Navneet Education Limited · NSE:NAVNETEDUL
Navneet Education — Q1 2005-06 Earnings Presentation
32 slides from Navneet Education's earnings presentation, Jul 22, 2005
Slide 1: Navneet
Navneet
Slide 2: Objectives
Navneet Objectives • To Understand the Education System in India • Introduction to the Navneet Publications • Quarter 1 : 2005-2006 Performance Released on 22nd July 2005 • Future Prospects
Slide 3: Education System in India
Navneet Education System in India
Slide 4: Education System in India
Navneet Education System in India
Slide 5: Education System in India
Navneet Education System in India
Slide 6: Education System in India
Navneet Education System in India • 95% of the schools within a state, irrespective of the medium of instruction follow the State Level Curriculum. • 5% of the schools within each state follow the Central Board Curriculum.
Slide 7: Medium / Language of Learning
Navneet Medium / Language of Learning 85% 80% 70% 50% 50% 30% 15% 20% Pre-primary Primary/Secondary Higher Secondary Post Higher [Std. I to Std. X] [Std. XI & Std. XII] Secondary REGIONAL ENGLISH
Slide 8: Education System in India
Navneet Education System in India • The education system in India is Examination centric. • Performance in exams is the yard stick of success. • Coupled with various other reasons the need for reference/supplementary books emerged.
Slide 9: Education System in India
Navneet Education System in India • All reference books/supplementary books are published by Private Publishers, like Navneet. These books are not mandatory in schools. • Success of such Publications depends solely on its quality of content.
Slide 10: Introduction – Navneet Publications
Navneet Introduction – Navneet Publications
Slide 11: Navneet History
Navneet Navneet History • Navneet, a successful publisher of supplementary / reference books, is in this line of activity since 1959. • Navneet made its first IPO in 1984 and second in 1994. • Navneet is the only Indian publisher in India to be listed on National and Bombay Stock Exchange.
Slide 12: Management Strategy
Navneet Management Strategy • More focus on Publication segment • Moderate growth in Stationery segment
Slide 13: Financial Highlights (04–05): Revenue and Profits
Navneet Financial Highlights (04 – 05): Revenue and Profits • Revenues Rs. 274 Crores (USD 63.112 Mn) Five year CAGR 11% • Profit Before Tax Rs. 47 Crores (USD 10.737 Mn) Five year CAGR 9%
Slide 14: Business Segments
Navneet Business Segments • Publishing – Curriculum Books – Non-curriculum Books – Electronic Products • Stationery Products – Scholastic Stationery – Office Stationery
Slide 15: Financial Highlights (04–05): Business Revenue Breakup
Navneet Financial Highlights (04 – 05): Business Revenue Breakup Business revenue breakup of USD 63.11 M n 2% 38% 53% 7% Curriculum Books Non curriculum books Stationery Others 53% 7% 38% 2%
Slide 16: Revenue contribution of curriculum books
Navneet Revenue contribution of curriculum books Historically Contribution From: 35% Gujarat Maharashtra 65% Maharashtra Gujarat
Slide 17: Geographic Breakup of Stationery Products Market [04-05]
Navneet Geographic Breakup of Stationery Products Market [04-05] Sales of USD 24.28 Mn 43% International Domestic 57% Domestic International
Slide 18: Geographic breakup of International Business [04-05]
Navneet Geographic breakup of International Business [04-05] Sale of USD 13.53 Mn 1% 14% 7% 52% 33% USA Africa Europe Asia & Oceania Others 52% 33% 7% 1% 14%
Slide 19: Dividend Paying History
Navneet Dividend Paying History • Consistently Dividend paying company since inception. Policy of Distribution of at least 25% of PAT • 1999 – 00 28% • 2000 – 01 33% • 2001 – 03 (18 months) 43% • 2003 – 04 41% • 2004 – 05 46%
Slide 20: Shareholders’ Value
Navneet Shareholders’ Value • Current Market capitalization of stocks – Rs.4879-mn (USD112-mn) (at Rs. 256) • Shareholding Pattern: Promoters 61.91% MFs & FIs (Incl. Banks) 4.69% FIIs 2.24% NRIs / OCBs 3.41%
Slide 21: Quarter-1 2005–2006 Performance
Navneet Quarter-1 2005 – 2006 Performance
Slide 22: First Quarter Results (05–06)
Navneet First Quarter Results (05 – 06): U N AU D IT E D F IN AN C IAL R E S U L T S F OR T H E QU AR T E R E N D E D 30th JU N E , 2 005 (Rs .In Lac s ) P revious Y ear Q uarter Q uarter ended ended ended 31.03.2005 30.06.2005 30.06.2004 (A udited) (1) Ne t S a le s / Incom e from O pe ra tio n s 1
Slide 23: First Quarter Results (05–06): Segment Results
Navneet First Quarter Results (05 – 06): contd…. UNAUDITED S EG M ENT RES ULTS FO R THE Q UARTER ENDED 30th JUNE, 2005 Rs . In Lac P revious Y ear Q uarter Q uarter ended S r.No. P artic ulars ended ended 31.03.2005 30.06.2005 30.06.2004 (A udited) (1) S egm ent Revenue a. P ublic ations 10,875 9,34
Slide 24: Revenue and Profitability review
Navneet Revenue and Profitability review Increase in operating revenue by 9% to Rs.1600-mn (USD 36-Mn) Increase in publication segment revenue by 16% to Rs.1087-mn (USD 25-Mn). The increase is mainly on account of Syllabus change in Gujarat Decrease in stationery segment revenue by 4% to Rs.510-mn (
Slide 25: Revenue and Profitability review
Navneet Revenue and Profitability review Increase in Operating profits by 4% at Rs.443-Mn (USD 10-mn), reflecting decrease in operating margin by 1% mainly on account of higher cost of production. Increase in profits of publication segment by 8% to Rs.364-Mn (USD 8-Mn), reflecting decrease of 3% in
Slide 26: Cost Structure as % to Sales
Navneet Cost Structure as % to Sales Total % to sales & services Q1 FY 05 Q1 FY 04 Material Cost 59.18 58.31 Marketing, Advertising and Sales Promotion 1.53 1.34 Personnel costs 3.69 3.39 Depreciation 1.31 1.42 Other expenses 7.93 8.07 Operating costs 73.65 72.53 Net Operating margin (PBIT) 26.35 27
Slide 27: At the Balance Sheet level
Navneet At the Balance Sheet level Particulars As on As on As on 30th Jun 05 30th Jun 04 31st Mar 05 Inventory Rs.544-Mn Rs.579-Mn Rs.970-Mn USD 12-Mn USD 13-Mn USD 22-Mn Debtors Rs.1284-Mn Rs.1213-Mn Rs.476-Mn USD 29-Mn USD 28-Mn USD 11-Mn Borrowings Rs.301-Mn Rs.590-Mn USD Rs.397-Mn USD 7-Mn 13-Mn
Slide 28: Future Prospects
Navneet Future Prospects
Slide 29: Going forward
Navneet Going forward • Consistent bright future for next 3 to 4 years is foreseen • Publication Segment • Expected growth due to Syllabus change in Gujarat • Gradual change in Syllabus has started in Gujarat and we expect the same to start in Maharashtra from financial year 06-07. • Initiatives per
Slide 30: Acquisition in Spain
Navneet Acquisition in Spain Company has acquired publishing business and popular brand in Spain namely “Grafalco” from a Spanish company Acquisition of publishing rights for EURO 459,000 Initiated operations through the existing infrastructure of that company Company intends to tap market of Spanis
Slide 31: Merger of Navneet Edutainment Ltd.
Navneet Merger of Navneet Edutainment Ltd. o Good acceptance of CD-ROMs among student community. o Low volumes did not provide independent sustainability. o Merger of the subsidiary with parent will facilitate marketing the products to the same community and will increase the focus when technology i
Slide 32: Thank You
THANK YOU 10)