S Chand And Company Limited has informed the Exchange regarding Investor Presentation
-!- � T S.CHAND GROUP
S Chand And Company Limited
Corporate Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India.
Registered Office: Ravindra Mansion, Ram Nagar, New Delhi - 110055, India.
P:'+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandgroup.com I www.schandgroup.com
Date: February 14, 2019
To Listing Department, National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Sandra Kurla Complex, Sandra (E), Mumbai, Maharashtra 400051
To Listing Depa,tment BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai, Maharashtra 400001
Dear Sir,
Re: Investors Presentation-Financial Results-O3 FY 2018-19 -pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The presentation for the analysts and investors for the conference call scheduled to be held on Friday, February 15, 2019 at I: 00 P .M. to discuss the financial results for the quarte� ended December J I, 2018 is attached herewith.
' I
The Company shall also disseminate the above information on the website of the Company 1.e. www.schandgroup.com.
/
Request you to kindly take note of the same.
Thanking You.
Encl: As above
I
CIN No. L22219Dl 1970PLC005400
S. Chand and Company Limited Q3 – FY2018-19 Result Presentation February 14, 2019
SUMMARY
• KEY HIGHLIGHTS • LAUNCH OF S CHAND 3.0 – FOCUS ON
CASH FLOW IMPROVEMENT
• SEASONAL NATURE OF OUR BUSINESS • CONSOLIDATED FINANCIALS: Q3FY19 • WORKING CAPITAL CYCLE • SHAREHOLDING STRUCTURE • LOOKING AHEAD • ANNEXURE:
• China vs India – A Case Study in Education
Sector Indian Education Sector - Overview
• • S Chand – Group Profile • S Chand - Historical Financial Performance
2
KEY HIGHLIGHTS
•
Launched “S Chand 3.0” Program focused on increasing Free cash flow generation
• We have launched “S Chand 3.0” program in the company which is aimed at generating higher free cash flows from
the business. As a first step, we are targeting better terms with channel partners during the ongoing sales season
followed by various operational and business cost control measures across our companies which should lead to better
cash flow metrics during the next financial year. Hence, for the purpose of achieving better terms with channel
partners this season, we are revising FY19 revenue growth guidance to low single digits.
•
Chetana Publications LLP investment mutually terminated
• We were awaiting certain conditions precedent to be met in order to complete the acquisition but these have not
been met despite taking additional time extensions. Considering this, both parties have mutually decided not to
proceed ahead with the transaction. Do note that this decision has no impact on our financials.
•
Chhaya Prakashani acquisition of the remaining 26% stake on track – To be completed in February
• We are in the process of acquiring final 26% and taking our stake to 100% in the company. We expect the pay out to
happen within February, 2019.
3
KEY HIGHLIGHTS
• Relentless focus on improving debtor days metrics
• Due to the seasonal nature of our business, Q3 historically contributes only a minor portion of our annual revenues.
• Our Debtor days has reduced by 23 days QoQ to 155 days (vs. 290 days in Q4FY18, 231 days in Q1FY19 & 178
days in Q2FY19)
• Our Net Working capital days has increased by 22 days QoQ to 224 days (vs. 253 days in Q4FY18, 235 days in
Q1FY19 & 202 days in Q2FY19) on back of increase in inventory levels for Q4. Do note that historically Q3 sees an
increase in the working capital on back of higher inventory for addressing Q4 sales.
• Q3 saw extraordinary sales return
•
In the process of improving our terms with some channel partners and working capital improvement measures, there
have been an unexpected return of material of Rs226m. This is not in the ordinary course of business and the returned
goods are currently being redistributed to other channel partners in Q4.
4
LAUNCH OF S CHAND 3.0 – FOCUS ON CASH FLOW IMPROVEMENT
Targeting better terms with channel partners during sales in the current year
• Focusing on better terms with channel partners, improved velocity of
collection, sale productivity metrics etc.
• Focus on higher margin products. • Tightening of discounting structure.
Lower Inventory levels
• Focus on portfolio of faster moving titles. • Controlling print runs of slow moving titles. • Warehouse consolidation. • Rationalizing number of SKU’s.
Faster Receivables collection cycle
• Prioritizing our channel partners based on historic receivable efficiency. • Strict escalation of delay in receivable collection from channel partners in
the appropriate manner.
• Dealer loyalty program launched.
Lowering operating costs
• Consolidation of warehousing space • Focus on manpower optimization through shared services • Renegotiations of major operational cost items
Boost to return ratios
Increased Free Cash Flows
Improved margin profile
Improved operational efficiency
5
SEASONAL NATURE OF OUR BUSINESS
Less than 10% of annual
revenues; Negative WC Q1 April - June
o Last leg of K-12 sales for new
academic session and delivery of books to distributors/ schools.
o New academic session
commences in April for CBSE/ ISCE schools.
o Annual paper contracts
negotiated.
o Finalisation of title catalogue for next academic year (new and revised titles).
o Sales performance review.
(regional/ branches)
Less than 5% of annual revenues; Negative WC
Less than 5% of annual revenues; Peak Inventory
80% to 85% of annual revenues; Peak Receivables
Q2 July - September
Q3 October - December
Q4 January - March
o Content revision/ development
by editorial team in collaboration with authors.
o Sample distribution and evaluation by schools.
o Engagement with schools & teachers. (training sessions, workshops, etc.).
o Sample distribution.
(September)
o Return of unsold stock from
distributors as per contractual agreement.
o Semester 1 (Higher Education) and Test preparation sales based on government vacancy examinations.
o Printing of back list and best
seller titles.
o Final reconciliation and closure of distributor accounts before commencement of season sales.
o Order visibility from schools
starts building up.
o Significant sales quarter for HE
segment.
o K-12 season sales and delivery to distributors/ schools. (Peak Season)
o Semester 2 (Higher Education) and Test preparation sales based on government vacancy examinations.
o Printing of front list titles.
o Additional printing runs for back list / best seller titles based on demand.
6
SEASONAL NATURE OF OUR BUSINESS - A PICTURE IS WORTH A THOUSAND WORDS
The chart clearly highlights the seasonal nature of our industry. The company makes up the whole year profits in Q4 after posting negative profitability in the first three quarters.
7
181 303 453 2,082 340 233 517 2,621 -122 -123 -73 970 -68 -137 -68 1,193 -109 -114 -82 577 -79 -102 -58 746 (300) 300 900 1,500 2,100 2,700Q1FY17Q2FY17Q3FY17Q4FY17Q1FY18Q2FY18Q3FY18Q4FY18S Chand (Standalone) -Historical Quarterly Performance (Rs m)RevenueEBITDAPATQ1, Q2 & Q3 historically contributes approx 15%-20% of annual revenues Q4 makesfor majority revenues & profitability CONSOLIDATED FINANCIAL PERFORMANCE: Q3FY19
Expected business seasonality played out during the quarter as Q3 is typically a low revenue quarter with minor contribution to annual revenues.
8
(₹ in millions)Year ended Dec 31, 2018Dec 31, 2017Sep 30, 2018Dec 31, 2018Dec 31, 2017March 31, 2018Unaudited(Refer note 2)Unaudited(Refer note 2)Unaudited(Refer note 2)Unaudited(Refer note 2)Unaudited(Refer note 2)AuditedIRevenue from operations46 680 106 729 1,398 7,944 IIOther income32 29 17 74 60 127 IIITotal income (I+II)78 709 123 803 1,457 8,072 IVExpensesCost of published goods/materials consumed611 798 305 1,173 1,170 2,388 Publication expenses80 144 64 221 292 683 Purchases of traded goods32 17 49 98 55 74 (Increase)/decrease in inventories of finished goods and work in progress(734) (594) (347) (1,007) (668) 101 Selling and distribution expenses296 167 209 640 454 737 Employee benefits expenses403 362 367 1,127 1,015 1,386 Finance cost71 47 57 182 179 240 Depreciation and amortization expense67 47 55 177 141 193 Other expenses208 154 234 616 498 650 Total expenses (IV)1,035 1,141 994 3,227 3,135 6,450 VProfit/(loss) before share of loss in associates, exceptional items and tax (III-IV)(957) (432) (871) (2,424) (1,678) 1,622 VIShare of loss in associates10 9 4 19 10 12 VIIProfit/(loss) before exceptional items and tax (V-VI)(967) (441) (875) (2,443) (1,688) 1,609 VIIIExceptional items (refer note 11)226 - - 284 - - IXProfit/(loss) before tax (VII-VIII)(1,193) (441) (875) (2,728) (1,688) 1,609 XTax expenses:1) Current tax 12 28 (8) 6 30 585 2) Deferred tax(390) (210) (295) (849) (538) (46) XIProfit/(loss) for the period/ year from continuing operations (IX-X)(815) (259) (571) (1,884) (1,180) 1,071 ParticularsNine months period endedQuarter ended WORKING CAPITAL CYCLE – ELEVATED IN Q4, REDUCTION CONTINUES TILL Q3
• Debtors reduced from Rs6,312m as of Q4FY18 to Rs3,085m as of Q3FY19 (vs Rs5,016 in Q1FY19 & Rs3,866 in Q2FY19)
• Overall net working capital stood at 224 days on back of increased inventory to cater to Q4 sales. This is a usual industry phenomenon.
Receivable Days and Net Working Capital Days (Consolidated)
300
250
200
150
100
229
198
197
148
217
127
260
237
204
250
207
151
186
144
290
253
235
231
202
178
224
155
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Q3FY19
Recievable Days
Net Working Capital Days
Industry phenomenon of peak receivables in Q4 followed by reduction over following Q1, Q2 and Q3
9
SHAREHOLDING STRUCTURE
Market Data
As of 13th Feb, 2019
Key Institutional Investors - December 2018
% Holding
Market Capitalization (Rs Mn)
Price (Rs)
No. of shares outstanding (Mn)
Face Value (Rs.)
(Source: www.bseindia.com)
Ownership As On December 2018
4.7%
12.2%
36.4%
7,370
211
34.95
5.0
Everstone Capital Partners II LLC
International Finance Corporation
HDFC Mutual Fund
Aditya Birla Sun Life Mutual Fund
46.7%
Volrado Venture Partners Fund
Indus India Fund
Sundaram Mutual Funds
Promoter
Others
Mutual Funds
FII
BNP Paribas
(Source: www.bseindia.com)
(Source: www.bseindia.com)
9.5%
8.0%
7.1%
3.1%
2.6%
1.9%
1.3%
1.1%
10
Annexure: - China vs India – A Case Study
-
- -
in Education Sector Indian Education Sector - Overview S Chand – Group Profile S Chand - Historical Financial Performance
11
CHINA - A CASE STUDY IN GROWTH - INDIA EXPECTED TO FOLLOW SUIT
CHINA 2006 • GDP per capita US$ 2,100. •
Private education market < US$ 50 Billion*.
INDIA 2017
• GDP per capita US$ 1,940 • • •
K-12 market growing at ~ 20%. Private education market ~ US$ 30 Billion*. Education market expected to double to US$ 180 Billion by 2020.
230 MN Student Population 315 MN
CHINA 2017
INDIA 2025
• GDP per capital US$ 8,836 • •
K-12 market doubled in last 5 years. Private education market at US$ 260 Billion, expected to touch US$ 330 Billion by 2020. Largest global educational companies in book publishing, digital and vocational learning. (TAL - $ 21B, New Oriental - $ 15B, China South Publishing – $ 4 B).
•
* Industry estimates. ** Per market estimates of GDP being US$ 5 trillion by 2025.
• GDP per capita expected ~ US$ 3,600**. • Over 50% students expected to enroll in
•
private schools. Emergence of private education market led by K-12 segment.
• Billion dollar enterprises in education
industry.
12
INDIAN EDUCATION SECTOR - LARGE & GROWING ADDRESSABLE OPPORTUNITY
US$90 BN Market Size for the Indian Education Sector
Early education Test prep
Vocational
Tutoring
Higher Education
6 2 5
5
8
15
K-12
50
Informal Education Segment
o US$20 BN
o Comprises of test prep, tutoring, early education and vocational training.
o Less regulated; no restrictions on profit
distribution.
Formal Education Segment
o US$65 BN
o Comprises both K-12 schools and higher
education institutions (colleges, engineering institutes, etc.).
o Regulated segment, institutions cannot be
set up on a ‘for profit’ basis.
India education sector
(Source: Technopak Research Report. Technopak Outlook on India’s Schooling Segment June 2017. Nielsen: India Book Market Report 2015)
US$6 BN Ancillary Education Segment
S. Chand operates in this segment (K-12/ Higher Education content).
➢ Supports formal and informal education segments.
• Comprises of content, digital content & services like curriculum management.
• Mostly caters to K-12 & higher education institutions.
➢ Less regulated; no restrictions on profit distribution.
➢ K-12 ancillary market is a fast growing segment.
1.6
1.9
2.3
2.7
3.2
FY2011
FY2012
FY2013
FY2014
FY2015
(K-12 ancillary market, US$ in billion)
➢ Robust growth drivers.
• Eligible K-12 population of about 296 MN students in age group 6 to 17 years.
• Private unaided schools increased at average rate of 10.4% during 2011-15.
•
India has largest education system in the world with over 750 Universities & 35,000 colleges.
➢ Highly fragmented segment providing room for growth.
13
INDIAN EDUCATION SECTOR: INFLECTION POINT, STRONG POTENTIAL
Age-wise population distribution in India : S. Chand target market
Literacy rate improving with higher participation from students
(Source: IBEF Report)
Potential Market of 492 MN = 41% of total population
9%
113
11%
11%
10%
9%
127
133
121
111
500
450
400
350
300
250
200
150
100
50
0
29%
348
40%
30%
20%
10%
0%
-10%
-20%
-30%
16%
188
6%
66
0 to 4
5 to 9
10 to 14 15 to 19 20 to 24 25 to 44 45 to 64 above 65
No. of people (mn)
Percentage of total people
(Source: Technopak’s Outlook on India Schooling Segment)
Level of Education
Illiterate Literate but no formal schooling School - Up to 5th standard School - Up to 10th standard School - Up to 12th standard Some college but not graduate Graduate Postgraduate Literate Total
Estimated Population
% 2017 (MN) 269 27 471 242 148 67 81 40 1076 1345
20% 2% 35% 18% 11% 5% 6% 3% 80% 100%
% 2022 (MN) 250 14 501 250 153 70 97 56 1141 1391
18% 1% 36% 18% 11% 5% 7% 4% 82% 100%
Decrease in drop-out rates for primary education in India
S. Chand well positioned to benefit from sector tailwinds
(Source: Nielsen Report)
10.00%
5.6%
4.7%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
• Gross enrolment
ratio and students completing primary &
secondary education gradually improving in India.
4.3%
• Falling dropout rates and increased girls participation led to
improvement in literacy rate.
2012
2013
2014
• Government promoting education through various schemes with
budgetary support.
14
PREFERENCE TOWARDS PRIVATE, CENTRAL CURRICULUM SCHOOLS
Private schools market share increasing every year
Indian K-12 education infrastructure
(Source: IBEF Report)
120%
(Source: Technopak’s Outlook on India’s Schooling Segment)
100%
80%
60%
40%
20%
0%
20.0%
21.2%
21.5%
22.1%
23.0%
80.0%
78.8%
78.5%
77.9%
77.0%
FY11
FY12 Government schools
FY13
FY14
Private Schools
FY15
Number of Schools: 1.5 MN
Government: 1.1 MN
Private: 0.4 MN
Number of Students: 260 MN
Government: 150 MN
Private: 110 MN
No. of Teachers: 9 MN
Government: 5 MN
Private: 4 MN
Government: 10 MN
Private: 8 MN
Annual Intake: 18 MN
Additional Capacity Required: 36 MN Additional Requirement of Teachers: 2 MN Additional Resources: USD 55 BN
CBSE & ICSE increasing faster amongst affiliated board schools
Preference towards private schools continue to rise
Board
2010-11
2011-12
2012-13
2013-14
2014-15 2015-16
2016-17
CAGR
CBSE
11,349
12,337
13,898
14,778
15,933
17,474
19,446
9.4%
1,461
1,565
1,678
1,798
1,927
2,181
2,295
7.8%
ICSE
State Boards
13,16,401 13,63,862 14,47,487 14,65,871 14,60,455
Total
13,29,211 13,77,764 14,63,063 14,63,447 14,78,315
(Source : Nielsen Research Report, School Board reports, DISE)
•
Student share of private schools increasing consistently despite subsidised fees and free meals/ books in government schools.
• Government schools losing favour even amongst the rural and not so
affluent population.
• CBSE and ICSE schools are preferred for their superior curriculum and better
NA
NA
NA
NA
pedagogy.
NA
NA
•
S. Chand is a key beneficiary of increasing number of CBSE and ICSE schools, being the leading content provider to such schools amongst the private publishers.
15
PREFERENCE TOWARDS PRIVATE, CENTRAL CURRICULUM SCHOOLS
Target Market is 3,00,000 schools – growing at 8-10 % annually and student strength growing at 7-8%
•
•
•
•
Currently covering 38,000 schools in the target market
Target market growing at 8-10% annually in the no. of schools
Total student strength in India is est. 260 million
Students strength in the target market is est. 120 million and growing at 7-8 annually.
25-300 Schools
Intl Schools
CBSE + ICSE Schools
20,000 schools
55,000 -60,000 schools
Unaffiliated Private English Medium Schools
Private Unaided and Large Govt. State Board Schools in Tier 1 and 2 cities
Govt. Aided State Board Schools with Low Student Population
Total Schools in India ~ 15,00,000 schools
220,000 -240,000 schools
32,00,000 schools
16
S CHAND GROUP - LEADER IN INDIAN EDUCATION CONTENT
Delivering content, services and solutions…
➢ Long operating history of over seven decades.
➢ Offerings spanning entire the
➢ High brand equity across multiple brands.
…across the education continuum
education spectrum
o Early learning
o K-12
o Higher education
…with Pan India reach
➢ Pan-India sales and distribution network
driving deep market reach.
➢ Presence in Central (CBSE, ICSE) and State
Board affiliated schools across India.
➢ Strong author relationships.
➢ Keeping pace with time - transition from print into digital
content and services.
75+
10,000+
53 MN
Years of operating history
Active book titles
Books sold in FY2018
~ 2,443
Author relationships
29%
90 TPD
Revenue CAGR FY2012-18
Print Capacity in number of sheets
Strong content, multiple best-sellers.
Portfolio of brands focused on print / digital content.
17
S CHAND GROUP - BUSINESS SEGMENTS
K-12
Higher Education
Early Learning
Revenue contribution
80% of FY2018 revenues 40% revenue CAGR (2012-2018)
18% of FY2018 revenues 9% revenue CAGR (2012-2018)
2% of FY2018 revenues
Target Segment
School students (4 -18 years)
Test prep (>18 years) College students / professionals
Children (2-5 Years)
• Schools affiliated to Central / State Board. • Offers print content (books) and digital /
•
hybrid content and solutions. in India. Largest K-12 content player Dominant presence in Central Board affiliated schools and increasing presence in State Board affiliated schools.
• Consolidate leadership position in Central schools as preferred content partner. Increase presence in large regional markets.
•
Description/ Highlights
Strategy
Brands
• Colleges and universities (arts, science &
• Test
commerce degrees). prep
competitive for (engineering, government jobs).
exams
• Offers books, e-books, web and mobile
delivery of content.
• STEM based learning. • Children books, educative games, activity based modules (experiential learning).
• Also operates ’RiseKids’ brand.
6 pre-schools under
• Exam oriented preparation. Institutional partnerships.
•
content
for
test
• Focus on digital to expand reach and
product offering.
• Complete lifecycle.
presence
across
student
18
S CHAND GROUP - GROWTH ANCHORED BY LEADERSHIP IN K-12 SEGMENT
5,378
6,355
5,427
3,378
3,898
1,620
2,173
839
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY12
FY13
FY14
FY15
FY16
FY17
FY18
✓Best selling titles in core subjects (Mathematics, Science, English, Hindi) . ✓Hybrid offerings provide more value per unit to student compared to pure print content
Growth Strategy
❖ Consolidated leadership in CBSE/ ICSE schools as preferred content provider.
✓ More offerings in K-12 through multiple
brands.
✓ Curriculum management.
❖ Geographical diversification in large
regional markets/ state board schools.
✓ Acquisitions/ Joint Ventures.
❖ Higher share of education spend with
enhanced content offerings.
✓ Digital/ hybrid offerings.
❖ Continuous content development
19
S CHAND GROUP - POWERFUL BRAND CONNECT
Connecting with Learners
•
Art of Book making tour of the Printing Facilities
• Mystudygear App
•
Social Media
Connecting with Teachers with
•
•
•
Teacher Conclaves and Awards
Over 2000 Workshops
The Progressive Teacher magazine
Connecting with School Leadership
•
•
Best Practices in Education Tour to Finland
The Progressive School magazine
Connecting with Channel Partners
•
Dealer Meets , Events and Awards
• Monthly mailer “Sampark”
Increasing Brand presence
•
•
Brand Ambassador
Strategic Advertising
20
S CHAND GROUP - OUR THREE PRONGED STRATEGY
ACCELERATE ACQUISITONS & DIGITAL INITIATIVES
2
Leverage Reach & Expand
• Expand into regional markets through strategic
alliances/ acquisitions.
• ”Phygital” to broaden reach and improve
outcome.
• Expand digital & service offerings to new
geographies and segments.
EXECUTE CORE BUSINESS
INNOVATE NEW LEARNING TOOLS
Be Future Ready
3
• Smart books for the mobile generation. • Education streaming for learners. • Activity based learning tools (STEM).
1
Maintain Leadership
• Continue to dominate share of K-
12 content market (CBSE/ICSE/WBB). Improve share of wallet & student reach.
•
• Cover 100,000 schools by FY 2023 from current reach of 40,000+ schools.
21
S CHAND GROUP - LEVERAGE REACH & EXPAND – STRATEGIC ALLIANCES / ACQUISITIONS
STRATEGIC ALLIANCES / ACQUISITIONS
•
Strengthen penetration in the CBSE, ICSE Schools and expand into regional markets.
• Made multiple successful acquisitions in the past, integrating companies with S. Chand Group philosophy
•
•
Alliances with HMH (USA) , Sigong Media (S. Korea), Robosoft
Acquisitions made by the Group in the recent past:
Driver for acquisition
Complemented S. Chand portfolio of books specially Hindi, Commerce , Management , Distance Learning Program
Driver for acquisition
Complemented S. Chand portfolio of books specially Sanskrit, French , Art & Craft , Physical Education , Regional Languages
Driver for acquisition
Expansion in Regional Market of West Bengal, State Board, Supplementary and text book business
22
S CHAND GROUP - DIGITAL – COMPLEMENTING CORE BUSINESS THROUGH “PHYGITAL"
Short Multi-media / videos to better illustrate difficult topic to students.
• Test preparation and simulated papers for learners to test their understanding. • Students can gauge their performance
and better prepare for exams.
• Extensive support to teachers for better understanding of particular topics. • Teacher can seek support from S. Chand.
• More content in form of animations/
videos.
• Online digital library accessible to
students.
Hybrid Offerings through e-books, QR Codes, mystudygear etc.
•
Complements existing books / content, not a compete / alternative.
• Not an independent revenue stream but acts as a sales multiplier of the books relative to the books
from unorganized players.
•
Price of the book includes cost of digital access / content. Incremental Revenue ~ ₹600 million (FY18)
23
S CHAND GROUP - DIGITAL INITIATIVES – SYNERGIES TO THE CORE BUSINESS
In-House (Revenue Stream)
Digital Investments (Inorganic)
• Offerings include digital classroom learning solutions,
• Focused on investing in early stage digital companies.
• Total investments in digital investee companies is ~Rs.304
learning management
systems
and
curriculum
mn.
management which contribute to the revenue streams in
the business.
• Currently, Investment portfolio commands a valuation of around 2X as per the latest funding rounds for respective companies.
• Focus is on establishing synergies with core business
• Approximated Investments ₹976 million.
along with investment returns.
24
S CHAND – HISTORICAL FINANCIAL PERFORMANCE
+ 18% yoy
Revenue growth FY 2017-18
+ 21% yoy
Ebidta growth FY 2017-18
+ 73% yoy
PAT growth FY 2017-18
INR 31.1
Earning Per Share FY 2017-18
Summary : Consolidated Figures in INR Mn
FY 2018 Audited
FY 2017 Proforma*
Total Revenues
Ebidta
Profit before taxation
Profit after taxation
EPS (in INR)
8,072
2,054
1,622
1,071
31.1
6,868
1,705
1,081
619
20.7
YOY%
18%
21%
50%
73%
-
FY 2017 Audited
6,622
1,687
1,069
613
20.5
Financial results have been prepared in accordance with IND-AS. * 2017 Proforma includes consolidation of operational performance of Chhaya for the full year.
25
S CHAND – HISTORICAL FINANCIAL PERFORMANCE
Increasing Contribution of K-12 to Group Revenues.
Revenue Growth = Organic Growth + Acquisitions.
Early learning
K12
Higher Education
Other Revenue
6 - Year CAGR : 29%
1,237
3,378
1,282
3,898
1,345
2,173
1,224
5,427
1,403
6,355
FY2014
FY2015
FY2016
FY2017
FY2018
2,816
3,710
4,785
5,407
6,833
7,945
FY13
FY14
FY15
FY16
FY17
FY18
1,746
FY12
EBIDTA Growth at a Faster Pace.
Net Profit Growth (excluding minority).
6 - Year CAGR : 40%
6 - Year CAGR : 39%
599
798
1,040
1,281
1,705
2,054
FY13
FY14
FY15
FY16
FY17
FY18
271
FY12
147
FY12
323
423
268
466
582
FY13
FY14
FY15
FY16
FY17
1,071
FY18
Figures for FY 2017 & FY 2018 are as per IND-AS. Prior year figures are as per Indian GAAP and may be fully comparable.
26
S CHAND – IMPROVING MARGIN PROFILE
Improving Margin Profile
• Economies of scale
• Production Efficiency
• Rationalization of Royalty
•
Improved realization from DEBs
• Operating Leverage
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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, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of S. Chand about the business, industry and markets in which S. Chand operates.
These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond S. Chand’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of S. Chand.
In particular, such statements should not be regarded as a projection of future performance of S. Chand. It should be noted that the actual performance or achievements of S. Chand may vary significantly from such statements.
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Saurabh Mittal Chief Finance Officer Contact No : +91 11 4973 1800 Email : investorrelations@schandgroup.com
Atul Soni Head – Investor Relations Contact No : +91 11 4973 1800 Email : asoni@schandgroup.com
CIN: L22219DL1970PLC005400 Registered Office: Ravindra Mansion, Ram Nagar, New Delhi-110055, India.