S Chand And Company Limited · NSE:SCHAND
S Chand And — Q3 FY2022-23 Earnings Presentation
27 slides from S Chand And's earnings presentation, Feb 10, 2023
Slide 1: Cover letter to stock exchanges on investor presentation
-! =r, S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND P:+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandqroup.com I www.schand<1roup.com GROUP Date: February 10, 2023 To To Listing Department Listing Dep
Slide 2: Q3 – FY2022-23 Investor Update
S. Chand and Company Limited Q3 – FY2022-23 Investor Update 10th February 2023
Slide 3: Summary
SUMMARY Resurgence of Strong 1. Demand in the FY23 sales season 2. Consolidated Financial Performance 3. Digital Business & Investments 2
Slide 4: Resurgence of Strong Demand in the FY23 sales season
Resurgence of Strong 1. Demand in the FY23 sales season 3
Slide 5: Best 9M ever in company's history
BEST 9M EVER IN COMPANY’S HISTORY Revenues from Operations (Rs M) • Highest ever 9M Sales in the company’s history 2,198 • EBITDA losses reduced by 38% 1,425 1,390 YoY 975 729 • PAT loss reduced by 62% YoY. Lowest PAT loss from a 9MFY19 9MFY20 9MFY21 9MFY22 9MFY23 historical perspective Revenues (Rs
Slide 6: Another successful exit from one of our minority investments in Q3
ANOTHER SUCCESSFUL EXIT FROM ONE OF OUR MINORITY INVESTMENTS IN Q3 • We made our 2nd profitable exit this year by selling our minority stake in iNeuron Intelligence to PhysicsWallah Private Ltd in in December, 22 for a consideration of approx. Rs138m. This translates into a 2.1x return over our init
Slide 7: 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 8: National Curriculum Framework announced for K-2 classes during Q3
NATIONAL CURRICULUM FRAMEWORK ANNOUNCED FOR K-2 CLASSES DURING Q3 Old Academic Structure New Academic Structure • The government 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 the NCF
Slide 9: 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 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 to avoid becoming net debt zero by Q4FY23. future price escalations and avoid any potential raw material shortages during the peak sales season. 9
Slide 11: Working capital - inventory increases due to preponement of paper purchases
WORKING CAPITAL - INVENTORY INCREASES DUE TO PREPONEMENT OF PAPER PURCHASES • Inventory days are higher by 31 days on a YoY basis. • Receivable days - Down 49 • This is due to the preponement days (YoY). of purchase of raw material as • The strong focus on well as printing of books for this collecti
Slide 12: Solid improvement in working capital metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,552m during Q3FY23 vs. Rs1,728m during Q3FY22. • In terms of receivable days, it stood at 101 days (vs. 150 days in Q3FY22). This is the lowest receivable days in Q3 in the past 5 years. • Inven
Slide 13: Looking ahead
LOOKING AHEAD Focus on cost control, Strong growth in S working capital Chand Academy metrics and cash Youtube channel. flows to continue. Higher revenues to Gross margins can drive profitability on be impacted by 100- back of operating 200bps on back of leverage, internal input cost pressures effic
Slide 14: Consolidated Financial Performance
Consolidated Financial 2. Performance 13
Slide 15: Consolidated financial performance: 9MFY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE 9MFY23 Highlights Highest ever 9M Revenues. EBITDA losses reduced by 38% YoY. Reduction in PAT losses by 62% YoY. Note - Publication expenses are now included in Other expenses. Historical numbers have been updated to maintain consistency 14
Slide 16: Consolidated financial performance: Q3FY23 highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q3FY23 Highlights Highest ever Q3 Revenues. Reduction in PAT losses by 32% YoY. Q3 Other income includes profit from the Sale of iNeuron Minority stake. 15
Slide 17: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 16
Slide 18: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE 17
Slide 19: Build up of inventory for sales season reduces 9M operating cash flow
BUILD UP OF INVENTORY FOR SALES SEASON REDUCES 9M OPERATING CASH FLOW • We have preponed our raw material purchases this year keeping in mind increasing raw material prices and a strong sales season. This has led to reduced Cash Flow from Operations vs. previous years. • Q3 Inventory increased to Rs
Slide 20: Shareholding structure
SHAREHOLDING STRUCTURE As of 10th February, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2023 of Dec 2022 than 1% - As of Dec 2022 Market Capitalization (Rs Mn) 6,000 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 171 Tr
Slide 21: Conference call details
CONFERENCE CALL DETAILS P Prabhudas’ RA Lilladher $,CHAND Sansa Pa 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 Q3FY23 Results Represented by: Mr. Himanshu Gupta — Managing Director Mr. Sa
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 last round of funding was done in June 2021 at
Slide 24: S Chand Academy on YouTube growing by leaps and bounds
S CHAND ACADEMY ON YOUTUBE GROWING BY LEAPS AND BOUNDS • Launched S Chand Academy channel on Youtube during FY22. S Chand Academy • The channel houses modules comprising of over 900 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. The channel has showed
Slide 25: TestCoach – our test prep app
TESTCOACH – OUR TEST PREP APP • 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 governmen
Slide 26: Mylestone & Educate360 – school solutions
MYLESTONE & EDUCATE 360 – SCHOOL SOLUTIONS • Mylestone: Digitally enabled School Curriculum Solution for the K-8 • Madhubun Educate360 is our K-12 Blended learning solution for segment. enabling schools to conduct online classes, student assessments, • Future Outlook: e-book support etc. This produc
Slide 27: 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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