S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2025 Earnings Presentation
24 slides from S Chand And's earnings presentation, Aug 12, 2024
Slide 1: Cover letter to stock exchanges
-! =F S Chand And Company Limited Reqistered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND GROUP P:+91 11 4973 1800 I f:+91 11 4973 1801 I E: info@schandgroup.com I www.schand'j'roup.com Date: August 12, 2024 To To Listing Department Listing Depar
Slide 2: S. Chand and Company Limited Q1 FY2024-25 Investor Update
S. Chand and Company Limited – Look forward to a strong NCF implementation in FY25 Q1 – FY2024-25 Investor Update 12th August 2024
Slide 3: Summary
SUMMARY 1. Key Highlights –1QFY25 2. Consolidated Financial Performance 3. Status of Digital Business & Investments 2
Slide 4: Key Highlights – 1QFY25
rh lUlcrtlté“‘( ‘SS i = | S.CHAND GROUP Key Highlights — 1QFY25 ks www.schandgroup.com —_
Slide 5: Management Commentary – Q1FY25 (Managing Director)
MANAGEMENT COMMENTARY – Q1FY25 Performance Highlights, Mr. Himanshu Gupta, Managing Director: “Q1FY25 was steady quarter in terms of sales in spite of headwinds faced due to the National Elections in the country. We had an exceptional quarter in terms of delivering the lowest working capital metrics
Slide 6: Management Commentary – Q1FY25 (Group CFO)
MANAGEMENT COMMENTARY – Q1FY25 Performance Highlights, Mr. Saurabh Mittal, Group CFO: “Our consolidated revenues reached Rs1,111 million, EBITDA of Rs84 million and a marginal PAT Loss of Rs30 million. • We achieved the highest ever Gross Margins at 72% in the history of the company. • One of the st
Slide 7: Lowest Historical Working Capital Metrics Ever
LOWEST HISTORICAL WORKING CAPITAL METRICS EVER 56% reduction 62% reduction in NWC Days in Receivable since FY20 Days since FY20 • Q1 Receivable days below 100 days for the first • Improved Working capital efficiency has time ever in company’s history. translated into strong cash flows leading to • L
Slide 8: Net Debt Free with Controlled Inventory
NET DEBT FREE WITH CONTROLLED INVENTORY • Company continues to be net debt free. • Finished Goods inventory is at approx. same level • We aspire to remain net debt free for 3 since June, 22. quarters in a year. • Total Inventory has Rs485m raw material paper inventory (vs. Rs371m in Q1FY24). Note –
Slide 9: Sustainable Cash Flow Performance
SUSTAINABLE CASH FLOW PERFORMANCE • Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs353m in Q1FY25. This is a steady start to a year where we expect NCF benefits to flow through in the sales season. • Lower Operating Cash flows vs. Q1FY24 i
Slide 10: Key Marketing & Promotional Activities for FY25
KEY MARKETING & PROMOTIONAL ACTIVITIES FOR FY25 Hindi Diwas Scratch n Win Felicitation by Maths Mr. Ganguly in Event Kolkata Key S Chand Explore the Marketing & Higher World of Promotional Education Book Making Activities for Conference & Seminars FY25 Knowledg Chaaya e Quest Quiz Quiz Contest Conte
Slide 11: Looking Ahead – FY25
LOOKING AHEAD – FY25 Content Creation • We shall continue to create content based on the new syllabus during CY24. by S Chand • This should lead us into FY25 sales season with a much larger repository of new syllabus books for our target customer. Editorial Teams FY25 should see • We expect the prom
Slide 12: Looking Ahead – FY25
LOOKING AHEAD – FY25 Stable Gross Upgrade EBITDA margins barring margin band to irrational moves in 17%-19% for FY25 paper prices during (vs. 16%-18% last the year. year) Focus on working Expecting a single capital metrics digit price hike in and cash flows to FY25. continue. Operating revenues to g
Slide 13: Consolidated Financial Performance
Consolidated Financial 2. Performance 12
Slide 14: Seasonal Nature of Our Business
SEASONAL NATURE OF OUR BUSINESS 15%-20% of annual revenues; 5%-10% of annual revenues; 5%-10% of annual revenues; 70% to 80% of annual Reduction in WC Reduction in WC Peak Inventory revenues; Peak Receivables Q1 April - June Q2 July - September Q3 October - December Q4 January - March o Finalisation
Slide 15: Consolidated Financial Performance – Q1FY25 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q1FY25 Highlights Higher ever Gross Margins in Q1 in the company’s history: 72% Flat sales and Increased expenses lead to minor dip in EBITDA and profitability vs. last year. 14
Slide 16: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 15
Slide 17: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Reduction in OCF is driven by higher payables on back of higher paper purchases last year. 16
Slide 18: Solid Improvement in Working Capital Metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,663m during Q1FY25 vs. Rs1,732m during Q1FY24. This is a Rs69m decrease in receivables YoY. • In terms of receivable days, it stood at 92 days (vs. 103 days in Q1FY24), a reduction of 11 days ov
Slide 19: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 9th August 2024 Key Institutional Investors - As Other Institutional Investors holding less % Holding of June 2024 than 1% - As of June 2024 Market Capitalization (Rs Mn) 7,950 Miri Strategic Emerging Markets 6.5% Fund Lp Aadi Financial Advisors Price (Rs) 22
Slide 20: Concall Details
CONCALL DETAILS x — S.CHAND 2 Prabhudas = ance c —~— Lilladher $.CHAND POWERING YOUR FINANCIAL GROWTH empowering 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 Q1FY25 Results For further information, p
Slide 21: Digital Business & Investments
3. Digital Business & Investments 20
Slide 22: 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 23: S Chand Academy on YouTube Growing by Leaps and Bounds
S CHAND ACADEMY ON YOUTUBE GROWING BY LEAPS AND BOUNDS • The channel houses modules comprising of over 1,800 videos that have been prepared S Chand Academy supplementing our S Chand Test Prep & College Content. The channel has showed strong growth (Youtube) reaching ~250k subscribers and over 22 mil
Slide 24: 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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