Navneet Education Limited · NSE:NAVNETEDUL
Navneet Education — Q1 FY2020 Earnings Presentation
32 slides from Navneet Education's earnings presentation, Jun 30, 2019
Slide 1: A Premium Education House
Earning Presentation As On 30 June 2019 A Premium Education House
Slide 2: Table Of Contents
1 Company Overview 03 2 Navneet Group Business Insights 08 3 E-Learning Business Overview 13 Table Of 4 Indiannica Learning 15 Contents 5 K12 – School Management Company 16 6 Industry Insights 18 7 Financial Performance 24 8 Shareholders Information 37
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: About Navneet
ABOUT NAVNEET Navneet Education Limited, founded by the Gala Family, is an educational syllabus-based supplementary content provider in Print & Digital medium and a manufacturer of Scholastic Paper stationery for domestic and international markets. New range of text books for students of CBSE and IC
Slide 5: Vision, Mission & Core Values
VISION, MISSION & CORE VALUES Mission Vision Core Values To provide the highest quality of To provide students with best quality Excellence educational products and services supplementary study material and to customers in the language / curriculum text books at affordable Proactive medium of their
Slide 6: 6 Decades of Navneet – A Snapshot
6 DECADES OF NAVNEET – A SNAPSHOT Achieved Milestone Turnover of ₹1,000 Scholastic Stationery crores, Introduction of premium stationery New Stationery brand products under YOUVA launched, brand “HQ” Acquired Indiannica Learning 1993 Pvt. Ltd. (earlier Encyclopaedia Britannica (India) Pvt. Ltd.) Chi
Slide 7: Key Facts
KEY FACTS 25,000+ 2 No. of State Board Presence in States 35 Mn+ Schools visited for Supplementary Students using annually Books Navneet products 8,500+ CBSE / ICSE Schools visited 5,500+ annually 600+ No. of Titles 300+ SKU’s in Stationery No. of Authors 48,000+ 3,000+ Presence in Retail 25+ 350+ N
Slide 8: Navneet Group Business
NAVNEET GROUP BUSINESS
Slide 9: Navneet Group Business Portfolio
NAVNEET GROUP BUSINESS PORTFOLIO Curriculum (Maharashtra & Gujarat) Supplementary Books Non Curriculum PRINT (Pan-India & Exports) Text – Books (ICSE / CBSE) CONTENT E-LEARNING SSC (Adaptive (Maharashtra Learning) & Gujarat) B2B & B2C Domestic (Pan - India) PAPER STATIONERY School Management Exports
Slide 10: Navneet's Presence
NAVNEET’S PRESENCE Supplementary Books Maharashtra & Gujarat Digital Presence Maharashtra & Gujarat Orchid International Mumbai, Pune, Bengaluru, Hyderabad and Kolkata Text Books Andaman & Nicobar, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Prade
Slide 11: Global Presence
GLOBAL PRESENCE 10 11 9 12 1 14 13 15 2 16 5 3 25 6 4 8 7 17 18 21 19 20 22 23 24 1. Canada 6. Puerto Rico 11. Sweden 16. Turkey 21. Zambia 2. U.S. 7. Costa Rica 12. Denmark 17. Ethiopia 22. Madagascar 3. Mexico 8. Panama 13. Germany 18. Kenya 23. South Africa 4. Honduras 9. Ireland 14. U.K. 19. Rwa
Slide 12: Growth Drivers for Navneet
GROWTH DRIVERS FOR NAVNEET Content Stationery Syllabus CBSE Affiliated CBSE Pattern Domestic Exports change Schools Schools Stationery Stationery Syllabus Change in State With the rapid growth of Many English Medium Increasing number of On account of Quality, Board (SSC) Schools is a CBSE schools in
Slide 13: eSense Learning
eSENSE LEARNING 4,000+ 1,20,000+ 150+ 20,000+ Team of authors, Digital Classrooms using Students learning Teachers trained Illustrators and Top Class through Top Class animators 350+ 15,000+ 2,00,000+ Hours of digital content Videos MCQs Earning Presentation 13
Slide 14: Growth Drivers - E-Learning Education
GROWTH DRIVERS - E-LEARNING EDUCATION EVOLVING BUSINESS MODEL : RISING DISPOSABLE INCOME : Peer to peer learning among students to gain pace also value-added services such as internships and live Disposable income of the country projects along with regular courses to provide hands expected to grow 5
Slide 15: Indiannica Learning (Formerly Encyclopaedia Britannica India)
INDIANNICA LEARNING (Formerly ENCYCLOPAEDIA BRITANNICA INDIA) 1 3 CBSE, ICSE, SSB 220+ 8,500+ Schools Pan-India School Presence 2 4 SCHOOLS VISITED CURRICULUM LOCATIONS EMPLOYEES ANNUALLY TARGET REACH 25,000+ CBSE / ICSE & 20,000+ SSC Schools o Encyclopedia Britannica India (“EB India”) is one of In
Slide 16: K12 Techno Services Shareholding
K12 TECHNO SERVICES Over the last few years, quality Direct Education is in great demand in the Country and hence seen a sudden growth. ORCHIDS – THE INTERNATIONAL SCHOOL 25 5 24,000 34,000 No. of Schools + Locations + (CBSE/ICSE) No. of Capacity Students SHAREHOLDING Locations No. of Schools Bangal
Slide 17: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY o 21,000+ children benefited in 117 classrooms digitalized in o Three charitable hospitals established in Mumbai under the 87 schools in 18 districts through software learning program name Navneet Hospitals installation and hardware equipment o Free books & stationery
Slide 18: Industry Insights
INDUSTRY INSIGHTS
Slide 19: Industry Overview
INDUSTRY OVERVIEW Population Age 0-14 Age 15-59 Employment 1.34 1.39 415 435 845 890 465 534 Bn Bn Mn Mn Mn Mn Mn Mn 2017 2022 2017 2022 2017 2022 2017 2022 Expenditure on Education as a % of GDP 7.1 6.7 6.0 6.0 5.7 5.3 5.3 4.9 4.9 4.1 4.1 3.3 2.9 Finalnad New Zeland Brazil South Africa UK Australia
Slide 20: Industry Overview K-12 Segments
INDUSTRY OVERVIEW K-12 Vocational Education in Manufacturing & Services Higher Education K-12 (School) SEGMENTS Textbooks, e- learning & Allied Services Source: Technopak Analysis Presence in both Schooling & Ancillary Segments Earning Presentation 20
Slide 21: Industry Insights – School System
INDUSTRY INSIGHTS – SCHOOL SYSTEM NCERT GOVERNMENT OF INDIA MINISTRY OF EDUCATION (National Council of Educational Research and Training) 96 2% 1% 1% % SCERT CBSE ICSE OTHERS State Council of Educational Research Central Board of Indian Certificate for IB and Training Secondary Education Secondary E
Slide 22: India's K-12 Scenario
INDIA’S K-12 SCENARIO No. of Government : 1.1 Mn schools Private : 0.4 Mn 1.5 Mn Additional Capacity Required for Students No. of Students 35 Mn Government : 150 Mn 260 Private : 110 Mn Mn Additional Requirement Additional Resources USD Annual of Teachers Government : 10 Mn Intake 18 Mn Private : 8
Slide 23: Industry Overview – E-Learning
INDUSTRY OVERVIEW – E-Learning India’s Online Education market size to grow by USD 1.96 billion in 2021 It is expected that Online Education sector will witness a growth of 44% CAGR. Userbase will rise to 9.6 million by 2021 The Growth in the market size will be backed by an increase in the number o
Slide 24: Financial Performance Q1FY20
FINANCIAL PERFORMANCE Q1FY20
Slide 25: Segmental Review - Quarterly
SEGMENTAL REVIEW - QUARTERLY (I in Lakh) Total Revenue 80,483 EBITDA PBT 19 % 17 % 18 % 24,226 22,721 20,450 19,457 67,705 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Publications Stationery - Domestic Stationery - Exports Segmental Revenue 18 % 6% 27 % Q1FY20 43218 10954 25304 Q1FY19 36595 10362 1997
Slide 26: Standalone Financial Results – Q1FY20
STANDALONE FINANCIAL RESULTS – Q1FY20 (Rs in Lakh) Quarter ended June ‘19 Particulars Q1FY20 (Unaudited) % of Revenue Q1FY19 (Unaudited) % of Revenue Income from Operations 79,499 66,996 Other Income 984 709 Total Revenue 80,483 67,705 (a) Cost of materials consumed 26,102 22,682 (b) Purchases of st
Slide 27: Receivables & Inventory Days
RECEIVABLES & INVENTORY DAYS 245 255 236 220 176 156 156 146 107 117 105 99 104 69 62 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Receivable Days FG Inventory Days RM Inventory Days Earning Presentation 27
Slide 28: Consolidated Financial Results – Q1FY20
CONSOLIDATED FINANCIAL RESULTS – Q1FY20 (INR in Lakh) Quarter ended June ‘19 Particulars Q1FY20 % of Revenue Q1FY19 (Unaudited) % of Revenue (Unaudited) Total Income from Operations 81,153 68,635 Other Income 878 620 Total Revenue 82,031 69,256 (a) Cost of materials consumed 26,244 23,002 (b) Purcha
Slide 29: Snapshot of Consolidated Financial Results
SNAPSHOT OF CONSOLIDATED FINANCIAL RESULTS (Rs in Lakh) Revenue from Operations Summary of EBITDA Summary of PAT Q1 of FY 20 Q1 of FY 19 Q1 of FY 20 Q1 of FY 19 Q1 of FY 20 Q1 of FY 19 NEL 79,499 66,996 24,127 20,450 14,743 12,628 eSense 907 964 231 477 108 413 Indiannica 729 705 (422) (698) (777) (
Slide 30: Outlook on Business
OUTLOOK ON BUSINESS As of March 2019, the Government of India is taking the initiative to encourage colleges to offer online courses in rural areas to ensure education for all 3 With the tutoring in the schooling As of December 2018, internet segment expected to grow from US$ 8 penetration in India
Slide 31: Shareholding Pattern and Market Cap
SHAREHOLDING PATTERN AND MARKET CAP (Rin Mn) Shareholding as at June 30, 2019 60,000 50,000 16.33 40,000 37,950 34,087 4.25 30,000 25,587 24,260 23,640 20,110 17.63 20,000 61.79 10,000 0 Promoter & Promoter Group Domestic Institutional Investors FY15 FY16 FY17 FY18 FY19 June'19 Foreign Institutional
Slide 32: Contact Details
NAVNEET EDUCATION LIMITED Corporate Identity Number L22200MH1984PLC034055 Corporate Office & Regd. Office : Navneet Education Limited, Navneet Bhavan, Bhavani Shankar Road, Dadar-(West), Mumbai – 400028. Website: www.navneet.com E-mail Id: investors@navneet.com Investor Relations Contact Roomy Mistr