S Chand And Company Limited · NSE:SCHAND
S Chand And — Q4 FY2024 Earnings Presentation
34 slides from S Chand And's earnings presentation, May 24, 2024
Slide 1: Exchange filing cover letter for investor presentation
£ =;:. 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@schandqroup.com I www.schand1roup.com ••••- Date: May 24, 2024 To To Listing Department Listing Depa
Slide 2: S. Chand and Company Limited – Q4 FY2023-24 Investor Update
S. Chand and Company Limited – Opportunities abound on back of the NCF roll out Q4 – FY2023-24 Investor Update 24th May 2024
Slide 3: Summary
SUMMARY 1. Key Highlights – FY24 & 4QFY24 2. Consolidated Financial Performance 3. Status of Digital Business & Investments 2
Slide 4: Key Highlights – FY24 & 4QFY24
1. Key Highlights – FY24 & 4QFY24 3
Slide 5: Strong Operating Performance – Poised for Robust Growth on Back of NCF
STRONG OPERATING PERFORMANCE – POISED FOR ROBUST GROWTH ON BACK OF NCF IN FY25-26 Rs6,626m Rs4,364m Rs1,098m Rs484m Highest operating Highest Gross margins Crosses Rs1,000m in Highest Operating revenues since FY19, of 66% since FY19, EBITDA for the first Income since FY19, Up 9% YoY Up 12% YoY time
Slide 6: Management Commentary – FY24 Performance Highlights, Managing Director
MANAGEMENT COMMENTARY – FY24 Performance Highlights, Mr. Himanshu Gupta, Managing Director: “FY24 was a landmark year in terms of the announcement of the National Curriculum Framework for School Education (NCF SE) in August 2023. This long-awaited announcement has come after a gap of 18 years. We lo
Slide 7: Management Commentary – FY24 Performance Highlights, Group CFO
MANAGEMENT COMMENTARY – FY24 Performance Highlights, Mr. Saurabh Mittal, Group CFO: “Our consolidated revenues reached Rs6,626 million, EBITDA of Rs1,098 million and PAT of Rs511 million. We showed healthy revenue growth, highest Gross & EBITDA Margins in the past 5 years. Our Operating income incre
Slide 8: Strong Operating Performance – Poised for Robust Growth on Back of NCF
STRONG OPERATING PERFORMANCE – POISED FOR ROBUST GROWTH ON BACK OF NCF IN FY25-26 • Strong operational performance in FY24 Revenues from Operations (Rs M) on all parameters 6,626 • Highest Gross Margins since FY19. 6,103 • Highest EBITDA and EBITDA Margins since FY19. 4,809 • Highest Operating Cash
Slide 9: Strongest Operating Cash Flow Generation in Company's History
STRONGEST OPERATING CASH FLOW GENERATION IN COMPANY’S HISTORY • Our strategy of focusing on the cash flows has yielded strong results this year with Operating Cash Flows of Rs1,211m which is the highest in the company’s history. • Do keep in mind that this is inspite of a lower Profit Before Tax (PB
Slide 10: Lowest Historical Working Capital Metrics Ever
LOWEST HISTORICAL WORKING CAPITAL METRICS EVER 50% reduction 51% reduction in Receivable in NWC Days Days since since FY20 FY20 • Q4 Receivable days below 150 days for the first • Improved Working capital efficiency has time ever in company’s history. translated into higher cash flows leading to net
Slide 11: Net Debt Free with Controlled Inventory
NET DEBT FREE WITH CONTROLLED INVENTORY • Company ends FY24 with net debt free • Finished Goods inventory at same level as FY23. status. • Total Inventory has Rs633m raw material paper • We aspire to remain net debt free for 3 inventory (vs. Rs436m in Q3FY23). quarters in a year. Note – Do keep in m
Slide 12: What Happened in FY2024 with Regard to NCF 2023?
WHAT HAPPENED IN FY2024 WITH REGARD TO NCF 2023? • Launch of the National Curriculum Framework for School Education – 2023 by the Hon'ble August 2023 Union Minister of Education, Skill Development and Entrepreneurship, Shri Dharmendra Pradhan on August 23rd, 2023. September 23 • Creation of new cont
Slide 13: New Book Launches Based on the New Curriculum in FY24
NEW BOOK LAUNCHES BASED ON THE NEW CURRICULUM IN FY24 12
Slide 14: Expect Plethora of Newer Syllabus Books to Be Launched in FY25
EXPECT PLETHORA OF NEWER SYLLABUS BOOKS TO BE LAUNCHED IN FY25 13
Slide 15: Higher Education Segment Initiative – Working with YouTubers
S CHAND GROUP’S HIGHER EDUCATION SEGMENT INITIATIVE – WORKING WITH YOUTUBERS • We started the initiative of collaborating with YouTube Influencers having a large subscriber base and coming out with products focused largely on the competitive exams segment during the year. • We are working with appro
Slide 16: Launch of Solid Steps – Integrated K-5 Curriculum Solution
LAUNCH OF SOLID STEPS – INTEGRATED K-5 CURRICULUM SOLUTION • Solid Steps is our newly launched K-5 Curriculum program in English and various Indian languages like Hindi, Kannada, Telegu, Malyalam etc. keeping in mind the core concepts of the New Education Policy 2020. • This 𝗞-𝟱 𝗽𝗿𝗼𝗴𝗿𝗮𝗺 is…
Slide 17: Marketing Initiatives – The Year That Was
S CHAND GROUP’S MARKETING INITIATIVES – THE YEAR THAT WAS “Hindi Diwas” – Leading Event of Vikas Publishing House for Hindi teachers across the country Finland Study Tour for leading School Owners and Principals “The World of Publishing” – Opportunity for school children to visit S Chand’s Printing
Slide 18: Marketing Initiatives – The Year That Was
S CHAND GROUP’S MARKETING INITIATIVES – THE YEAR THAT WAS Global Product Briefing Meet - Baku World Book Fair Participation Mathematics Summit 2023 17
Slide 19: Looking Ahead – FY25
LOOKING AHEAD – FY25 Continued Content Creation •• We shall continue to create content based on the new syllabus during CY24. This should lead us into FY25 sales season with a much larger repository of new syllabus by S Chand books for our target customer. Editorial Teams FY25 should see • We expect
Slide 20: 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 21: Consolidated Financial Performance
Consolidated Financial 2. Performance 20
Slide 22: 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 23: Consolidated Financial Performance – Q4FY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q4FY24 Highlights Revenues: Up 12% YoY Gross Margins: Up 23% YoY EBITDA: Up 27% YoY Operating Income: Up 34% PAT: Up 26% YoY 22
Slide 24: Consolidated Financial Performance – FY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE FY24 Highlights Revenues: Up 9% YoY Gross Margins: Up 12% YoY EBITDA: Up 14% YoY Operating Income: Up 65% PAT lower due to: (1) Absence of One-Off gains of Rs326m in FY23 vs. FY24, (2) Higher operating expenses due to salary hike & certain sales/mkting expenses Not
Slide 25: FY24 vs FY23 – Major Moving Parts in PBT
CONSOLIDATED FINANCIAL PERFORMANCE FY24 vs.FY23 - Major Moving Parts explaining the difference at the Profit/(Loss) before Taxes (PBT) level Particulars (Rs m) FY23 FY24 Difference Comments 777 582 (195) Profit/(Loss) before tax FY24 vs. FY23 - Major Moving Parts Increase in Gross Margins 3896 4364
Slide 26: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 25
Slide 27: Consolidated Financial Performance – Cash from Operations
CONSOLIDATED FINANCIAL PERFORMANCE Despite lower Profits Before Tax in FY24 vs FY23, Cash generated from Operations in FY24 was ~50% higher than last year. 26
Slide 28: 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 Rs2,601m during Q4FY24 vs Rs2,653m during Q4FY23. This is a Rs52m decrease in receivables in spite of achieving incremental sales of Rs523m over last year. • In terms of receivable days,
Slide 29: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 23rd May , 2024 Key Institutional Investors - As Other Institutional Investors holding less % Holding of March 2024 than 1% - As of March 2024 Market Capitalization (Rs Mn) 8,450 Miri Strategic Emerging Markets 6.3% Fund Lp Aadi Financial Advisors Price (Rs)
Slide 30: Concall Details
CONCALL DETAILS 2 —_— . S.CHAND Prabhudas x GROUP Lilladh : Haaner $.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 Q4FY24 Results For further informatio
Slide 31: Digital Business & Investments
3. Digital Business & Investments 30
Slide 32: 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 33: 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 ~234k subscribers and over 20 mil
Slide 34: 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
S Chand And Company — Q4 FY2024 Earnings Presentation on 6ix