S Chand And Company Limited · NSE:SCHAND
S Chand And — Q4 FY2017 Earnings Presentation
28 slides from S Chand And's earnings presentation, Jun 12, 2017
Slide 1: Intimation to stock exchanges of results presentation
ee. | & Chand And Cornpany Limited —— | ; a ei eel i Corporate Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 1710044, India. §.CHAND® Registered Office: Ravindra Mansion, Rarn Nagar, New Delhi - 110055, india. GROUP @ knowledge corporation P:291 11 4973 7800 | F497 11 49
Slide 2: Financial Results Presentation Q4 & Full Year, FY 2016-17
S. Chand And Company Limited Investor Presentation S Chand and Company Limited Financial Results Presentation Q4 & Full Year, FY 2016-17 June 12, 2017 2 Dec S Chand And 2016 Limited Company
Slide 3: Disclaimer
Disclaimer This presentation may contain certain statements regarded as ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward looking statements involve a number of risks , uncertainties, and other factors that could cause actual results, financial conditi
Slide 4: Contents
Contents 1 Financial highlights 2 Business overview 3 Growth Outlook 4 Annexure S Chand And Company Limited 2
Slide 5: Financial Highlights
S.CHAND Financial Highlights
Slide 6: Key Highlights
Key Highlights K-12 Content business registered organic growth of 21%. o Constitutes ~ 80% of group revenues. Completed 74% acquisition of Chhaya Prakashani Private Limited. o Diversified presence into state board content market. Digital business growth in excess of 30% YOY. o Successful launch of c
Slide 7: Financial Performance: FY 2016-17 (12 Months)
Financial Performance : FY 2016-17 (12 Months) S Chand And Company Limited Standalone Consolidated Figure in INR Millions YE 31.317 YE 31.3.16 % YOY YE 31.317 YE 31.3.16 % YOY Revenues 3,029 2,823 7% 6,856 5,407 27% Gross Margins 1,573 1,226 28% 4,167 3,378 23% EBIDTA 576 380 52% 1,722 1,281 34% Dep
Slide 8: Statement of Affairs (As On 31.03.2017)
Statement of Affairs (As On 31.03.2017) S Chand And Company Limited Standalone Consolidated Figure in INR Millions Liabilities On 31.317 On 31.3.16 On 31.3.17 On 31.3.16 Net Worth 5,111 4,840 6,573 5,991 Minority Interest - - 131 31 Debt / Bank Borrowings 2,109 830 3,986 2,035 - Long term (including
Slide 9: Financial Highlights: FY 2016-17 (12 Months)
Financial Highlights : FY 2016-17 (12 Months) • Revenue from operations increased by 27% YOY to INR 6,856 MN. o Revenue growth from operations (Organic) up 13.3% at INR 6,093 MN. o FY 2017 revenues include INR 750 Mn from consolidation of the latest acquisition (Chhaya Prakashani Private Limited) fr
Slide 10: Financial Highlights: FY 2016-17 (12 Months)
Financial Highlights : FY 2016-17 (12 Months) • Gross margins reduced 170 bps YOY to 60.8%. o Increase in turnover discount by 31 bps. o Additional provision of INR 40 MN for certain stocks (print on demand titles) of New Saraswati (adjusted in transaction consideration) as a conservative approach.
Slide 11: Financial Highlights: FY 2016-17 (12 Months)
Financial Highlights : FY 2016-17 (12 Months) • Profit before taxation increased by 49% YOY to INR 1,091 MN. o Finance costs (net of interest income) at INR 349 MN which includes ~ INR 60 MN being interest cost on loan utilized to acquire shares of Chhaya. o Depreciation and amortization cost of INR
Slide 12: Performance Indicators: FY 2016-17 (12 Months)
Performance Indicators : FY 2016-17 (12 Months) S Chand And Company Limited Consolidated Remarks Figure in INR Millions On 31.3.17 On 31.3.16 Net Debt (net of cash and bank balance & 3,416 1,627 Includes debt of INR 1,520 MN raised in current investments) December 2016 for Chhaya acquisition. The co
Slide 13: Financial Performance: Q4 | FY 2016-17
Financial Performance : Q4 | FY 2016-17 S Chand And Company Limited Standalone Figure in INR Millions Particulars QE 31.3.17 YE 31.12.16 QE 31.3.16 % YOY Revenue from operations (net) 2,102 445 1,819 Other income 4 7 20 Total revenue 2,106 453 1,839 15% Cost of published goods/ material consumed 388
Slide 14: Business Overview
S.CHAND Business Overview
Slide 15: Business Segments
Business Segments Segment Performance K-12 K-12 revenues increased by 40% YOY, from INR 3,898 MN in FY 2016 to INR 5,467 MN in FY 2017. o Organic growth of 21%. o Remaining contribution from Chhaya acquisition (revenues of INR 750 Mn consolidated from date of acquisition). o K-12 business contribute
Slide 16: Updates
Updates In-house Printing • Around 70% of total printing requirement met through own printing facilities in Sahibabad (UP) and Rudrapur (Uttaranchal). Chhaya Acquisition • Successfully acquired 74% of Chhaya Prakashani in December 2016, with firm agreement to acquire remaining 26% by December 2018 b
Slide 17: Growth Outlook
S.CHAND Growth Outlook
Slide 18: Growth Outlook
Growth Outlook Revenue Outlook Capital Expenditure • Expect organic growth of 14-15% i n F Y 2 0 1 8 • Capex budget estimated at ~ INR 300 Mn towards: including a combination of volume and price. o Maintenance capex for printing infrastructure. • Price increase may be higher than previous years due
Slide 19: Appendix: Others
S.CHAND Appendix: Others
Slide 20: S Chand: A Quick Glance
S Chand : A Quick Glance Leading Indian Education Content Company spanning the education lifecycle ü Long operating history of seven decades(1) Delivering content, services and solutions… ü High brand equity across multiple brands n Offerings spanning entire the ü Strong author relationships …across
Slide 21: Business segments
Business segments K-12 Higher Education Early Learning Revenue 80% of FY2017 revenues(1) 18% of FY2017 revenues(2) 2% of FY2017 revenues(3) contribution 45% revenue CAGR(4) 8% revenue CAGR (4) Target Test prep (>18 years) School students (4 -18 years) Children segment College students / professional
Slide 22: Business segments supported by digital/services platform
Business segments supported by digital/services platform that is at the forefront of innovative education delivery Inhouse digital/ service platforms Digital investments (inorganic) Hybrid Mobile devices offerings Intellitab based learning and content (CD, e-books) provider End to end curriculum Dev
Slide 23: Large market opportunity
Large market opportunity US$90 billion market size for the Indian education sector (Market size in US$ billion) US$6bn Ancillary Education Segment Early education n S Chand operates in this segment (catering to K-12 and HE segments) Test prep n Supports formal and informal education segments Vocatio
Slide 24: Comprehensive lifecycle-focused education content player
Comprehensive lifecycle-focused education content player Early learning K -12 Higher education Lifecycle stages addressed by S. Chand products College and university S Chand is focused on the Consumer – both the ‘Learners’ and the ‘Educators’ – through content, innovations, empaneling leading Test p
Slide 25: Pan-India sales and distribution network driving deep market reach
Pan-India sales and distribution network driving deep market reach Pan-India presence of sales and distribution network Distribution channel / sales ~6,886 distributors Spanning all Indian states 800+ in-house sales force 9-12 Distributors / Retailers Students K-12 Distributors K-8 Schools Students
Slide 26: Strong position in the K-12 market
Strong position in the K-12 market S. Chand’s growth has been anchored by K-12’s growth(3) Next phase of growth ü Increase touch points / number of schools; consolidate position further in Central Board affiliated schools and increase penetration in State Board affiliated schools 45% 5,378 GR: ü Inc
Slide 27: Strong Track Record
Strong Track Record Revenue growth trajectory (INR MN) EBITDA (INR MN) | EBITDA margin (%) 31% GR: CA o Revenues increased from INR 1,746 MN in FY 2012 to INR 6,855 MN in FY 2017. § CAGR of 31.4% , combination of organic and inorganic growth. § K-12 content constitutes 80% of group revenues. o EBIDT
Slide 28: For further information, please contact
For further information, please contact: Samir Khurana, Head (Strategy & Investments) S Chand And Company Limited A-27, 2nd Floor Mohan Cooperative Industrial Estate New Delhi - 110 044, India Telephone + 91 11 4973 1800 Email : skhurana@schandgroup.com Saurabh Mittal, Chief Finance Officer S Chand
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