S Chand And Company Limited · NSE:SCHAND
S Chand And — Q2 FY2025 Earnings Presentation
22 slides from S Chand And's earnings presentation, Nov 11, 2024
Slide 1: Exchange filing cover letter for investor presentation
S Chand And Company Limited � -v-- 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.schand«j'roup.com GROUP Date: November 11, 2024 To To Listing Department Listing Dep
Slide 2: Q2 FY2024-25 Investor Update
S. Chand and Company Limited – Look forward to a strong NCF implementation in FY25 Q2 – FY2024-25 Investor Update 11th November 2024
Slide 3: Summary
SUMMARY 1. Key Highlights –2QFY25 2. Consolidated Financial Performance 3. Status of Digital Business & Investments 2
Slide 4: Key Highlights – 2QFY25
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Slide 5: Management Commentary – Managing Director
MANAGEMENT COMMENTARY – Q1FY25 Performance Highlights, Mr. Himanshu Gupta, Managing Director: “Q2FY25 was steady quarter in terms of sales on a YoY basis. Do note that the 2nd quarter is the smallest quarter in terms of revenues in the whole year. We continued our journey of improvement in terms of
Slide 6: Management Commentary – Group CFO
MANAGEMENT COMMENTARY – Q1FY25 Performance Highlights, Mr. Saurabh Mittal, Group CFO: “We ended the quarter with consolidated revenues of Rs376 million and a PAT Loss of Rs563 million. Do keep in mind that the 2nd quarter is the smallest quarter in terms of revenues in the whole year. • We had an im
Slide 7: Lowest Historical Working Capital Metrics Ever
LOWEST HISTORICAL WORKING CAPITAL METRICS EVER 64% reduction 49% reduction in Receivable in NWC Days Days since since FY20 FY20 • Lowest Q2 Receivable days in the company’s • Improved Working capital efficiency has history. translated into continued net debt free status at the end of Q2FY25. 6
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 similar levels as • We would achieve our target of remaining last year. net debt free for 3 quarters in a year. • Total Inventory has Rs709m raw material paper inventory (vs. Rs599m in Q
Slide 9: 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 10: 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 11: Consolidated Financial Performance
Consolidated Financial 2. Performance 10
Slide 12: 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 13: Consolidated Financial Performance – Q2FY25 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q2FY25 Highlights Flat sales and Increased expenses lead to minor dip in EBITDA and profitability vs. last year. We are confident of a strong sales season on back of new syllabus books in January, 25 - March,25. 12
Slide 14: Consolidated Financial Performance – H1FY25 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE H1FY25 Highlights Flat sales and Increased expenses lead to minor dip in EBITDA and profitability vs. last year. We are confident of a strong sales season on back of new syllabus books in January, 25 - March,25. 13
Slide 15: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 14
Slide 16: Consolidated Financial Performance – Cash Flows
CONSOLIDATED FINANCIAL PERFORMANCE • Q2FY25 Operating Cash flows are lower by Rs651m vs. Q2FY24. This is driven by the Rs641m incremental reduction in Trade Payables vs. last year on back of payments made during H1FY25 to paper vendors for last year’s paper purchases. We built up higher levels of pa
Slide 17: Solid Improvement in Working Capital Metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,244m during Q2FY25 vs. Rs1,371m at the same time last year. • In terms of receivable days, it stood at 69 days (vs. 83 days in Q2FY24). This is the lowest receivable days in Q2 in the past 5 yea
Slide 18: Shareholding Structure
SHAREHOLDING STRUCTURE As of 8th November Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2024 of September 2024 than 1% - As of September 2024 Market Capitalization (Rs Mn) 7,550 Miri Strategic Emerging Markets 4.5% Fund Lp Aadi Financial Advisors P
Slide 19: Digital Business & Investments
3. Digital Business & Investments 18
Slide 20: 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 21: S Chand Academy on YouTube Growing Steadily
S CHAND ACADEMY ON YOUTUBE GROWING STEADILY • The channel houses modules comprising of over 1,850 videos that have been prepared S Chand Academy supplementing our S Chand Test Prep & College Content. The channel has showed strong growth (Youtube) reaching ~270k subscribers and over 24 million views
Slide 22: 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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