S Chand Publishing, India’s leading education content publisher and book publisher reported its results for the fourth quarter & for the financial year ending 31st March 2023.
HIGHLIGHTS OF FY23 RESULTS
Some of the highlights of the FY23 results are as follows:
- The operating revenues reached Rs6,103 million, marking the highest level achieved in the past five years and showing a year-on-year increase of 27%.
- The company achieved an EBITDA of Rs963 million, its highest in the past five years, showing a year-on-year growth of 57%.
- The company recorded a net profit after tax (PAT) of Rs576 million, its highest in the past five years, reflecting a remarkable year-on-year increase of 616%.
- As of April 2023, S Chand successfully eliminated its net debt, becoming debt-free.
- S Chand reinstated its annual dividend payout after the financial year 2018 and announced a dividend of Rs3 per share.
- The company achieved its lowest receivables and net working capital (NWC) days during the fourth quarter, with receivables at 159 days and NWC at 188 days.
- In July 2022, S Chand exited its minority stake in Testbook, realizing a return of 7.8x, amounting to Rs180m.
- In December 2022, S Chand exited its minority stake in iNeuron, earning a return of 2.1x, totaling Rs138m.
COMPANY TURNS NET DEBT FREE IN APRIL, 2023
We ended the year with Net Debt of Rs60m (vs. Rs721m in Q4FY22) and Gross Debt of Rs1,268m (vs. Rs1,572m in Q4FY22). We turned Net Debt free in April, 2023.
LOOKING AHEAD to FY24
- Target EBITDA margin band of 16%-18%.
- Gross margins can increase in case paper prices decline during the year
- Strong growth in S Chand Academy YouTube channel.
- Focus on working capital metrics and cash flows to continue.
- We look forward to announcement of NCF for more classes in CY23 which will help in volume expansion.
- Operating revenues to be in the range of Rs720cr to Rs750cr (Vs. Rs610cr in FY23).
- Would take a single digit price hike across portfolio in FY24.
Mr. Himanshu Gupta, Managing Director of S Chand and Company Limited, commented on the successful results and said,
“In FY23, S Chand and Company demonstrated strong growth momentum and we have crossed some very significant milestones during the year. The results of our performance in FY2023 reflects the strength of our operations and the hard work of our team. Our company’s long-standing history and excellent reputation in the publishing industry, combined with the expertise of our experienced team has helped us maintain our market position and strengthen our relationships with schools, authors, and teaching community.
We are proud to say that we have achieved our goal of becoming net debt-free company in April, 2023 through consistent efforts on working capital management. Our strategic partnerships and collaborations have allowed us to expand our offerings and meet the changing needs of our customers. Our commitment is to continue this positive trend and enhance our financial position over the long term. We look forward to fuel the next leg of growth for our company on back of the National Curriculum Framework announcement in CY2023 by providing high-quality content and expertise to all students in line with our vision.”
Mr. Saurabh Mittal, Group CFO of S Chand and Company Limited, commented on the annual results and said,
“Our consolidated revenues reached Rs6103 million, EBITDA of Rs963 million and PAT of Rs576 million. We showed healthy revenue growth and sustainable profit margins during FY23. We have reinstated our annual dividend after FY18 and we turned Net Debt free in April, 2023.
One of the strongest features of the company’s result is our liquidity position and steady cash flows. We remain focused on building sustainable long-term value for all our stakeholders, and we believe that our unwavering commitment towards operational excellence and delivering value to our customers will continue to drive our success in the coming years.”