S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2018 Earnings Presentation
25 slides from S Chand And's earnings presentation, Aug 22, 2017
Slide 1: Intimation letter to stock exchanges
Date: August 22, 2017 To To Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-1, Block G, Bandra Kurla Mumbai, Maharashtra 400001 Complex, Bandra (E), Mumbai, Maharashtra 400051 Dear Sir, Re: Intimat
Slide 2: Q1 FY 2017-18 Results Presentation
S. Chand And Company Limited Investor Presentation S Chand and Company Limited Q1 FY 2017-18 Results Presentation August 21, 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 Q1 FY 2018 Results Update 2 Industry Overview 3 Annexure : Group Profile S Chand And Company Limited 2
Slide 5: Q1 FY 2018 Results Update
= =~ S.CHAND Q1 FY 2018 Results Update
Slide 6: Financial Performance: Q1 FY 2018 (3 Months)
Financial Performance : Q1 FY 2018 (3 Months) S Chand And Company Limited Standalone Figure in INR Millions QE 30.6.17 QE 30.6.16 YE 31.3.17 Revenue from operations 294 158 3,025 Other income 46 24 96 Total Income 340 181 3,121 Material consumed, net of change in inventory 114 67 1,188 Publication e
Slide 7: Key Highlights
Key Highlights I. Standalone revenues at INR 340 MN, higher by 88% YOY. Ø Q1 is a low revenue quarter for S Chand, contributed < 6% of annual revenues in FY 2017. Ø S Chand standalone revenues constitute around 45% of group revenues. II. Standalone Ebidta Loss at INR 68 MN vs Loss of INR 122 MN in Q
Slide 8: Working Capital
Working Capital Debtors reduced from INR 2,104 Mn as on 01.04.17 to INR 1,757 Mn as on 30.06.17. § ~ 30% debtors as at beginning of Q1 realized during the quarter. § Closure of schools for summer break impacts recovery in Q1. S Chand On On Standalone Basis 30.6.17 31.3.17 Debtors 1,756 2,104 Invento
Slide 9: Performance Overview
Performance Overview Segment Performance Q1 FY2018 K-12 content revenues increased by 118% YOY, from INR 84MN to INR 182 MN. K-12 § K-12 sales cycle peaks in Q4 and tapers off in Q1 when new academic session begins in central curriculum (CBSE, ICSE) schools. § K-12 business contributes to around 80%
Slide 10: Business Updates
Business Updates Regulatory Compliances ü Transitioned into IND-AS from Indian GAAP with effect from Q1 FY 2018. ü Successfully upgraded its reporting and accounting systems to transition to GST as per stipulated timelines. Business Restructuring ü Considering various options for restructuring of th
Slide 11: Utilization of IPO Proceeds
Utilization of IPO Proceeds Particulars Amount Utilized till 30.06.17 Remarks INR MN INR MN Gross proceeds from IPO : Fresh Issue 3,250 Objects Repayment of loan availed by S Chand utilized 1,000 1,000 towards funding acquisition of Chhaya Repayment of loan availed by Eurasia Publishing House Privat
Slide 12: Industry Overview
= =~ S.CHAND Industry Overview
Slide 13: 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. 500 40% Potential market 492 MN = 41% of 74% 450 29% Literacy rate in India 400 India’s population 30% 72%
Slide 14: Increasing Household Expenditure On Education
Increasing Household Expenditure On Education Investment in India’s Education Sector Higher Share of Education in Discretionary Spend 6. 00% As a percentage of GDP 100% 10% 5. 50% 5% 90% 5. 00% 80% 4.0% 4.4% 4.7% 4.7% 5.0% 5.0% 5.6% 0% 4. 50% -5% 70% 4. 00% -10% 60% 3. 50% -15% 4.2% 50% 3. 00% 3.8%
Slide 15: Preference Towards Private & Central Curriculum Schools
Preference Towards Private & Central Curriculum Schools Private schools market share increasing every year ü Student share of private schools increasing 120% consistently despite subsidised fees and free meals/ books in government schools. 100% 20% 21% 22% 22% 23% ü Government schools losing favour
Slide 16: Large addressable opportunity
Large addressable opportunity US$90 billion market size for the Indian education sector (Market size in US$ billion) 6 US$6bn Ancillary Education Segment Early education 2 n S Chand operates in this segment (catering to K-12 and HE segments) Test prep 5 n Supports formal and informal education segme
Slide 17: Appendix: Others
= =~ S.CHAND Appendix: Others
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 ~6,500 distributors Spanning all Indian states 800+ in-house sales force 9-12 Distributors / Retailers Students K-12 Distributors K-8 Schools Students
Slide 23: 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 5,378 ü Increase sh
Slide 24: Strong Track Record
Strong Track Record Revenue growth trajectory (INR MN) EBITDA (INR MN) | EBITDA margin (%) 8,000 2000 30.0% 7,000 1600 6,000 20.0% 5,000 1200 4,000 800 3,000 10.0% 2,000 400 1,000 0 0.0% – FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 EBITDA EBITDA margin o Revenues increased from INR
Slide 25: 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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