S Chand And Company Limited · NSE:SCHAND
S Chand And — Q3 FY2022 Earnings Presentation
27 slides from S Chand And's earnings presentation, Feb 4, 2022
Slide 1: Letter to stock exchanges on investor presentation
-t.. � T S Chand And Company Limited Registered Office: A-27, 2nd Floor. Mohan Co-Operative Industria l 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 04, 2022 To To Listing Department Lis
Slide 2: Q3 FY2021-22 Investor Update
S. Chand and Company Limited Q3 – FY2021-22 Investor Update 4th February 2022
Slide 3: Summary
SUMMARY 1. Key Highlights 2. Digital Business Update 3. Looking Ahead 2
Slide 4: Key Highlights
— —— S.CHAND GROUP Key Highlights www.schandgroup.com
Slide 5: Key Highlights
KEY HIGHLIGHTS 48% 89% 49% 4% Increase in Q3 Increase in 9M Gross Reduction Revenue Q3 Gross Margins in Q3 PAT from Margins (%) Losses Operations (YoY) (YoY) (YoY) Acquires Minority stake Launched 60%+ in iNeuron Intelligence ‘Learnflix Bangla’ Rs112m Vaccination Strategic India’s most Cash flow fro
Slide 6: Reopening of educational institutes well underway
REOPENING OF EDUCATIONAL INSTITUTES WELL UNDERWAY, LOOKING FORWARD TO A NORMAL SALES SEASON IN FY22 • December, 21 – January, 22 saw the full impact of the Covid-19 Omicron variant wave across the country. • We saw schools and higher education institutes revert to the Digital medium of instruction a
Slide 7: Status of key states - reopening of educational institutes
STATUS OF KEY STATES - REOPENING OF EDUCATIONAL INSTITUTES Delhi • Schools to open K9-K12 from Feb 7th and K1-K8 from Feb 14th onwards. Haryana • Schools have opened for senior classes. Punjab • Schools have opened in February. Rajasthan • Schools reopened for senior classes. Class 6th onwards will
Slide 8: Strong Q3, look forward to a normal sales season
STRONG Q3, LOOK FORWARD TO A NORMAL SALES SEASON Q3FY22 Revenues from Operations (Rs M) 513 UP 48% 346 YoY 96 46 Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 EBITDA (Rs M) REVENUES PAT (Rs M) PAT Loss lower EBITDA levels by 4% YoY maintained in spite of -331 -333 higher input costs -464 -447 -819 -824 -748 -814
Slide 9: Moving to a structurally lower debt and inventory levels
MOVING TO A STRUCTURALLY LOWER DEBT & INVENTORY LEVELS We have moved to a fundamentally lower debt We are moving to a structurally lower inventory profile for the company. We are looking to reach levels in the company. We are targeting Rs800m- net debt zero levels by Q4FY23 on back of Rs1,000m inven
Slide 10: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 9
Slide 11: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • 9MFY22 is not comparable with 9MFY21 since H1FY21 had sales overflow from Q4FY20 (which was impacted by the national lockdown on 21st March 2020) • 9MFY22 as compared to 9MFY20 has 43% higher sales, lower EBITDA losses by 59% and lower PAT losses by 32%. This sho
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 11
Slide 13: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Receivables: Strong collection in 9M over comparable period last year in spite of the pandemic represents better quality of sales achieved in FY21. • Inventory: Increase in inventory is driven by higher raw material paper stock over last year. 12
Slide 14: Improving working capital cycle
IMPROVING WORKING CAPITAL CYCLE • Working Capital Metrics • Trade Receivables reduced to Rs1,728m during Q3FY22 vs. Rs3,221m as of Q4FY21. • In terms of receivable days, it stood at 150 days (vs. 276 days in Q4FY21), a reduction of 126 days during 9M. • Inventory was at Rs1,763m (vs Q3FY21: Rs1,703m
Slide 15: Shareholding structure
SHAREHOLDING STRUCTURE Market Data As of 4th Feb, 2022 Key Institutional Investors - As Other Major Investors holding less than % Holding of Dec 2021 1% - As of Dec 2021 Market Capitalization (Rs Mn) 4,220 International Finance 8.0% Aadi Financial Advisors Corporation Price (Rs) 120 TrustLine Holdin
Slide 16: Digital Business Update
Summary 2. Digital Business Update 15
Slide 17: Digital Business Update - Learnflix & Mylestone
DIGITAL BUSINESS UPDATE – LEARNFLIX & MYLESTONE • Learnflix App (Affordable Personalised Student App) targeted to • Mylestone: Digitally enabled School Curriculum Solution for the K-8 the Next Half Billion (NHB) audience has got strong response segment is now ready to grow exponentially. • Future Ou
Slide 18: Digital Business Update - Learnflix Bangla launched
DIGITAL BUSINESS UPDATE – LEARNFLIX BANGLA LAUNCHED • Launched the vernacular version of our digital learning mobile app Learnflix – ‘Learnflix Bangla’ targeted at the West Bengal Board students. • Learnflix Bangla is initially being launched for Classes IX & X with Math and Science subjects. It inc
Slide 19: Digital Business Update - Educate
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 20: Digital Business Update - Other assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Convergia houses Learnflix and Mylestone. • Convergia is a subsidiary of S Chand only to be diluted through capital raise or ESOP allotment. • Additional Ed-Tech solutions may also be hived into this entity as and when they mature. • It also includes the newl
Slide 21: 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 22: Looking Ahead
Summary — —— S.CHAND GROUP Looking Ahead www.schandgroup.com
Slide 23: Looking Ahead
LOOKING AHEAD = —~— S.CHAND ePpoup Twin Growth Drivers in place -: (1) NEP based new curriculum for print business, (2) Increased adoption of our Ed-Tech solutions ina post Covid world FY22 Looking forward Strong Increased to a normal sales adoption of vaccinations cycle for print Digital in school
Slide 24: 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 • Expected release of the New Natio
Slide 25: S. Chand Group journey so far
S. CHAND GROUP JOURNEY SO FAR… S. Chand Other Ed-Tech Publishing – Apps and Products – SmartK, S. Chand, Vikas, myStudyGear etc Madhuban, New Saraswati, Chaaya Destination Success - Test Coach – App for Learnflix – Mobile Digital Competition exams Learning App Classroom S. Chand Publishing Destinati
Slide 26: S. Chand Group product strategy for the future
S. CHAND GROUP PRODUCT STRATEGY FOR THE FUTURE Digital Content • Textbooks • Multimedia Analytics and Insights • Practice Tests • Student 01 • Teacher 05 • School Live Classes • Parent • Video conferencing platform • Calendar scheduling Teacher Connect • Recorded classes • Teacher published content
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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