S Chand And Company Limited · NSE:SCHAND
S Chand And — Q4 FY2022 Earnings Presentation
26 slides from S Chand And's earnings presentation, May 25, 2022
Slide 1: Cover letter to stock exchanges on investor presentation
-!- � T S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 11 0044, India. S.CHAND P:+91 11 4973 1800 J F:+91 11 4973 1801 J E: info@schandgroup.com J www.schandcJroup.com ---• GROUP Date: May 24, 2022 To To Listing Department Listing De
Slide 2: Q4 FY2021-22 Investor Update: Back to School
S. Chand and Company Limited Q4 – FY2021-22 Investor Update 24th May 2022 Back to School
Slide 3: Summary
SUMMARY 1. Back to School 2. Consolidated Financial Performance 3. Digital Business 2
Slide 4: Back to School
= == S.CHAND GROUP Back to School www.schandgroup.com
Slide 5: Return to Profitability – Poised for Growth
RETURN TO PROFITABILITY – POISED FOR GROWTH Revenues from Operations (Rs M) • Back to School to drive 4,809 growth in FY23. 4,294 4,252 • Strong performance in FY22 keeping in mind there were 2 covid disruptions in Q1 and Q4 respectively. FY20 FY21 FY22 Revenues (Rs m) EBITDA (Rs M) PAT (Rs M) 748 7
Slide 6: Solid Improvement in FY22 in Working Capital Metrics
SOLID IMPROVEMENT IN FY22 IN WORKING CAPITAL METRICS • Inventory days - Down 45 days (YoY). • Receivable days - Down 54 days (YoY). • Net Working capital days – Down 67 days (YoY). 5
Slide 7: Sustainable Reduction in Debt & Inventory Levels
SUSTAINABLE REDUCTION IN DEBT & INVENTORY LEVELS 61% reduction in Net Debt since FY20 We have set our target to become net debt zero We are moving to a structurally lower inventory by Q4FY23 on back of increased cash flow levels in the company. Current inventory has generation. Rs277m raw material p
Slide 8: Solid Improvement in FY22 in Working Capital Metrics
SOLID IMPROVEMENT IN FY22 IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs2,921m during Q4FY22 vs. Rs3,221m during Q4FY21. This is a Rs300m decrease in receivables in spite of achieving incremental sales of Rs557m over last year. • In terms of receivable days, i
Slide 9: Consistent Cash Flow Performance
CONSISTENT CASH FLOW PERFORMANCE • Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs1,066m in FY22 (vs. Rs1,076m in FY21 and Rs484m in FY20 and Rs386m in FY19). 8
Slide 10: Expenses Reset – Operating Leverage to Kick In
EXPENSES RESET – OPERATING LEVERAGE TO KICK IN • In spite of having higher sales in FY22 vs. FY20, our operating expense are still lower by 18% in comparison. • Cost base has been structurally reset which would benefit us going in FY23 when we are expecting much stronger growth in sales vs previous
Slide 11: Looking Ahead
LOOKING AHEAD Focus on cost control, working Higher revenues Gross margins capital metrics to drive can be impacted and cash flows to profitability on by 100-200bps continue. back of operating on back of input leverage, internal cost pressures Announcement of efficiencies etc Implement a 12%- Nation
Slide 12: New Education Policy – Big Positive Going Ahead
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD 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 • Expect release of the New Nationa
Slide 13: Consolidated Financial Performance
Consolidated Financial 2. Performance 12
Slide 14: Consolidated Financial Performance: 4QFY22 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE 4QFY22 Highlights Revenues: 21% Higher YoY EBITDA: 10% Higher YoY PAT: 28% Higher YoY Note - Other expenses includes Selling and distribution expenses and Other expenses. Publication expenses are shown separately to maintain consistency with previous year numbers.
Slide 15: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Returns to PAT profitability after FY18 Note - Other expenses includes Selling and distribution expenses and Other expenses. Publication expenses are shown separately to maintain consistency with previous year numbers. 14
Slide 16: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 15
Slide 17: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 16
Slide 18: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 24th May, 2022 Key Institutional Investors - As Other Institutional Investors holding less % Holding of March 2022 than 1% - As of March 2022 Market Capitalization (Rs Mn) 3,560 International Finance 8.0% Corporation Aadi Financial Advisors Price (Rs) 102 Tru
Slide 19: Conference Call Details
CONFERENCE CALL DETAILS ry —— S.CHAND ® GROUP ? Prabhudas a . =~ Lilladher S.CHAND POWERING YOUR FINANCIAL GROWTH 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 Q4FY22 Results Represented by
Slide 20: Digital Business
— —— S.CHAND GROUP 3. Digital Business www.schandgroup.com
Slide 21: Digital Business Update – Learnflix & Mylestone
DIGITAL BUSINESS UPDATE – LEARNFLIX & MYLESTONE • Learnflix App is targeted to the Next Half Billion (NHB) audience. The current product covers Maths and Science for • Mylestone: Digitally enabled School Curriculum Solution for the K-8 classes 6th to 10th. segment. • Future Outlook: • Learnflix Bang
Slide 22: Digital Business Update – Educate360 Product Testimonials
DIGITAL BUSINESS UPDATE – EDUCATE 360 • Madhubun Educate360 is the newly conceived K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. as a response to the Covid-19 crisis. This product is NEP 2020 compliant supporting the recommend
Slide 23: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Launched S Chand Academy channel on Youtube in FY22. S Chand Academy • The channel houses modules comprising of over 380 videos that have been prepared supplementing our S Chand Test Prep (Youtube) & College Content. There are hundreds of videos covering dive
Slide 24: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Launched a revised and updated TestCoach app during the year. 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. 23
Slide 25: Investee Companies – Hidden Value in Our Balance Sheet
INVESTEE COMPANIES – HIDDEN VALUE IN OUR BALANCE SHEET • Testbook was founded in 2014 with focus on online test preparation for government competitive exams like Civil services, Banks, Govt departments like railways, defense, police etc. • We had invested approx. Rs 25m in 2016. • Their last round o
Slide 26: 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 — Q4 FY2022 Earnings Presentation on 6ix