S Chand And Company Limited · NSE:SCHAND
S Chand And — Q3 FY2019-20 Earnings Presentation
24 slides from S Chand And's earnings presentation, Feb 13, 2020
Slide 1: Cover letter to BSE and NSE on investor presentation
� -'-- T 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.schand1roup.com GROUP Date: February 13, 2020 To To Listing Department Listing Dep
Slide 2: S. Chand and Company Limited Q3 FY2019-20 Investor Update
S. Chand and Company Limited Q3 – FY2019-20 Investor Update 13th February, 2020
Slide 3: Summary
SUMMARY • KEY HIGHLIGHTS - 9MFY20 - TURN OPERATING CASH FLOW POSITIVE • KEY HIGHLIGHTS – Q3FY20 • WORKING CAPITAL CYCLE – HIGHEST RECEIVABLE COLLECTION DURING 9M PERIOD • WORKING CAPITAL CYCLE – HIGHEST IMPACT IN METRICS IN RECENT YEARS • DIGITAL INITIATIVES – LAUNCH OF OUR LEARNING PLATFORM - LEARN
Slide 4: Key Highlights - 9MFY20 - Turning Operating Cash Flow Positive
KEY HIGHLIGHTS - 9MFY20 - TURNING OPERATING CASH FLOW POSITIVE 34% 16% 19% 8% Sales Reduction Reduction Reduction Growth in EBITDA in in PAT (YoY %) Losses expenses* Losses (YoY %) (YoY %) (YoY %) Rs1,016m Rs96m 209 Days 133 Days Delta in Net Turn Operating Reduction in Reduction in cash generated C
Slide 5: Key Highlights – Q3FY20
KEY HIGHLIGHTS – Q3FY20 • Operating Parameters - Strong focus on improving balance sheet metrics and cash flows yielding results • Operating cash flow delta of Rs1,016m vs. 9MFY19. On back of our focus on “S Chand 3.0” implementation, we have turned operating cash flow positive during the 9MFY20 per
Slide 6: Key Highlights – Q3FY20
KEY HIGHLIGHTS – Q3FY20 • “S Chand 3.0” journey focused on increasing Free cash flows showing results • Delta of over Rs1,016m in operating cash flows on a 9M YTD basis. • Employee costs at Rs948m is lower by 16% on a YTD basis. • SG&A expenses at Rs390m is lower by 39% on a YTD basis • Reduced sale
Slide 7: Highest Receivable Collection During 9M Period
HIGHEST RECEIVABLE COLLECTION DURING 9M PERIOD Q3 Receivable days & Net working capital at lowest historical levels 6
Slide 8: Working Capital Cycle – Highest Impact in Metrics in Recent Years
WORKING CAPITAL CYCLE – HIGHEST IMPACT IN METRICS IN RECENT YEARS • Highest reduction seen in receivables and Net Working Capital days. • This improvement is on back of our renewed focus on improving our collection efficiency and focus on effective working capital management. Q3: Oct – Dec Qtr 9M: A
Slide 9: Digital Initiatives – Launch of Our Learning Platform - Learnflix
DIGITAL INITIATIVES – LAUNCH OF OUR LEARNING PLATFORM - LEARNFLIX • Launched extensive marketing campaign for India’s most affordable learning platform, Learnflix (Android & Apple iStore), our all-in-one learning platform for the Gen X student during January with full page advertisement in leading j
Slide 10: Digital Initiatives – Update
DIGITAL INITIATIVES – UPDATE • Mylestone – Have signed up approx. 300 schools YTD for FY21. Looking to grow Mylestone business strongly during this upcoming sales season. • Test Coach – Our mobile mock exam App saw 5x spike in installations on a MoM basis on back of change in sales strategy. Monthly
Slide 11: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 9MFY20 Employee Costs: Down 16% YoY S&D Exp: Down 39% YoY EBITDA Loss: Down by 16% 10
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 11
Slide 13: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Our efforts showing its benefits in 9M by generating higher operating cash flows to the tune of Rs1,016m on a YoY basis. 12
Slide 14: Shareholding Structure
SHAREHOLDING STRUCTURE As of 12th February, Market Data 2020 Key Institutional Investors - As of December 2019 % Holding Market Capitalization (Rs Mn) 2,650 Price (Rs) 75 Everstone Capital Partners II LLC 9.5% No. of shares outstanding (Mn) 34.95 International Finance Corporation 8.0% Face Value (Rs
Slide 15: Looking Ahead
LOOKING AHEAD • Short Term • EBITDA to FCF generation ratio of over 50% for FY20. • Reduce Q4FY20 Net debt by 30%. • Improve Receivable days, Inventory days & Net Working Capital vs. historical results. • Target over 100k downloads and over 20K subscriptions of ‘Learniflix’, India’s most affordable
Slide 16: Annexure: Indian Education Sector - Overview
Annexure: - Indian Education Sector - Overview - S Chand Group 15
Slide 17: Indian Education Sector - Large & Growing Addressable Opportunity
INDIAN EDUCATION SECTOR - LARGE & GROWING ADDRESSABLE OPPORTUNITY US$90 BN Market Size for the Indian Education Sector 6 US$6 BN Ancillary Education Segment Early education 2 Informal Education Segment S. Chand operates in this segment (K-12/ Higher Education content). Test prep 5 5 o US$20 BN ➢ Sup
Slide 18: Indian Education Sector: Inflection Point, Strong Potential
INDIAN EDUCATION SECTOR: INFLECTION POINT, STRONG POTENTIAL Age-wise population distribution in India : S. Chand target market Literacy rate improving with higher participation from students (Source: IBEF Report) (Source: Technopak’s Outlook on India Schooling Segment) 500 40% 450 Potential Market o
Slide 19: Preference Towards Private, Central Curriculum Schools
PREFERENCE TOWARDS PRIVATE, CENTRAL CURRICULUM SCHOOLS Private schools market share increasing every year Indian K-12 education infrastructure (Source: IBEF Report) 120% (Source: Technopak’s Outlook on India’s Schooling Segment) Number of Schools: 1.5 MN 100% 20.0% 21.2% 21.5% 22.1% 23.0% Government
Slide 20: Preference Towards Private, Central Curriculum Schools
PREFERENCE TOWARDS PRIVATE, CENTRAL CURRICULUM SCHOOLS Target Market is 3,00,000 schools – growing at 8-10 % annually and student strength growing at 7-8% • Currently covering 38,000 schools in the target market • Target market growing at 8-10% annually in the no. of Intl 25-300 Schools schools Scho
Slide 21: S Chand Group - Leader in Indian Education Content
S CHAND GROUP - LEADER IN INDIAN EDUCATION CONTENT Delivering content, services and solutions… ➢ Long operating history of over seven decades. ➢ Offerings spanning entire the ➢ High brand equity across multiple brands. education spectrum …across the ➢ Strong author relationships. education o Early l
Slide 22: S Chand Group - Powerful Brand Connect
S CHAND GROUP - POWERFUL BRAND CONNECT Connecting with Learners • Art of Book making tour of the Printing Facilities • Mystudygear App / VRX App / Learnflix App / Test Coach App • Social Media Connecting with Teachers with • Teacher Conclaves and Awards • Over 2000 Workshops • The Progressive Teache
Slide 23: S Chand Group - Digital Initiatives – Synergies to the Core Business
S CHAND GROUP - DIGITAL INITIATIVES – SYNERGIES TO THE CORE BUSINESS In-House (Revenue Stream) Digital Investments (Inorganic) • Focused on investing in early stage digital companies. • Offerings include digital classroom learning solutions, • Total investments in digital investee companies is appro
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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