
COMPANY BECOMES NET DEBT FREE Company becomes net debt free in April, 2023. Inventory value is higher on back of higher cost raw material inventory in stock. Current inventory has Rs436m raw material paper inventory (vs. Rs277m in Q4FY22). 7
Slide 9: Best 4Q working capital metrics in the company's history
BEST 4Q WORKING CAPITAL METRICS IN THE COMPANY’S HISTORY • Working Capital Metrics • Trade Receivables reduced to Rs2,653m during Q4FY23 vs Rs2,921m during Q4FY22. This is a Rs268m decrease in receivables in spite of achieving incremental sales of Rs1,294m over last year. • In terms of receivable da
Slide 10: Minority investments in ixamBee made in April, 2023
MINORITY INVESTMENTS IN IXAMBEE MADE IN APRIL, 2023 • ixamBee (https://www.ixambee.com/) was founded by Chandraprakash Joshi, Arunima Sinha and Sandeep Singh in December 2016 in Delhi NCR. The company’s objective is to help graduates and undergraduates prepare effectively for Government examinations
Slide 11: Look forward to further NCF announcements in CY2023
LOOK FORWARD TO FURTHER NCF ANNOUNCEMENTS IN CY2023 • The government announced the National Curriculum Framework (NCF) Old Academic Structure New Academic Structure for the Foundation Stage i.e. Classes K-2 on 20th October, 2022. • We expect more announcements to come regarding the NCF of the Prepar
Slide 12: New Education Policy – path visible now in short to medium term
NEW EDUCATION POLICY – PATH VISIBLE NOW 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 (NEP) • The National Curriculum Framework (
Slide 13: Looking ahead
LOOKING AHEAD Target EBITDA margin band of Gross margins can 16%-18%. increase in case Strong growth in S paper prices Chand Academy decline during the Youtube channel. year. Focus on working Would take a single capital metrics and digit price hike across cash flows to portfolio in FY24. continue. O
Slide 14: Consolidated Financial Performance
Consolidated Financial 2. Performance 13
Slide 15: Consolidated financial performance: FY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE FY23 Highlights Revenues: 27% Higher YoY EBITDA: 57% Higher YoY PAT: 616% Higher YoY Turn Net Debt Free in April, 23 Restores dividend of Rs3/share after 5 years Note - Publication expenses are now included in Other expenses. Historical numbers have been updated to
Slide 16: Consolidated financial performance: 4QFY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE 4QFY23 Highlights Revenues: 14% Higher YoY Gross Margins impacted by unprecedented hike in paper prices during CY22 EBITDA: 3% Higher YoY PBT: 13% Higher YoY Note - Publication expenses are now included in Other expenses. Historical numbers have been updated to mai
Slide 17: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 16
Slide 18: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 17
Slide 19: Higher cost inventory impacts operating cash flow
HIGHER COST INVENTORY IMPACTS OPERATING CASH FLOW • Inventory increased by Rs286m to Rs1,562m (vs Q4FY22: Rs1,276m). This increase in inventory is due to the unprecedented price hike seen in the paper prices during the year. Additionally, this inventory level includes raw material paper inventory of
Slide 20: Shareholding structure
SHAREHOLDING STRUCTURE Market Data As of 29th May, 2023 Key Institutional Investors - As Other Institutional Investors holding less % Holding of March 2023 than 1% - As of March 2023 Market Capitalization (Rs Mn) 7,300 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 208 Tru
Slide 21: Conference call details
CONFERENCE CALL DETAILS 2 =S- 7 — P Prabhudas’ =» Lilladher $.cHAND POWERING YOUR FINANCIAL GROWTH empowering minds We cordially invite you to the Earnings Call with S Chand and Company Ltd. For further information, please contact Bloomberg Code: SCHAND IN | Reuters Code: SCHA.BO Jinesh Joshi | Jine
Slide 22: Digital Business & Investments
3. Digital Business & Investments 21
Slide 23: Investee companies – hidden value in our balance sheet
INVESTEE COMPANIES – HIDDEN VALUE IN OUR BALANCE SHEET • Smartivity (https://www.smartivity.in/) 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 last round of funding was done in Sept 2022 at
Slide 24: S Chand Academy on YouTube growing by leaps and bounds
S CHAND ACADEMY ON YOUTUBE GROWING BY LEAPS AND BOUNDS • Launched S Chand Academy channel on Youtube during FY22. S Chand Academy • The channel houses modules comprising of over 1,200 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. The channel has show
Slide 25: TestCoach – our test prep app
TESTCOACH – OUR TEST PREP APP • 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 governmen
Slide 26: Mylestone & Educate 360 – school solutions
MYLESTONE & EDUCATE 360 – SCHOOL SOLUTIONS • Mylestone: Digitally enabled School Curriculum Solution for the K-8 segment. • Madhubun Educate360 is our K-12 Blended learning solution for • Future Outlook: enabling schools to conduct online classes, student assessments, • Affordable Private Schools wo
Slide 27: 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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