S Chand And Company Limited · NSE:SCHAND
S Chand And — Q2 FY2022-23 Earnings Presentation
28 slides from S Chand And's earnings presentation, Nov 12, 2022
Slide 1: Exchange filing cover letter for 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 GROUP P:+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandgroup.com I www.schandC3'roup.com ---■ Date: November 12, 2022 To To Listing Department Listi
Slide 2: Q2 – FY2022-23 Investor Update
S. Chand and Company Limited Q2 – FY2022-23 Investor Update 12th November 2022
Slide 3: Summary
SUMMARY 1. Resurgence… 2. Consolidated Financial Performance 3. Digital Business & Investments 2
Slide 4: Resurgence...
@. = == S.CHAND GROUP Resurgence... www.schandgroup.com
Slide 5: National Curriculum Framework announced for K-2 classes in October
NATIONAL CURRICULUM FRAMEWORK ANNOUNCED FOR K-2 CLASSES IN OCTOBER Old Academic Structure New Academic Structure • The government has announced the National Curriculum Framework (NCF) for the Foundation Stage i.e. Classes K-2 on 20th October, 2022. • We expect more announcements to come regarding th
Slide 6: 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 • The National Curriculum Framework (NCF) f
Slide 7: Successful exit from one of our minority investments during Q2
SUCCESSFUL EXIT FROM ONE OF OUR MINORITY INVESTMENTS DURING Q2 • We made our 1st profitable exit from one of our minority investments in July, 22 by selling our stake in TestBook for a consideration of approx. Rs180m. This translates into a 7.8x return over our initial investment made in 2015. • Pri
Slide 8: H1FY23 best H1 ever in company's history
BEST H1 EVER IN COMPANY’S HISTORY Revenues from Operations (Rs M) • Highest ever H1 Sales 1,546 • EBITDA losses reduced by 92% 877 • PAT loss reduced by 81% over last year. Lowest PAT loss from a historical perspective H1FY22 H1FY23 Revenues (Rs m) EBITDA (Rs M) PAT (Rs M) -30 H1FY23 -136 EBITDA Los
Slide 9: Working capital - inventory increases due to preponement of paper purchases
WORKING CAPITAL - INVENTORY INCREASES DUE TO PREPONEMENT OF PAPER PURCHASES • Inventory days is lower by 1 days on a YoY basis. • Inventory days would have been • Receivable days - Down 77 days much lower had it not been for (YoY). the preponement of raw material • To understand the magnitude of pur
Slide 10: Sustainable reduction in debt metrics
SUSTAINABLE REDUCTION IN DEBT METRICS We are firmly on the way to achieve our target of We have preponed our paper purchases from Q3 becoming net debt zero by Q4FY23. to Q2 to avoid future price escalations and avoid any potential raw material shortages during the peak sales season. Do note that FG
Slide 11: Solid improvement in working capital metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,572m during Q2FY23 vs. Rs2,017m during Q2FY22. To understand the magnitude of this improvement, do keep in mind that receivables balance of Rs1,572m includes H1 sales of Rs1,546m. • In terms of
Slide 12: Resurgent cash flow performance
RESURGENT CASH FLOW PERFORMANCE • Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs71m in H1FY23 (vs. Rs122m in H1FY22 and Rs130m in H1FY21 and Negative Rs27m in H1FY20). • CFO would have been much higher but for our Inventory which increase
Slide 13: Resurgent performance on a TTM basis
RESURGENT PERFORMANCE ON A TTM BASIS • Our strategy of focusing on quality sales, managing costs and increasing cash flows has yielded results with continuous increase in Trailing Twelve Months (TTM) revenues and profitability. • We expect strong sales momentum to continue going ahead on back of 20%
Slide 14: Looking ahead
LOOKING AHEAD Strong growth in S Chand Academy Focus on cost control, Youtube channel. working capital Target of 1,000+ metrics and cash videos and 10m+ flows to continue. views Higher revenues to Gross margins can drive profitability on be impacted by 100- back of operating 200bps on back of levera
Slide 15: Consolidated Financial Performance
Consolidated Financial 2. Performance 14
Slide 16: Consolidated financial performance – H1FY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE H1FY23 Highlights Highest ever H1 Revenues. EBITDA losses reduced by 92% YoY. Reduction in PAT losses by 81% YoY. Note - Publication expenses are now included in Other expenses. Historical numbers have been updated to maintain consistency 15
Slide 17: Consolidated financial performance – Q2FY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q2FY23 Highlights Do note that Q2FY22 saw shifting of sales from Q1 to Q2 due to covid wave. Reduction in PAT losses by 52% YoY. Exceptional income from the Sale of Testbook Minority stake during the quarter. 16
Slide 18: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 17
Slide 19: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 18
Slide 20: Shareholding structure
SHAREHOLDING STRUCTURE As of 11th November, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2022 of Sept 2022 than 1% - As of Sept 2022 Market Capitalization (Rs Mn) 6,000 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 171
Slide 21: Conference call details
CONFERENCE CALL DETAILS Prabhudas’ x [ Lilladher nme 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 Q2FY23 Results Represented by: Mr. Himanshu Gupta - Manag
Slide 22: Digital Business & Investments
3. Digital Business & Investments 21
Slide 23: 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 latest round of funding was done in June 2021
Slide 24: S Chand Academy growing by leaps and bounds
S CHAND ACADEMY GROWING BY LEAPS AND BOUNDS • Launched S Chand Academy channel on Youtube during FY22. S Chand Academy • The channel houses modules comprising of over 700 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. The channel has showed strong gro
Slide 25: TestCoach
TESTCOACH • 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 100+ national and state level exams in English and Hindi. • Given the uptick in the number of test prep exams and government job openings, we e
Slide 26: Learnflix & Mylestone
LEARNFLIX & MYLESTONE • Learnflix App is targeted to the Next Half Billion (NHB) • Mylestone: Digitally enabled School Curriculum Solution for the K-8 audience. The current product covers Maths, Science & SST for segment. • Future Outlook: classes 6th to 10th. • Affordable Private Schools would be e
Slide 27: Educate360 product testimonials
EDUCATE 360 • Madhubun Educate360 is our K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. This product is NEP 2020 compliant supporting the recommended pedagogies. • The solution is currently being implemented by over 55 paying s
Slide 28: 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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