S Chand And Company Limited has informed the Exchange regarding Investor Presentation
-!-~
T S.CHAND GROUP
S Chand And Company Limited
Reqistered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. P: +91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandqroup.com I www.schandgroup.com
To Listing Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai, Maharashtra 40000 I
Dear Sir,
Date: August I 0, 2019
To Listing Department, National Stock Exchange oflndia Limited Exchange Plaza, C-1, Block G, Sandra Kurla Complex, Sandra (E), Mumbai, Maharashtra 400051
Re: Investors Presentation-Financial Results-OJ and FY 2019-20-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 Tuesday, August 13, 20 I 9 at I :00 P.M. to discuss the financial results for the quarter ended June 30, 20 I 9 is attached herewith.
The Company shall also disseminate the above information on the website of the Company 1.e. www.schandgroup.com.
Jagdeep Singh Company Secretary & Compliance Officer Membership No.: A15028 Address: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi-I 10044
CIN No. L22219DL 1970PLC00S400
~ =;=- S.CHAND GROUP
S. Chand and Company Limited Q1 – FY2019-20 Investor Update 10th August, 2019
www.schandgroup.com
• ~ -F
S.CHAND GROUP
SUMMARY
• QUARTER IN NUMBERS • KEY HIGHLIGHTS – Q1FY20 • WORKING CAPITAL CYCLE – TURNAROUND VISIBLE IN
METRICS
• WORKING CAPITAL CYCLE - HIGHEST IMPACT ON METRICS
IN PAST 4 YEARS
• NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD • COST SAVINGS MEASURES MAKING AN IMPACT IN Q1 –
MORE TO FOLLOW IN Q2
• S CHAND 3.0 – TARGET HIGHER FREE CASH FLOWS IN
FY20
• CONSOLIDATED FINANCIAL PERFORMANCE • DIGITAL INITIATIVES - UPDATE • SHAREHOLDING STRUCTURE • GOING AHEAD • ANNEXURES
www.schandgroup.com
2
QUARTER IN NUMBERS
• ~ -F
S.CHAND GROUP
6%
Sales Growth (YoY %)
73%
43%
24%
Increase in Gross Margins (Rs m)
Reduction in EBITDA Losses (YoY %)
Reduction in PAT Losses (YoY %)
30% Reduction in Sales returns (YoY %)
28% Collection Efficiency (vs. 20% in Q1FY19)
12% Reduction in Net Working Capital in Q1FY20 (Days)
5% QoQ Reduction in Inventory (Rs m)
www.schandgroup.com
3
KEY HIGHLIGHTS – Q1FY20
• ~ -F
S.CHAND GROUP
•
Financial Highlights – On track to achieve improved profitability by reducing losses
• Consolidated Revenue from Operations stood at Rs 613m for the April-June quarter, up 6% YoY
• Gross Margins increased to Rs307m (vs. Rs178m in Q1FY19), up 73% YoY
• Consolidated EBITDA loss reduced to Rs276m vs. Loss of Rs488m in Q1FY19 - Reduction of EBITDA loss by 43%
• Consolidated PAT loss reduced to Rs378m vs. Loss of Rs498m in Q1FY19 - Reduction of PAT loss by 24%
• Operating Parameters - Strong focus on improving balance sheet metrics yielding results
•
Trade Receivables
• Receivables reduced to Rs3,202m in Q1FY20 vs. Rs4,446 as of Q4FY19. In terms of receivable days, it stood at
221 days (vs. 311 days in Q4FY19), a reduction of 90 days during Q1FY20 (vs. reduction of 62 days in Q1FY19).
•
Strong reduction in debtors during Q1 translates into an improved 28% collection efficiency for Q1FY20 (vs. 20%
in Q1FY19). Do keep in mind that this collection in Q1 is against a much lower previous year receivables balance
of Rs4,446m (FY19) vs. Rs6,312m (FY18). This is the highest collection efficiency during Q1 since last 4 years.
•
Inventory reduced to Rs1,949m (vs Q4FY19: Rs2,048m) during Q1.
• Net Working Capital reduced to 280 days (vs. 317 days in Q4FY19) which is a reduction of 37 days (vs. reduction of
22 days in Q1FY19).
www.schandgroup.com
4
KEY HIGHLIGHTS – Q1FY20
• ~ -F
S.CHAND GROUP
•
The Draft New Education Policy was finally announced on 31st May, 2019.
• We await the release of the National Curriculum Framework (NCF) by end of CY2020 which would form the backbone of the
new curriculum which would be the basis for publishing new & revised books.
•
Strong runway of growth for at least 2-3 years. Since the new curriculum (NCF) is being developed after a gap of 15 years, it
would eliminate impacts of
the second-hand book market and would lead to strong growth for at least 2-3 years as seen
historically in both national and state curriculum change periods.
•
“S Chand 3.0” journey focused on increasing Free cash flows well on track
•
•
•
Employee right sizing exercise completed over Q1 FY20 (higher impact to be seen from Q2).
Reduced sales returns from Channel partners by ~30% during the quarter on a YoY basis (on back of higher adoptions in
schools).
Collection efficiency improved vs. Q1FY19 collections from 20% to 28% in current quarter.
• On back of our focus on various operational elements of the business and cost control measures across the group we are
expecting additional cost savings going ahead and increasing free cash flows by the end of FY20.
• Net Debt as on 30th June 2019: Rs1,724m, Gross Debt reduced by Rs273m to Rs2206m (vs. Rs2479m in Q4FY19)
• We are at a comfortable Debt to Equity ratio of 0.25x and we expect debt levels to reduce going ahead on back of higher free
cash flow generation from business.
www.schandgroup.com
5
WORKING CAPITAL CYCLE – TURNAROUND VISIBLE IN METRICS
• ~ -F
S.CHAND GROUP
• Debtors reduced to Rs3,202m as of Q1FY20 from Rs4,446m in Q4FY19. Receivable days reduced by 90 days to 221 days (vs. 311 in Q4FY19) which is
the highest reduction during Q1 in the past 4 years.
•
Inventory decreased to Rs1,949m as of 1QFY20 (vs. Rs2,048 in Q4FY19) on back of rationalization of stock levels.
• We expect our focus on receivable collection and inventory rationalization to reduce working capital in the coming quarters.
Receivable Days and Net Working Capital Days (Consolidated)
260
250
237
204
207
151
186
144
290
253
235
228
202
182
224
160
350
300
250
200
150
100
317
311
280
221
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Recievable Days
Q1FY19
Q2FY19 Net Working Capital Days
Q3FY19
Q4FY19
Q1FY20
We expect our focus on collection and working capital metrics to deliver strong benefits going ahead.
www.schandgroup.com
6
WORKING CAPITAL CYCLE – HIGHEST IMPACT IN METRICS IN PAST 4 YEARS
• ~ -F
S.CHAND GROUP
• Highest reduction seen in receivables and Net Working Capital days over the past 4 years.
•
This improvement is on back of our renewed focus on improving our collection efficiency and focus on effective working capital management.
We expect our focus on collection and working capital metrics to deliver strong benefits going ahead.
•
www.schandgroup.com
7
17 8 22 37 - 20 40Q1FY17Q1FY18Q1FY19Q1FY20Reduction in Net Working Capital days in Q1 (Days)70 53 62 90 40 60 80 100Q1FY17Q1FY18Q1FY19Q1FY20Reduction in Receivable days in Q1 (Days) NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD
• ~ -F
S.CHAND GROUP
•
The Draft New Education Policy (NEP) was announced on 31st May, 2019
by Honourable Union Human Resource Development Minister, Mr.
•
•
•
•
Ramesh Pokhriyal 'Nishank’.
Expected release of the New National Curriculum Framework after taking
inputs from all stakeholders is by end of CY2020.
Strong runway of growth for at least 2-3 years. Since the New
Curriculum is being developed after a gap of 15 years, it would eliminate
impact of second-hand book market and would lead to strong growth for
at least 2-3 years.
Lessons from 2005 NEP/NCF roll out. During 2005 NCF announcement,
the new syllabus was rolled out over a period of 3 years with 5 grades
moving to the new syllabus in Year 1, another 5 grades moving to new
syllabus in year 2 and 2 grades moving to new syllabus in year 3.
Impact of NEP 2019 on the company financials expected to be from FY21
at the earliest and fully baked in from FY22 onwards.
• Announcement of Draft New
May, 2019
Education Policy (NEP)
• Announcement of New
Curriculum Framework (NCF)
By end of 2020
• Development of books based
CY2021
on the new curriculam
• Complete impact of NCF to
percolate down to the industry
FY22 onwards
www.schandgroup.com
8
COST SAVINGS MEASURES MAKING AN IMPACT IN Q1 – MORE TO FOLLOW IN Q2
Employee Costs
• The organization has been right sized by over 400 employees in the last 6 months. Partial benefits reflected in current quarter financials. Annualized Impact
of ~ Rs.250-300 Mn
Numbers of Offices & Warehouse/Rentals Rationalization
• Consolidation of warehouses and offices across the country completed. Over 25 locations offices and warehouses restructured and to operate from
Regional Hubs . Annualized Impact ~ Rs. 80-100 Mn
• Consolidation of warehouses and better freight/courier management using analytics to optimize inventory routing and reduced delivery times.
Evaluation of Internal Expenses and eliminating dispensable spends
• Rationalization of other expenses – Annualized Impact ~ 75-100Mn • Increased usage of technology to reduce spends on internal meetings, travel and events. • Events rationalized based on ROI
Raw Material
• Going into FY20, we are looking to improve contribution per MT of paper consumed. • Working on realignment of grammage and size of paper consumed depending upon titles/markets/subjects/end product pricing.
Royalty
• We have renegotiated certain royalty agreements with Authors for royalty as per current market practises and dynamics.
Cost Saving exercise completed during Q1FY20, partial impact visible. Full benefits to flow in from Q2 onwards.
•
www.schandgroup.com
9
S CHAND 3.0 – TARGET HIGHER FREE CASH FLOWS IN FY20
• ~ -F
S.CHAND
Lowering operating costs
- - - - - - - - - - - - - GROUP
• Right Sizing of our employee base by over 400 employees • Rationalization of number of offices and consolidation of warehouses at over 25 locations • Focus on manpower optimization through shared services across group companies. • Renegotiations of all major operational cost items to bring costs lower.
Working with higher quality channel partners
• 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. • Warehouse consolidation at 15 locations. • Rationalizing number of SKU’s. • Eliminating print of titles which do not meet sales threshold limits.
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. • Best-selling titles being sold against reduced credit / advance payment.
www.schandgroup.com
10
CONSOLIDATED FINANCIAL PERFORMANCE
• ~ -F
S.CHAND GROUP
S Chand 3.0 program of cost reduction showing its benefits in Q1. We expect more benefits to flow through from Q2 onwards leading to higher cash flows for the company.
..
www.schandgroup.com
11
(₹ in millions)Q1FY20Q1FY19Y-o-Y%Q4FY19FY19Revenue from operations613 577 6%4,491 5,220 Other income24 25 (4)%42 116 Total income 637 601 6%4,534 5,336 Cost of published goods/materials consumed198 256 (23)%921 2,094 Purchases of traded goods13 17 (23)%56 154 (Increase)/decrease in inventories of finished goods and WIP61 74 (18)%567 (440) Publication expenses57 77 (25)%227 448 Gross Margin307 178 73%2,763 3,081 Gross Margin (%)48%30%n.a61%58%Selling and distribution expenses105 136 (22)%244 884 Employee benefits expenses314 357 (12)%384 1,511 Other expenses164 173 (6)%265 881 EBITDA(276) (488) (43)%1,870 (195) EBITDA margin %(43)%(81)%n.a41%(4)%Finance cost84 54 54%90 272 Depreciation and amortization expense88 55 61%60 237 Profit/(loss) before share of loss in associates, exceptional items and tax (447) (597) (25)%1,719 (705) Share of profit/(loss) in associates(4) (5) (21)%5 (14) Exceptional items (refer note 11)- (58) (100)%51 (233) Profit/(loss) before tax(452) (660) (32)%1,775 (953) Tax (73) (162) (55)%560 (283) Profit/(loss) for the year(378) (498) (24)%1,215 (669) Earnings/(loss) per equity share (in ₹) (for discontinued and continuing operations)1) Basic(10.8) (14.3) (24)%34.7 (19.1) 2) Diluted(10.8) (14.3) (24)%34.7 (19.1) DIGITAL INITIATIVES – UPDATE
•
•
Launched Learnflix on the Android platform, our
all-in-one learning platform for the Gen X student.
Started Test marketing of Smart K – Our
curriculum product for play schools in the NCR
region during the quarter.
• Our digital offerings include-:
•
Destination Success – Enabling Digital
Engaging Videos, QuiuH and eBooks
classrooms
• Mylestone – School Curriculum
• Nuri Nori, Risekids, Smart K - Early Learning
•
Test Coach – Book assisted mobile mock
exam App
Photosynthesis I Importance, Process, & Reactions In Plants Without Oxygen .....
• ~ ----F
S.CHAND GROUP
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JIS
316
Concepts
Synthdic ftbt"H --CJ:t CorNCIAM"""'
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Personalized Learning
Engaging Videos
Focussed Analytics
Learn at your own pace anytime anywhere
Learn every concept visually for a better foundation
Master your weak areas with focussed analytics
www.schandgroup.com
12
Key Institutional Investors - June 2019
% Holding
• ~ -F
S.CHAND GROUP
SHAREHOLDING STRUCTURE
As of 9th August, 2019
2,130
60
34.95
5.0
Market Data
Market Capitalization (Rs Mn)
Price (Rs)
No. of shares outstanding (Mn)
Face Value (Rs.)
(Source: www.bseindia.com)
Ownership As of 31st June 2019
11.4%
2.9%
Everstone Capital Partners II LLC
International Finance Corporation
HDFC Mutual Fund
Aditya Birla Sun Life Mutual Fund
46.9%
Volrado Venture Partners Fund
38.8%
Promoter
■
Others
■
Mutual Funds
■
FII
■
(Source: www.bseindia.com)
www.schandgroup.com
Sundaram Mutual Funds
BNP Paribas
Aadi Financial
(Source: www.bseindia.com)
9.5%
8.0%
6.4%
3.0%
2.4%
1.3%
1.1%
1.0%
13
• ~ -F
S.CHAND GROUP
GOING AHEAD
•
FY20
•
•
•
EBITDA to FCF generation ratio of over 50%.
35%-40% lower Sales returns from Channel Partners vs. FY19.
Improved working capital metrics from better terms of trade with channel partners and inventory rationalization.
• Medium term – 3 years
• Debt free in 3 years from the increased focus on free cash flows.
•
Increasing the share of Digital & Services segment to 20- 25% over the next 3 years
www.schandgroup.com
14
• ~ -F
S.CHAND GROUP
Annexure: - China vs India – A Case Study
in Education Sector Indian Education Sector - Overview S Chand Group
-
-
www.schandgroup.com
15
CHINA - A CASE STUDY IN GROWTH - INDIA EXPECTED TO FOLLOW SUIT
• ~ --v ;~-----------------------------------------------------------, I --------- ~ I I I I I I I
K-12 market growing at ~ 20%. Private education market ~ US$ 30 Billion*. Education market expected to double to US$ 180 Billion by 2020. '~----------------------------------------------------------;
--------- • GDP per capita US$ 1,940 • • •
CHINA 2006 • GDP per capita US$ 2,100. •
Private education market < US$ 50 Billion*.
S.CHAND GROUP
INDIA 2017
I I \
'f'IINIINIUi-
•
*::
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).
•
TAL Education Group mff!,-Ji
XDll='. CN
* Industry estimates. ** Per market estimates of GDP being US$ 5 trillion by 2025.
www.schandgroup.com
• 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. ~ ~
S.CHAND
16
INDIAN EDUCATION SECTOR - LARGE & GROWING ADDRESSABLE OPPORTUNITY
£ -F S.CHAND GROUP
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.
www.schandgro up.com
17
INDIAN EDUCATION SECTOR: INFLECTION POINT, STRONG POTENTIAL
• ~ -F
S.CHAND GROUP
Age-wise population distribution in India : S. Chand target market
Literacy rate improving with higher participation from students
29%
348
500
450
400
350
300
250
200
150
100
50
0
(Source: IBEF Report)
Potential Market of 492 MN = 41% of total population
9%
11%
11%
10%
9%
127
133
121
113
I I I I I -
-
No. of people (mn)
5 to 9
111
0 to 4
16%
6%
188
I •
66
40%
30%
20%
10%
0%
-10%
-20%
-30%
(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%
10 to 14 15 to 19 20 to 24 25 to 44 45 to 64 above 65
Percentage of total people
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%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
4.7%
•
4.3%
2012
2013
2014
• Gross enrolment
ratio and students completing primary &
secondary education gradually improving in India.
• Falling dropout rates and increased girls participation led to
improvement in literacy rate.
• Government promoting education through various schemes with
budgetary support.
www.schandgroup.com
18
PREFERENCE TOWARDS PRIVATE, CENTRAL CURRICULUM SCHOOLS
• ~ -F
S.CHAND GROUP
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)
Number of Schools: 1.5 MN
20.0%
21.2%
21.5%
22.1%
23.0%
80.0%
78.8%
78.5%
77.9%
77.0%
100%
80%
60%
40%
20%
0%
FY11
FY12 Government schools
FY13
■
FY14
FY15
Private Schools
■
- - -,
Government: 1.1 MN
Government: 150 MN
Government: 5 MN
Government: 10 MN
No. of Teachers: 9 MN
Number of Students: 260 MN
Private: 0.4 MN I I Private: 110 MN I I Private: 4 MN I I I Private: 8 MN Additional Capacity Required: 36 MN Additional Requirement of Teachers: 2 MN Additional Resources: USD 55 BN
Annual Intake: 18 MN
I I I I I
I
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
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)
I I I I I
7.8%
I ~---.a
•
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.
www.schandgroup.com
19
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%
• ~ -F
S.CHAND GROUP
•
•
•
•
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
www.schandgroup.com
20
S CHAND GROUP - LEADER IN INDIAN EDUCATION CONTENT
~ =;=,
S.CHAND GROUP
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.
80
10,000+
Years of operating history
Active book titles
~ 2,400
90 TPD
Author relationships
Print Capacity in number of sheets
Strong content, multiple best-sellers.
Portfolio of brands focused on print / digital content.
I
~ ~ =F-
VIKAS
S.CHAND
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www.schandgroup.com
21
• ~ -F
S.CHAND GROUP
S CHAND GROUP - 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.
www.schandgroup.com
22
• ~ ----;----
S. CHAND GROUP
S CHAND GROUP - POWERFUL BRAND CONNECT
Connecting with Learners
•
Art of Book making tour of the Printing Facilities
• Mystudygear App / VRX App / Learnflix App / Test Coach 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
www.schandgroup.com
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S CHAND GROUP - DIGITAL INITIATIVES – SYNERGIES TO THE CORE BUSINESS
In-House (Revenue Stream)
Digital Investments (Inorganic)
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S.CHAND GROUP
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DIGITALLY ENABLED LEARNING DESTINATION SUCCESS
INSPIRES LEARNING
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IGNITOR
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• Offerings include digital classroom learning solutions,
• Focused on investing in early stage digital companies.
• Total investments in digital investee companies is approx.
learning management
systems
and
curriculum
Rs.300m.
management which contribute to the revenue streams in
the business.
• Currently, Investment portfolio commands a valuation of around 2X as per the last funding rounds for respective companies.
• Focus is on establishing synergies with core business
• Approximated Investments is Rs1300 million.
along with investment returns.
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S.CHAND GROUP
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.
S.CHAND® GROUP a knowledge corporation
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
Corporate/Registered Office: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi 110044
www.schandgroup.com
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