S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2021 Earnings Presentation
20 slides from S Chand And's earnings presentation, Aug 14, 2020
Slide 1: Cover letter to stock exchanges on investor presentation
S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. x =—— S. CHAND P:+91 11 4973 1800 | F:+91 11 4973 1801 | Ezinfo@schandgroup.com | www.schandgroup.com [= GROUP Date: August 14, 2020 To To Listing Department Listing Depar
Slide 2: Q1 – FY2020-21 Investor Update
S. Chand and Company Limited Q1 – FY2020-21 Investor Update 14th August, 2020
Slide 3: Summary
SUMMARY • QUARTER IN NUMBERS – STRONG SHOW IN COVID HIT QUARTER • KEY HIGHLIGHTS • NEW EDUCATION POLICY ADOPTED – BIG POSITIVE GOING AHEAD • CONSOLIDATED FINANCIAL PERFORMANCE • LAUNCH OF ‘EDUCATE-360’ IN Q2 – PRODUCT FOR THE FUTURE • OUR DIGITAL ROADMAP FOR THE FUTURE • UPDATE ON DIGITAL BUSINESS –
Slide 4: Quarter in Numbers – Strong Show in Covid Hit Quarter
QUARTER IN NUMBERS – STRONG SHOW IN COVID HIT QUARTER 17% 68% Rs88m 72% Sales Growth Increase in First ever Reduction in (YoY %) Gross reported PAT Losses Margins EBITDA (YoY %) (Rs m) profit in Q1 (YoY %) Learnflix – India’s Rs 177 m 26% most affordable Learning app Cash flow from Reduction in Over
Slide 5: Key Highlights
KEY HIGHLIGHTS • Financial Highlights – Strong show in a pandemic hit quarter • Consolidated Revenue from Operations stood at Rs 714m for the April-June quarter, up 17% YoY • Gross Margins increased to Rs517m (vs. Rs307m in Q1FY20), up 68% YoY • Consolidated EBITDA profit stood at Rs88m (vs. Loss of
Slide 6: Key Highlights
KEY HIGHLIGHTS • Focus on Cash Flows yields results. Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs177m in Q1FY21 (Rs484m in FY20). • Operating Parameters - Strong focus on improving balance sheet metrics yielding results in a covid hit q
Slide 7: Key Highlights
KEY HIGHLIGHTS • Learnflix – Showing strong growth. India’s most affordable app – ‘Learnflix’ showed strong traction during the quarter. We have currently approx. 80K downloads and 18K paid subscribers. As the move to online learning intensifies, we expect Learnflix to grow stronger in coming months
Slide 8: New Education Policy Adopted – Big Positive Going Ahead
NEW EDUCATION POLICY ADOPTED – BIG POSITIVE GOING AHEAD • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Announcement of Draft New Education • Expected release of the New National Curriculum Framework (NCF) after May, 2019 Policy (NEP) taking inputs from
Slide 9: New Education Policy Adopted – Key Features
NEW EDUCATION POLICY ADOPTED – BIG POSITIVE GOING AHEAD KEY FEATURES – SCHOOL EDUCATION • Target 100% GER in Pre-School to Secondary Level by 2030. • Implementation of 5+3+3+4 structure vs. existing 10+2 structure. • Curriculum to integrate 21st Century Skills, Mathematical Thinking and Scientific t
Slide 10: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Q1FY21 Reports first ever EBITDA profits for Q1 Employee Costs: Down 30% YoY S&D Exp: Down 55% YoY PAT Loss: Down by 72% 9
Slide 11: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 10
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Our cost optimization and working capital management efforts showed strong benefits by generating an OCF of Rs177m in Q1FY21. We look forward to a much stronger level of OCF generation in FY21 vs. FY20. 11
Slide 13: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE On back of the ongoing uncertainty around opening of schools and colleges, we expect a shift of working capital cycle between quarters and lumpiness of collections in the 2H of the year. 12
Slide 14: Launch of Educate-360 in Q2 – Product for the Future
LAUNCH OF ‘EDUCATE-360’ IN Q2 – PRODUCT FOR THE FUTURE Digital Content • Textbooks We have a new Analytics and • Multimedia (Video, Audio, HTML etc) online learning Insights • Practice Tests platform under • Student 01 • Teacher 05 development to • School Live Classes deliver these • Parent • Video
Slide 15: Our Digital Roadmap for the Future
OUR DIGITAL ROADMAP FOR THE FUTURE 08 AI and ML Recommendations,Personalizatio n, Knowledge graphs, Learning Store and Commerce 07 path, Insights Digital book store, Commerce, Products and variants, Up-sell 06 Gamification and Cross-sell We see digital Badges, Rapido, Contests Data and Analytics 05
Slide 16: Update on Digital Business – Silver Lining in the Pandemic Cloud
UPDATE ON DIGITAL BUSINESS – SILVER LINING IN THE PANDEMIC CLOUD • India’s most affordable learning platform, Learnflix (Android & Apple iStore), was launched during January, 2020. • Learnflix saw very strong response in the quarter and has already been downloaded over 80K times with over 18K paying
Slide 17: Shareholding Structure
SHAREHOLDING STRUCTURE As of 14th August, Market Data 2020 Key Institutional Investors - As of June 2020 % Holding Market Capitalization (Rs Mn) 2,350 Price (Rs) 67 Everstone Capital Partners II LLC 9.5% No. of shares outstanding (Mn) 34.95 International Finance Corporation 8.0% Face Value (Rs.) 5.0
Slide 18: Cost Saving Initiatives for FY21
COST SAVING INITIATIVES FOR FY21 • Incremental cost savings expected in FY21. We are looking at the following measures in FY21 to lead to reduced costs during the year-: • Lower paper prices for FY21: We expect paper prices to be lower by 5%-10% vs. last year and this should help our gross margins f
Slide 19: Looking Ahead
LOOKING AHEAD • FY21 • Given the uncertainty around Covid 19 crisis, we have refrained from giving a annual revenue growth guidance for the year. • Strong adoption of ‘Learnflix’, India’s most affordable Learning Platform, in the coming months to benefit our digital revenues during the year. • Roll
Slide 20: 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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