S Chand And Company Limited · NSE:SCHAND
S Chand And — Q2 FY2023-24 Earnings Presentation
27 slides from S Chand And's earnings presentation, Nov 10, 2023
Slide 1: Cover letter to stock exchanges
� ....,_ ¥ S Chand And Company Limited Reg'istered 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<j'roup.com GROUP Date: November I 0, 2023 To To Listing Department Listi
Slide 2: S. Chand and Company Limited – Dawn of a New Era
S. Chand and Company Limited – Dawn of a New Era Q2 – FY2023-24 Investor Update 10th November 2023
Slide 3: Summary
SUMMARY 1. New NCF Launched after 18 years – Strong growth ahead 2. Consolidated Financial Performance 3. Status of Digital Business & Investments 2
Slide 4: New NCF Launched after 18 years – Strong growth ahead
New NCF Launched 1. after 18 years – Strong growth ahead 3
Slide 5: NCF 2023 Finally Announced in August, 2023
NCF 2023 FINALLY 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+
Slide 6: Impact of NCF 2023 Announcement
IMPACT OF NCF 2023 ANNOUNCEMENT • With the timely announcement of the NCF for School Education, 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, Creation and we
Slide 7: Best 1H Cash Flow Performance in 5 Years
BEST 1H CASH FLOW PERFORMANCE IN 5 YEARS • Our strategy of focusing on the cash flows has yielded results with Net cash generated from operations of Rs233m in H1FY24 (vs. Rs71m in H1FY23 and Rs122m in H1FY22 and Rs130m in H1FY21). • This is the strongest CFO during 1H in the company’s history. Cash
Slide 8: Receivable Days Below 100 Days for the First Time Ever
RECEIVABLE DAYS BELOW 100 DAYS FOR THE FIRST TIME EVER 47% reduction in Receivable Days since FY20 • Receivable days below 100 days for the first time ever in company’s history in any quarter. • Lowest Q2 Receivable days in the company’s history. 7
Slide 9: Relentless Improvement in Working Capital Continues
RELENTLESS IMPROVEMENT IN WORKING CAPITAL CONTINUES 43% reduction in NWC Days since FY20 • Net Net, Better Working capital efficiency has translated into higher cash flows leading to company remaining net debt free in Q2. 8
Slide 10: Company Remains Net Debt Free
COMPANY REMAINS NET DEBT FREE Company remains Net Debt free in 2Q. Cash and Inventory levels have reduced over the same time equivalents are at Rs1,176m at the end of the last year. Current inventory has Rs599m raw quarter. material paper inventory (vs. Rs763m in Q2FY23). 9
Slide 11: Solid Improvement in Working Capital Metrics
SOLID IMPROVEMENT IN WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables reduced to Rs1,371`m during Q2FY24 vs. Rs1,572m at the same time last year. To understand the magnitude of this improvement, do keep in mind that receivables balance of Rs1,371m includes H1 sales of Rs1,491m.
Slide 12: 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 13: Consolidated Financial Performance
Consolidated Financial 2. Performance 12
Slide 14: 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 15: Management Commentary – 2Q & 1HFY24
MANAGEMENT COMMENTARY – 2Q & 1HFY24 • During the second quarter, we saw some softness in the Higher Education and Competition segment revenues due to lower-than-expected job vacancy announcements. • Since this is a seasonally small quarter, it should not impact us going ahead for FY24 as the absolut
Slide 16: Consolidated Financial Performance – H1FY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE H1FY24 Highlights Revenues: 4% Lower YoY Losses higher due to: (1) Absence of One-Off gains of Rs254m in H1FY23 under Other Income and Exceptional Income vs. 1HFY24, (2) Higher expenses due to salary hike, fresh hiring and certain sales/mkting expenses on back of N
Slide 17: H1FY24 vs. H1FY23 – Major Moving Parts in PBT
CONSOLIDATED FINANCIAL PERFORMANCE H1FY24 vs. H1FY23 - Major Moving Parts explaining the difference in Profit before Taxes (PBT) Particulars (Rs m) H1FY23 H1FY24 Difference Comments (176) (608) 434 Profit/(Loss) before tax H1FY24 vs. H1FY23 - Major Moving Parts • One time revaluation gain of Rs98m i
Slide 18: Consolidated Financial Performance – Q2FY24 Highlights
CONSOLIDATED FINANCIAL PERFORMANCE Q2FY24 Highlights Revenues: 20% Lower YoY on back of subdued HE segment performance PAT impacted by combination of: (1) Increased employee and other expenses on back of NCF, (2) Absence of Exceptional gain of Rs156m in 2QFY23. 17
Slide 19: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 18
Slide 20: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 19
Slide 21: Shareholding Structure
SHAREHOLDING STRUCTURE As of 10th November, Key Institutional Investors - As Market Data % Holding Other Institutional Investors holding less 2023 of September 2023 than 1% - As of September 2023 Market Capitalization (Rs Mn) 8,750 International Finance 8.0% Corporation Aadi Financial Advisors Price
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 Sept 2022 at
Slide 24: 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 1,550 videos that have been prepared S Chand Academy supplementing our S Chand Test Prep & College Content. The channel has showed strong growth (Youtube) reaching ~190k subscribers and over 17 mil
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 50+ national and state level exams in English and Hindi. • Given the uptick in the number of test prep exams and government
Slide 26: Mylestone & Educate360 – School Solutions
MYLESTONE & EDUCATE 360 – SCHOOL SOLUTIONS • Mylestone: Digitally enabled School Curriculum Solution for the K-8 segment. • Madhubun Educate360 is our K-12 Blended learning solution for • Future Outlook: enabling schools to conduct online classes, student assessments, • Affordable Private Schools wo
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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