S Chand And Company Limited · NSE:SCHAND
S Chand And — Q3 FY2023-24 Earnings Presentation
31 slides from S Chand And's earnings presentation, Feb 6, 2024
Slide 1: Cover letter to stock exchanges
-! =;:. S Chand And Company Limited Reqistered 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@schandgroup.com I www.schand�roup.com ----- GROUP Date: February 06, 2024 To To Listing Department Listi
Slide 2: S. Chand and Company Limited – Ushering in the New NCF
S. Chand and Company Limited – Ushering in the New NCF Q3 – FY2023-24 Investor Update 6th February 2024
Slide 3: Summary
SUMMARY 1. Key Highlights – 9M & 3QFY24 2. Consolidated Financial Performance 3. Status of Digital Business & Investments 2
Slide 4: Key Highlights – 9M & 3QFY24
1. Key Highlights – 9M & 3QFY24 3
Slide 5: Best in Class Working Capital Metrics
BEST IN CLASS WORKING CAPITAL METRICS • Receivable days below 100 days for the first time Consistently improving Net Working capital ever in company’s history in Q3. efficiency over the past years. • Lowest Q3 Receivable days in the company’s history. 4
Slide 6: Sustainable Reduction in Debt Metrics
SUSTAINABLE REDUCTION IN DEBT METRICS Net Debt increases in 3Q due to raw paper Inventory levels are lower on a YoY basis. Current purchases during the quarter. Cash and inventory has Rs872m raw material paper equivalents are at Rs318m at the end of the inventory (vs. Rs859m in Q3FY23). quarter. Not
Slide 7: NCF 2023 Announced in August, 2023
NCF 2023 ANNOUNCED IN AUGUST, 2023 • After a long gap of 18 years, the National Curriculum Framework for School Education - 2023 was announced in August, 2023. • This is the first ever integrated Curriculum Framework for children between ages 3-18 in India. It is a direct outcome of the 5+3+3+4 curr
Slide 8: Impact of NCF 2023 Announcement
IMPACT OF NCF 2023 ANNOUNCEMENT • With the timely announcement of the NCF for School Education in Augus 2023, we have been able to move forward in the creation of new content adhering to the new NCF. New Content • We have already started launching new books which are adhering to the new syllabus, Cr
Slide 9: New Book Launches Based on the New Curriculum
NEW BOOK LAUNCHES BASED ON THE NEW CURRICULUM 8
Slide 10: New Book Launches Based on the New Curriculum
NEW BOOK LAUNCHES BASED ON THE NEW CURRICULUM 9
Slide 11: Launch of Solid Steps – Integrated K-5 Curriculum Solution
LAUNCH OF SOLID STEPS – INTEGRATED K-5 CURRICULUM SOLUTION • Solid Steps is our newly launched K-5 Curriculum program in English and various Indian languages like Hindi, Kannada, Telegu, Malyalam etc. keeping in mind the core concepts of the New Education Policy 2020. • This 𝗞-𝟱 𝗽𝗿𝗼𝗴𝗿𝗮𝗺 is…
Slide 12: S Chand Group – Marketing Initiatives
S CHAND GROUP – MARKETING INITIATIVES Global Dealer’s Meet - Baku World Book Fair Participation Mathematics Summit 2023 11
Slide 13: S Chand Group – Marketing Initiatives
S CHAND GROUP – MARKETING INITIATIVES “Hindi Diwas” – Leading Event of Vikas Publishing House for Hindi teachers across the country Finland Study Tour for leading School Owners and Principals “The World of Publishing” – Opportunity for school children to visit S Chand’s Printing Press 12
Slide 14: S Chand Group – Marketing Initiatives
S CHAND GROUP – MARKETING INITIATIVES Launch of the prestigious “Philip Kotler – Essentials of Modern Marketing” with a Case Study on the S Chand Group 13
Slide 15: Looking Ahead
LOOKING AHEAD Gross margins can increase in case Target EBITDA margin paper prices decline band of 16%-18%. during the year. Would take a single digit Strong growth in S price hike across Chand Academy portfolio in FY24. Youtube channel. FY24 Operating revenues to be in Focus on working the range of
Slide 16: Consolidated Financial Performance
Consolidated Financial 2. Performance 15
Slide 17: Seasonal Nature of Our Business
SEASONAL NATURE OF OUR BUSINESS 15%-20% of annual revenues; 5%-10% of annual revenues; 5%-10% of annual revenues; 70% to 80% of annual Reduction in WC Reduction in WC Peak Inventory revenues; Peak Receivables Q1 April - June Q2 July - September Q3 October - December Q4 January - March o Finalisation
Slide 18: Management Commentary – 3Q & 9MFY24
MANAGEMENT COMMENTARY – 3Q & 9MFY24 • During the third quarter, we saw vigorous promotion activities in the school segment due to the new Promotion of new books based on the recent NCF. NCF Books • There is great anticipation and interest in the new syllabus books for the upcoming sales season. • Em
Slide 19: Consolidated Financial Performance – 9MFY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE 9MFY24 Highlights Revenues: 3% Higher YoY PAT Losses higher due to: (1) Absence of One- Off gains of Rs326m in 9MFY23 under Other Income and Exceptional Income vs. 9MFY24, (2) Higher operating expenses due to salary hike, fresh hiring and certain sales/mkting expen
Slide 20: 9MFY24 vs. 9MFY23 – Major Moving Parts
CONSOLIDATED FINANCIAL PERFORMANCE 9MFY24 vs. 9MFY23 - Major Moving Parts explaining the difference at the Profit/(Loss) before Taxes (PBT) level Particulars (Rs m) 9MFY23 9MFY24 Difference Comments (567) (1116) 549 Profit/(Loss) before tax 9MFY24 vs. 9MFY23 - Major Moving Parts One off gains in 9MF
Slide 21: Consolidated Financial Performance – Q3FY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q3FY24 Highlights Revenues: 17% higher YoY PAT impacted in 3QFY24 by combination of: (1) Increased employee costs on back of wage hike cycle and hiring on back of NCF, (2) 3QFY23 had Gain from sale of iNeuron stake in Other income of Rs72m 20
Slide 22: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 21
Slide 23: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Despite much higher Losses Before Tax in Dec, 23 vs. Dec, 22, Cash generated from Operations was at similar levels to last year. 22
Slide 24: Solid Improvement in Working Capital Metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,502m during Q3FY24 vs. Rs1,552m during Q3FY23. • In terms of receivable days, it stood at 89 days (vs. 101 days in Q3FY23). • This is the lowest receivable days in Q3 in the past 5 years. • Inve
Slide 25: Shareholding Structure
SHAREHOLDING STRUCTURE As of 5th February, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2024 of December 2023 than 1% - As of December 2023 Market Capitalization (Rs Mn) 9,150 International Finance 8.0% Corporation Aadi Financial Advisors Price (R
Slide 26: Concall Details
CONCALL DETAILS x —~— S.CHAND GROUP Prabhudas” A = [Lillechies sao POWERING YOUR FINANCIAL GROWTH empower! g minds We cordially invite you to the Earnings Call with S Chand and Company Ltd. Bloomberg Code: SCHAND IN | Reuters Code: SCHA.BO For further information, please contact to discuss the Q3FY2
Slide 27: Digital Business & Investments
3. Digital Business & Investments 26
Slide 28: 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 Sept 2022 at
Slide 29: S Chand Academy on YouTube Growing by Leaps and Bounds
S CHAND ACADEMY ON YOUTUBE GROWING BY LEAPS AND BOUNDS • The channel houses modules comprising of over 1,600 videos that have been prepared S Chand Academy supplementing our S Chand Test Prep & College Content. The channel has showed strong growth (Youtube) reaching ~220k subscribers and over 21 mil
Slide 30: Mylestone & Solid Steps – School Curriculum Solutions
MYLESTONE & SOLID STEPS – SCHOOL CURRICULUM SOLUTIONS • Mylestone: Digitally enabled School Curriculum Solution for the K-8 • Solid Steps is our K-5 Curriculum program in English and various segment. Indian languages like Hindi, Kannada, Telegu, Malyalam etc • Future Outlook: keeping in mind the cor
Slide 31: 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
S Chand And Company — Q3 FY2023-24 Earnings Presentation on 6ix