S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2023-24 Earnings Presentation
26 slides from S Chand And's earnings presentation, Aug 11, 2023
Slide 1: Cover letter to stock exchanges on investor presentation
-! =r 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@schandgroup.com I www.schandcJroup.com GROUP Date: August 11, 2023 To To Listing Department Listing Depart
Slide 2: S. Chand and Company Limited – A New Leap Forward, Q1 FY2023-24
S. Chand and Company Limited – A New Leap Forward Q1 – FY2023-24 Investor Update 11th August 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 years – poised for growth on back of NCF
BEST PERFORMANCE IN 5 YEARS – POISED FOR GROWTH ON BACK OF NCF S Chand turns Rs1,111m Rs765m Rs136m Net Debt Free Highest Q1 operating Highest Q1 Gross Highest Q1 EBITDA in Q1 ends with Net cash revenues in the Margin (69%) in the the company’s balance of Rs546m company’s history company’s history h
Slide 6: Best operational performance in Q1 over the past years
BEST OPERATIONAL PERFORMANCE IN Q1 OVER THE PAST 5 YEARS Revenues from Operations (Rs M) 1,073 1,111 • Highest ever: • Q1 Sales 714 • Q1 EBITDA 613 • Strong performance in Q1FY24 358 • PAT is lower in Q1FY24 driven by maintaining PAT profitability. a much lower Other Income of Rs28m vs. Rs143m in Q1
Slide 7: Best Q1 working capital metrics in the company's history
BEST Q1 WORKING CAPITAL METRICS IN THE COMPANY’S HISTORY 54% reduction • Lowest Q1 Inventory in Receivable days in the company’s • Lowest Q1 Receivable Days since days in the company’s history. FY19 history. • Better Working capital • Lowest Q1 Net Working efficiency has translated Capital days in t
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 Net cash balance of Rs546m at the end of the raw material inventory in stock. Current inventory quarter. has Rs371m raw material paper inventory (vs. Rs301m in Q1FY23). 7
Slide 9: Solid improvement in working capital metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,732m during Q1FY24 vs. Rs2,109m during Q1FY23. This is a Rs377m decrease in receivables YoY. • In terms of receivable days, it stood at 103 days (vs. 139 days in Q1FY23), a reduction of 36 days
Slide 10: 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 Rs691m in Q1FY24 (vs. Rs633m in Q1FY23 and Rs99m in Q1FY22 and Rs177m in Q1FY21 and Rs129m in Q1FY20). • This is the strongest CFO during quarter 1 in the com
Slide 11: 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 12: 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 13: 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 14: 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 15: Consolidated Financial Performance
Consolidated Financial 2. Performance 14
Slide 16: Consolidated financial performance: Q1FY24 highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q1FY24 Highlights Revenues: 4% Higher YoY Gross Margins higher by 2% on back of better planning EBITDA: 14% Higher YoY Lower Other Income in Q1FY24 leads to reduced PAT on a YoY basis Turn Net Debt Free in April, 23 Note - Publication expenses are now included in O
Slide 17: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 16
Slide 18: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 17
Slide 19: Shareholding structure
SHAREHOLDING STRUCTURE As of 10th August, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2023 of June 2023 than 1% - As of June 2023 Market Capitalization (Rs Mn) 7,400 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 210 Tr
Slide 20: Conference call details
CONFERENCE CALL DETAILS 2 a“ : scan Prabhudas’ 2 E Lilladher wom 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 For further information, please contact Jinesh Joshi | JineshJ
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 • Launched S Chand Academy channel on Youtube during FY22. S Chand Academy • The channel houses modules comprising of over 1,400 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. The channel has show
Slide 24: 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 50+ national and state level exams in English and Hindi. • Given the uptick in the number of test prep exams and government
Slide 25: Mylestone & Educate360 – 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 26: 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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